The Philippine Amusement and Gaming Corporation (PAGCOR) is exploring the use of artificial intelligence (AI) to detect fraud and identify potential gambling addiction. The move comes as the online gaming sector continues rapid growth and faces increasing regulatory pressure.
AI Tools for Player Protection
PAGCOR chairman Alejandro Tengco confirmed that the agency is actively assessing AI systems to improve monitoring of the digital gambling market. One solution focuses on enhancing electronic know-your-customer checks by spotting forged or altered identification documents. This would reduce fraud and stop underage players from participating.
Another tool will analyze behavioral patterns—such as sudden spikes in betting activity, prolonged gaming sessions, or frequent account depletion—to detect early signs of risky play. When the system flags an account, PAGCOR could place it under temporary suspension until the user provides a valid explanation. By doing so, the regulator hopes to establish automated safeguards that respond quickly to potential risks. Several other jurisdictions have already adopted similar practices, proving that AI can strengthen responsible gambling standards.
Rising Revenues and Regulatory Response
Currently, more than 70 licensed platforms operate under PAGCOR, including BingoPlus, ArenaPlus, and OKBet. Together, they are projected to contribute between €960 million and €992 million (₱60–₱62 billion) in 2025. This amount accounts for roughly 62% of PAGCOR’s total income, marking a sharp increase compared to just €96 million (₱6 billion) in 2021.
However, this surge in revenue has also raised concerns among regulators and financial institutions. In response, the central bank restricted e-wallet links to gambling sites to curb financial risks. PAGCOR is therefore turning to advanced technologies, aiming to balance consumer protection with continued industry growth. Ultimately, the regulator wants to position itself as a regional leader in applying innovation to responsible gambling oversight.
