Utilisation of promotions was also integral to the differences between the two sectors, with promotions for the unlicensed sector being more prevalent and having elevated incentives compared to the regulated sector.
High value bonuses of up to 108% were found as being used to entice players on the unregulated market, underpinning the challenges faced by the regulated market in terms of competing.
At the heart of the differentiation in marketing approaches is the affiliate strategy undertaken by both the regulated and the unregulated sector.
The report revealed that many unregulated operators provide lucrative affiliate programs, sometimes offering 45–65% of Gross Gaming Revenue to attract strong collaborations.
The presence of e-sabong also caused concern, as unregulated operators continue to offer the illegal sport and even tap into audiences that engage with the sport through private groups.
John Brylle L. Bae, Research Director at The Fourth Wall, stated: “Our latest report demonstrates how prohibited games like e-sabong remain easily accessible on unregulated platforms even to high-profile figures, underscoring persistent enforcement challenges.
“Our report shows that the operational differences between regulated and unregulated platforms do not just define how platforms function but also shape the risks and potential harms players face, especially in unregulated spaces.”
He also revealed the need for targeted enforcement and increased public awareness as the threat of the sector continues to grow.
Unsurprisingly, the KYC approach of the unregulated sector is minimal, and according to the report elevates the level of risk associated with the sector – enabling underage players to engage with unregulated gambling sites.
The report also provides details of the impact of payment limitations on the sector and the AML checks implemented by the regulated market.
It leads to the experience of the unregulated market being more frictionless as the challenge for the regulated market to compete intensifies significantly.
The report arrives as the market sits at a crossroads of a vital moment for the gambling sector in the Philippines, with it being reported that a total of four bills, three resolutions and a privilege speech addressing the impact of the online gaming industry will be discussed by the Philippine Senate’s committee on games and amusements.
The outcome will determine whether the industry will be subject to tighter regulations or a total ban.
While increased regulation is not always preferable for the development of an industry, it is clear that change is afoot and greater scrutiny is preferable to an outright ban.In the days before the inquiry began, 19 operators, including Digiplus formed the PlaySafe Alliance of the Philippines. The group states that in doing so they have demonstrated their commitment to responsible gaming, regulatory compliance, consumer protection and combatting illegal gambling.
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