Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3237
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
The Philippine Amusement and Gaming Corporation (PAGCOR) reported that the local 
gaming industry’s gross revenues reached a record-high of P410.5 billion in 2024.1 Moreover, 
in the first half of 2025, the PAGCOR recorded P215 billion in gross revenues.2 By yearend, it 
is expected to reach P450 billion to P 480 billion.3 
Section 7, Article X of the 1987 Constitution provides that “Local governments shall be 
entitled to an equitable share in the proceeds of the utilization and development of the national 
wealth within their respective areas, in the manner provided by law, including sharing the same 
with the inhabitants by way of direct benefits.” In accordance with this constitutional mandate, 
this bill seeks to amend Section 12 of Presidential Decree No. 1869, changing the source of 
franchise tax levied to gaming operators from the previous aggregate gross earnings to the 
gross gaming revenue. 
This measure also aims to ensure that local government units (LGUs) hosting gaming 
operations that are licensed or operated by the PAGCOR receive their 2% share out of the 
5% total franchise tax. In effect, this proposed measure institutionalizes the augmentation of 
LGU resources enabling them to provide basic social services to their constituents such as 
healthcare, agriculture, disaster response, infrastructure projects, and other social welfare 
programs. 
This bill was passed on third reading during the 19th Congress and transmitted to the 
Senate.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
1 Gonzales, A.L. (2025). Local gaming industry's revenues hit record-high in 2024.https://www.pna.gov.ph/articles/1244964 
2 Rocamora, J.A. (2025). PH records P215-B gross gaming revenue in 1H 2025 – PAGCOR. 
https://www.pna.gov.ph/articles/1255061 
3 Cigaral, I.N. (2025) PAGCOR bets on hefty growth in 2025 PH gaming revenue. https://business.inquirer.net/508702/pagcor-
bets-on-hefty-growth-in-2025-ph-gaming-revenue 
August 6, 2025
2:20 pm


HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3237 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT FIXING THE SHARE OF THE LOCAL GOVERNMENT UNIT (LGU) HOSTING 
GAMING OPERATIONS LICENSED OR OPERATED BY THE PHILIPPINE AMUSEMENT 
AND GAMING CORPORATION (PAGCOR) IN THE PROCEEDS OF THE FRANCHISE 
TAX, FURTHER AMENDING SECTION 12 OF PRESIDENTIAL DECREE NO. 1869, AS 
AMENDED   
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
SECTION 1. Section 12 of Presidential Decree No. 1869 is hereby further amended to read 
as follows:   
“Sec. 12. Special Condition of Franchise. – After deducting five percent  (5%) 
as Franchise Tax, the fifty percent (50%) share of the government in the  [aggregate 
gross earnings] GROSS GAMING REVENUE of the Corporation from this Franchise, 
or 60% if the [aggregate gross earnings] GROSS GAMING  REVENUE be less than 
P150,000,000.00, shall immediately be set aside and shall accrue to the General Fund 
to finance the priority infrastructure development projects and to finance the restoration 
of damaged or destroyed facilities due to calamities, as may be directed and authorized 
by the Office of the President of the Philippines.   
“THE ABOVE FIVE PERCENT (5%) FRANCHISE TAX SHALL BE 
REMITTED AS FOLLOWS: THREE PERCENT (3%) TO THE NATIONAL 
GOVERNMENT AND TWO PERCENT (2%) TO THE LOCAL GOVERNMENT UNIT 
(LGU) WHERE PAGCOR OPERATED AND LICENSED GAMING OPERATIONS 
SUCH AS, BUT NOT LIMITED TO, LAND-BASED CASINOS, ONLINE CASINOS, 
BINGO, ELECTRONIC GAMES (EGAMES), AND ELECTRONIC BINGO (EBINGO) 
ARE LOCATED: PROVIDED, THAT  THE TWO PERCENT (2%) SHARE SHALL BE 
PAID DIRECTLY TO THE LGU CONCERNED.”   
SECTION 2. Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.   
SECTION 3. Repealing Clause. – Section 12 of P.D. No. 1869, entitled: “Consolidating and 
Amending Presidential Decree Nos. 1067-A, 1067-B, 1067-C, 1399 and 1632, Relative to the 
Franchise and Powers of the Philippine Amusement and Gaming Corporation (PAGCOR),” as 
amended by Presidential Decree No. 1993, entitled: “Amending Section Twelve of Presidential 
Decree No. 1869 Consolidating and Amending Presidential Decree Nos. 1067-A, 1067-B, 
1067-C, 1399, and 1632, Relative to the Franchise and Powers of the Philippine Amusement 


and Gaming Corporation (PAGCOR),” and all laws, executive orders, memorandum circulars, 
guidelines, and other issuances or parts thereof, which are inconsistent with this Act, are 
hereby repealed or modified accordingly.  
 
SECTION 4. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.    
 
 
Approved,