PAGCOR Restricts Rebate Offers in Online Gaming

The Philippine Amusement and Gaming Corp (PAGCOR) has introduced new restrictions on cashback and rebate promotions offered by online gaming operators, placing limits on incentives available across multiple betting categories.

The rules were issued in a memorandum dated May 7 from PAGCOR’s Electronic Gaming Licensing Department (EGLD). The regulator said the measures address aggressive promotional activity in the country’s expanding online gaming market and reduce reliance on large-scale bonuses to attract players.

Operators may now provide rebates of up to 1.5% of player turnover or deposits for slot games, electronic bingo, numeric games, and sports betting. Cashback offers are also permitted up to 15% of a player’s net losses across electronic gaming products.

PAGCOR said electronic game types outside these thresholds will undergo individual evaluation. The regulator will assess proposals based on each game’s return-to-player rate before granting approval.

Operators introducing rebate or cashback schemes without prior approval may face regulatory action.

Promotional Competition Under Scrutiny

PAGCOR noted that operators have increasingly relied on aggressive promotions to retain users, with some offers exceeding typical industry levels.

The regulator said the new framework is intended to prevent “destructive competition” and a “race to the bottom” that could undermine sector integrity.

The memorandum also sets accounting rules for incentives. Cashback and rebates must be recorded as operating expenses and cannot be treated as gaming losses or deducted from gross gaming revenue. PAGCOR also prohibited combining promotional offers if total value exceeds allowed limits.

The directive applies to gaming venue operators, system administrators, integrated resort licensees, affiliates, and service providers.

Industry observers said the rules could reduce the advantage of larger operators with stronger promotional budgets. Standardized limits are expected to shift competition toward product quality and platform performance.

Wider Regulatory Expansion in iGaming

The rebate limits form part of broader regulatory changes in the Philippine gaming sector. PAGCOR has introduced accreditation rules for B2B suppliers, implemented a Minimum Guaranteed Fee for licensed operators, and created a framework for data streaming providers in live-dealer gaming.

Arden Consult CEO and Head of Legal and Regulatory Tonet Quiogue said the policy aligns with PAGCOR’s wider 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,” Quiogue said.

“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.”

She also compared the limits with international benchmarks.

“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.

PAGCOR has also tightened advertising controls, strengthened KYC rules, and supported restored e-wallet links after earlier restrictions reduced activity in the sector.

Source:

“PAGCOR imposes new caps on player rebate and cashback programs to level online gaming playing field”, asgam.com, May 10, 2026