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The Philippine Amusement and Gaming Corporation (PAGCOR) has stated that gaming regulation needs to constantly evolve in light of the rapid development of artificial intelligence (AI).
The regulator stated that AI will help enhance compliance regimes, spot anomalies, and streamline the process of regulation. But it can also pose a threat as it can be utilized for making fraud more sophisticated and difficult to detect.
The statement was made by Jessa Mariz Fernandez, assistant vice president of PAGCOR’s Electronic Gaming Licensing Department, in her keynote speech at the CiG iDEA Summit in Manila on Monday.
Fernandez said the challenge for regulators is not to resist technology. Instead, regulatory frameworks must develop alongside it to address the opportunities and risks created by AI.
AI technology is increasingly becoming relevant to the future of online gaming and could be used to assist in monitoring, compliance, fraud detection, and better regulation. On the other hand, this technology could also expose licensed gambling establishments, their customers, and regulators to some new dangers.
AI Can Support Compliance
Fernandez said technology can help regulators detect fraud, identify unusual activity, improve compliance, and make regulatory work more efficient.
These capabilities could support PAGCOR’s oversight of the gaming industry as technology and online gaming operations become more complex.
The regulator can use advanced systems to review activity, identify potential concerns, and respond to issues that may require further attention. AI may also help make some regulatory processes faster and more efficient.
However, Fernandez also noted that technology can be used in the opposite way. Tools that support fraud detection can also be used to make fraudulent activity more complex, less visible, and more difficult to detect.
This means gaming regulation must take into account both the benefits and possible misuse of AI. PAGCOR said its approach should allow innovation while ensuring that the licensed market remains fair, responsible, and transparent.
PAGCOR Reviews Policies
Fernandez said PAGCOR continues to review its policies as technological risks become more complicated.
In addition, the regulator is collaborating with legitimate industry stakeholders and coordinating its actions with other government agencies. All these measures are supposed to enable PAGCOR to deal with the changing risks in the online gaming space.
According to Fernandez, PAGCOR remains open to approaches that could make its oversight more responsive. This includes reviewing how regulations are applied as new technology, business models, and risks emerge.
She said regulators cannot rely only on old assumptions when dealing with the technology of the future. Rules and oversight systems must be capable of responding to changes in the gaming industry.
The goal is not to react to every technological development without careful consideration. Instead, regulation should remain responsive while avoiding a reactionary approach.
The Balancing of Innovation and Protection
According to Fernandez, gaming regulation must stimulate innovation while ensuring the protection of customers and businesses.
This balance is important as online gaming continues to develop. New technologies can create different ways for companies to operate, but they can also introduce risks that affect the integrity of the licensed market.
PAGCOR’s role is to ensure that the regulatory framework remains relevant as the sector changes. The regulator must be able to recognize new risks while allowing legitimate businesses to operate within a clear and fair system.
The future of online gaming will be shaped by technology, Fernandez said. However, regulation must maintain the integrity of the licensed market as AI, new business models, and emerging risks continue to develop.
Source: Asia Gaming Brief
