PAGCOR explores AI to address fraud and gambling risks

The Philippine Amusement and Gaming Corporation (PAGCOR) is evaluating artificial intelligence (AI) technologies to enhance regulatory oversight of the country’s online gambling sector, which is projected to generate between ₱60 billion (US$1.08 billion) and ₱62 billion ($1.11 billion) this year, or 62% of the agency’s projected income.

During a budget hearing before the House Committee on Appropriations, PAGCOR Chairman Alejandro Tengco said the agency is studying the use of AI-powered electronic know-your-customer (e-KYC) systems to authenticate player identities and detect altered identification cards. These tools aim to prevent underage and fraudulent registrations on licensed platforms such as BingoPlus, ArenaPlus, and OKBet, which are among the more than 70 licensed operators in the country.

“AI-powered e-KYC tools have shown to be very effective in detecting if an ID has been altered,” Tengco said. “Hopefully, with these new technologies, we can address concerns about fake registrations.”

In addition, PAGCOR is reviewing behavioral monitoring systems designed to track player activity in real time. These tools analyze thousands of data points to identify potential signs of problem gambling, such as prolonged playing sessions or sudden spikes in betting amounts.

“What’s good about these tools is that once the AI detects troubling behavior, an automatic ‘cooling period’ can be imposed. The account is suspended, and the player can only resume once they provide valid reasons to the regulator,” Tengco said.

Alongside AI-driven initiatives, PAGCOR recently launched an online reporting tool for the public to flag illegal gambling activities. Users can submit information related to unauthorized promotions, including influencer endorsements and advertising on social media platforms. Submissions are verified against PAGCOR’s roster of approved online operators before authorities take action.

PAGCOR data show online gambling revenues have expanded tenfold from ₱6 billion ($108 million) in 2021 to current projections of up to ₱62 billion in 2024. The regulator said adopting advanced technologies could improve compliance and player protection while addressing fraud risks in the rapidly expanding sector.