Online gambling in Philippines under review amid renewed dirty money concerns: Report
Philippine regulators have turned their attention to the risks posed by online gambling as authorities continue efforts to safeguard the country from financial crimes such as money laundering and terrorism financing. In a text message to local media, the Inquirer, the Anti-Money Laundering Council (AMLC), chaired by Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, Governor Eli Remolona Jr. confirmed that the agency had initiated a risk assessment focusing on various online gambling formats to identify potential vulnerabilities.
The move follows the country’s removal from the Financial Action Task Force (FATF) grey list in February. The Philippines has been under heightened scrutiny since June 2021 due to weaknesses in its anti-money laundering (AML) and counter-terrorism financing (CTF) systems. The delisting came after over three years of reform efforts, including the crackdown on Philippine Offshore Gaming Operators (POGOs), which the FATF had identified as a major point of concern.
POGO ban aided ‘grey list’ exit, but risks remain
The ban on POGOs, initiated through Executive Order 33 by President Ferdinand Marcos Jr. played a critical role in the country’s removal from FATF monitoring. The government said the ban addressed long-standing concerns regarding regulatory gaps and the exploitation of offshore gambling platforms by illicit actors. However, authorities and financial experts caution that the battle is far from over. They said that with the rapid expansion of other forms of online gambling now taking centre stage in the Southeast Asian country.
Despite the removal of POGOs from the legal landscape, the online gambling sector continues to grow. According to the Philippine Amusement and Gaming Corporation (PAGCOR), the electronic gaming sector’s gross revenue surged by over 300 percent in 2024 to PHP135.7 billion ($2.4 billion). The broader gaming industry posted revenues of PHP410.5 billion ($7.7 billion), a nearly 25 percent increase from the previous year. PAGCOR anticipates that online gaming could rival the earnings of traditional casinos within the next two to three years.
Lawmakers raise concerns over onshore online gambling
The rapid growth in digital gaming has raised concerns among legislators, including Senate President Francis Escudero, who recently called for a review of online gambling that targets local players. There is mounting unease over the potential social and economic consequences of widespread access to gambling platforms, particularly in the absence of stricter regulatory oversight.
Experts, including financial crime analysts, have pointed out that even with the POGO exit, underground operations may persist. They argue that enforcement and regulation alone may not be enough to curb illicit activities. There is increasing support for enhanced collaboration between the public and private sectors to bolster monitoring and enforcement.
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