Philippine e-wallet restrictions trigger 49% decline in PAGCOR revenue

After e-wallets cut off access to online gambling sites under a central bank directive, Philippine regulators say legal gaming revenue fell 49%, while more players are reportedly turning to unregulated platforms that operate without deposit or top-up limits.

The Bangko Sentral ng Pilipinas (BSP) issued a directive on August 14 ordering e-wallet providers and digital payment systems, including GCash and Maya, to remove links and icons that directed users to gambling sites. The order came after a Senate hearing that examined the regulation and possible ban of online gambling in the Philippines.

At a hearing before the House Committee on Games and Amusements on October 22, Jessa Mariz Fernandez, Philippine Amusement and Gaming Corp. (PAGCOR) Assistant Vice President, reported that the agency’s monthly income dropped from ₱5.7 billion ($97.3 million) in May to ₱2.9 billion ($49.5 million) in September. Fernandez attributed the steep decline to the delinking of e-wallets from gambling platforms and a reduction in new player registrations since the directive took effect.

As of September, PAGCOR’s total gaming income stood at ₱40.57 billion ($693 million) for the year. Fernandez said the regulator may fall short of its ₱60 billion ($1.03 billion) gross gaming revenue (GGR) forecast for 2025, noting that 60% of its income is derived from online gambling.

Following the BSP order, PAGCOR reported that some players have migrated to illegal online gambling sites, which are not bound by limits on top-ups or minimum deposits. The regulator said 93% of the 13,399 illegal sites reported since 2022 have been blocked by the National Telecommunications Commission.

Fernandez told lawmakers that the implementation of a minimum deposit requirement has also discouraged some users from continuing to play with licensed operators. She said PAGCOR continues to monitor player activity as part of its compliance and enforcement role.

Lawmakers questioned e-wallet companies about how they previously generated income from gambling transactions. Maya Corporate Affairs Head Toff Rada said PAGCOR-licensed gaming operators were treated as merchants, allowing the company to receive “a certain percentage out of every transaction,” estimated at 2% to 3%.

G-Xchange Inc. Head of Advocacy Mark Anthony Amurao said GCash had similar arrangements but clarified that no deductions were made from users’ accounts. Instead, operators covered the agreed transaction fees. GCash declined to disclose exact rates, citing confidentiality agreements.

The BSP told legislators it is finalizing a circular introducing new restrictions for digital payment systems. These include betting and top-up limits, restrictions on the use of online loans for gambling, and self-disabling account features. “In other words, when you start to engage in online gambling, we require that the bank or the e-wallet or the e-money issuer sever the link from the lending,” BSP Deputy Governor Mamerto Tangonan said.

The central bank’s initiative aligns with proposed bills from lawmakers such as Rep. Jonathan Keith Flores (Bukidnon, 2nd District) and Rep. Chel Diokno (Akbayan Party-list), who seek to prohibit e-wallets from promoting gambling, impose transaction limits, or implement an outright ban on online gaming.

Gross gaming revenue from the electronic games sector reached ₱154.51 billion ($2.64 billion) in 2024, up from ₱58.16 billion ($994 million) a year earlier, accounting for nearly half of the industry’s total ₱372.33 billion ($6.36 billion) GGR. In the first half of 2025, e-games generated ₱114.83 billion ($1.96 billion), or 53.5% of total GGR.

The Department of Economy, Planning and Development said online gambling contributed only 0.37% to the country’s gross domestic product, while PAGCOR maintained that revenues from legal gaming support government programs in healthcare, education, and community development.

PAGCOR Chairman and CEO Alejandro Tengco said the regulator supports tighter oversight rather than a total ban on online gambling.