Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

SECOND REGULAR SESSION

COMMITTEE REPORT NO. LOSE. 04,
Wo a
Submitted by the Committee on Legislative Franchises on __"2 JAN 2°12.
5een
&

5&6
Re: House Bill No. __ , prepared by the Committee
Recommending its approval, in substitution with House Bills 5337 and 5359

Sponsors: Representatives Marcelino “Marcy” R. Teodoro, Giorgidi B. Aggabao,
Arturo B. Robes, Jeci A. Lapus, Pedro P. Romualdo, Rodolfo W.
Antonino, George P. Amaiz, Carmelo F. Lazatin, Eleandro Jesus F
Madrona, Maria Milagros “Mitos” Magsaysay, Romero Federico S
Quimbo, Maximo B. Rodriguez and Andres D. Salvacion, Jr.

MR. SPEAKER:

The Commitiee on Legislative Franchises to which were referred House Bill
No. 5337. introduced by Reps. Marcelino R: Teodoro, Giorgidi B. Aggabao, Arturo 8.
Robes and Jeci A. Lapus entitled

“AN ACT AMENDING REPUBLIC ACT 9487, OTHERWISE KNOWN AS THE
PAGCOR CHARTER, AS AMENDED”

and House Bill No. 5359, introduced by Rep. Pedro P. Romualdo, entitled:

“AN ACT PROHIBITING THE OWNERSHIP OR OPERATION OF GAMING
CASINOS, GAMING CLUBS AND OTHER SIMILAR RECREATION OR
AMUSEMENT PLACES EXCEPT BY THE PHILIPPINE AMUSEMENT AND
GAMING CORPORATION AND, FOR THIS PURPOSE, FURTHER
AMENDING PRESIDENTIAL DECREE NO. 1869, AS AMENDED’

has considered the same and recommends that the attached House Bill No.

‘ entitled :


“AN ACT AMENDING PHILIPPINE AMUSEMENT AND GAMING
CORPORATION CHARTER UNDER P.D 1869, AS AMENDED BY
REPUBLIC ACT 9487, AND FOR OTHER PURPOSES"

be approved in substitution of House Bill No. 5337 and House Bill No. 5359 and with
Reps. Giorgidi B. Aggabao, Arturo B. Robes, Jeci A. Lapus, Pedro P. Romualdo,
Rodolfo W. Antonino, George P. Arnaiz, Carmelo F. Lazatin, Eleandro Jesus F.
Madrona, Maria Milagros “Mitos" Magsaysay, Romero Federico S. Quimbo, Maximo
B. Rodriguez and Andres D. Salvacion, Jr. and Marcelino R. Teodoro as authors
thereof.

Respectfully submitted:
ye rs sisson
MARCELINO “MARCY' R. TEODORO.

Chairman
Committee on Legislative Franchises

THE HONORABLE THE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY

Page 2 of 2
‘Committee Report

Re. House Bil Nos. 5237and 5369, Amendments to the Charter of Pages.

Authored by- Reys: Marceline "Mercy" R. Teodora, Giorgi 8. Aggabso, Arturo B. Robes; Jeci A. Lapus and Pedro P. Romualto



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila
FIFTEENTH CONGRESS
Second Regular Session

g
HOUSE BILL NO. 5682

introduced by Reps. Teodoro, Aggabao, Robes, Lapus and Romuaido

AN ACT

FURTHER AMENDING PRES!DENTIAL DECREE (PD) 1869 AS AMENDED BY
REPUBLIC ACT 9487, OTHERWISE KNOWN AS THE CHARTER OF THE
PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR),

AND FOR OTHER PURPOSES

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

SECTION 1. Section 3 of Presidential Decree No. 1869, otherwise known as
the PAGCOR Charter as amended by R.A. 9487 is hereby further amended to read,

28 follows:

“Section 3. Corporate Powers — The Corporation shall have the following

powers and functions, among others:

‘a

b.
c.

