Online lending apps fuel gambling-driven debt trap –Gatchalian

EASY MONEY. An online gambling advertisement is prominently displayed along EDSA in Quezon City on July 8, 2025. Senator Sherwin Gatchalian on Monday (July 21) warned that the growing prevalence of online lending apps is enabling a deeper financial crisis among Filipinos already trapped in online gambling, pushing many further into debt and despair. (PNA photo by Joan Bondoc)

By Wilnard Bacelonia, Philippine News Agency

MANILA – Senator Sherwin Gatchalian on Monday warned that the growing prevalence of online lending apps (OLAs) is enabling a deeper financial crisis among Filipinos already trapped in online gambling, pushing many further into debt and despair.

“Nalulong na sa online gambling, pinagsamantalahan pa ng online lending apps. Kailan kaya titigil ang sistemang lumulunod sa mahihirap nating kababayan (Addicted to online gambling and now exploited by online lending apps. When will this system that drowns our poor countrymen into further debt finally stop)?” the senator said, citing reports of distressed individuals resorting to OLAs.

In a news release, Gatchalian said harsh and often predatory loan conditions imposed by some OLAs are worsening the condition of Filipinos grappling with gambling addiction.

These apps, he said, offer quick but costly access to funds, which many use to continue betting online and then find themselves borrowing again to repay previous loans.

“Posts and confessions on various online fora show that OLAs have been used as a last resort by many individuals seeking money to finance their online gambling addiction,” Gatchalian said.

The senator earlier filed a resolution seeking a Senate investigation into the unchecked spread of OLAs and their alleged abusive debt collection practices, which include harassment, public shaming, and unauthorized access to personal data.

Gatchalian urged relevant government agencies to step up enforcement of existing regulations against unlicensed and abusive OLAs.