PAGCOR Limits Cashback Offers in Online Gaming

The Philippine Amusement and Gaming Corporation, known as Philippine Amusement and Gaming Corporation, has introduced new restrictions on promotional rewards offered by licensed online gaming operators in the country. The revised policy places limits on cashback and rebate programs across several digital gaming categories and took effect immediately following the release of the directive on May 7.

The updated rules apply to operators, gaming venues, affiliates, system administrators, and other entities connected to the regulated online gaming sector. Authorities outlined the measures through PAGCOR’s Electronic Gaming Licensing Department as part of ongoing efforts to tighten supervision over the rapidly expanding iGaming market in the Philippines.

New Rebate Rules Apply Across Multiple Gaming Segments

Under the new framework, operators involved in slot gaming, electronic bingo, sports betting, and number-based games may only provide rebates worth up to 1.5% of a player’s deposits or turnover. 

Operators may instead offer cashback equal to a maximum of 15% of a player’s net losses linked to electronic gaming products.

The directive also prevents operators from stacking promotions in ways that exceed the permitted thresholds. Cashback and rebate campaigns now require prior approval before launch, while violations may trigger regulatory action.

PAGCOR also clarified how operators must classify these promotional expenses. Rebate-related incentives will now be treated strictly as operational expenses rather than gaming losses. Because of this adjustment, operators can no longer deduct those amounts when calculating gross gaming revenue.

The policy extends beyond products already covered by fixed limits. Gaming categories without predefined thresholds will be reviewed separately by regulators, who will determine acceptable promotional caps based on factors including return-to-player rates and other operational considerations.

Regulators Seek to Reduce Aggressive Competition

The new restrictions follow concerns from regulators about increasingly aggressive competition among online gaming companies. According to PAGCOR, major operators had been relying heavily on extensive promotional campaigns to retain and attract players.

The regulator stated that licensed platforms “compete 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.”

PAGCOR added that the measures were designed to prevent “destructive competition” and a “race to the bottom” within the market.

Industry observers viewed the policy as part of a broader effort to improve long-term sustainability across the sector. Analysts indicated that the restrictions could shift competition away from oversized promotional offers and toward areas such as platform quality, product development, and regulatory compliance.

Authorities also connected the framework to responsible gaming objectives. By reducing the emphasis on high-value incentives, regulators aim to discourage excessive player spending and create more balanced gaming activity across licensed platforms.

Wider Oversight Measures Continue Across Philippine Gaming

The rebate limits arrive during a period of broader regulatory expansion within the Philippine online gaming sector. Over the past year, authorities introduced additional rules covering supplier accreditation, business-to-business providers, and live dealer data streaming services.

PAGCOR also implemented a Minimum Guaranteed Fee requirement for licensed operators. Regulators introduced the measure to address concerns surrounding revenue reporting and under-declaration.

Oversight has expanded into several additional areas, including anti-money laundering controls, payment processing systems, and player identity verification requirements. Authorities have also tightened supervision of gambling advertising, requiring promotional materials to undergo review before appearing online while restricting some forms of public-facing advertisements.

At the same time, regulators have coordinated with financial authorities regarding payment services connected to gaming operators.

Despite the stricter regulatory climate, the Philippines continues to hold a major position within Asia’s regulated gaming industry. Market estimates indicate that online gaming generated more than half of total gaming revenue in 2025, overtaking traditional land-based casino operations. Growth has been supported by rising mobile gaming activity, expanding sportsbook offerings, and wider adoption of financial technology solutions within gaming platforms.

The new accounting standards tied to promotional incentives are also expected to improve transparency within the market. Standardized reporting rules may reduce inconsistencies in revenue calculations while giving regulators clearer oversight of operator activity.

Source:

“PAGCOR Caps Cashback to Rein In iGaming Competition”, news.worldcasinodirectory.com, May 12, 2026