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A surge in unregulated e-gaming platforms has put the Philippines’ financial reputation back under the spotlight, a trend that the Philippines iGaming Market Research Report attributes to gaps in digital enforcement and fragmented regulation despite progress on FATF compliance.
The Bangko Sentral ng Pilipinas (BSP) has warned that the country could once again be flagged by the Financial Action Task Force (FATF) if it fails to get a grip on illegal online gambling. The warning is striking because the Philippines only celebrated its removal from the FATF’s grey list in February 2025, after nearly four years of monitoring, a milestone that now hangs in the balance amid rising illegal gambling and financial crime risk, as explored in Dirty Money Still Looms? PH Urged to Stay Alert on Online Gambling & Crypto Risks.
BSP raises the alarm
Regulators fear progress could quickly unravel if illegal gambling keeps spreading.
Speaking at the 2025 Manila Tech Summit, BSP Governor Eli M. Remolona Jr. made it clear that the issue has reached a critical point. Asked directly if unregulated gambling could trigger a return to the grey list, his answer was blunt: “Yes.”
The problem, he admitted, is that while the BSP is responsible for financial stability, it does not directly regulate gambling operations. “We hope that someone can do something about that,” he said, effectively passing the challenge to other agencies with oversight powers.
Players shift to the shadows
When regulation cracks down, illegal operators often step in to fill the void.
A recent study by The Fourth Wall, a sociocultural research firm, revealed how quickly users migrated after regulators forced e-wallets and authorised platforms to cut gambling links. Within weeks, activity on illegal sites surged by 40%, while regulated operators saw their player numbers collapse by 70%.
For lawmakers, this is a clear warning: shutting down legal channels without airtight enforcement only drives players further into the shadows, where consumer protections are nonexistent.
A fragile recovery at risk
The Philippines cannot afford another trip onto FATF’s watchlist.
Earlier this year, the country breathed a sigh of relief after being removed from the grey list. The FATF had previously flagged weaknesses in anti-money laundering supervision and counter-terrorism financing. Clearing those hurdles took years of reforms, close monitoring, and heavy pressure from the international community.
A return to the list would be more than an embarrassment. It could damage banking ties, raise the cost of international transactions, and scare off foreign investors. For a country positioning itself as a regional hub for tech and finance, that risk is hard to ignore.
The cost of inaction
Illegal gambling doesn’t just hurt the industry, it threatens financial credibility.
For the BSP, the concern is not only about gambling addiction or lost tax revenues. It’s about the wider picture: unregulated gambling is a magnet for money laundering, fraud, and criminal infiltration. If left unchecked, these activities weaken the very reforms that earned the Philippines its clean bill of health from FATF just months ago.
Global watchdogs don’t need much convincing to tighten the screws again. Once the perception of risk sets in, rebuilding trust becomes an uphill climb.
Calls for stronger cooperation
The BSP says the problem is bigger than one regulator, it requires a united response.
Governor Remolona stressed the need for cross-agency cooperation to stamp out unlicensed operators. The challenge spans multiple fronts: from monitoring online payments, to shutting down rogue websites, to keeping e-commerce and messaging platforms from being hijacked as gambling gateways.
Without coordinated action, the country risks sliding backwards, undoing years of reform efforts.
At crossroads
The Philippines now faces a choice: clamp down hard or risk global credibility slipping away.
For now, the FATF has not made any fresh moves. But with the growth of illegal gambling clear to see, the clock is ticking. The Philippines must decide whether to double down on enforcement or accept the risk of being placed back under international monitoring.
And if history is any guide, once on the grey list, getting off it again is neither quick nor painless.
Source: Gambling Insider
