SEC: Beware of unregistered gaming sites
The Securities and Exchange Commission (SEC) has reminded all entities under its supervision to transact only with online gambling platforms registered with the Philippine Amusement and Gaming Corp. (Pagcor) to protect the public.
In a Sept. 16 notice, the SEC reminded all its covered persons to “maintain heightened vigilance” by monitoring customer transactions related to online gambling.
“SEC [covered persons] are strongly advised to consider the risks associated with engaging in online casinos and online gambling platforms, and to file a suspicious transaction report, if warranted,” the commission said.
Under SEC Memorandum Circular No. 16 Series of 2018, its covered persons include securities brokers, dealers and salesmen; investment company advisers/fund managers, mutual fund distributors, mutual fund companies, closed-end investment companies; investment advisors; financing companies and lending companies; and other entities dealing in currency, commodities or financial derivatives.
This comes after the Anti-Money Laundering Council issued a similarly worded statement highlighting its prohibition of transactions involving unregistered online gambling platforms amid rising demand for illicit websites.
Earlier this month, sociocultural research firm The Fourth Wall found in a study that players spent more time on unregulated platforms, unaware of the potential risks they face.
More than half of players, or 55 percent, do not know the legal risks tied to these websites, mainly because these were not explicitly shown, according to The Fourth Wall.
It also found that players preferred unregulated websites because these typically had greater game variety, faster transactions, convenient payment options and more frequent promotions.
“This explains why players, despite the uncertainty and uneasiness, continue to engage with these platforms as long as they perceive a chance to win,” The Fourth Wall research director John Brylle Bae said in a statement.
Scrutiny over online gaming platforms in the country began in early July when Sen. Sherwin Gatchalian filed a bill calling for tighter regulations, with some lawmakers proposing an outright ban.
While the government has yet to decide the fate of online gambling platforms, analysts have pointed out that officials may be weighing “economic considerations.”
Data from Pagcor show that electronic games continued to be its main revenue driver in the first semester, accounting for 53.47 percent, or P114.83 billion, of the country’s total P214.75-billion gross gaming revenues.
