(AsiaGameHub) –   The Philippine Amusement and Gaming Corporation (PAGCOR) has set restrictions on the cashback and rebate offers that online gaming operators can use to attract and retain customers.

PAGCOR’s new regulations, which took effect on May 7, 2019, have placed caps on the cashback and rebate amounts online gaming operators are allowed to offer to entice and keep clients.

This measure is designed to add extra safeguards against larger operators using their resources to monopolize their respective markets, by eliminating the link between consumer loyalty and the amount bigger companies are willing to spend on cashback and rebate incentives to gain and maintain that loyalty.

PAGCOR further noted that licensed platforms are aggressively competing for customer loyalty by providing highly lucrative promotional deals and fully developed loyalty programs.

In the conclusion of their announcement about the new rules, PAGCOR stated these regulations will prevent “destructive competition” and “race to the bottom” practices, which would ultimately erode the integrity of the gaming industry.

The implementation of this new regulation supports PAGCOR’s ongoing strategy to enhance the regulatory framework governing iGaming. According to PAGCOR Chairman and CEO Alejandro Tengco, iGaming’s total Gross Gaming Revenue (GGR) is estimated to have reached 50% or more of all reported GGR by 2025, surpassing the casino industry as the largest contributor to GGR.