In an interview with AGB, Chuan Wee Lye outlined expectations for continued regulatory fine-tuning focused on responsible gambling, dynamic know-your-customer (KYC) processes, and comprehensive player protection measures.
Sumsub, a full-cycle verification platform that enables scalable compliance, anticipates that technological advances and growing digital adoption, particularly among younger audiences and esports fans, will prompt Philippine regulators to evolve rules further.
The goal is ensuring the market remains both competitive and secure while authorities deepen their understanding of emerging technologies and global best practices. The regulatory landscape reflects legitimate concerns about balancing economic benefits with consumer protection as authorities evaluate various policy approaches, from enhanced oversight to potential restrictions.
Sumsub’s 2024 report shows the Philippines’ iGaming industry soaring, with a PHP58.16 billion ($1.01 billion) market in 2023 expected to surge past PHP122.1 billion ($2.13 billion) by 2027, driven by the Electronic Games sector’s PHP30.85 billion ($537.58 million) in 2Q24.
Strengthening the compliance framework
Chuan Wee Lye told AGB that Sumsub views regulatory developments through the lens of compliance, transparency and responsible business practices, expressing full alignment with the Philippine Amusement and Gaming Corporation’s (PAGCOR) push for stronger enforcement and clearer regulatory guidelines. This includes the new accreditation framework announced in April 2025, which extends anti-money laundering (AML) standards beyond licensed operators to include affiliates, KYC processors, payment partners, and marketing agents.
“These reforms close long-standing loopholes and set the stage for a more united front against financial crime,” Chuan Wee Lye explained. “In a market like the Philippines, where the regulatory framework evolves rapidly, our role is to enable operators to adapt proactively, reduce risk, and maintain a seamless player onboarding experience while meeting evolving regulatory standards.”
The executive noted that many clients have taken a proactive stance, strengthening their compliance programs ahead of any final regulatory decisions. With digital adoption via mobile reaching record highs, operators can no longer rely on manual KYC processes. Instead, there has been marked acceleration in demand for real-time, artificial intelligence-driven identity verification and fraud prevention.
Rising fraud concerns drive solution demand
This demand is amplified by escalating threats from AI-generated deepfakes, cited by 78 percent of Sumsub’s iGaming clients as a rising risk. Throughout 2024 and into 2025, Sumsub has observed a marked increase in online gaming operators seeking advanced, holistic solutions for KYC, AML, and ongoing risk management, driven by a fast-changing fraud landscape and increasing sophistication of criminal tactics.
“Specifically in the Philippines, emerging fraud patterns such as AI-driven identity fraud are increasingly on the rise across different industries.”
Chuan Wee Lye
“What’s challenging is generative AI, a step up from traditional deepfake technology, capable of creating highly convincing synthetic identities, documents, and even real-time interactive impersonations that are far harder to detect.”
Technology-driven compliance solutions
Given these challenges, operators are no longer satisfied with single-point solutions. Instead, they increasingly seek comprehensive, end-to-end platforms that integrate identity verification, AML screening, fraud analytics, and continuous risk scoring.
With a significant percentage of iGaming operators reporting rising fraud attempts involving AI-generated fakes and synthetic identities, Sumsub indicates that it equips clients with cutting-edge AI tools to detect and prevent these new fraud types in real time.
The platform typically verifies submitted documents in under 20 seconds on average.
“In iGaming, time is everything. If verification drags on, players will drop off and look elsewhere.”
“To help ensure they stay, we pair fast verification with an intuitive, multilingual interface so users from different regions can navigate the process effortlessly.”
Balancing compliance and user experience
The executive emphasized the fine line between regulatory compliance and customer satisfaction. In the company’s view, while operators prioritize fast, intuitive, and pleasant user experiences, regulators focus on ensuring users are of legal age, capable, and permitted to gamble safely. Sumsub states that its configurable system supports automated risk scoring, applying targeted verification intensity to enable low-risk users to onboard quickly while subjecting higher-risk cases to additional scrutiny.
Sumsub asserts that it helps operators reduce compliance costs by leveraging technology to address inefficiencies early. For example, the company’s Device Intelligence solution detects multi-accounting attempts during registration, curbing operators from expending resources on KYC for duplicate users. The company notes that, unlike other device intelligence solutions, its platform integrates this data with duplicate face search during KYC, providing robust protection while minimizing compliance costs.
Responsible gambling evolution
Online gambling operators in the Philippines are likely to gradually strengthen their approach to responsible gambling as regulations become clearer and more firmly enforced. Some operators may start by implementing basic tools like self-exclusion programs and spending limits, alongside staff training to better recognize and support at-risk players.
Chuan Wee Lye notes that technology will play a significant role through tools that track player behavior in real time and flag concerning signs early. Operators will probably focus more on educating players about risks and encouraging safer gambling habits while working closely with regulators to ensure compliance and help create safer gambling environments overall.
Effective KYC at onboarding verifies government-issued IDs and applies biometric and facial recognition technologies to block underage players and fraudulent accounts, laying a foundation of trusted player identities.
Ongoing Customer Due Diligence (CDD) supports responsible gaming by regularly assessing player behavior, transaction patterns, and risk indicators, enabling operators to identify high-risk individuals and apply enhanced due diligence to foster a secure and responsible gaming environment.
International standards adoption
Chuan Wee Lye believes stricter gambling regulations aligned with international standards are not only likely to become mandatory in the Philippines but are already gaining traction globally. Comprehensive oversight frameworks incorporating responsible gambling measures, robust AML protocols, and clear guidelines have proven particularly effective in mature markets like Europe.
“Europe’s regulated online gambling sector reached nearly €48 billion ($56 billion) in 2024 and is expected to continue growing in 2025, demonstrating that comprehensive oversight does not stifle legitimate operators but rather attracts investment and safeguards industry integrity.”
Far from hampering legitimate operators, these standards provide clear competitive roadmaps, drive out illicit actors, and elevate industry integrity.
While some worry that stricter regulation could slow growth or drive players to unregulated sites, international experience suggests that clear, consistently enforced rules can actually strengthen an industry’s legitimacy and long-term sustainability, protecting both players and operators.
Well-designed regulation deters bad actors, fosters innovation, and builds investor confidence. If the Philippines continues on this path, it could not only sustain growth but could lead the region in safe, technology-driven online gaming, potentially setting benchmarks for features like player-versus-player casino games.
Dingnews,com 04/09/2025