The Senate Committee on Gambling and Entertainment has resumed deliberations on Senate Proposal No. 47, legislation that seeks to prohibit all forms of online gambling in the Philippines. The move follows increased political scrutiny of the sector and questions over whether current safeguards are robust enough to address addiction risks and financial crime exposure.

Rising participation fuels concern

Online gambling participation has expanded rapidly in the Philippines in recent years. According to the Philippine Amusement and Gaming Corporation, approximately 10 million Filipinos engaged in online gambling in 2025 across more than 32 million active accounts.

With a national population of roughly 117 million and around 70 million adults of legal gambling age, lawmakers argue that the scale of activity warrants closer oversight. Rehabilitation centres have reported an increase in individuals seeking treatment for gambling-related harm, although no comprehensive national data on problem gambling prevalence has been released.

Several senators have expressed concern that regulators may struggle to effectively control the illegal sector and ensure proper consumer protection in the licensed market.

PAGCOR defends regulation over prohibition

PAGCOR leadership has pushed back against calls for a blanket ban, arguing that stricter regulation, rather than prohibition, is the more effective solution. At recent hearings, officials outlined a series of strengthened control measures introduced or currently being implemented.

These include restrictions on primetime television advertising, tighter know-your-customer verification standards, expansion of responsible gambling services, and the rollout of a formal self-exclusion program. Participation in the self-exclusion scheme has increased significantly over the past year.

Licensed operators are also required to contribute a portion of gross gaming revenue to fund responsible gambling initiatives.

Enforcement efforts intensify

Authorities have stepped up enforcement activity against illegal operators. PAGCOR reported that more than 7,000 unlicensed gambling websites have been shut down in the past six months, supported by artificial intelligence tools used to detect illicit platforms.

The regulator is also collaborating with addiction specialists to launch a dedicated 24-hour gambling helpline, further strengthening its consumer protection framework.

In addition, recent regulatory reforms have expanded oversight across the gambling supply chain, including game providers, payment processors and compliance service providers.

FATF gray list fears resurface

Despite these reforms, skepticism remains among lawmakers. The Philippines was only removed from the FATF gray list in February 2025, after nearly four years of enhanced monitoring related to weaknesses in anti-money laundering controls, particularly within the casino and offshore gaming sectors.

The former Philippine offshore gaming operator regime was widely criticised for insufficient oversight and alleged links to criminal activity. For some legislators, the memory of that period continues to shape the debate.

Reappearance on the FATF gray list could signal financial risk to international investors and trigger stricter global scrutiny of the country’s financial system.

Ban or reform: a pivotal decision

The central question now facing lawmakers is whether to implement a full prohibition on online gambling or allow the recently strengthened regulatory framework more time to demonstrate its effectiveness.

As the debate continues, the Philippines stands at a crossroads between tightening compliance within a regulated market and retreating from online gambling entirely.

Sources: iGamingfuture