In a decisive move to stabilize the Philippines’ rapidly expanding iGaming sector, the Philippine Amusement and Gaming Corp (PAGCOR) has officially intervened to end a high-stakes promotional arms race among online operators.
By introducing hard caps on cash-back and rebate incentives to end high-stakes promotions, PAGCOR aims to prevent the industry’s largest and most well-capitalized players from monopolizing the market through sheer financial muscle, ensuring that smaller entities can remain competitive on the basis of product quality rather than marketing spend.
Ending the “Race to the Bottom”
According to a formal directive issued on May 7, PAGCOR identified a worrying trend where licensed platforms were competing through “generous promotional offerings” that frequently exceeded standard industry benchmarks.
To safeguard market integrity and prevent what leadership described as “destructive competition,” the regulator has set a maximum cash rebate of 1.5% of player turnover for slots, e-bingo, numeric games, and sports betting. Additionally, cash-back offers for all e-games are now strictly limited to 15% of a player’s net losses.
PAGCOR Chairman and CEO Alejandro Tengco emphasized that the sector, which recently overtook land-based casinos as the largest GGR contributor, requires robust oversight to ensure long-term sustainability. The new rules also dictate a significant shift in accounting; these incentives must now be recorded as “expenses incurred during gaming operations” rather than being written off as gambling losses.
As PAGCOR notes:
“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.”
A Strategy for Player Protection
This regulatory tightening is the latest step in a comprehensive strategy to boost digital oversight. Over the past year, PAGCOR has ordered the removal of gambling-related billboards, mandated pre-screening of digital ads by the Ads Standards Council, and implemented strict KYC protocols requiring real-time selfies for deposits.
However, Tengco remains committed to improving the sector’s operational efficiency. He continues to lobby the Philippines Central Bank (BSP) to restore e-wallet links to gambling sites, arguing that current safeguards make transactions secure and transparent. Speaking on the sidelines of ICE Barcelona, he noted:
“The industry… is adjusting to necessary safeguards. The array of new player protections should convince the BSP to allow linking once again of payment providers to eGaming operators.”
