PAGCOR reports 49% income drop after eWallet platforms cut gambling links

The Philippine Amusement and Gaming Corporation (PAGCOR) has reported a sharp 49% decline in income following the removal of gambling payment links from major eWallet providers.

During a recent House Committee on Games and Amusement hearing, PAGCOR assistant vice president Jessa Mariz Fernandez said the drop occurred within the first two weeks after digital payment giants GCash and PayMaya delisted gambling-related transactions. PAGCOR had initially projected to earn around 60 billion pesos (US$1 billion) this year, but a sharp downturn beginning in August now threatens to pull full-year earnings well below target.

The Senate hearing, which examined proposals from an outright ban to stricter oversight of online gambling, also revealed that new 500 pesos (US$8.5) minimum deposit rule may have contributed to the recent drop in player activity.

Don't miss: Gambling ad billboards are coming down in the Philippines, but the real fight remains online

Amid the sharp decline, PAGCOR announced plans to deploy an artificial intelligence-powered tool that can detect and help block illegal gambling websites in real time. Fernandez said the tool would enable quicker blocking of unlicensed operators, reinforcing PAGCOR’s position on tighter regulation rather than an outright ban. 

Committee chair Senator Erwin Tulfo had said the review would continue to assess the social and economic implications of online gambling, with several bills currently under deliberation. Meanwhile, the Bangko Sentral ng Pilipinas (BSP) said it is drafting a circular to regulate online gambling payment services, including limits on betting amounts and top-up periods. The proposed cap would restrict bets to 20% of the previous day’s ending balance, with a six-hour window for fund top-ups.

Senator Risa Hontiveros sounded the alarm on the social risks of high-stakes online gambling, noting that some users could still wager up to six digits through eWallets despite the BSP’s directive to remove in-app gambling links. Previously, it was reported that the crackdown has curbed legal transactions but driven players toward unregulated platforms.

BSP deputy governor Mamerto Tangonan clarified that while eWallet icons linked to gambling platforms have been removed, licensed operators are still treated as merchants, allowing cash-in and cash-out transactions.

The National Telecommunications Commission has blocked 12,562 sites - around 93% of the illegal gambling websites flagged by PAGCOR since September 2022. The Philippine National Police Anti-Cybercrime Group reported 163 arrests across 12 operations targeting online gambling since January 2023.

GCash and Maya executives, meanwhile, pledged full compliance with regulatory directives, including limits on gambling-related top-ups. Both firms also recognised the potential misuse of their lending features for gambling and said preventive measures have been put in place.

Online gambling contributes only about 0.37% to the economy, according to the DEPDev, but PAGCOR argued it remains a key funding source for government programmes such as Universal Health Care. Fernandez said nearly 60% of PAGCOR’s income comes from online gambling, and a total ban could reduce its remittances to the National Treasury, half of which go to PhilHealth under the UHC Act.

In July, PAGCOR announced a sweeping directive ordering the removal of all gambling-related outdoor ads, marking a major shift in how gaming operators can market their services. Despite this, concerns remained over the surge of online gambling promotions.

Related articles:
Philippines cracks down on out-of-home gambling ads in sweeping policy shift
BSP tightens grip on eWallets amid online gambling crackdown
Clampdown on eWallets spurs shift to unregulated gambling platforms in PH