Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

nes eae
House sittNo,__ #934

Introduced by Representative Lex Anthony Cris A. Colada

EXPLANATORY NOTE

The declaration of global pandemic brought about by Covid-19 has siphoned the
government coffers and ballooned the budget deficit. This is to urgently address and
respond the existing health crisis, and to revive and recover the economic adverse effect
of the said pandemic. As pronounced by the current administration, we need to raise
revenue not only through new tax impositions but through administrative reforms and
maximizing revenues though privatization of government assets.

One of the avenues sought for to raise and maximize revenues is the privatization
of government gambling assets such that of the Philippine Amusement and Gaming
Corporation (PAGCOR). Presidential Decree (PD) No. 1067-A was enacted on January 1,
1977 creating the PAGCOR to operate and regulate all games of chance not otherwise
authorized by existing franchises or permitted by laws. At that time, regulation and
‘operation of games of chance may efficiency be implemented by the government with
the aim of generating revenues therefrom. From its creation, PAGCOR’s corporate life was
extended for another twenty-five (25) years by virtue of Republic Act No. 9487.

PAGCOR has a dual role. First is to regulate. Second is to operate gambling and
gaming activities.

It has been recognized that gaming revenues has been consistently increasing
contributing substantial amount to the government funds which are allotted for different
socio-civic development programs and projects. However, this representation firmly
stands that such revenues may still be maximized by privatizing the gaming operations of
PAGCOR.

This bill seeks to address the conflicting issues and roles. To promote a level-
playing field in the gaming industry and avoid conflict of interest, PAGCOR must



concentrate in its regulating roles. The government shall now allow private entities to
operate gambling and gaming activities.

In view of the foregoing, passage of this bill is earnestly sought for.

LEX ANTHONY CRIS/A. COLADA
AAMBIS-OWA/Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

~ 2
HOUSE BILL NO 4534

Introduced by Representative Lex Anthony Cris A. Colada

AN ACT
AMENDING PRESIDENTIAL DECREE NO. 1869 AS AMENDED BY
REPUBLIC ACT NO. 9487. OTHERWISE KNOWN AS
THE PAGCOR CHARTER

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
Assembled:

SECTION 1. - Section 1, Title 1 of Presidential Decree No. 1869 is hereby amended
to read as follows:

Section 1. - Declaration of Policy. It is hereby declared to be the policy of the State
to centralize and integrate all games of chance, GAMES OF CARDS AND GAMES OF
NUMBERS not heretofore authorized by existing franchises, licenses or otherwise
permitted by law in order to attain the following objectives:

(a) To centralize, CONSOLIDATE and integrate the right and authority to operate
and conduct REGULATE AND LICENSE THE EFFICIENT OPERATION AND
CONDUCT OF ALL games of chance, GAMES OF CARDS AND GAMES OF
NUMBERS into one corporate entity to be controlled, administered and
supervised by the Government:

{b) [To establish and operate clubs and casinos, for amusement and recreation,
including sports gaming pools (basketball, football, lotteries, etc.) and such
other forms of amusement and recreation including games of chance, which
may be allowed by law within the territorial jurisdiction of the Philippines and
which will: (1) generate sources of additional revenue to fund infrastructure


and socio-civic projects, such as flood control programs, beautification,
sewerage and sewage projects, Tulungan ng Bayan Centers, Nutritional
Programs, Population Control and such other essential public services: (2)
create recreation and integrated facilities which will expand and improve the
country's existing tourist attractions; and (3) minimize, if not totally cradicate,
the evils, malpractices and corruptions that are normally prevalent in the
conduct and operation of gambling clubs and casinos without direct
government involvement.]

TO SERVE AS FRAMEWORK FOR OPERATING. AUTHORIZING, LICENSING.
AND REGULATING GAMBLING AND GAMING WITHIN THE TERRITORIAL
JURISDICTION OF REPUBLIC OF THE PHILIPPINES:

(c) TO ENSURE THAT GAMBLING AND GAMING ARE UNDERTAKEN IN A
SOCIALLY RESPONSIBLE MANNER:

(d.) TO ENSURE THAT GAMBLING AND GAMING ARE UNDERTAKEN IN THE
BEST INTERESTS OF THE PUBLIC. AND TO MINIMIZE THE OPPORTUNITIES THAT
GIVE RISE TO PROBLEM GAMBLING. CRIME, CORRUPTION, MALPRACTICES AND.
SOCIAL DISRUPTION:

(e) TO ENSURE THE PROTECTION OF VULNERABLE PERSONS. SUCH AS
MINORS AND PROBLEM GAMBLERS, FROM RISKS TO THEIR WELL-BEING ARISING
FROM GAMBLING OR GAMING:

(f) TO ENSURE THAT GAMBLING AND GAMING WILL NOT BE USED FOR
CRIMINAL OR ILLEGAL ACTIVITY;

(g) EXPAND AND IMPROVE THE COUNTRY’S TOURIST ATTRACTIONS BY
ESTABLISHING RECREATION AND INTEGRATED FACILITIES: AND,

{h) TO LICENSE GAMBLING CASINOS, GAMING CLUBS, LEISURE RESORTS
AND OTHER SIMILAR RECREATION OR AMUSEMENT PLACES, SPORTS BOOKS,
GAMING POOLS, STUDIOS, ONLINE OR INTERNET GAMING WEBSITES AND ALL
OTHER FORMS OF GAMING PREMISES OFFERING ALL FORMS OF GAMING OR
GAMBLING ACTIVITIES, EXISTING OR NEWLY CONCEIVED WITHIN THE TERRITORIAL
JURISDICTION OF THE PHILIPPINES.

