[MANILA] The Philippine central bank ordered mobile wallets, payment applications and other institutions to remove links to online gambling platforms as the nation seeks to curb the booming industry that’s raised social concerns.
The financial firms have 48 hours from Thursday (Aug 14) to take down icons that redirect users to Internet betting, Bangko Sentral ng Pilipinas (BSP) deputy governor Mamerto Tangonan said at a Senate hearing.
Shares of top Philippine online gaming firm DigiPlus Interactive fell nearly 20 per cent at the close on Thursday, the biggest slump in two weeks, even after it reported a 30 per cent jump in second-quarter profit.
Senators are tackling proposals to either restrict or ban online gambling amid worries over debt and addiction. President Ferdinand Marcos Jr earlier said that a ban could stoke illegal online betting.
E-wallets have been instrumental in the online gambling boom. Now, they are coming under scrutiny as lawmakers seek to curtail access.
GCash, the country’s most popular e-wallet valued at US$5 billion and owned by fintech unicorn Mynt, said that it will comply with the central bank’s order. “Once we receive the official directive, we will immediately enforce the necessary changes to ensure compliance and safeguard our users,” the company said.
Maya, the fintech arm of Philippine telco leader PLDT, said that it will likewise take action. “The update will be implemented in line with the BSP’s guidance,” the company said. “We assure customers that their accounts and transactions remain secure and fully operational.”
DigiPlus said that its second-quarter profit growth was driven by its retail games segment and contributions from new games and licenses.
DigiPlus, which is set to replace Bloomberry Resorts in the Philippines’ benchmark stock index from next week, said that the company remains committed to responsible business practices. BLOOMBERG
