Philippine Amusement and Gaming Corporation (PAGCOR) has implemented a new regulatory framework capping cashback and rebate programs for electronic gaming operators, tightening control over promotional incentives across the sector.
The updated rules, issued by PAGCOR’s i-Gaming Licensing and Regulation Group, apply to operators, system administrators, integrated resorts, affiliates, and support service providers.
Clear Caps Set for Cashback and Rebate Offers
Under the new framework, operators can still offer incentives, but within strict limits:
- Up to 1.5% cashback based on player turnover (for slots, e-bingo, numeric games, and sports betting)
- Up to 15% cashback based on player net losses (applicable across all electronic games)
However, casino table games and arcade-style games are excluded from turnover-based rebate schemes.
Additionally, any games not clearly categorized will be assessed individually by regulators, with rates determined based on factors such as return-to-player (RTP).
Mandatory Approval Before Launch
Operators must now submit all cashback and rebate programs for prior approval using official regulatory forms before launching any promotion.
Submissions must include:
- Deposit requirements
- Wagering conditions
- Cashback or rebate percentages
- Maximum payout limits
- Settlement terms and full program details
This ensures greater transparency and prevents excessive or misleading promotional practices.
Stricter Accounting and Compliance Rules
Importantly, PAGCOR has clarified that operators must record cashback and rebate costs strictly as marketing expenses. Operators cannot classify these incentives as gaming losses or deduct them from gross gaming revenue.
Furthermore, combining multiple promotional incentives to exceed the capped limits is explicitly prohibited.
Enforcement and Penalties for Non-Compliance
Any operator implementing unapproved promotions or exceeding the prescribed caps may face regulatory action. This marks a clear shift toward stricter enforcement and oversight in the Philippine eGaming sector.
Transition Period for Existing Promotions
PAGCOR has introduced transitional provisions for previously approved programs that do not comply with the new rules. These may continue only until:
- The end of their approved duration, or
- May 15, 2026 (whichever comes first)
After this deadline, PAGCOR will not allow extensions or modifications.
Strengthening Control Over Promotional Practices
Overall, the new framework reflects PAGCOR’s broader effort to balance operator competitiveness with responsible gaming standards. By limiting aggressive promotions and enforcing transparency, the regulator aims to create a more sustainable and controlled eGaming environment in the Philippines.