SECTION 2. - Section 2. Title 1! of Presidential Decree No. 1869 is hereby amended
to read as follows:

Section 2. Creation and Purpose - To implement this state policy and pursue the
objectives set forth in the preceding section, there is hereby created a body
corporate to be known as the Philippine Amusement and Gaming Corporation,
hereinafter referred to as the "Corporation", which shall have its principal office in


Metropolitan Manila. The Corporation may establish such offices, agencies,
subsidiaries, or branches in the Philippines as its operations would require and its
Board of Directors may determine. THE CORPORATION |S HEREBY GIVEN THE
AUTHORITY TO:

(a) OPERATE, LICENSE AND REGULATE GAMBLING CASINOS, GAMING CLUBS AND
OTHER SIMILAR RECREATION OR AMUSEMENT PLACES, GAMING POOLS AND
SPORTS-BOOKS:

(b) OPERATE, LICENSE AND REGULATE GAMING INCLUDING ONLINE/INTERNET
GAMING WHETHER ON LAND. WATER OR AIR AUTHORIZED BY THIS ACT OR
REGULATIONS: AND

(c) REGISTER, LICENSE, AND REGULATE ALLIED BUSINESSES AUTHORIZED BY THIS
ACT OR REGULATIONS.

SECTION 3. Section 6, Title II of Presidential Decree No. 1869 is hereby amended
to read as follows:

Section 6. - Board of Directors. The Corporation shall CONTINUE TO be governed
and its activities directed, controlled, and managed by its Board of Directors
composed of five (S) members, (three (3) of whom shall come from the
Government sector and shall be appointed by the President, while the other two
(2) shall be from the private sector, [who own at least one (1) share of stock in the
Corporation and who shall be elected by the stockholders of the corporation in the
annual general meeting or in a special meeting called for such purpose] TO BE
APPOINTED BY THE PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES

Each Director shall serve for a term of one (1) year and until his/HER successor shall
have been duly appointed and qualified.

SECTION 4. - Section 7, Title II of Presidential Decree No. 1869 is hereby amended
to read as follows:

Section 7. Powers, Functions and Duties of the Board of Directors. - The Board shall

have the following powers, functions, and duties:

a) To allocate and distribute, with the approval of the Office of the President of
the Philippines, the earnings of the Corporation earmarked to finance
{infrastructure and socio-civic projects] SOCIO-ECONOMIC DEVELOPMENT
PROJECTS:

b) To designate the commercial bank that shall act as the depository bank of the
Corporation and/or trustee of the funds of the Corporation;


¢) Toprepare and approve at the beginning of each calendar year the budget that
may be necessary under any franchise granted to it, to insure the smooth
operation of the Corporation; and to evaluate and approve budgets submitted
to it by other corporations or entities with which it might have any existing
contractual arrangement;

d) To submit to the Office of the President of the Philippines before the end of
February each year a list of all the (infrastructure and/or socio- civic] SOCIO-
ECONOMIC DEVELOPMENT PROJECTS that have been financed from the
Corporation's earnings, and to submit periodic or other reports as may be
required of it from time to time; and

e) TO PROMULGATE PERSONNEL POLICIES WITH THE APPROVAL OF THE OFFICE
OF THE PRESIDENT: AND,

f} To perform such other powers, functions and duties as may be directed and
authorized by the President of the Philippines or as may be necessary or proper
for the accomplishment of its purposes and objectives.

SECTION 5. - Section 10, Title IV of Presidential Decree No. 1869. As amended by Republic
Act 9487, is hereby further amended to read as follows:

Section 10. Nature and Term of Franchise. - Subject to the terms and conditions
established in this Decree, the Corporation is hereby granted [from the expiration
ofits original term on July 11, 2008 another period of twenty-five years, renewable
for another twenty-five years] FOR PERIOD OF TWENTY-FIVE (25) YEARS,
RENEWABLE FOR ANOTHER TWENTY FIVE (25) YEARS THE rights and privileges and
authority to operate, [and] license AND REGULATE gambling casinos, gaming clubs,
land other similar recreation or amusement places, gaming pools, i.e. basketball,
football, bingo, etc. except jai-alai] LEISURE RESORTS AND OTHER SIMILAR
RECREATION OR AMUSEMENT PLACES. SPORTS BOOKS, GAMING POOLS, STUDIOS,
ONLINE OR INTERNET GAMING WEBSITES AND ALL OTHER FORMS OF GAMING
PREMISES OFFERING ALL FORMS OF GAMING OR GAMBLING ACTIVITIES, EXISTING
OR NEWLY-CONCEIVED. whether on land, sea or air within the territorial
jurisdiction of the Philippines. THE FOREGOING SHALL BE WITHOUT LIMITATION
AS TO THE TECHNOLOGY UTILIZED IN PRODUCING OR PLAYING SUCH FORMS OF
GAMBLING OR GAMING. Provided, That the corporation AND THE LICENSEE shall
obtain the consent of the local government unit that has territorial jurisdiction
cover the area chosen as the site for any of (its| THE gaming operations OF THE
LICENSEE, THE PRESIDENT SHALL PROMULGATE THE NECESSARY RULES FOR
OBTAINING THE CONSENT OF THE LGU

WHEN THE GAMING PREMISES ARE LOCATED INSIDE ECONOMIC ZONES, THE
ENDORSEMENT FROM THE ECONOMIC ZONE AUTHORITY SHALL BE IN LIEU OF THE


CONSENT OF THE LGU. THE RULES IN OBTAINING THE ENDORSEMENT ECONOMIC.
ZONES AUTHORITY SHALL FOLLOW THE RULES IN OBTAINING THE CONSENT OF
THE LGU AS FAR AS APPLICABLE

The operation of slot machines and other gambling paraphernalia and equipment,
shall not be allowed in establishments open or accessible to the general public unless the
site of these operations are three-star hotels and resorts accredited by the Department
of Tourism authorized by the corporation and by the local government unit concerned.

