PAGCOR on delinking e-wallets from online gaming: ‘No problem’

The Philippine Amusement and Gaming Corporation (PAGCOR) has expressed openness to proposals aimed at delinking electronic wallets from online gaming platforms, as part of efforts to address the growing social issues linked to online gambling.

“Kung ito ay isa sa mga pamamaraan para ating maibsan o mabawasan yung problemang kinahaharap natin or social ills — eh walang pong problema sa PAGCOR, kami po ay susuporta at tutulong sa pag-iimplement sa nasabing pagde-delink na iyon (If this is one of the ways to alleviate or reduce the problem we are facing or the social ills—then there is no problem with PAGCOR, we will support and help in implementing that delinking),” PAGCOR Chairperson Alejandro Tengco told reporters in an ambush interview at the Senate on Thursday. 

Tengco added that PAGCOR is currently awaiting the official regulation from the Bangko Sentral ng Pilipinas (BSP) that would formalize the move.

“Ayokong pangunahan, ay antayin lang natin ang magiging regulasyon ng Bangko Sentral ng Pilipinas (I don’t want to preempt anything; let’s just wait for the regulations that will be issued by the Bangko Sentral ng Pilipinas),” Tengco said.

Tengco highlighted that the stricter rules are expected to primarily impact illegal operators.

“Ang tatamang dito malaki ay mga ilegal na operations. ‘Pag ating talagang napababaan ang numero niyan eh malaki na ang ihuhupa at magkakaroon na ng mas mainam na kondisyon sa online gaming (The ones that will be greatly affected here are the illegal operations. If we can significantly reduce their numbers, there will be a major decline in related issues, and the conditions for online gaming will become much better),” he said.

He also noted that challenges at the early stages of regulating online gaming are not unique to the Philippines, and cited international examples.

“Ganyan din naman sa ibang bansa kung kayo ay magrereseach, sa umpisa talagang may problema pero habang naaayos ang regulasyon ay humuhupa rin ang ating nararanasan sa kasalukuyan (That’s also how it is in other countries if you do your research; there are definitely problems at the beginning, but as the regulations get sorted out, what we’re experiencing now will also ease),” he said. 

In response to recent criticisms from lawmakers alleging that the PAGCOR has failed to regulate the online gaming industry, Tengco defended the agency’s efforts, asserting that while not perfect, a regulatory framework does exist.

“Hindi naman failure dapat kung tatawagin sapagkat meron naman structure, meron naman regulation. Hindi ko sinasabing perpekto ang aming set of rules and regulations pero siguro ang mahalaga — meron pinagmumulan (It shouldn't be called a failure because there is a structure, there are regulations. I'm not saying that our set of rules and regulations is perfect, but what’s important is that there is a foundation),” Tengco pointed out

“Merong mga regulasyon na pwedeng gamitin at kasalukuyang ginagamit sa online gaming industry (There are existing regulations that can be used and are currently being applied in the online gaming industry,” are pressed on. 

Tengco emphasized that the agency's regulatory mechanisms are active and continually evolving. 

“There are amendments, changes, and it is an ongoing process. It is a work in progress,” he said, citing the “exponential trajectory” of the country’s expanding online gaming industry.

He stressed the need for updated and responsive regulations to match the rapid pace of industry developments.

“Kailang ng iba’t ibang panibagong mga regulasyon at nang sa ganoon ay makahabol doon sa mga pangkasalukuyang nagaganap sa industriya (There is a need for various new regulations so that we can keep up with the current developments in the industry),” he said.

Tengco also pointed to illegal online gambling operators as the most pressing challenge PAGCOR currently faces, noting that these unregulated entities are operating with complete disregard for standards, player safety, and age restrictions.

“Gusto ko din bigyan ng pansin at ng diin — na ang talagang nagpapahirap sa atin ngayon, sa PAGCOR at iyon din naman sa industriya ay yung illegal operator, sapagkat tunay na walang regulasyon, walang sinusunod na istraktura — maski anong edad ng bata ay pwedeng maglaro (I want to highlight and emphasize that what’s really making it difficult for PAGCOR—and for the industry as a whole—is the presence of illegal operators. These groups follow no regulations, no structure, and even minors can access their platforms,”  he said. 

He added that unlike legal operators, these illicit platforms are not subject to third-party oversight or certification to ensure fair play.

“Wala kang pwedeng takbuhan sa illegal (There is no one you can turn to when it comes to illegal operations),” Tengco said.

Earlier in the Senate hearing, Senator Raffy Tulfo called on the government to heed the concerns and outcry of Filipinos demanding a total ban on all forms of online gambling in the country.

“It's about time we listen to the Filipino people, especially the housewives, because they are the ones who manage their family's budget, which is just being spent on online gambling because their children and husbands are gambling it away,” he said. 

He added. “It’s about time we listen to the grievances and voices of Filipino citizens who are saying no to online gambling.”

Meanwhile, Senator Pia Cayetano filed a bill seeking a complete ban on all forms of online gambling in the Philippines

“It is my hope that during this hearing, all relevant facts will be revealed including the cause to every family who loses a bread winner, every family who does not have food to eat because of online gambling, every family who won’t watch a child graduate because this child has lost its way because of gambling addiction,” Cayetano stressed.  

“My final point, in as much as my bill is a ban on online gambling, I’ll be listening intently to all the resource persons. As chairman of the committee on ways and means, it is my hope that there will not be a need for me to call a hearing on taxation on online gambling operations because we will be banning it outright,” she added. 

For her part, Deputy Minority Leader Risa Hontiveros emphasized that severe addiction to online gambling must be recognized and addressed as a public health concern.

“Severe addiction to online gambling should also be treated as a public health issue,” she said. 

Hontiveros cited a report from the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5), which states that gambling disorder is “a mental health issue.”

“This means the government must also impose on these gambling platforms an enhanced duty of care for our fellow Filipinos who are struggling with addiction,” she said.