The Philippine Amusement and Gaming Corporation (PAGCOR) has implemented new regulations limiting the value of cash rebates and cash-back incentives offered by online gaming operators, effective May 7. These measures aim to prevent larger companies from dominating the market through extensive financial incentives, which could potentially skew competition and compromise industry standards.
In order to curb aggressive promotional tactics, PAGCOR has set a maximum rebate of 1.5% on player turnover or deposits for games such as slots, e-bingo, numeric games, and sports betting. Additionally, operators can offer up to 15% cash back on net losses across all e-games. According to PAGCOR, these incentives are not to be recorded as losses but must be categorized as operational expenses, underscoring the intent to maintain financial transparency and order.
The decision is part of PAGCOR’s broader strategy to reinforce its regulatory framework within the iGaming sector. Commenting in April, PAGCOR Chairman and CEO Alejandro Tengco highlighted that online gaming has become the largest contributor to gross gaming revenue, surpassing traditional casinos. This shift in market dynamics necessitates stronger oversight to ensure sustainable industry growth and fair competition.
Previously, PAGCOR has taken steps to enhance regulatory compliance, including the removal of gambling-related advertisements from public spaces and the requirement for the Ads Standards Council to pre-screen promotional materials. Additionally, the regulator has tightened Know Your Customer (KYC) protocols. Players are now required to submit government-issued IDs and real-time selfies to verify their identity when making deposits, aiming to bolster the integrity of player identification processes.
In parallel, PAGCOR has been advocating for the reintroduction of e-wallets for gambling transactions, following the Central Bank of the Philippines’ (BSP) directive last August to eliminate in-app links to gambling sites. While this policy initially led to a decline in iGaming activity, PAGCOR argues that e-wallets are crucial for facilitating secure and transparent transactions. During a recent conference in Barcelona, Tengco noted that their enhanced player protection measures could persuade the BSP to reconsider its stance on payment provider linkages with eGaming operators.
As PAGCOR continues to fine-tune its regulatory approach, the industry will need to adapt to these new constraints while balancing competitive practices. The recent changes reflect ongoing efforts to strengthen governance and maintain market equilibrium. Going forward, operators and stakeholders will closely watch the implementation of these measures and their impact on business operations and market dynamics. The timeline for further adjustments and potential regulatory reviews remains to be seen, but the emphasis on compliance and player protection is set to shape the Philippine iGaming landscape.
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