The online gambling market in the Philippines is at a critical period of rapid development and significant regulatory changes. Chuan Wee Lye, the Business Development Director of Sumsub in the Philippines, stated in an interview that the market is preparing to welcome a more complex and adaptive regulatory framework, aimed at balancing industry growth with player protection.
Chuan Wee Lye pointed out that the core of future regulation will include responsible gambling, dynamic KYC (Know Your Customer) processes, and comprehensive player protection measures. As an identity verification platform that can achieve full-cycle, scalable compliance, Sumsub anticipates that with the advancement of technology and the growth of digital applications, especially among young players and the esports community, Philippine regulators will further refine the rules. Their goal is to ensure the market is both safe and competitive, while drawing on global best practices and the application of emerging technologies.
According to Sumsub's 2024 report, the Philippine iGaming industry is rapidly expanding. The market size in 2023 was approximately 58.16 billion Philippine pesos (about 1.01 billion US dollars), and it is expected to soar to 122.1 billion Philippine pesos (about 2.13 billion US dollars) by 2027. The video gaming industry performed particularly well in the second quarter of 2024, reaching 30.85 billion pesos (about 538 million US dollars).
To address this growth, PAGCOR (Philippine Amusement and Gaming Corporation) has introduced a series of new regulations, including extending anti-money laundering (AML) standards to licensed operators' affiliates, KYC processors, payment partners, and marketing agents. Chuan Wee Lye emphasized that these measures fill long-standing regulatory gaps and lay the foundation for a unified financial crime prevention system. He stated, "In a rapidly developing regulatory market like the Philippines, our duty is to help operators proactively adapt, reduce risks, and maintain a smooth player experience while complying with new regulations."
AI-driven identity fraud is one of the regulatory focuses. Sumsub data shows that 78% of iGaming customers believe that the threat of AI fake identities is increasing, with new generative AI capable of creating highly realistic synthetic identities, documents, and even real-time interactive imitations, far surpassing traditional deepfake technologies. This has led to a sharp increase in operators' demand for real-time, AI-driven identity verification, anti-money laundering, and continuous risk management solutions. Sumsub's platform can usually complete verification within 20 seconds, combining an intuitive multilingual interface and device intelligence technology, ensuring security while reducing compliance costs and preventing player loss due to verification delays.
In terms of player protection, Philippine operators are strengthening responsible gambling measures, including self-exclusion programs, spending limits, and staff training to identify and support high-risk players. Technological means such as behavioral tracking, risk scoring, and biometric verification enable operators to intervene promptly when players exhibit abnormal behavior. Ongoing customer due diligence (CDD) through regular assessment of player behavior, transaction patterns, and risk indicators ensures that high-risk users are subject to enhanced scrutiny, creating a safer gambling environment.
Chuan Wee Lye emphasized that Philippine regulatory trends are aligning with international standards. Mature markets like Europe show that clear responsible gambling and anti-money laundering regulations not only do not inhibit industry development but enhance the competitiveness of legitimate operators, attract investment, and maintain industry integrity. Similar experiences indicate that transparent, consistent, and strict regulation not only deters illegal actors but also promotes innovation and long-term sustainable development.
Overall, the regulatory upgrade of the Philippine online gambling market will focus on KYC, AI anti-fraud, and comprehensive player protection, driving operators to innovate and expand their businesses while ensuring compliance. As regulatory policies are gradually implemented, the Philippines is expected to become a safe, technology-driven online gambling benchmark market in Southeast Asia, providing a more reliable and sustainable environment for players and investors.
