The Philippine Amusement and Gaming Corporation (PAGCOR) has called for gaming regulations to evolve alongside rapid advances in artificial intelligence (AI), warning that the technology can improve regulatory oversight while also creating more sophisticated forms of fraud.
Jessa Mariz Fernandez, Assistant Vice President of PAGCOR’s Electronic Gaming Licensing Department, made the comments during a keynote address at the CiG iDEA Summit in Manila.
AI Creates New Regulatory Challenges
Fernandez said AI can strengthen compliance by helping regulators and operators detect fraud, identify unusual activity and improve regulatory processes. However, the same technology could also allow bad actors to develop more sophisticated methods of evading detection.
“The same technology that can help us detect fraud, identify unusual activity, improve compliance, and make regulatory processes more efficient can also be used to make fraud more sophisticated and harder to detect,” Fernandez said.
She argued that regulators should not resist technological development but instead ensure their frameworks evolve at the same pace.
PAGCOR Reviews Regulatory Approach
PAGCOR continues to review its policies while engaging with licensed industry stakeholders and strengthening coordination with other government agencies.
Fernandez said the regulator is also open to approaches that could make its oversight more responsive as technology, business models and associated risks continue to change.
“We cannot regulate tomorrow’s technology using only yesterday’s assumptions,” she said.
Balancing Innovation and Market Integrity
For the regulated gaming sector, the growing use of AI creates both opportunities and compliance challenges. Operators and suppliers can use AI to improve monitoring and operational efficiency, while regulators must ensure emerging applications do not undermine consumer protection or market integrity.
Fernandez said regulation should remain responsive rather than reactionary, allowing innovation to develop within a fair, responsible and transparent market.
As online gaming continues to adopt new technologies, PAGCOR emphasized that regulatory frameworks will need to adapt accordingly while maintaining public trust and protecting licensed businesses and consumers.
