THE Philippine Amusement and Gaming Corp. (PAGCOR) has set limits on cash rebate and cashback programs for electronic gaming operators, including a 1.5% cap on rebates based on wagers or deposits and a 15% cap on cashback tied to net losses.
In a memorandum dated May 7, PAGCOR said cash rebates should be based on a player’s turnover or deposit, subject to a maximum rate of 1.5% for slot machine games, electronic bingo games, numeric games, and sports betting.
The regulator also said cashback based on a player’s net losses should be limited to 15% for all electronic games.
The memorandum directs gaming system administrators and integrated resort licensees or operators to submit marketing or promotional programs to PAGCOR’s Electronic Gaming Licensing Department for approval before implementation.
The submission must include details on program tiers, qualification guidelines, program coverage, deposit requirements, settlement conditions, and general conditions.
“Any implementation of cash rebate or cashback programs without prior approval or beyond the prescribed rate shall be subject to appropriate regulatory action,” PAGCOR said.
The regulator also clarified that cash rebates and cashback should not be declared as gaming losses and should not be included as deductions in the computation of gross gaming revenue.
“Cash rebates or cashbacks shall not be combined with other promotional cash incentives in a manner that exceeds the prescribed maximum rebate or cashback rate,” it added.
As part of the transition, operators have until May 15 to implement previously approved rebate or cashback programs that do not comply with the new rules.
“No extension, renewal, or modification of such rebate or cashback programs shall be allowed beyond the transition period,” PAGCOR said.
“All cash rebate or cashback programs implemented after the transition period shall strictly comply with the prescribed guidelines for marketing and promotions of electronic games,” it added. — Justine Irish D. Tabile
