Licensed e-gaming operators defend use of mobile wallets

MANILA, Philippines — The draft circular by the Bangko Sentral ng Pilipinas (BSP) to tighten rules on mobile wallets underscores why regulated non-bank electronic money issuers should be retained as key enforcement tool rather than be disconnected from the gambling-related transactions.

This according to an association of licensed online gambling firms in the country — PlaySafe Alliance Philippines.

The group's spokesman, Mike Defensor, said mobile wallets provide Know Your Client (KYC) data and transaction trails that enable authorities to trace flows, link accounts to suspected operator networks, and build cases that would be far harder to assemble if payments reverted to cash or unregulated channels.

Defensor said that the BSP’s draft measures — including stronger identity verification, daily limits and mandatory monitoring for gambling-related activity — create the legal and technical scaffolding needed for wallets to flag and block illicit transfers promptly.

He said the ability to freeze or temporarily restrict suspect e-wallet accounts, when exercised under clear due-process rules, can stop funds in transit and prevent rapid dispersion or laundering that often frustrates subsequent investigations.

Pointing to recent enforcement actions and raids against illegal online gaming hubs, the Alliance spokesman said coordinated use of payment controls alongside police operations amplifies disruption efforts by choking the revenue pipelines that sustain offshore and unlicensed platforms.

He cautioned that a total ban or unilateral disconnection of mobile wallets could produce perverse effects, driving bettors and operators toward cash couriers or emerging digital payment channels that are harder for domestic regulators to monitor and interdict.

Defensor recommended that policymakers emphasize calibrated measures — stronger KYC, transaction thresholds, pattern-based monitoring and mandated reporting — so wallets remain both convenient for consumers and effective ally for licensed e-gaming platforms.

He further urged the inclusion of built-in consumer protection tools in wallet rules, such as self-exclusion, voluntary spending caps and mandatory warnings, arguing these reduce harm while preserving the wallets’ investigative value.

He highlighted the global dimension, noting many illicit operators route funds through cross-border payment arrangements and that retained, regulated wallets make it easier to cooperate with foreign counterparts and international AML mechanisms.

He also called on regulators to publish clear protocols for when and how freezes are applied, including oversight, appeal mechanisms and data-privacy safeguards, to maintain public trust while enabling rapid enforcement.

Defensor acknowledged legitimate concerns that wallets can lower the friction of funding bets, and he advocated parallel measures to target operator behavior — penalties for facilitation, restrictions on in-app promotional links, and tougher licensing checks — paired with payment controls.

He concluded that preserving regulated mobile wallets under stronger, well-defined guardrails offers the best chance to reduce the prevalence of unlicensed online gambling by making illicit revenue streams traceable, interruptible and prosecutable while protecting ordinary users.

PlaySafe Alliance, composed of 20 founding members, earlier expressed its full support to BSP’s proposed circular seeking to regulate online gambling payment services.

Defensor’s group of government-licensed operators is also advocating actively for strictest regulations on online gambling as part of their commitment for responsible gaming.