The authority and power of the PAGCOR to authorize, license and regulate games
of chance, games of cards and games of numbers shall not extend to: (1) games of chance
authorized, licensed and regulated or to be authorized, licensed and regulated by, in, and
under existing franchises or other regulatory bodies; ((2) games of chance, games of cards
and games of numbers authorized, licensed, regulated by, in, and under special laws such
as Republic Act No. 7922:| and I(3)1 (2) games of chance, games of
cards and games of numbers like cockfighting, authorized, licensed and regulated by local
government units. The conduct of such games of chance, games of cards and games of
numbers covered by existing franchises, regulatory bodies or special laws, to the extent
of the jurisdiction and powers granted under such franchises and special laws, shall be
outside the licensing authority and regulatory powers of the PAGCOR.

SECTION 6. - Section 12, Title IV of Presidential Decree No. 1869 is hereby amended
to read as follows;

Section 12. - Socio-Economic Development Fund. After deducting five
percent (5%) as Franchise Tax J ON THE GROSS GAMING REVENUE (GGR) OF
PAGCOR, the 50% share of the Government in the aggregate gros earnings
off the Corporation's GROSS GAMING REVENUE (GGR) (from this franchise]
shall immediately be set aside land allocated to fund the following
infrastructure and socio-civil projects within the Metropolitan Manila area |
FOR THE SOCIO-ECONOMIC DEVELOPMENT FUND TO OF TREASURY

[2. Flood Control
b. x0

C.K

xxx

2. xxx

f. xxx

g. xxx]

[In addition to the priority infrastructure and socio-civic projects within the
Metropolitan Manila specifically enumerated above, the share of the Government
in the aggregate may also be appropriated and allocated to fund and finance
infrastructure and/or socio-civic projects throughout the Philippines as may be
directed and authorized by the Office of the President of the Philippines ]


THE MANDATORY EARMARKED CONTRIBUTIONS OF THE CORPORATION
UNDER THE FOLLOWING LAWS SHALL CONTINUE UNLESS ALREADY COMPLETED:
(1) PHILIPPINE SPORTS COMMISSION UNDER RA NO. 6847: (2) BOARD OF CLAIMS
UNDER RA NO. 7309: (3) DIVIDEND LAW OR RA NO 7656: (4) DANGEROUS DRUGS
BOARD UNDER RA NO. 9165: (5).NATIONAL ATHLETES AND COACHES BENEFITS
AND INCENTIVES UNDER RA NO. 10699: (6) RENEWABLE ENERGY TRUST FUND.
UNDER RA NO. 9513: (7) NATIONAL ENDOWMENT FUND FOR THE CULTURE AND
THE ARTS UNDER RA NO. 10066: AND (8) EARLY CHILDHOOD CARE AND.
DEVELOPMENT UNDER RA NO. 10410.

IN ADDITION THERETO, THE REVISED ARMED FORCES OF THE PHILIPPINES
(AFP) MODERNIZATION PROGRAM UNDER REPUBLIC ACT NO. 10349 SHALL ALSO
BE ENTITLED TO A FIVE PERCENT (59%) SHARE IN THE GROSS GAMING REVENUES
OF PAGCOR LESS THE FRANCHISE TAX AND FIFTY PERCENT (50%) GOVERNMENT
SHARE

PROVIDED. THAT LOCAL GOVERNMENT UNITS HOSTING LICENSED
GAMBLING CASINOS SHALL BE ENTITLED TO A SHARE OF THE NET INCOME OF THE
CORPORATION IN THE AMOUNT TO BE DETERMINED AND FIXED BY THE BOARD
AFTER TAKING INTO CONSIDERATION THE INCOME DERIVED FROM SAID CASINOS.
AND THE DEVELOPMENT PROJECTS TO BE FUNDED.

SECTION 7. - Section 13, Title IV of Presidential Decree 1869 shall be amended to
read as follows;

Section 13. Exemptions. —
(1) 10

(2) Income and Other Taxes. -

(a) Franchise Tax — [Franchise Holder: No tax of any kind or form, income or
otherwise, as well as fees, charges or levies of whatever nature, whether
National or Local, shall be assessed and collected under this Franchise from the
Corporation; nor shall any form of tax or charge attach in any way to the
earnings of the Corporation, except a Franchise Tax of five (5%) percent of the
gross revenue or earnings derived by the Corporation from its operation under
this Franchise. Such tax shall be due and payable quarterly to the National
Government and shall be in lieu of all kinds of taxes, levies, fees or assessments
of any kind, nature or description, levied, established or collected by any
municipal, provincial, or national government authority.] EXCEPT FOR A
FRANCHISE TAX OF FIVE PERCENT (5%) OF ITS GROSS GAMING REVENUE AND
AS PROVIDED UNDER THIS ACT. PAGCOR AND ITS LICENSED OPERATORS SHALL
BE EXEMPTED FROM ALL KINDS OF TAXES, LEVIES FEES, ASSESSMENTS OR
CHARGES, OF ANY KIND. NATURE OR DESCRIPTION. LEVIED. ESTABLISHED, OR


COLLECTED BY ANY CITY. MUNICIPAL. PROVINCIAL OR NATIONAL
GOVERNMENT AUTHORITY

THE INCOME OF LICENSED GAMING PERSONNEL AND LICENSED SUPPLIERS
SHALL BE TAXABLE UNDER THE RELEVANT TAX LAWS AND TAX REGULATIONS.
EXCEPT FOR INCOME OF LICENSED SUPPLIERS FROM CONTRACTS WITH THE
CORPORATION.

