The Philippine Amusement and Gaming Corp has set a cap on cash rebate and cash-back incentives used by online gaming operators to lure and retain patrons. The move is seen as a way to keep larger operators from cornering the market simply by outspending their competitors.
As PAGCOR notes, 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 said the rules, laid out in a 7 May directive, will avert “destructive competition” and a “race to the bottom” that could undermine industry integrity.
Effective immediately, cash rebates may not exceed 1.5% of player turnover or deposit for slots, e-bingo, numeric games and sports betting. Operators may offer up to 15% cash back for all e-games based on a player’s net losses. Moreover, cash rebates and cash-back “shall not be recorded as losses by the operator” but as “expenses incurred during gaming operations”.
Stronger regulations for iGaming
The new rules are part of an ongoing strategy to boost regulatory oversight of iGaming. The sector contributed more than half of total gaming revenues in 2025, “overtaking licensed casinos as the largest GGR contributor”, said PAGCOR chairman and CEO Alejandro Tengco in April.
Last year, PAGCOR ordered the removal of gambling-related billboards and ads on public transportation. It also mandated that the Ads Standards Council pre-screen gambling promotions before they appear on social media and other digital platforms. In addition, the regulator strengthened Know Your Customer requirements to prevent players from sidestepping ID verification protocols. Users must now submit valid government ID cards plus real-time selfies to make deposits.
But even as PAGCOR enacted stricter rules for online gambling, it also lobbied to restore the use of e-wallets to fund transactions. Last August, the Philippines Central Bank (BSP) ordered e-wallets to immediately remove in-app links directing users to gambling sites.
The measure caused a brief dip in iGaming activity, but was “vital to protect players and ensure secure, transparent transactions”, Tengco said. “The industry … is adjusting to necessary safeguards.”
On the sidelines of ICE Barcelona in January, he told reporters the array of new player protections should convince the BSP “to allow linking once again of payment providers to eGaming operators”.
Marjorie Preston
Marjorie began her gaming career in 2007 and has focused on Asian gaming markets since 2020. Outside of work, she writes about travel and film and plays the drums.
Original article: https://igamingbusiness.com/uncategorized/pagcor-limits-player-incentives-by-online-gaming-operators/
