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GCash halts IPO plan as gambling ban debate erupts in Philippines

Ansh Pandey
Written by Ansh Pandey

GCash, the Philippines’ major digital wallet provider, has confirmed that it is unlikely to proceed with its highly anticipated initial public offering (IPO) in 2025, despite earlier targets.

President and CEO Martha Sazon said the company remains open to listing in the future but has not set a definite timeline. Speaking to local media outlets, she noted that GCash is “waiting for the most opportune moment” to go public, emphasizing the importance of favorable market conditions before proceeding.

The delay comes as a surprise to many, given that the company had earlier aimed for a listing by the end of 2025. With over 90 million users, GCash’s IPO has been closely watched by investors, regulators, and market analysts.

To ease the listing process, the Philippine Securities and Exchange Commission (SEC) had earlier allowed companies like GCash to reduce their public float requirement to 15 percent, down from the typical 20 percent. GCash had expressed interest in taking advantage of this exemption.

Though GCash maintains that its strategy is independent and based on internal assessments, a key factor that may be influencing GCash’s decision is the increasing regulatory focus on the role of e-wallets in online gambling. 

GCash’s role in the iGaming boom? 

During the pandemic, online gambling in the Philippines surged, thanks in part to mobile payment apps like GCash and Maya, which allowed users to instantly deposit and withdraw funds from gambling websites—often without needing a credit card.

GCash’s mobile app features a dedicated “Games” section, which links users to popular betting sites such as Bingo Plus, Casino Plus, and Arena Plus. This section cannot be removed by users.

Critics, including gambling addiction support groups, have raised concerns that this level of accessibility has made it easier for people to fall into debt and addiction. Some have pointed to GCash’s microloan feature, GCredit, which allows users to borrow up to ₱50,000 (around €675), as another risk factor—enabling people to fund gambling habits with borrowed money.

According to Reagan Prafesora, who heads a Manila-based gambling support network, the number of women joining support groups has significantly increased, with many reporting GCash as their primary means of funding bets. “Even small-time gamblers can cash in just ₱100 and play instantly,” he said.

GCash is operated by Globe Fintech Innovations, a joint venture between Ayala Corporation, Globe Telecom, and China’s Ant Group, which also runs Alipay. In China, Alipay has also faced scrutiny for being used in illegal gambling transactions.

Adding to the pressure, the Bangko Sentral ng Pilipinas (BSP) is now drafting a new circular aimed at limiting access to online gambling through digital payment systems. The proposed policy would require banks and electronic money issuers to implement restrictions on transactions related to gambling.

Eyes on presidential address 

The BSP said the move builds on earlier actions taken in 2021 and 2022, which required regulated platforms to disconnect from unlicensed operators and remove links to electronic cockfighting, also known as e-sabong.

With the national debate around online gambling gaining momentum, President Bongbong Marcos Jr. is expected to tackle the issue in his upcoming State of the Nation address—potentially signalling tighter regulations ahead for platforms like GCash.

In the meantime, GCash seems to be taking a measured approach, prioritising regulatory compliance and long-term stability over rushing into the stock market.

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