BSP proposes stricter rules for online gambling payments

The Bangko Sentral ng Pilipinas (BSP) is proposing stricter regulations on online gambling payments, including daily transfer limits and heightened due diligence for operators of e-games.

Under the draft circular, payment service providers must secure prior authority from the BSP before engaging in online gambling payment services and maintain a minimum capitalization of P300 million.

The proposed rules also require PSPs to prohibit links to unlicensed online gambling platforms, establish separate transaction accounts for eligible account holders with strict daily transfer limits not exceeding 20 percent of an individual's average daily balance, and process transactions within a six-hour window.

To enhance monitoring, PSPs must implement facial biometric verification, impose cooling-off periods for heavy usage, and develop responsible gambling policies to prevent addiction.

The draft circular also mandates that users be at least 21 years old and not hold certain government positions or be beneficiaries of the conditional cash transfer program known as 4PS. Payment service providers are required to seek prior authority from the BSP and have a minimum capitalization of P300 million, among other stringent requirements.

The BSP is consulting stakeholders on the draft circular until July 25, aiming to mitigate social and financial risks associated with online gambling while promoting responsible use of digital financial services.