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The Philippine Amusement and Gaming Corp has capped cash rebates at 1.5% of player turnover and cashback at 15% of net losses for online gaming operators, under rules that took effect on 7 May.
The memorandum, issued by PAGCOR’s Electronic Gaming Licensing Department (EGLD) following a board meeting the same day, applies to gaming venue operators, gaming system administrators, integrated resort licensees, gaming affiliates and support service providers. The 1.5% turnover-based rebate covers slot games, electronic bingo, numeric games and sports betting. Casino table games and arcade-type games sit outside that band. The 15% cashback cap applies across all electronic games, calculated against net losses.
Operators must submit marketing and promotional applications using EG Form No. 28 for approval before launch. Program structures must specify minimum deposits, wagering conditions, rebate or cashback rates, maximum payout limits and settlement terms. For game categories outside the prescribed thresholds, the EGLD will evaluate proposals individually and set rates based on each game’s return-to-player.
Race to the bottom
PAGCOR framed the caps as a check on promotional spending that has favoured the largest licensees. Licensed platforms “compete aggressively for participant loyalty through generous promotional offerings and comprehensive reward programs,” the regulator said, with matching percentages “commonly reach 100% or higher with aggregate values exceeding standard industry benchmarks.” Without limits, the regulator warned of “destructive competition” and a “race to the bottom” that could undermine industry integrity.
Cash rebates and cashback must now be recorded as marketing expenses rather than gaming losses, and cannot be deducted from gross gaming revenue calculations. Operators are also barred from stacking these schemes with other promotional cash incentives in ways that exceed the prescribed caps. Programs already approved but non-compliant with the new rules may continue until the end of their approved duration or 15 May 2026, whichever comes first. Extensions and modifications beyond that date will not be permitted.
Industry expert reaction
Tonet Quiogue, CEO and Head of Legal and Regulatory at Philippines-based advisory firm Arden Consult, told Inside Asian Gaming the rebate cap fits a wider pattern across PAGCOR’s recent rulemaking.
“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.”
Shaun McCamley, founder and chairman of social gaming provider GameWorkz, described the framework as a sign of a maturing market. He said PAGCOR was formalising cashback and rebate programs through defined limits, approvals and reporting requirements rather than banning them outright, and noted parallels with UK regulatory action on bonus structures alongside similar moves in European and US markets pushing operators away from aggressive bonus-driven offers.
Broader regulatory push
The caps form part of a wider tightening of online gambling oversight. PAGCOR Chairman and CEO Alejandro Tengco said in April that the online gaming segment, including electronic games, overtook licensed casinos as the largest GGR contributor in 2025.
Earlier measures included the removal of gambling-related billboards and transport ads, mandatory pre-screening of gambling promotions by the Ads Standards Council, and tightened Know Your Customer requirements. Players must now submit valid government ID alongside real-time selfies to make deposits.
In August, the Philippines Central Bank (BSP) ordered e-wallets to remove in-app links directing users to gambling sites. The measure caused a brief dip in iGaming activity, which Tengco called “vital to protect players and ensure secure, transparent transactions.” Speaking on the sidelines of ICE Barcelona in January, Tengco said the new player protections should convince the BSP “to allow linking once again of payment providers to eGaming operators.” A reversal of that delinking order would test how far PAGCOR’s tightened framework has gone in winning back regulatory confidence from other Philippine financial authorities.
Source: PAGCOR
