PAGCOR caps cash rebates and cash-back incentives for online gaming operators

(AsiaGameHub) –   The Philippine Amusement and Gaming Corp (PAGCOR) has imposed a limit on cash rebates and cash-back incentives offered by online gaming operators to attract and keep customers. This measure aims to prevent larger operators from dominating the market simply by spending more than their competitors.

PAGCOR notes that licensed platforms “compete aggressively for participant loyalty through generous promotional offerings and comprehensive reward programmes,” with matching percentages often reaching 100% or higher and total values exceeding typical industry standards.

According to PAGCOR, the rules established in a directive issued on 7 May are intended to prevent “destructive competition” and a potential “race to the bottom” that could compromise the integrity of the industry.

Effective immediately, cash rebates are capped at 1.5% of player turnover or deposit for slots, e-bingo, numeric games, and sports betting. For all e-games, operators may offer up to 15% cash back based on a player’s net losses. Furthermore, cash rebates and cash-back “shall not be recorded as losses by the operator” but must instead be treated as “expenses incurred during gaming operations.”

Stronger regulations for iGaming

The new rules form part of an ongoing effort to increase regulatory oversight of iGaming. The sector accounted for over half of total gaming revenues in 2025, “overtaking licensed casinos as the largest GGR contributor,” stated PAGCOR chairman and CEO Alejandro Tengco in April.

Last year, PAGCOR directed the removal of gambling-related billboards and advertisements on public transportation. It also required the Ads Standards Council to pre-screen gambling promotions before they appear on social media and other digital platforms. Additionally, the regulator enhanced Know Your Customer requirements to stop players from bypassing ID verification procedures. Users are now required to submit valid government-issued identification cards along with real-time selfies when making deposits.

Despite implementing stricter controls on online gambling, PAGCOR also advocated for the reinstatement of e-wallets for funding transactions. In August, the Bangko Sentral ng Pilipinas (BSP) ordered e-wallet providers to immediately remove in-app links that direct users to gambling sites.

This action caused a temporary decline in iGaming activity, but was “vital to protect players and ensure secure, transparent transactions,” according to Tengco. “The industry … is adjusting to necessary safeguards.”

During an event at ICE Barcelona in January, he told reporters that the suite of new consumer protections should help convince the BSP “to allow linking once again of payment providers to iGaming operators.”