The Philippines accelerated a new phase of iGaming market consolidation in May 2026 after the Philippine Amusement and Gaming Corporation (PAGCOR) introduced mandatory limits on cashback and rebate programs used by online operators to attract players. The measure reshapes competition inside one of Asia’s fastest-growing gaming markets and strengthens the regulator’s strategy to professionalize the country’s digital gaming ecosystem.
The memorandum was issued on May 7 by PAGCOR’s Electronic Gaming Licensing Department (EGLD), under the leadership of chairman and CEO Alejandro H. Tengco. The new rules establish that operators of slots, e-bingo, number games and sports betting platforms may only offer rebates of up to 1.5% of turnover or deposits, or alternatively a maximum equivalent to 15% of a player’s net losses. PAGCOR also prohibited operators from combining promotions to exceed those limits and clarified that rebates can no longer be declared as gaming losses or used to reduce Gross Gaming Revenue (GGR) calculations.
CEO Alejandro H. Tengco
The regulation applies to licensed online operators, integrated resorts, gaming system administrators, affiliates, live dealer studios and accredited technology providers. The objective is to stabilize competition after large operators increasingly relied on aggressive promotional spending and oversized cashback campaigns to dominate market share and customer acquisition.
The move forms part of a broader regulatory modernization strategy deployed by PAGCOR throughout 2025 and 2026, including new B2B accreditation frameworks, Minimum Guaranteed Fees, AML controls, tighter oversight of e-wallets and supervision of international streaming services linked to live dealer operations.
The Philippines is simultaneously positioning itself as one of Asia’s most important regulated gaming hubs outside Macau. Market analysts estimate the country’s regulated gaming industry surpassed approximately US$7 billion in annual gaming revenue entering 2026, driven by mobile betting expansion, fintech integration, live dealer growth and accelerating sportsbook activity.
The sector has largely interpreted the new framework as a positive signal of market maturity. PAGCOR is now steering the sector toward a model where operators compete through technology, platform quality, compliance standards and user experience rather than unsustainable promotional warfare. The measure is also expected to strengthen fiscal stability, financial transparency and responsible gaming controls while supporting long-term growth across the Philippine online gaming market.
