PSE-Listed DFNN Reportedly Launching AI and Blockchain Lottery Platform in the Philippines

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M42, Constellation Network, and DFNN Group signed a collaboration agreement to develop what they describe as the “world’s first AI, Blockchain and Crypto”-integrated national lottery system in the Philippines.

AI, Blockchain, and Crypto Lotto?

In a press release, the firms said the project aims to merge artificial intelligence, blockchain, and digital asset infrastructure with the Philippines’ regulated sectors, including lotteries, gaming, capital markets, banking, and online trading.

They highlighted the Philippines’ strong position in the global gaming and crypto landscape. According to the release, lotteries account for more than 45% of domestic gaming revenue. The country also ranks among the world’s highest in crypto adoption, with around 13% of the population using digital assets.

The partners said this environment makes the Philippines an ideal testbed for blockchain-driven upgrades to regulated industries.

“Our vision is to merge innovation with integrity. This project will demonstrate how blockchain can enhance transparency, trust, and accessibility in real-world applications, starting with transparency in various verticals such as lotteries, gaming, payments, and exchange systems.”

Greg Lackland, Chief Technology Officer, M42

Lackland added that the project will show how blockchain can update traditional systems while maintaining transparency and compliance.

“What’s exciting is that we’re transforming traditional, centralized databases and networks into modern, secure systems. Similar to our work with the Department of Defense, we’re using Web3 technology to broaden participation in the digital economy, starting with DFNN’s regulated operations in lotteries, gaming, capital markets, and payments. What we’re building here serves as a blueprint that can be applied to other established networks around the world.”

Ben Jorgensen, CEO, Constellation Network

How it works

DFNN, a long-time technology partner of Philippine gaming and financial regulators, will provide licensed infrastructure and compliance support. Through the partnership, players will be able to purchase national lottery tickets using cryptocurrency.

The backend will integrate M42’s AI platform with Constellation Network’s Hypergraph, a decentralized system for secure and scalable data exchange. Constellation’s native token, DAG, will support data validation across the network.

The firms said the project aims to improve transparency in lottery draws and payments while establishing compliant models for digital participation, including potential cross-border engagement.

“The Philippines has a rare combination of high crypto adoption, digital remittance infrastructure, and openness to adopt AI and blockchain technologies. By uniting AI compliance with blockchain’s capabilities, we can open the door to responsible, democratic financial inclusion across our regulated operations.”

Ramon Garcia Jr., chairman, DFNN

M42 is a global technology firm specializing in artificial intelligence, digital transformation, and secure infrastructure solutions for both public and private sectors. Constellation Network is a U.S.-based blockchain company known for its Hypergraph protocol, a decentralized system designed for verified and scalable data exchange, including work with the U.S. Department of Defense.

Regulatory Framework and Licensing

DFNN holds multiple gaming and lottery contracts in the country, including with PAGCOR and the Philippine Charity Sweepstakes Office (PCSO). The company also operates digital asset and exchange services under the Freeport Area of Bataan.

According to a disclosure filed on the PSE Edge portal, DFNN reported that it had finalized an agreement with the PCSO to upgrade the national lottery’s technology systems. In a report submitted to the Securities and Exchange Commission on November 11, 2024, the company said it received the signed agreement on November 8.

Under the deal, DFNN will serve as a Corporate Business Level 2 Agent for the PCSO. The partnership is intended to boost the agency’s technological capabilities to help raise lottery sales and, in turn, increase funds for its charitable programs.