PAGCOR Imposes Caps on Online Gaming Rebates in the Philippines

(AsiaGameHub) –   PAGCOR has imposed restrictions on cash rebates and cash-back offers provided by online gaming operators as the regulator seeks to reduce aggressive promotional practices.

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Good to Know

• Cash rebates are now limited to a maximum of 1.5% of player turnover or deposits across several online gaming categories.
• Cash back may be offered up to 15% for all e-games, calculated based on player net losses.
• PAGCOR stated that these measures aim to prevent “destructive competition” among licensed platforms.

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The Philippine Amusement and Gaming Corp (PAGCOR) has implemented new caps on online gaming incentives, with the regulations taking effect immediately under a directive issued on 7 May.

The regulator noted that licensed platforms have been fiercely competing for player retention through extensive promotions and reward schemes. According to PAGCOR, matching offers have frequently reached 100% or higher, surpassing typical market standards.

PAGCOR emphasized that the cap is designed to stop a “race to the bottom” that could undermine industry integrity.

Online Gaming Incentives Face New Limits

Under the updated rules, cash rebates are restricted to no more than 1.5% of player turnover or deposits for slots, e-bingo, numeric games, and sports betting. Operators may also provide up to 15% cash back for all e-games, based on players’ net losses.

PAGCOR has also revised how operators must account for these incentives. Cash rebates and cash-back offers can no longer be classified as operator losses. Instead, they must be recorded as expenses linked to gaming operations.

The directive aligns with broader efforts to tighten oversight of Philippine iGaming. In April, PAGCOR Chairman and CEO Alejandro Tengco reported that online gaming accounted for over half of total gaming revenue in 2025, surpassing licensed casinos as the primary source of gross gaming revenue (GGR).

PAGCOR has already mandated the removal of gambling advertisements from billboards and public transit. It also requires the Ads Standards Council to review and approve gambling promotions before they are published on social media and other digital platforms.

Player verification procedures have also been strengthened. Users are now required to submit valid government-issued identification and real-time selfies before making deposits, as PAGCOR aims to prevent individuals from bypassing identity checks.

Meanwhile, the regulator has advocated for the reinstatement of e-wallet funding for gambling transactions. In August, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, instructed e-wallets to remove in-app links directing users to gambling sites.