The Philippine Amusement and Gaming Corporation (PAGCOR) has rolled out new restrictions on rebate and cashback incentives offered by online gaming operators, introducing uniform caps aimed at reducing aggressive promotional competition across the sector.
The updated rules were outlined in a memorandum issued on 7 May by PAGCOR’s Electronic Gaming Licensing Department (EGLD). Under the directive, licensed operators can provide rebates of up to 1.5% of player turnover or deposits for slot games, electronic bingo, numeric games, and sports betting.
Operators are also allowed to offer cashback equivalent to as much as 15% of a player’s net losses across electronic gaming products.
PAGCOR explained that any rebate or cashback arrangement outside these thresholds will require individual review and approval from the regulator. The EGLD said it will assess proposals by considering factors such as the return-to-player rate of each game category before authorizing any campaign.
The regulator also warned operators against launching cashback or rebate programs without prior approval, noting that unauthorized incentives could lead to regulatory action.
PAGCOR Targets Competitive Imbalance in iGaming
The new limits arrive as the Philippines’ online gaming market continues to expand rapidly. PAGCOR said some operators had been using increasingly generous incentives to secure market share and retain customers, creating what the regulator described as “destructive competition” within the sector.
According to PAGCOR, operators had been “competing aggressively for participant loyalty through generous promotional offerings and comprehensive reward programmes. Matching percentages commonly reach 100% or higher with aggregate values exceeding standard industry benchmarks.”
The regulator said the newly introduced caps are intended to prevent a “race to the bottom” that could eventually damage market integrity.
Industry observers believe the measures are designed to narrow the gap between larger operators with substantial marketing budgets and smaller licensees that struggle to match high-value promotions. The changes effectively place all operators under the same promotional ceiling, shifting competition toward platform quality, games, and overall user experience.
PAGCOR also clarified how operators must account for these incentives financially. Cashback and rebate offers will now be classified as operational expenses and cannot be recorded as gaming losses or deducted from gross gaming revenue calculations. The regulator further stated that operators cannot combine cashback and rebate programs with other promotional cash incentives in a way that breaches the newly established limits.
The memorandum applies broadly across the sector, including gaming venue operators, integrated resort licensees, gaming system administrators, affiliates, and support service providers.
New Incentive Rules Follow Wider Regulatory Changes
The rebate restrictions are the latest addition to a broader regulatory tightening effort surrounding the country’s growing online sector.
Earlier measures introduced by PAGCOR include stricter Know Your Customer procedures aimed at preventing users from bypassing identity verification requirements. Players must now provide valid government-issued identification alongside real-time selfies before making deposits.
The regulator also previously ordered the removal of gambling advertisements from public transportation and required gambling-related marketing materials on digital platforms to undergo review by the Ads Standards Council before publication.
At the same time, PAGCOR has continued to work on structural reforms within the industry. Recent initiatives include mandatory accreditation for B2B suppliers, the introduction of a Minimum Guaranteed Fee system for licensed operators, and a new framework governing data streaming providers for live-dealer gaming content.
Philippines-based advisory firm Arden Consult described the latest rebate caps as part of a larger pattern in PAGCOR’s evolving oversight strategy.
“This is a natural extension of the direction PAGCOR has been heading – when you look at the Minimum Guaranteed Fee, the B2B supplier accreditation framework and now this, you are seeing a regulator that is systematically closing off the gaps that have historically allowed for an uneven playing field,” Arden’s CEO and Head of Legal and Regulatory, Tonet Quiogue, told Inside Asian Gaming.
“In a market that has grown as explosively as the Philippines, you cannot afford to let promotional spending run unchecked. It is both a market fairness issue and a responsible gambling issue.”
Quiogue also linked the Philippine approach to similar developments in overseas regulated markets.
“The 1.5% turnover cap sits comfortably alongside Macau’s 1.25% rolling-chip commission cap for junket operators, and the broader approach is consistent with what we are seeing in mature jurisdictions worldwide,” she said. “The UK has just capped wagering requirements at 10x and banned cross-product bonuses, Spain has reimposed restrictions on welcome bonuses after participation surged, and both Germany and the Netherlands enforce cross-provider deposit and loss limits.”
PAGCOR chairman and CEO Alejandro Tengco recently stated that online gaming generated more than half of the country’s gaming revenue in 2025, surpassing licensed casinos as the sector’s largest contributor to gross gaming revenue.
Source:
“PAGCOR imposes new caps on player rebate and cashback programs to level online gaming playing field”, asgam.com, May 10, 2026