PAGCOR'S AND LICENSED OPERATOR'S GAMING PREMISES INSIDE
ECONOMIC ZONES SHALL BE SUBJECT TO TAX ON GROSS GAMING REVENUE AT
THE PREFERENTIAL RATE PROVIDED IN THE ECONOMIC ZONE LAW IN LIEU OF
THE 5% FRANCHISE TAX ON GROSS GAMING REVENUE. OTHER TAXES, FEES,
CHARGES, OR LEVIES, NATIONAL OR LOCAL PROVIDED, THAT THE ECONOMIC
ZONE AUTHORITY MAY IMPOSE REASONABLE FEES FOR ACTUAL SERVICES
RENDERED TO THE GAMING PREMISES IN ACCORDANCE WITH
ADMINISTRATIVE ORDER NUMBER 31 SERIES OF 2012 AND JOINT DOF, DBM.
NEDA CIRCULAR NUMBER 01 - 13 OR ITS AMENDMENTS.

(b) Others: xxx

The fee or remuneration of [foreign] entertainers contracted by the Corporation
‘or LICENSED operator in pursuance of this provision shall be free from any tax.

(3.) xxx

(4) xxx

SECTION 8. - Section 14, Title IV of Presidential Decree 1869 is hereby amended to
read as follows:

Section 14. - Other Conditions. ~

(1) Place. - The Corporation AND THE LICENSED operator shall conduct the
gambling activities or games of chance on land, water or AIR within the
territorial jurisdiction of the Republic of the Philippines. When conducted on
water. the Corporation AND THE LICENSED OPERATOR shall have the right to
dock the floating casino(s) OR CRUISE SHIPS in any part of the Philippines where
MARINE vessels/boats are authorized to dock the floating casinos| under the
customs and maritime laws. AND WITH THE CONSENT OF THE LGU. WHILE THE
VESSEL IS IN TRANSIT. SECURING THE CONSENT FOR THE GAMING BEING
CONDUCTED FROM THE LGUS EXERCISING JURISDICTION OVER THE WATERS IT
TRAVERSING SHALL BE DISPENSED WITH.

(2) xxx


(3) xxx

(4) Persons not allowed to play -

(a) Government officials [connected directly with the operation of the
Government or any of its agencies]:

{b)Members of the Armed Forces of the Philippines, [including Army, Navy, Air
Force or Constabulary THE PHILIPPINE NATIONAL POLICE, AND OTHER UNIFORMED
PERSONNEL; AND,

{c)Persons under 21 years of age or students of any school, college or university in
the Philippines.

From these are excepted the personnel employed by the casinos, special guests,
or those whoat the discretion of the Management may be allowed to stay in the premises.

(5)Operation of related services. - The Corporation is authorized to operate such
necessary and related services (.) shows and entertainment]. Any income that may be
realized from these related services shall not be included as part of the income of the
corporation for the purpose of applying the franchise tax, but the same shall be
considered as a separate income of the Corporation and shall be subject to income tax.

(6)NATURE OF LICENSE ISSUED BY PAGCOR. — ANY LICENSE GRANTED UNDER THIS
ACT IS A MERE PRIVILEGE AND NOT A VESTED RIGHT.

SUCH LICENSE MAY BE SUSPENDED OR CANCELLED AT ANY TIME UPON ORDER OF
THE BOARD FOR GROUNDS PROVIDED UNDER THIS ACT OR REGULATIONS.

NO NEW CONTRACT, LICENSE, GRANT OF AUTHORITY. AUTHORITY TO OPERATE.
AND ANY SIMILAR DOCUMENT SHALL BE CO TERMINUS WITH PAGCOR'S EXISTENCE OR
FRANCHISE AND ANY RENEWAL THEREOF OR FOR AN INDEFINITE PERIOD.

LICENSED OPERATORS SHALL BE DIRECTLY HARLE FOR ANY COMPLAINT OR
LIABILITY THAT MAY ARISE FROM THEIR TRANSACTIONS WITH THEIR PLAYERS AND THE
PUBLIC.

ANY LICENSE ISSUED UNDER THIS ACT OR REGULATIONS SHOULD NOT BE
TRANSFERRED TO ANY PERSON, WITHOUT PRIOR CONSENT OF THE BOARD AND ONLY IF
THE TRANSFEREE MEETS THE REQUIREMENTS OF THIS ACT AND REGULATIONS


THE BOARD MAY IMPOSE ADDITIONAL CONDITIONS FOR THE TRANSFER TO
ENSURE THAT THE TRANSFEREE WILL COMPLY WITH THE OBLIGATIONS OF THE ORIGINAL
LICENSEE.

{7} INVESTIGATION OF APPLICANT: - UPON RECEIPT OF AN APPLICATION FOR A.
LICENSE, THE BOARD SHALL CAUSE SUCH INVESTIGATIONS AND INOUIRIES AS ARE
NECESSARY TO ENABLE IT TO CONSIDER THE APPLICATION PROPERLY.

THE INVESTIGATION SHOULD BE EXHAUSTIVE, EXACTING. AND INTRUSIVE SO AS.
TO ENSURE THAT GAMING IS KEPT FREE OF CORRUPT OR CRIMINAL INFLUENCE.

THE INVESTIGATION SHALL EXTEND TO ANY ASSOCIATE AND RELATIVE OF THE
APPLICANT: SO AS TO ENABLE IT TO CONSIDER THE APPLICATION THOROUGHLY.

ALL EXPENSES FOR THE INVESTIGATIONS SHALL BE FOR THE ACCOUNT OF THE
LICENSEE.

