The Philippine Amusement and Gaming Corporation (PAGCOR) has confirmed a full revamp of cashback rules as it implements fresh promotional frameworks designed to balance competition in the country.
Effective immediately, operators will be limited to offering cash back for e-games below 15% of a player’s net losses. Meanwhile, cash rebates below for slots, e-bingo, numeric games and sports betting can be no greater than 1.5% of player turnover or deposit.
Going forward, operators will also be required to record cash rebates and cashback as ‘expenses incurred during gaming operations’, rather than as losses.
According to PAGCOR, the policy change has been made to avoid ‘destructive competition’ and a ‘race to the bottom’ through larger operators seeking to dominate the market through offering significantly more generous promotions to players.
iGaming accelerates amid land-based woes
The decision comes as the Philippines’ market continues to shift towards dominance by the iGaming sector.
PAGCOR’s latest financial results revealed that last year, revenue from e-gaming outstripped licensed land-based gaming for the first time as the two segments faced contrasting fortunes.
Revenue from electronic games grew 30% year-on-year to P201.12bn (£2.48bn), which represented 50.77% of the overall revenue of P396.1bn (£4.87bn).
On the other hand, revenues from licensed casinos declined by 9.58% to P182.50bn (£2.24bn) from P201.84bn (£2.48bn) in 2024, while PAGCOR-operated casinos faired no better, reporting a 21% year-on-year decline in revenue to P12.52bn (£154m).
Given this shift, some of the Philippines’ most prominent casino operators have chosen to explore the potential financial benefits offered by iGaming, including Okada Manila.
The casino’s owner, Tiger Resort, Leisure and Entertainment, confirmed earlier today (13 May) that its online gaming platform, OKADA PLAY, has officially launched, as it seeks to ‘capture new revenue opportunities’ amid weakened financial performances that mirrored the wider slump in the land-based sector.
Nobuki Sato, President and Chief Operating Officer of Okada Manila, commented: “This launch marks an important step in Okada Manila’s digital expansion as we bring our gaming experience to a wider audience across the Philippines through OKADA PLAY.”
Regulation continues to strengthen
PAGCOR’s new directive continues a trend of strengthened regulation in the Philippines.
Last month, the country’s government shared a new set of rules designed to assist the enforcement of the 2024 ban on offshore gaming operators (POGOs).
The Standard Operating Procedures (SOPs) on the implementation of the POGO ban consolidated two POGO ban orders along with 15 other laws and department orders into one action plan.
Despite it being almost two years since the Philippines shifted away from POGOs, Executive Secretary Ralph Recto described the operations as ‘an ever-evolving menace all too capable of reappearing unless government remains vigilant, coordinated and relentless’.
“These SOPs will evolve our approach—from merely shutting down hubs to preserving assets, seizing illicit resources, securing convictions, protecting victims, and cutting these criminal enterprises off from the financial and corporate networks that sustain them,” he added.
Enforcement against POGOs will now be led by the Presidential Anti-Organised Crime Commission (PAOCC), with help from the Department of Justice, the Anti-Money Laundering Council, the Securities and Exchange Commission and the Department of Social Welfare and Development.
