PAGCOR, the Philippine gaming regulator, has opposed a proposed ban on online gambling, despite mounting nationwide calls to criminalise it over soaring numbers of addiction, debt and mental health cases.

The online gambling sector in the Philippines has been growing exponentially, with gross revenues jumping from $140M in 2022 to $2.4B in 2024, according to Senate Committee on Games and Amusement data.

The committee held a hearing last week, highlighting the human cost of the industry, with its members demanding to outlaw it, saying the country was facing a full-blown public health and social crisis.

Sen. Erwin Tulfo, who led the hearing on online gambling, warned that “as long as online gambling exists, we are breeding the next generation of addicts, debtors, and broken families.”

He called for a ban and to “prosecute not only the operators, but also the enablers — in the government and in the private sector — who profit from this misery.”

PAGCOR, which is both an operator and regulator, said it “is not in favor of a total ban and instead advocates for stricter regulation.”

The regulator said that illegal operators are the real problem.

“Unfortunately, many of these unregulated online operators are based overseas who target Filipinos, most of whom do not realize that the sites they are playing on are not licensed by PAGCOR. This is where problems arise, especially regarding age restrictions.”

But a survey cited by senators indicates that age was not the main issue. It indicated that 66% of Filipinos aged 18 to 40, and 57% of those aged 41 to 55 were engaged in online gambling. Nearly a third bet multiple times a week, some wagering up to $53 per session.

Majority Leader Joel Villanueva warned online gambling is a “growing national crisis” in the Philippines.

“People are not just risking their hard-earned money. They are putting their futures, families, and lives on the line. The lure of instant wealth has already led many down a path of addiction, debt, and despair,” he said.

“Online gambling is not just a matter of financial loss. It is strongly associated with serious mental and physical health issues, broken relationships, family conflict, increased cases of domestic violence and suicide, crime against persons and property, and ultimately, the erosion of opportunities and dignity in the lives of many Filipinos.”

The UNLV International Gaming Institute has launched a new AI Research Hub (AiR Hub) to tackle some of the most pressing challenges facing the gaming industry’s digital transformation.

Co-founder Kasra Ghaharian, the institute’s director of research, said the AiR Hub will address critical questions reshaping the sector: How is artificial intelligence transforming gaming operations? What governance frameworks should guide AI implementation in this traditionally regulated industry? Which emerging technologies must operators master to stay competitive? And how can the sector effectively integrate responsible AI practices with cutting-edge academic research?

“So all of these things that you might expect a research institution to do,” Ghaharian said, “we wanted to do specifically for this intersection of AI with gambling.”

While scattered research around AI in gaming has existed, Ghaharian said there hasn’t previously been a central hub for it. He and AiR Hub co-founder Simo Dragicevic, an International Gaming Institute (IGI) adjunct fellow, saw the opportunity to generate evidence, research and insight that could help the industry better understand and navigate AI technology.

“I think IGI has always had this place to be a thought leader in terms of knowledge, insights for the breadth of stakeholders across the gambling industry. And with the growth and expansion of this new technology, which is artificial intelligence, I think it’s important for us to continue that reputation,” Ghaharian said.

AI is and will continue to have a fundamental impact on all aspects of society, said Dragicevic, who is an industry veteran with experience in gaming software, regulation and AI.

As the gaming industry naturally focuses on product innovation and growth, it’s important someone is also looking at the potential safety aspects that may arise from AI — and AiR Hub is prepared to take on this critical role, Dragicevic said.

“Given the arguably controversial nature of the gambling industry and the gambling product, when it intersects with this technology — which, in and of itself, is controversial — I think that highlights the need for scrutiny; for some research to help guide the ship,” Ghaharian said.

The AiR Hub has received financial support from a variety of industry stakeholders, Ghaharian said. Founding industry members will also serve on an industry advisory panel to ensure that what the hub is doing is practical and relevant.

“It’s kind of that analogy of the ivory tower, right?” he said. “We don’t want to be just in a silo, not speaking to the industry, doing research that we think is relevant, that might not be applicable.”

There’s a reason the new entity is called a “hub” and not a “lab,” Dragicevic said, and that’s to emphasize its collaborative nature.

AiR Hub will build a framework and tools for regulators to help them ask the right questions before making any decisions on whether regulations need to adapt to change, he said, by inviting them to work with academics and partner universities in the early stages of projects.

It will also be important to engage the industry to ensure framework and tools are practical and factor in the complexities and nuances of the industry, Dragicevic said.

The Directorate of Enforcement (ED) in India has widened its crackdown on Cyprus-based illegal online betting platform Parimatch, placing advertising and media agencies under the scanner for allegedly aiding the company’s surrogate promotions in India.

In extensive search operations on August 12 across Mumbai, Delhi, Noida, Jaipur, Surat, Madurai, Kanpur and Hyderabad, the ED froze funds worth nearly ₹110 crore parked in mule bank accounts suspected of being used for money laundering and layering transactions. Officials also seized digital devices, documents, and more than 1200 credit cards used in the racket.

The investigation revealed that Parimatch routed user funds through a complex network of mule accounts, hawala channels and crypto wallets. In some cases, funds were withdrawn in cash in Tamil Nadu and converted into USDT cryptocurrency through UK-based wallets controlled by Parimatch agents. Other methods involved the use of domestic money transfer agents and rejected payment aggregators who provided backdoor API access for fund collections disguised as e-commerce payments and refunds.

However, investigators said the platform’s aggressive rise in India was fueled not just by these financial networks but also by heavy marketing and surrogate advertising. Despite being an illegal offshore betting operator, Parimatch gained visibility through sponsorship of sports tournaments, celebrity endorsements and brand extensions under “Parimatch Sports” and “Parimatch News.”

Payments to Indian advertising and media agencies handling these promotional activities were allegedly routed via foreign inward remittances, raising questions about the role of advertising companies in enabling the brand’s presence in the country. Officials hinted that several agencies may now face questioning over their involvement in running surrogate ads designed to bypass gambling restrictions.

Roland Landers, CEO of All India Gaming Federation, said: “ED’s action to freeze funds linked to surrogate offshore gambling entities such as Parimatch Sports and Parimatch News is a much-needed step to curb the growing menace of illegal offshore gambling operations that continue to exploit India’s growing gaming user base. Curbing the financial networks of such offshore is very important. We are hopeful that the persistent threat of surrogate advertising of such platforms, often disguised as sports or news content that misleads Indian gamers and normalises illegal gambling will also be stopped by media platforms.”

Landers said: “There is now an urgent need for a central regulatory framework that will bring in uniformity across states, ensure clarity, stability, and a level playing field for compliant indian skill-based operators who adhere to laws and contribute meaningfully to the economy. This will not only help in effectively curbing illegal offshore gambling but also unlock the true growth potential of India’s legitimate, skill-based online gaming industry.”

A research by Skill Online Games Institute states that almost 83% on the spends of the 500 million strong Indian gaming players community is going to offshore gaming platforms. Today only USD 3.2 billion (17%) is coming to Indian gaming platforms.

Amrit Kiran Singh, the founder president of Skill Online Games Institute, said: “We have raised the issue with PMO, MHA FIU besides MIB & MEITY. The government has been discussing this with us but more concrete action needs to be taken to really address this significant issue. While investigations on celebrities and advertising agencies who help promote the illegal platforms will help slow down the promotion of these platforms, the size of the business should indicate that the horse has, already bolted -that this illegal business is already well established and thriving.”