(8) SUSPENSION AND CANCELLATION OF LICENSE. THE BOARD MAY SUSPEND OR
CANCEL A LICENSE ISSUED UNDER THIS ACT OR REGULATIONS IF ANY OF THE FOLLOWING.
OccURS.

(A) THE LICENSEE IS NOT, OR IS NO LONGER. IN THE EVALUATION OF THE BOARD
ASUITABLE PERSON TO HOLD THE LICENSE;

{B) THE LICENSEE IS CONVICTED OF ANY SERIOUS OFFENSE UNDER ANY LAW,
EVEN IF THE CONVICTION IS IN THE MEAN TIME UNDER APPEAL OR THE
UCENSEE WAS ABLE TO SECURE REDUCTION OR COMMUTATION OF
SENTENCE, BY MEANS ALLOWED BY LAW OR PAROLED
AN OFFENSE IS SERIOUS FOR PURPOSES OF THIS ACT AND REGULATIONS IF
IT IS PUNISHABLE BY IMPRISONMENT OF AT LEAST FOUR (4) YEARS,
REGARDLESS OF THE ACTUAL PENALTY IMPOSED;

(C) THE LICENSEE CONTRAVENES A CONDITION OF THE LICENSE;

(D) THE LICENSEE FAILS TO DISCHARGE HIS FINANCIAL COMMITMENTS UNDER
THIS ACT OR REGULATIONS:

(E) THE LICENSEE IS BANKRUPT OR UNDER REHABILITATION;

(F) THE LICENSEE OBTAINED THE LICENSE BY A MATERIALLY FALSE OR
MISLEADING REPRESENTATION OR IN SOME OTHER IMPROPER WAY: OR

(G) THE LICENSE IS REQUIRED TO BE SUSPENDED TO ENSURE THAT THE PUBLIC
INTEREST IS NOT AFFECTED IN AN ADVERSE AND MATERIAL WAY, OR THE
INTEGRITY OF THE CONDUCT OF GAMING IS NOT JEOPARDIZED IN ANY WAY.

A SUSPENSION OR CANCELLATION UNDER THIS SECTION SHALL BE BY WRITTEN
NOTICE GIVEN TO THE LICENSEE AND SHALL TAKE EFFECT UPON RECEIPT OR TENDER IF
THE LICENSEE REFUSES RECEIPT OR OTHERWISE CANNOT BE SERVED NOTICE.


(9) PREVENTION OF MONEY LAUNDERING THE CORPORATION AS THE
SUPERVISING AUTHORITY OVER THE GAMING INDUSTRY SHALL IMPLEMENT
REGULATIONS TO COMBAT MONEY LAUNDERING (ML) AND TERRORIST FINANCING (TF)
IN THE INDUSTRY PURSUANT TO REPUBLIC ACT NO. 9160 AS AMENDED, AND REPUBLIC
ACT NO, 10168

THE BOARD MUST DEVELOP REGULATIONS TO MINIMIZE THE RISKS OF ML AND.
‘TF, WHICH SHOULD INCLUDE:

(a) CUSTOMER DUE DILIGENCE PROCEDURES;

(b} RECORDS TO BE KEPT OF SUSPICIOUS TRANSACTIONS:

(c) REGULAR TRAINING ON MINIMIZING THE RISKS OF ML

AND TF:

(d) ACOUIRING INFORMATION ON ACTIVITIES, TECHNOLOGY,

AND OTHER DEVELOPMENTS THAT INCREASE THE RISKS OF ML AND TF

(e) ISSUANCE OF REGULATING ORDERS AGAINST LICENSEES WHICH HAVE
INADEQUATE ML OR TF PROCEDURES;

(f) AUDIT OF LICENSEES’ PROCEDURES TO ENSURE COMPLIANCE WITH THE
REGULATIONS;

(g) COOPERATION WITH LAW ENFORCEMENT AUTHORITIES FOR THE
PREVENTION OR PROSECUTION OF ML AND TF;

(h) STRICT REGULATION ON FOREIGN JUNKET PROGRAMS AND TRANSACTIONS:
AND

(i) OTHER MATTERS THAT WILL MINIMIZE THE RISKS OF ML AND TF IN GAMING.

SECTION 9. The transitory provisions on Title Vil of Presidential Decree No. 1869 is
hereby amended and repealed and in lieu thereof, insert the following new Sections, to
wit:

SECTION 17. DEFINITION OF TERMS, IN THIS ACT THE FOLLOWING TERMS ARE
DEFINED:

A. "CHEATING" MEANS IMPROVING THE CHANCES OF WINNI NG IN
GAMING OR OF ALTERING ITS OUTCOME BY DECEPTION.
INTERFERENCE, OR MANIPULATION OF A GAME OF CHANCE. WITH THE
USE OF ANY EQUIPMENT, OR ANY PERSON FACILITATING GAMING,
INCLUDING BUT NOT LIMITED TO:

(a) ALTERING THE AMOUNT OF A PRIZE OR FREQUENCY THE PRIZE IS
AWARDED;

(b) ALTERING THE AMOUNT OF THE WAGER;

{c) ALTERING THE AMOUNT OF THE CREDIT;

(d) MANIPULATING ANY COMPONENT OF A GAMING DEVICE IN A
MANNER CONTRARY TO THE DESIGNED AND NORMAL
OPERATIONAL PURPOSE FOR THE COMPONENT;


(e) (ATTEMPTS AND CONSPIRACY TO CHEAT

B. "ENGAGING IN GAMING" OR "ENGAGING IN GAMBLING" MEANS TO DO
IN ANY MANNER DIRECTLY OR INDIRECTLY TAKE PART IN GAMING
WHETHER ON AIR. LAND OR WATER INCLUDING BUT NOT LIMITED TO

