PAGCOR Balances Industry Competition With Cap On Incentives From Operators

Philippine Amusement and Gaming Corp has introduced new limits on cash-back and rebate offers used by online gaming operators to entice patrons.

According to PAGCOR, 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.”

The move will ensure balance by curbing larger operators from dominating the market through sheer spending power.

New limits aimed at stopping “race to the bottom”

Under a directive issued on 7 May, PAGCOR set clear thresholds for promotional offers across gaming categories.

Cash rebates are now capped at 1.5% of player turnover or deposits for slots, e-bingo, numeric games and sports betting. For e-games, operators may offer up to 15% cash back based on a player’s net losses.

The regulator also stated that cash rebates and cash-back “shall not be recorded as losses by the operator” but as “expenses incurred during gaming operations”.

PAGCOR said the changes are intended to strengthen market integrity by preventing “destructive competition” and a “race to the bottom”.

Broader push to tighten iGaming regulation

This latest move is part of a wider regulatory push as online gaming expands rapidly in the Philippines. The sector contributed more than half of total gaming revenues in 2025, “overtaking licensed casinos as the largest GGR contributor”, according to PAGCOR chairman and CEO Alejandro Tengco.

Recent measures include removing gambling-related billboards and advertisements from public transport, introducing mandatory pre-screening of promotions by the Ads Standards Council, and tightening Know Your Customer requirements.

Players must now submit valid government identification and real-time selfies before making deposits, a move aimed at closing gaps in identity verification.

Payment restrictions and industry adjustment

While tightening oversight, PAGCOR has also been working to stabilise payment infrastructure within the sector.

In August, Bangko Sentral ng Pilipinas ordered e-wallet providers to remove in-app links directing users to gambling platforms. The decision caused a short-term decline in iGaming activity.

Tengco described the move as necessary, saying it was “vital to protect players and ensure secure, transparent transactions”. He added: “The industry … is adjusting to necessary safeguards.”

Speaking at ICE Barcelona in January, Tengco said improved player protection measures should convince regulators “to allow linking once again of payment providers to eGaming operators”.

PAGCOR has imposed new limits on the incentives that operators can offer to players. This way, they can prevent the heavyweights from totally dominating the market. The authority is also considering other measures to improve player protection.