The Philippine online gambling industry may be facing an unprecedented "strong regulatory period." On one hand, the Philippine Amusement and Gaming Corporation (PAGCOR) plans to introduce artificial intelligence (AI) regulatory tools in the coming months to comprehensively enhance the compliance and safety levels of online gambling platforms; on the other hand, the Philippine Cybercrime Investigation and Coordination Center (CICC) is pushing to establish a government-controlled online gambling payment platform, gradually replacing the current payment mode reliant on private e-wallets. These two measures are seen as a comprehensive upgrade in regulation by the Philippine government of the online gambling industry "from data to financial chains."
Alejandro Tengco, Chairman and CEO of PAGCOR, revealed at the House budget hearing that several software developers have presented AI regulatory solutions to PAGCOR. These technologies will be applied to player registration, identity verification, and behavior tracking, screening out false identities and high-risk operations from the source. Tengco emphasized that as the number of online gambling platforms continues to increase, traditional manual audits and law enforcement methods are overwhelmed, while AI tools can significantly improve monitoring efficiency and quickly identify suspicious transactions and violations. He pointed out: "Introducing AI is not only a necessary means to combat illegal activities but also a key step in protecting players and building a responsible gambling ecosystem." The plan is still under evaluation and, once approved, will be implemented in phases over the next few months.
Meanwhile, Renato Paraiso, Acting Deputy Executive Director of CICC, disclosed that to address the issue of illegal online gambling funds flow, CICC is studying foreign governance models and promoting the establishment of a centralized payment platform led by government banks (such as Landbank or the Development Bank of the Philippines, DBP). This move requires new legislative authorization, but once implemented, it will completely change the financial structure of gambling transactions. Paraiso stated: "Currently, illegal gambling operators frequently shift their bases using private e-wallets, and as we close one channel, they immediately move to another platform. Only by the government establishing a centralized platform first can we truly curb the spread of POGO and illegal gambling."
At the executive level, CICC is also collaborating with social and e-commerce platforms such as Telegram, Viber, and Lazada to block the spread of gambling links. This measure follows the action by the Central Bank of the Philippines requiring e-wallet applications to remove gambling links, but due to the adaptability of illegal operators, it still presents a "cat and mouse" situation.
Analysts point out that if AI regulation and the government's centralized payment platform can be advanced simultaneously, it will form a "double high-pressure line" against the online gambling industry: on one hand, using AI tools to precisely target identity fraud and violations, and on the other hand, using the national financial system to cut off illegal funds flow, enhancing transaction transparency and strengthening social security and anti-money laundering mechanisms. However, the implementation of policies still faces challenges such as legislative procedures, technology development, and industry resistance, and in the short term, illegal gambling platforms may continue to rapidly shift through new channels, posing threats to public safety and market order.
It can be foreseen that the Philippine online gambling is moving from "wild growth" to "strong control." The introduction of AI tools and a government centralized payment system may mean that the industry is about to leave behind regulatory gaps and truly enter a "big surveillance era."