(a) BEING A PATRON IN GAMING;

{b) ALLOWING ANY FORM OF GAMING IN ANY PLACE BUILDING. VESSEL,
OR OTHER MEANS OF TRANSPORTATION OWNED OR CONTROLLED BY
HER/ HIM;

(c) ACTING AS FINANCIER, MAINTAINER, MANAGER, OR OPERATOR OF
GAMING;

(d) ACTING IN THE INTEREST OF THE FINANCIER. MAINTAINER, MANAGER,
OR OPERATOR OF GAMING. SUCH AS. BUT NOT LIMITED TO, AN
ACCOUNTANT, CASHIER. CHECKER GUARD, RUNNER, DEALER, USHER,
WATCHER, OR ANY OTHER OFFICIAL OR EMPLOYEE IN GAMING;

(e) COLLECTING, SOLICITING, OR PRODUCING WAGERS IN BEHALF OF A
GAMING OPERATOR;

(f) POSSESSING ANY LOTTERY LIST, PAPER, OR OTHER MATTER
CONTAINING LETTERS, FIGURES, SIGNS, OR SYMBOLS PERTAINING TO
OR IN ANY MANNER USED IN GAMING;

(g) PROVIDING ANY OTHER FORM OF SUPPORT OR SERVICE TO FACILITATE
THE CONDUCT OF GAMING.

C. "GAME OF CHANCE" IS THAT WHICH DEPENDS MORE ON CHANCE OR
HAZARD THAN ON SKILL OR ABILITY IN CASE OF DOUBT A GAME IS
DEEMED TO BE ONE OF CHANCE.

THE FOREGOING SHALL BE WITHOUT LIMITATION AS TO THE
TECHNOLOGY EMPLOYED IN THE PLAYING OF SUCH GAME OF CHANCE.

D. "GAMING OR GAMBLING" IS THE PLAYING OF GAMES OF CHANCE OR
ANY ACTIVITY WHETHER ON AIR. LAND, OR WATER WHICH HAVE ALL
THE FOLLOWING ELEMENTS:

(a) MAKING OF WAGERS CONSISTING OF MONEY, ARTICLES OF VALUE, OR
REPRESENTATIVE OF VALUE;

(b) FOR A POSSIBILITY OF WINNING A PRIZE CONS/STING OF MONEY,
ARTICLES OF VALUE, OR REPRESENTATIVE OF VALUE; AND

(c) WHERE WINNING THE PRIZE IS DETERMINED BY A GAME OF CHANCE

THE FOREGOING SHALL BE WITHOUT LIMITATION AS TO THE TECHNOLOGY
UTILIZED OR THE MEANS TO TRANSMIT A BET OR WAGER IN THE GAME OF CHANCE
ACTIVITY, OR ANY ELEMENT


ITINCLUDES, BUT IS NOT LIMITED TO:

(a) ANY GAME USING DICE;
(b) BLACK JACK; LUCKY NINE; POKER AND ITS DERIVATIVES; MONTE; BACCARAT:
CUAJAO: PANGGUINGUE AND OTHER CARD GAMES; PAIK OUE; HIGH AND

Low:

(c) MAHJONG. DOMINO, AND OTHER GAMES USING PLASTIC TILES AND THE LIKES;

(d) SLOT MACHINES, ROULETTE, PINBALL, COLORED GAMES AND OTHER SIMILAR
MECHANICAL OR ELECTRICAL CONTRAPTIONS AND DEVICES;

(e) BETTING ON THE OUTCOME OF GAMES OR CONTESTS OF SKILL SUCH AS:
BASKETBALL BOXING, VOLLEYBALL, BOWLING. PINGPONG AND OTHER FORMS
OF INDIVIDUAL OR TEAM CONTESTS; DOG RACING, HORSE RACING, BOAT
RACING, CAR RACING AND OTHER FORMS OF RACES; AND,

(f| ANY OTHER GAME OR SCHEME, WHETHER UPON CHANCE OR SKILL, WHEREIN
WAGERS CONSISTING OF MONEY, ARTICLES OF VALUE OR REPRESENTATIVE OF
VALUE ARE AT STAKE OR MADE.

THE FOREGOING SHALL BE WITHOUT LIMITATION AS TO THE TECHNOLOGY
UTILIZED IN SUCH ACTIVITIES.

"GAMING MACHINE" OR "GAMING DEVICE” MEANS ANY MECHANICAL
OR ELECTRICAL CONTRAPTIONS AND DEVICES WHICH FUNCTIONS SUCH
THAT IT MAY BE USED FOR THE PURPOSE OF PLAYING A GAME OF
CHANCE, THE TERM ALSO INCLUDES PARTS, PARAPHERNALIA,
SOFTWARE, AND ANY OTHER COMPONENT USED FOR THEIR
OPERATION.

THE FOREGOING SHALL BE WITHOUT LIMITATION AS TO THE TECHNOLOGY
UTILIZED BY SUCH MACHINE OR DEVICE

F

G.

"GAMING PREMISES" REFER TO PLACES OR SITES USED FOR THE
PURPOSE OF GAMING OR GAMBLING.

"INTERNET GAMING" "INTERACTIVE GAMING". "ONLINE GAMING".
"REMOTE GAMING" OR OTHER TERMS OF SIMILAR IMPORT MEANS
GAMING IN WHICH PERSONS PARTICIPATE IN GAMING BY THE USE OF
REMOTE COMMUNICATION TECHNOLOGY.

