Philippine Online Gambling Platforms Evade Crackdown with New Platforms

In a persistent battle against online gambling, Philippine authorities face a formidable challenge as operators swiftly adapt to new platforms, circumventing tightened regulations. Senator Erwin Tulfo, chair of the Senate committee on games and amusement, warned on August 17 that the fight is far from over, with gambling firms shifting operations to mobile applications like Viber, Telegram, and even e-commerce platforms such as Lazada. This development comes amid government efforts to curb the accessibility of online gambling, a practice increasingly linked to social ills in the country.

Government Tightens Regulations, Operators Pivot

The Philippine government, through the Bangko Sentral ng Pilipinas (BSP), has intensified its crackdown on online gambling by imposing stricter controls on e-wallet platforms. During a Senate hearing on August 14, BSP Deputy Governor Mamerto Tangonan revealed that e-wallet providers like GCash and Maya were directed to disable features that facilitate access to gambling sites. Following this directive, Maya announced on August 16 that it had disabled links to gambling platforms via its Games feature. Similarly, GCash, operated by GXchange Inc., confirmed it had severed access through its GLife feature.

Senator Tulfo praised these efforts, stating on August 17 that the willingness of e-wallet firms to delink gambling sites from their platforms signals a positive collaboration between the business sector and the government in tackling online gambling addiction. However, the senator cautioned that operators are quick to adapt, finding alternative avenues to sustain their operations.

One such operator, BingoPlus, which claims to be licensed by the Philippine Amusement and Gaming Corp. (Pagcor), issued an advisory on August 16. The advisory informed users that they could continue playing through the BingoPlus app, website, and Viber, with deposits and withdrawals still accessible via Cash and Maya. Tulfo highlighted this as evidence of operators’ agility in navigating regulatory barriers, noting that the advisory explicitly encouraged gamers to access gambling services through alternative channels like Viber.

Adding another layer of complexity, the e-commerce platform Lazada has emerged as a conduit for online gambling. Tulfo pointed out that Lazada sells vouchers that can be redeemed as credit points for BingoPlus, purchasable through e-wallets, debit, and credit cards. This integration into mainstream platforms underscores the pervasive reach of online gambling, making it accessible to a broader audience under the guise of everyday transactions.

Scale of the Problem: Thousands of Illegal Sites

The scope of online gambling in the Philippines is staggering. Data presented during the Senate hearing revealed that there are 11,985 illegal gambling sites operating in the country, including 6,363 online casino games and 4,815 online cockfighting sites. The Cybercrime Investigation and Coordinating Centre, an agency under the Department of Information and Communications Technology, reported having taken down 8,901 of these illegal sites. However, during the hearing, senators did not delve into the origins or ownership of these sites, leaving unanswered questions about whether they are operated by a small number of entities or dispersed across multiple regions and countries.

The sheer volume of illegal sites illustrates the uphill battle authorities face. While takedowns represent a significant effort, the rapid adaptation of operators to new platforms suggests that enforcement alone may not suffice. The lack of detailed discussion on the data’s implications during the hearing also raises concerns about the depth of understanding and strategy needed to address the root causes of this issue.

Senate Pushes for Solutions Amid Calls for a Ban

At the heart of the Senate’s response is a growing frustration with the social consequences of online gambling. During the August 14 hearing, Tulfo emphasized the need for concrete solutions from key institutions like the Central Bank, Pagcor, and law enforcement agencies. He underscored a divide in perspectives, noting that while some stakeholders advocate for regulation due to potential revenue losses, the Senate leans toward a total ban. “From the Senate’s end, we are inclined to ban it because social ills outweigh the income benefits. If you ask us, we want to stop online gambling right here, right now. But we will hear every side” Tulfo asserted.

The senator’s stance reflects a broader concern about the societal impact of gambling addiction, particularly on younger generations. He framed the issue as a collaborative effort, urging stakeholders to work as allies rather than adversaries. “We are not enemies here. We are allies that should work hand in hand to ensure that the next generation of Filipinos are not gambling addicts” he said on August 17.

The debate over banning versus regulating online gambling encapsulates a complex tension between economic interests and social welfare. Pagcor, as the licensing body for entities like BingoPlus, plays a pivotal role in this discussion. The revenue generated from licensed gambling operations contributes to national funds, yet the social costs—ranging from addiction to financial ruin—continue to mount, prompting calls for stricter measures or an outright prohibition.

Social Ills versus Economic Gains: A Balancing Act

Online gambling’s accessibility has profound implications for Philippine society. The integration of gambling into everyday apps and platforms means that even casual users of e-wallets or e-commerce sites can be exposed to these services, often without realizing the risks. The use of vouchers on platforms like Lazada further normalizes gambling, presenting it as just another purchasable commodity alongside household goods or electronics.

The social impact is particularly acute among vulnerable populations, including low-income individuals and youth, who may be drawn to the promise of quick financial gains. Addiction to online gambling can lead to severe personal and familial consequences, including debt, mental health issues, and strained relationships. These concerns underpin the Senate’s inclination toward a ban, as articulated by Tulfo, who prioritizes mitigating these harms over preserving revenue streams.

On the other hand, regulated online gambling contributes to government coffers through licensing fees and taxes, funds that could be allocated to public services. Pagcor’s role in licensing operators like BingoPlus suggests an economic rationale for maintaining some level of operation under strict oversight. However, the persistent adaptability of illegal operators undermines this argument, as unregulated platforms continue to proliferate despite regulatory efforts.

Broader Regional Context and Challenges

The Philippines is not alone in grappling with the challenges of online gambling. Across Southeast Asia, countries like Thailand and Vietnam have also faced similar issues, with illegal gambling sites exploiting digital platforms to reach wide audiences. In Thailand, for instance, authorities have struggled to curb online betting despite periodic crackdowns, while Vietnam maintains strict controls on gambling, limiting it to specific zones and licensed operators. The Philippine experience mirrors these regional trends, highlighting the difficulty of enforcing regulations in an era of rapid technological change.

One key challenge is the borderless nature of online platforms. Many illegal gambling sites operate from servers located outside the Philippines, making it difficult for local authorities to shut them down permanently. Additionally, the use of encrypted communication apps like Telegram and Viber complicates monitoring and enforcement, as these platforms offer a degree of anonymity to both operators and users.

Collaboration with private sector entities, as seen with GCash and Maya, offers a potential path forward, but it is not without limitations. While e-wallet providers can restrict access through their platforms, the migration of gambling operations to other apps indicates that a more comprehensive approach—potentially involving international cooperation and advanced cybersecurity measures—is necessary to address the issue at its core.

Looking Ahead: A Holistic Approach Needed

As the Philippine government and Senate continue to navigate the complexities of online gambling, the adaptability of operators remains a significant hurdle. Tulfo’s call for a holistic approach, involving cooperation with the private sector and other stakeholders, underscores the need for innovative strategies that go beyond traditional enforcement. “The fight against the accessibility of gambling to the public is far from over, and we will do our best to work with the private sector and other stakeholders to come up with a holistic approach in addressing this problem” he reiterated on August 17.

The debate over whether to ban or regulate online gambling is likely to intensify in the coming months, with social concerns weighing heavily against economic considerations. For now, the rapid evolution of digital platforms continues to outpace regulatory responses, leaving open the question of how effectively the Philippines can safeguard its citizens from the pervasive reach of online gambling. 

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