to prescribe its By-iaws;
to adopt, alter and use a corporate seal;

to own real or personal property, and to sell, alienate,
mortgage, ericumber or otherwise dispose of the same;

to make contracts, and to sue and be sued;

to’ employ such officers and personnel as may be
necessary or proper to carry on its business;

to acquire, lease or maintain, whether on land, water or
air, personal property and such other equipment and


facilities as may be necessary or proper to carry out its
purposes,

to import, buy, sell, or otherwise trade or deal in
merchandise, goods, wares and objects of all kinds and
descriptions that may be necessary or proper to carry out
the purposes for which it has been created;

to enter into, make, conclude, perform, and carry out
Contracts of every kind and nature and for any lawful
purpose which are necessary, appropriate, proper or
incidenta! to any business or purpose of PAGCOR
[inclucing but not limited to investment agreements, joint
venture agreements, managements agreements, agency
agreements, whether as principal or as agent, manpower
supply agreements, or any other similar agreements or
arrangements with any person, firm, association or
corporation] WITH PRIOR NOTIFICATION AND
APPROVAL OF CONGRESS.

to Borrow maney from local or fereign sources as may be.
necessary or proper for its operations:

to invest its funds as the Corporation may deem
necessary or proper in any activity related to its principal
operation, including in any bonds or securities issued or
guaranteed by the Goverment of the Philippines

to perform such other powers and functions as may be
provided by law; and

to do anything and everything necessary, proper,
desirable, convenient or suitable for the accomplishment
of any of the purpose or the attainment of any of the


ZSemv)} HeRON

12
13
14
15
16
a7
18
19
20
241
22
23
24
25
26
27
28
29
30
31

objects or the furtherance of any of the powers herein
stated, and to do every other act or thing incidental
pertaining to, growing out of, or connected with, the
aforesaid purposes, objects or powers, or any part
thereof”

SECTION 2. Title ill, Section 8 of the same Decree as amended, is hereby
amended {o read on, as foliows:

“Section 8. Registration - All persons primarily engaged in
gambling BUSINESS together with [their] allied business, with contract
or franchise to operate from the Corporation shall APPLY FOR
LEGISLATIVE FRANCHISE BEFORE THEY register and affiliate their
business with the Corporation. The Corporation shall issue the
corresponding certificate of affiliation upon compliance by the
registering entity with the promulgated rules and regulation thereon,

SECTION 3. Title IV, Section 10 of the same Decree as amended, is
hereby aniended to read on as follows

“Section 10. Nature and Term of Franchise - Subject to the
terms and conditions established in this Decree, the PAGCOR is
hereby granted from the expiration of its original term on July 11, 2008,
another period of twenty-five (25) years, | renewable for another
twenty-five (25) years] the fights, privileges and authority to
ESTABLISH, operate, REGULATE and ISSUE license TO OPERATE
gambling casinos, gaming clubs and other similar recreation or
amusement places, gaming pools, i.e. basketball, football, bingo, [etc.]
POKER CLUBS, E-GAMES, AND VIP CLUBS except jai-alai, whether
on land or sea, within the territorial jurisdiction of the Republic of the
Philippines: PROVIDED, THAT PRIOR TO THE ISSUANCE BY


or on

2Bee dO]

13
14
15
16
7
12
20
21

23
24
25

27
28

PAGCOR OF A LICENSE TO OPERATE GAMBLING CASINOS, A
FRANCHISE SHALL BE OBTAINED FROM CONGRESS: Provided
FURTHER, That the Corporation AND/OR LICENSEE shall obtain the
consent of the local government unit that has territorial jurisdiction over
the area chosen as the site for any of its operations.

The operation of sict machines and other gambiing
paraphemalia and equipment, shell 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 comporation and by the loca
government unit concemed

The authority and power of the PAGCOR to [authorize]
ESTABLISH, OPERATE, REGULATE and ISSUE A_ license TO
OPERATE 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 authonzed, licensed and regulated by, in, and under
existing franchises or other regulatory bodies; (2) games of chance.
games of cards and games of numbers authonzed, licensed, regulated
by, in, and under special laws such as Republic Act No. 7922: and (3)
games of chance, games of cards and games of numbers like
Cockfighting, authorized, licensed and regutated by local goverment
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 4. There shali be incorporated after Title VI, Section 16 of
Presidential Decree No. 1869. as amended, a new provision to read as follows:


SECTION 17. RESPECT FOR EXISTING FRANCHISES, LICENSES AND
CONTRACTS. — ALL FRANCHISES, LICENSES, CONTRACTS AND OTHER
SIMILAR ARRANGEMENTS GRANTED BY, OR ENTERED INTO, WITH PRIVATE
INDIVIOUALS OR ENTITIES FOR THE ESTABLISHMENT, OPERATION AND
MAINTENANCE OF GAMBLING CASINOS, GAMING CLUBS AND OTHER
SIMILAR RECREATION OR AMUSEMENT PLACES DEVOTED TO GAMBLING
AND THE PLAYING OF GAMES OF CHANCE BEFORE THE EFFECTIVITY OF
THIS ACT SHALL BE RESPECTED AND SHALL REMAIN IN FORCE UNTIL THEIR
PIRATION. PROVIDED, THAT THESE SHALL NOT EXCEED THE FRANCHISE
TERM OF PAGCOR. THEREFATER. SUCH LICENSES. CONTRACTS AND
OTHER SIMILAR ARRANGEMENTS SHALL NOT BE RENEWED OR EXTENDED
UNLESS A FRANCHISE IS GRANTED TO THEM BY CONGRESS. PROVIDED
FURTHER, THAT WITHIN THREE YEARS FROM THE EFFECTIVITY OF THIS
ACT, LICENSE HOLDERS SHALL SECURE A LEGISLATIVE FRANCHISE, NON-
COMPUANCE WITH WHICH SHALL RESULT IN THE AUTOMATIC
CANCELLATION OF THE EXISTING LICENSES; PROVIDED FINALLY, THAT
CONGRESS SHALL HAVE THE AUTHORITY TO ALTER, AMEND OR REPEAL
ANY FRANCHISE, CONTRACT OR SIMILAR ARRANGEMENT WHEN THE
COMMON GOOD SO REQUIRES.

SECTION 5. Title Vil, Section 17 and Title Vill, Section 18, 19 and 20 of
Presidential Decree No. 1869, as amended, are hereby renumbered as Title Vill,
Section 18, and Title IX, Sections 19, 20 and 21, respectively.”

SECTION 6. Separabilty Clause. — If any provision of this Act is declared
invalid or unconstitutional, the other provisions not affected thereby shall continue to
be in fuil force and effect.

SECTION 7. Repealing Clause — All laws, decrees, executive orders,
proclamations rules and reguiations and other issuance or parts thereof which are


on ona

o

inconsistent with the provisions of this Act are hereby repealed or mocified
accordingly.

SECTION 8. Effectivity Ciause - This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,


FACT SHEET

House Bil! No. 5682
In substitution to House Bill No. 5337 and House Bill No. 5359
(As approved by the Committee on November 22, 2011 and November 29, 201 trespectively)

AN ACT AMENDING REPUBLIC ACT NO. 9487, OTHERWISE KNONW AS THE PAGCOR
CHARTER, AS AMENDED

AN ACT PROHIBITING THE OWNERSHIP OR OPERATION OF GAMING CASINOS,
GAMING CLUBS AND OTHER SIMILAR RECREATION OR AMUSEMENT PLACES
EXCEPT BY THE PHILIPPINE AMUSEMENT AND GAMING CORPORATION AND, FOR
THIS PURPOSE, FURTHER AMENDING PRESIDENTIAL DECREE NO. 1863, AS
AMENDED

introduced by. HONS. PEDRO P. ROMUALDO, MARCELINO R. TEQDORO, GIORGIDI 8.
AGGABAO, ARTURO B. ROBESAND JECI A. LAPUS

TIVE.
Steuben Chisvecen: HON. MARCELINO R. TEODORO
OBJECTIVES:

* To revert to Congress the authonty of granting legisiative franchise to operators of games of
chance, games of cards and game of numbers and;

+ Te protubit the PAGCOR from issuing casino gaming and other similar licenses to operate
without the legislative franchises.

KEY PROVISIONS:

> Grants PAGCOR to maintain, operate and regulate the operation of gambling casinos,
gaming clubs, intemev/online gaming and other similar gambling enterprises,

« Requires the licensee to secure irom Congress a legislative franchise to operate
gambling casinos, gaming ciubs and other similar gambling enterprise prior to issuance
of a PAGCOR license te operate the same,

* Reguires PAGCOR to inform Congress of any modification on ownership and
capitalization and structure of its affiliate entities and ;

* Mandates licensees to obtain legislative franchise within three (3) years from the
effectivity of the Act, non-compliance of which shail be subject to cancellation of such
license issued by PAGCOR.

RELATED Law:

¢ Presidential Decree No. 1869 — “Consolidating and Amending Presidential Decree Nos.
1057-A, 1067-8, 1067-C 1399 and 1632, relative to the franchise and powers of the
Philippine Amusement and Gaming Corporation”

+ Republic Act No 9487 — “AN ACT FURTHER AMENDING PRESIDENTIAL DECREE
NO. 1669, OTHERWISE KNOWN AS PAGCOR CHARTER™