INTERNET GAMING WITH AT LEAST ONE OF ITS ELEMENTS IN THE
PHILIPPINES SHALL BE TREATED AS AN ENTIRE SYSTEM ALTHOUGH THE
OTHER ELEMENTS ARE FOUND IN OTHER COUNTRIES AND SHALL
INCLUDE INTERNET GAMING WITH ALL ITS ELEMENTS OUTSIDE THE
PHILIPPINES BUT SOLICIT OR ACCEPT BETS FROM PERSONS INSIDE THE
PHILIPPINES.


THE FOREGOING SHALL BE WITHOUT LIMITATION AS TO THE TECHNOLOGY
UTILIZED IN SUCH ACTIVITY.

H. "REMOTE COMMUNICATION" MEANS COMMUNICATION USING THE
INTERNET, TELEPHONE, TELEVISION, RADIO, OR ANY OTHER KIND OF
ELECTRONIC OR OTHER TECHNOLOGY FOR FACILITATING
COMMUNICATION

SECTION 18. - ILLEGAL GAMBLING. - IT IS AN OFFENSE FOR ANY PERSON TO
ENGAGE IN GAMING OR GAMBLING ACTIVITIES WITHOUT BEING AUTHORIZED UNDER
THIS ACT. OR BY ANY REGULATIONS OR OTHER PERTINENT LAWS

SECTION 19. MISREPRESENTING THE SEAL OF THE BOARD OR PAGCOR. - IT IS AN
OFFENSE FOR ANY PERSON TO USE SYMBOL OR REPRESENTATION IDENTICAL WITH THAT
OF THE BOARD OR PAGCOR. OR WHICH SO RESEMBLES THE BOARD'S OR PAGCOR'S
SYMBOL OR REPRESENTATION AS TO DECEIVE OR CAUSE CONFUSION. OR LIKELY TO
DECEIVED OR TO CAUSE CONFUSION WITH THE USE OF SUCH SYMBOL OR
REPRESENTATION

SECTION 20. UNAUTHORIZED DISCLOSURE OF CUSTOMER IDENTITY. - IT IS AN
OFFENSE FOR ANY PERSON WHO POSSESSES RECORDS OF CUSTOMER INFORMATION, TO.
KNOWINGLY RELEASE. DISSEMINATE. OR OTHERWISE MAKE OR COPY THE RECORDS OR
ANY INFORMATION CONTAINED THEREIN AVAILABLE TO OR DISCUSS WITH ANY PERSON
NOT ENTITLED TO SUCH INFORMATION UNDER THIS ACT OR ITS REGULATIONS

SECTION 21. - CHEATING. - IT IS AN OFFENSE FOR ANY PERSON TO DO ANY OF THE
FOLLOWING.

(A) CHEAT AT GAMING;
(B] DO ANYTHING FOR THE PURPOSE OF ASSISTING ANOTHER TO CHEAT AT
GAMING
IT IS IMMATERIAL WHETHER A PERSON WHO CHEATS ACTUALLY IMPROVED HIS
CHANCE OF WINNING OR ACTUALLY WINS ANYTHING

THE FOLLOWING FRAUDULENT ACTS SHALL ALSO BE CONSIDERED CHEATING:

(a) ALTERING OR MISREPRESENTING THE OUTCOME OF A GAME OF CHANCE OR ANY
EVENT ON WHICH WAGERS HAVE BEEN MADE. WHEN THE OUTCOME IS MADE.
SURE BUT BEFORE IT IS REVEALED;

(b) PLACING OR CHANGING A BET OR TO DETERMINE THE COURSE OF PLAY AFTER
ACOUIRING KNOWLEDGE OF THE OUTCOME OF THE GAME OF CHANCE OR ANY
EVENT THAT AFFECTS THE OUTCOME OF THE GAME OF CHANCE OR WHICH IS THE
SUBJECT OF THE BET OR TO AID ANYONE IN ACQUIRING SUCH KNOWLEDGE FOR
‘THE PURPOSE OF PLACING OR CHANGING OR DETERMINING THE COURSE OF PLAY
CONTINGENT UPON THAT EVENT OR OUTCOME.


(c) CLAIMING MONEY OR ANYTHING OF VALUE IN OR FROM A GAME OF CHANCE
WITHOUT HAVING MADE A WAGER OR TO CLAIM. COLLECT OR TAKE AN AMOUNT
GREATER THAN THE AMOUNT WON

(d) INDUCING ANOTHER TO PLAY AT ANY PLACE WHERE GAMES OF CHANCE IS BEING
OPERATED IN VIOLATION OF THE PROVISIONS OF THIS ACT OR REGULATIONS

(e) OFFERING ANYTHING OF VALUE TO ANYONE FOR THE PURPOSE OF INFLUENCING
THE OUTCOME OF AN GAME OF CHANCE. EVENT. OR CONTEST UPON WHICH A
WAGERS ARE MADE.

SECTION 22. - TAMPERING WITH GAMING DEVICE. - IT IS AN OFFENSE FOR ANY
PERSON

(a) TO MANIPULATE ANY GAMING DEVICE OR ANY COMPONENT Of GAMING
DEVICE. IN MANNER CONTRARY TO THE DESIGN AND NORMAL OPERATIONAL
PURPOSE OF THE DEVICE OR COMPONENT WITHOUT ANY LICENSE OR
AUTHORITY UNDER THIS ACT OR REGULATIONS

(b) TO MARK, ALTER OR OTHERWISE MODIFY ANY GAMING DEVICE IN MANNER
THAT AFFECTS THE RESULT OF A WAGER BY DETERMINING WIN OR LOSS OR
ALTERS THE NORMAL CRITERIA OF RANDOM SELECTION THAT AFFECTS THE
OPERATION OF A GAME OR THAT DETERMINES THE OUTCOME OF A GAME

