PAGCOR Limits Cashback and Rebates for iGaming

The Philippine Amusement and Gaming Corporation (PAGCOR) has introduced new restrictions on promotional incentives across the country’s online gaming sector, setting clear limits on cashback and rebate programs offered by licensed operators. The changes take immediate effect and apply across a wide range of stakeholders, including gaming venues, online platforms, system administrators, affiliates, and service providers.

The directive [pdf], issued on May 7 by the regulator’s Electronic Gaming Licensing Department, outlines specific thresholds for different gaming categories. Operators offering slot games, electronic bingo, number-based games, and sports betting can now provide rebates capped at 1.5% of player turnover or deposits. As an alternative, operators may extend cashback equal to a maximum of 15% of a player’s net losses across electronic gaming products.

The updated framework also restricts how promotions can be structured. Operators cannot combine cashback or rebate offers with other incentives if doing so would exceed the defined limits. Additionally, any rebate or cashback program must receive prior approval before implementation, with non-compliant activity subject to enforcement measures.

New Limits Target Promotional Spending

The regulator clarified that all rebate-related incentives must be treated as operational expenses rather than gaming losses. This means such amounts cannot be deducted when calculating gross gaming revenue. The adjustment alters how operators account for promotional costs and removes the ability to use these incentives to reduce reported revenue figures.

The rules extend to categories that do not fall under predefined thresholds. In such cases, the regulator will assess proposals individually and determine appropriate limits based on factors such as the return-to-player rate. This approach introduces additional oversight for products that require tailored regulatory consideration.

The decision reflects growing concern over the role of aggressive promotions in shaping competition within the market. Authorities have observed that larger operators have relied on extensive cashback programs and similar incentives to secure customer loyalty. The updated framework aims to curb that approach by setting uniform limits.

According to the regulator, 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.” The regulator stated that the new measures are intended to prevent “destructive competition” and a “race to the bottom” that could weaken industry standards.

Broader Regulatory Changes Continue

The rebate restrictions form part of a wider regulatory effort that has unfolded over the past year. Authorities have introduced new requirements for supplier accreditation, including frameworks governing business-to-business providers and data streaming operations linked to live dealer content. These measures establish additional layers of compliance for operators participating in the digital gaming ecosystem.

Other changes include the introduction of a Minimum Guaranteed Fee for licensed operators. This requirement addresses concerns related to revenue reporting and aims to reduce instances of under-declaration. Regulators have also strengthened oversight in areas such as anti-money laundering controls, payment processing, and identity verification procedures.

Recent policy actions have also addressed advertising practices. Regulators required that gambling-related promotions undergo review before appearing on digital platforms, while certain forms of public advertising have been restricted. At the same time, authorities have worked with financial regulators to manage how payment services interact with gaming operators.

Despite the stricter environment, the country continues to position itself as a significant regulated gaming market in Asia. Industry estimates indicate that the sector generated more than half of total gaming revenue in 2025, surpassing traditional land-based casino activity. Growth has been supported by mobile gaming adoption, expanded sportsbook offerings, and increased use of financial technology within gaming platforms.

According to Inside Asian Gaming, market observers have interpreted the rebate caps as part of a broader shift toward long-term sustainability. By limiting promotional spending, regulators are steering operators toward competing through product development, platform performance, and compliance standards.

The framework also places greater emphasis on responsible gaming controls. By reducing reliance on high-value incentives, authorities aim to mitigate risks associated with excessive player spending and encourage more balanced engagement across platforms.

At the same time, the rules contribute to improved financial transparency within the sector. Standardizing how incentives are treated in accounting practices removes inconsistencies in revenue reporting and strengthens regulatory oversight.