The Philippine Amusement and Gaming Corporation (PAGCOR) has introduced new limits on cashback and rebate promotions offered by licensed online gaming operators, as the regulator moves to curb aggressive competition in the country’s fast-growing digital gambling sector.
Under a directive issued on 7 May, operators can now offer cash rebates of no more than 1.5% of a player’s turnover or deposits across products such as online slots, e-bingo, sports betting and numeric games. For e-games, cashback based on player losses will be capped at 15% of net losses.
PAGCOR said the restrictions are designed to stop larger operators from dominating the market through oversized promotional spending. The regulator warned that increasingly generous reward schemes were creating “destructive competition” and encouraging a “race to the bottom” that could damage the integrity of the industry.
The regulator also clarified that cashback and rebate expenses must no longer be recorded as operational losses by gaming companies. Instead, they must be classified as standard business expenses tied to gaming operations.
The changes form part of a broader tightening of oversight in the Philippine online gambling market. PAGCOR chairman and CEO Alejandro Tengco recently said online gaming generated more than half of the country’s gaming revenue in 2025, surpassing traditional licensed casinos for the first time.
Over the past year, PAGCOR has rolled out several new compliance measures aimed at the sector. These include stricter Know Your Customer requirements, mandatory government-issued ID verification with live selfies for deposits, and tighter advertising controls. Gambling advertisements on public transport and billboards were also removed, while social media gambling promotions now require pre-screening by the country’s Ads Standards Council.
At the same time, the regulator has continued to support regulated payment access for licensed operators. Last year, the Philippine central bank ordered e-wallet providers to remove direct links to gambling platforms, a move that temporarily affected online gaming activity. PAGCOR later described the measure as necessary to improve player protection and transaction transparency while the industry adapted to stronger safeguards.