(c) TO USE COUNTERFEIT OR UNAPPROVED CARDS. CHIPS. CURRENCIES. TICKETS.
TOKENS. AND OTHER PARAPHERNALIA IN GAMING. THIS INCLUDES
POSSESSION OF THE EQUIPMENT. PRODUCTS. AND MATERIALS THAT ARE
INTENDED FOR USE OR DESIGNED FOR USE IN MANUFACTURING, PRODUCING,
FABRICATING, PREPARING, TESTING, ANALYZING, PACKAGING, STORING OR
CONCEALING SUCH COUNTERFEIT PARAPHERNALIA

(d) TO HAVE ON HIS PERSON OR IN POSSESSION WITHIN A GAMING
ESTABLISHMENT ANY DEVICE WHICH IS DESIGNED OR SUITABLE FOR THE
PURPOSE OF CHEATING IN GAMING;

(e) OTHER THAN A DULY AUTHORIZED EMPLOYEE OF LICENSED OPERATOR. TO
HAVE ON HIS PERSON OR IN HIS POSSESSION WITHIN A LICENSED PREMISES
ANY KEY OR DEVICE DESIGNED FOR THE PURPOSE OF. OR SUITABLE FOR
OPENING. ENTERING OR AFFECTING THE OPERATION OF ANY GAME OF
CHANCE. DROPBOX OR ANY ELECTRONIC OF MECHANICAL DEVICE CONNECTED
TO THE GAME OF CHANCE OR DROPBOX OR FOR REMOVING MONEY OR
OTHER CONTENTS FROM THEM.

(f) AT A LICENSED GAMING PREMISES TO USE ANY DEVICE TO (a) PREDICT THE
OUTCOME OF THE GAME: TRACK OF THE CARDS PLAYED; (b) ANALYZE THE
PROBABILITY OF THE OCCURRENCE OF AN EVENT RELATING TO THE GAME OF
CHANCE: OR (c) ANALYZE THE STRATEGY FOR PLAYING OR BETTING TO BE USED
IN THE GAME OF CHANCE.

SECTION 23. - PENALTIES. ANY PERSON CONVICTED FOR AN OFFENSE UNDER THIS
ACT SHALL SUFFER THE PENALTY OF IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS.
BUT NOT MORE THAN TWELVE (12) YEARS AND/OR A FINE OF ONE HUNDRED THOUSAND


PESOS (P100,000.00) TO ONE MILLION PESOS (P1.000,000.00) BUT IN NO CASE SHALL IT
BE LOWER THAN TRIPLE THE AMOUNT OF MONEY OR VALUE INVOLVED IN THE OFFENSE.

SECTION 10. SUNSET PROVISION. WITHIN ONE (1 YEAR AFTER THE EFFECTIVELY OF
THIS ACT. THE CORPORATION SHALL BEGIN TO DIVEST ITSELF OF ITS AUTHORITY OF
ENGAGING AND OPERATING ON ITS OWN CASINOS WHICH DIRECTLY COMPETE WITH THE
PRIVATE SECTOR BY SELLING IN WHOLE OR IN PART THE CASINO OPERATION IN PLACES.
WHERE THE CORPORATION OPERATES WITH THE END IN VIEW THAT THREE (3) YEARS
THEREAFTER. THE CORPORATION'S ROLE iN THE CASINO OPERATIONS SHALL BE PURELY
REGULATORY: PROVIDED. THAT. THE INTER-AGENCY PRIVATIZATION COUNCIL AND THE
PRIVATIZATION MANAGEMENT OFFICE ESTABLISHED UNDER EXECUTIVE ORDER NO. 323.
SERIES OF 2001 IN COORDINATION WITH THE CORPORATION SHALL PRIVATIZE AND
DISPOSE IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT AND
OTHER PERTINENT LAWS ALL THE ASSETS OF THE CORPORATION RELATED TO ITS
GAMBLING AND GAMING OPERATIONS. A COMPLETE AND THOROUGH ACCOUNTING
AND INVENTORY OF SAID ASSETS TO DETERMINE ITS AMOUNT AND VALUE AND ENSURE
THAT THE GOVERNMENT WILL GET THE BEST PRICE SHALL BE MADE AS SOON AS POSSIBLE
AFTER THE PASSAGE OF THIS ACT. THE PROCEEDS OF SUCH SALE. EXCEPT THE
ADMINISTRATIVE AND OPERATIONAL EXPENSES SHALL BE REMITTED TO THE BUREAU OF
TREASURY FOR APPROPRIATION BY CONGRESS.; PROVIDED, FURTHER, THAT ALI OFFICERS
AND EMPLOYEES SEPARATED FROM THE SERVICE AS RESULT OF THE PRIVATIZATION, IF
ENTITLED THERETO, SHALL BE PAID A SEPARATION PAY AND OTHER BENEFITS IN
ACCORDANCE WITH EXISTING LAWS, RULES AND REGULATIONS WHICH SHALL BE OVER
AND ABOVE EXISTING RETIREMENT BENEFITS. SEPARATED PERSONNEL. IF QUALIFIED,
SHALL BE GIVEN PREFERENCE IN THE HIRING OF THE MANPOWER REQUIREMENTS OF THE
PRIVATIZED CASINOS.

SECTION 11. Separability Clause. -If for any reason, any section or provision of this
Act is declared unconstitutional or invalid, such other sections or provisions not affected
thereby shall remain in full force and effect.

SECTION 12. Repealing Clause. - All laws, orders, rules or regulations or parts
thereof, which are inconsistent with this Act, are hereby repealed and/or modified
accordingly.

This bill shall provide unequivocal regulatory authority to PAGCOR, and
revitalize the operation of gaming corporations for the effective generation of funds,
which will benefit the implementation of our priority programs. Hence, approval and
passage of this measure the earliest possible time is earnestly requested.