Online Gambling Curbs: BSP Draft Circular
BSP Tightens Grip on Online Gambling Payments with New consumer Protection Measures
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The Bangko Sent Sentral ng Pilipinas (BSP) is set to implement stringent new regulations aimed at safeguarding consumers engaging with online gambling platforms.A recently issued circular mandates enhanced consumer protection measures for payment service providers (PSPs) involved in the burgeoning online gambling sector.
Dedicated Accounts adn Strict Eligibility Checks
Central to the new directives is the requirement for psps to establish dedicated online gambling transaction accounts. These accounts will only be accessible to individuals who successfully navigate rigorous eligibility checks. Applicants must be at least 21 years of age and must not belong to any legally or regulatorily barred groups, which include students, military personnel, goverment officials, and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps). Each eligible individual will be permitted to hold only a single online gambling account.
Regulated Fund Transfers and Usage Limits
To further curb potential financial harm, fund transfers to these dedicated accounts will be subject to strict regulation. The circular outlines a cap on daily top-ups, limiting them to 20 percent of the user’s average daily balance. Furthermore, a maximum gambling window of six hours per day will be enforced.
Enhanced Verification and Cooling-Off Periods
In a bid to promote responsible gambling, PSPs will be required to implement facial biometric verification for all users. The regulations also introduce mandatory “cooling-off” periods, particularly after instances of heavy usage, to encourage users to step away from gambling activities. Lending services will be strictly prohibited on platforms offering online gambling accounts, preventing users from borrowing money for wagering.
mandatory Responsible Gambling Policies
PSPs will be mandated to develop and implement thorough responsible online gambling policies.These policies must include features such as self-imposed spending and time limits, pop-up alerts for users exhibiting heavy usage patterns, and opt-in consent mechanisms for receiving gambling-related advertisements. Users will also be granted the ability to disable their accounts for chosen periods.
The circular emphasizes the importance of prominently displaying warnings and providing accessible tools within the PSPs’ applications or platforms. PSPs are also encouraged to actively create and promote responsible gambling initiatives. A similar policy,tailored to their specific role in payment processing,will be required from each PSP.
Prohibition for PSP Employees and Robust Compliance Monitoring
In a move to ensure integrity, the BSP’s circular explicitly prohibits employees of payment service providers from participating in online gambling activities themselves.
To ensure adherence to these new rules, the BSP will require PSPs to submit monthly reports. These reports will detail transaction volumes, user profiles, and data pertaining to partner operators. Non-compliance with the circular’s provisions can lead to significant penalties, including daily fines of up to P100,000 for continuing offenses or a ample P1 million fine per transaction.The BSP also reserves the right to suspend or revoke the licenses of non-compliant entities.
Existing PSPs currently offering online gambling-related payment services will be granted a six-month grace period from the circular’s effective date to comply with the new regulations. failure to do so could result in an order to halt their operations.