Philippine gaming regulator PAGCOR has announced the implementation of new guidelines governing cash rebate and cashback programs offered by online gaming operators, imposing caps on the incentives licensees are permitted to extend to players.
In a memorandum dated 7 May, PAGCOR’s Electronic Gaming Licensing Department (EGLD) revealed that a maximum rebate of 1.5% of player turnover – calculated as gross bets placed – or deposit will apply for slot games, electronic bingo games, numeric games and sports betting. Alternatively, operators may offer up to 15% of a player’s net losses for all types of electronic games.
For electronic game categories not covered by the above thresholds, the EGLD will evaluate individual proposals and determine appropriate rates on a case-by-case basis, taking into consideration the return-to-player (RTP) of each game before issuing approval. The implementation of any cash rebate or cashback program without prior regulatory approval will be subject to regulatory action.
PAGCOR stated that such programs will be classified as expenses incurred during gaming operations but cannot be declared as gaming losses or included as deductions in the calculation of gross gaming revenue (GGR). Cash rebates and cashback will not be permitted to be combined with any other promotional cash incentives in a way that exceeds the maximum permitted amount.
The memorandum was addressed to all gaming venue operators, gaming system administrators, licensees of integrated resorts, gaming affiliates and support service providers.
The new guidelines are understood to be designed to level the playing field in a market where larger, more heavily capitalized operators have been able to offer significantly more generous rebate programs to attract and retain players – effectively pricing smaller competitors out through promotional spending alone. By imposing a uniform ceiling, PAGCOR is compelling operators to compete on product quality and platform experience rather than engaging in a subsidy war that only the deepest pockets can sustain.
According to Arden Consult, a Philippines-based advisory firm that has closely tracked PAGCOR’s evolving regulatory posture, the rebate cap should be viewed as part of a broader, interconnected regulatory overhaul.
“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,” Arden’s CEO, Head of Legal and Regulatory, Tonet Quiogue, told IAG.
“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.”
Tonet also noted that the specific thresholds chosen by PAGCOR are well-calibrated against international benchmarks.
“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. “The UK has just capped wagering requirements at 10x and banned cross-product bonuses, Spain has reimposed restrictions on welcome bonuses after participation surged, and both Germany and the Netherlands enforce cross-provider deposit and loss limits.”
The rebate cap follows a series of new regulatory measures imposed by PAGCOR in recent months to increase oversight of the country’s rapidly expanding iGaming sector. These include the implementation of a new regulatory framework for B2B suppliers under which they must be fully accredited, a Minimum Guaranteed Fee to be paid by all licensed operators – the latter aimed at solving issues of under-declaration or misdeclaration of revenues – and, most recently, the release of an Accreditation Framework for Data Streaming Providers establishing a regulated pathway for Philippine live-dealer studios to stream gameplay feeds to operators licensed in foreign jurisdictions.
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