Philippines lawmakers have revived debate over a potential nationwide online gambling ban, as regulators face mounting pressure to strengthen player protections and curb illegal activity amid concerns the country could return to the Financial Action Task Force’s (FATF) grey list.
The renewed scrutiny comes as the Senate Committee on Games and Amusement resumes deliberations on the proposed Anti-Online Gambling Act (Senate Bill No. 47), which seeks to outlaw all forms of iGaming.
During a recent hearing, senators argued that online gambling is becoming a serious social problem and questioned if regulators have the capacity to effectively combat the illegal industry – and protect players from gambling addiction.
While there is no official record of problem gambling prevalence, participation rates have skyrocketed in the Southeast Asian archipelago, where the average GDP per capita is only US$4,619 (£3,432).
Stricter Controls
According to the Philippine Amusement and Gaming Corporation (PAGCOR), 10 million Filipinos engaged in online gambling across 32.1 million active accounts in 2025.
The Philippines has a total population of some 117 million, with around 70 million people over the legal gambling age of 21.
Rehabilitation and support centres have also reported rising numbers of problem gamblers seeking treatment.
In response to the mounting pressure, PAGCOR Chair Alejandro Tengco–a strong advocate for strict regulation over prohibition–and Assistant Vice President Jessa Mariz Fernandez told the hearing that PAGCOR was in the process of implementing stricter controls on gambling and improving consumer protections.
Measures include a ban on prime-time broadcast advertising, enhanced KYC and verification requirements, the implementation of a self-exclusion scheme (usage rising from 476 individuals in 2024 to 2,676 in 2025) and expanded responsible gambling services, with licensed operators contributing a percentage of their GGR to funding.
Enforcement
PAGCOR is also partnering with gambling disorder specialists, the Seagulls Flock Organisation, to launch a 24/7 gambling harm helpline after Easter.
The hearing also heard that over 7,136 illegal gambling sites have been taken down by PAGCOR and law enforcement agencies in the last six months, with AI tools continuously scraping the internet for unlicensed sites.
PAGCOR stressed that illegal gambling is not isolated to the Philippines and that the agency is learning from best practice in other jurisdictions, but warned that it remains an ongoing fight.
The latest PAGCOR measures build on a slew of regulatory reforms which, according to legal iGaming advisory firm Arden Consulting, have transformed what was once the “Wild East” of gambling into one of the most regulated markets in the region.
Unconvinced
Yet many senators remain unconvinced.
The ongoing regulatory overhaul, which began in 2024, has been transformative and includes the outlawing of Philippine Offshore Gaming Operators (POGOs), strengthened responsible gambling controls, the restriction of e-wallets and new rules for all iGaming licencees.
This includes requirements for the entire supply chain to be regulated and licensed by PAGCOR – that’s game providers, payment services, KYC products, et cetera.
Many of these changes are still being implemented and, in PAGCOR’s view, have not had sufficient time to take effect.
Alongside protecting consumers from gambling harm and addiction, senators are concerned that continued illicit gambling activity and under-reporting of suspicious transactions by the country’s licensed casinos could lead to the country returning to the ominous “Grey List” of the Financial Action Task Force (FATF).
The FATF list is a roster of countries under increased monitoring for weaknesses in their anti-money laundering and counter-terrorism financing systems.
Warning
Inclusion is a warning to international investors that there are serious financial issues at play.
The Philippines was only removed from the FATF grey list in February 2025 after being listed in June 2021.
One of the main reasons the country landed on the list was weak oversight of casinos under the POGO regime – brainchild of former hardline president Rodrigo Duterte, now under international investigation for widespread human rights abuses during his rule, 2016-2022.
According to law firm Hogan Lovells, the POGO regime began as a legitimate attempt to drive economic growth, but quickly became “a convenient front by organised crime syndicates to cover up illicit activities such as human trafficking, scams, and money laundering.”
For some Filipino senators these memories are too prescient.
And whether lawmakers opt for an outright online gambling ban or give the newly tightened regulatory regime time to work remains the billion-peso question.
Watch this space.
