The Philippine Amusement and Gaming Corp (PAGCOR) has introduced new limits on cashback and rebate schemes used by online gaming operators, tightening control over promotional incentives in the country’s regulated digital gaming sector.
The policy was issued in a May 7 memorandum from PAGCOR’s Electronic Gaming Licensing Department (EGLD). It applies to licensed operators and related service providers across the expanding online gaming industry.
The regulator has set clear caps on incentives. Rebates are limited to 1.5% of player turnover or deposits for slot games, electronic bingo, numeric games, and sports betting. Cashback offers may reach up to 15% of a player’s net losses across electronic gaming products.
For game types not specifically covered, PAGCOR will assess proposals individually and evaluate them against each game’s return-to-player rate before approving any structure.
Any operator offering rebates or cashback without prior approval will be subject to regulatory action.
Incentive Rules Redefine Operator Accounting
The new framework also changes how operators must record promotional spending. Cashback and rebate payments must be treated as operational expenses and cannot be counted as gaming losses or deducted from gross gaming revenue.
Operators are also barred from combining promotional cash incentives in ways that exceed the set limits.
The rules apply to gaming venues, system administrators, integrated resort licensees, affiliates, and service providers across the sector.
The limits are expected to reduce the advantage held by larger operators that previously relied on heavy promotional spending to attract players, shifting competition toward product performance.
Broader Regulatory Tightening in Gaming Sector
The rebate caps form part of wider regulatory reforms in the Philippines’ online gaming industry. PAGCOR has introduced accreditation requirements for B2B suppliers, implemented a Minimum Guaranteed Fee for operators, and established a framework for data streaming providers in live-dealer operations.
Arden Consult CEO and Head of Legal and Regulatory Tonet Quiogue said the policy reflects a consistent regulatory direction.
“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.
She added that unchecked incentives pose both fairness and compliance concerns.
“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.”
Quiogue also noted alignment with international regulatory benchmarks, citing similar restrictions in other jurisdictions.
“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 Know Your Customer requirements, and supported restored e-wallet access following earlier central bank restrictions on gambling-related links.
Source:
“PAGCOR imposes new caps on player rebate and cashback programs to level online gaming playing field”, asgam.com. May 10, 2026
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