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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 20R1
?tarp
23 ABRll PI *38
RtCEiVED BV:
Introduced by: Senator Francis “Tol” N. Tolentino
AN ACT FIXING THE HOST CITY SHARE ON THE EARNINGS OF 
THE PHILIPPINE AMUSEMENT AND GAMING CORPORATION 
(PAGCOR), AMENDING FOR THIS PURPOSE SECTION 12 OF 
PRESIDENTIAL DECREE NO. 1869, OTHERWISE KNOWN AS THE 
“CHARTER OF PAGCOR”, AS AMENDED
EXPLANATORY NOTE
Under Presidential Decrees (PD) Nos. 1067-A, 1067-B, 1067-C, as 
amended by PD Nos. 1399, 1632, 1869, and Republic Act No. 9487, the 
Philippine Amusement ang Gaming Corporation (PAGCOR) has the following 
mandates:
1. to regulate, operate, authorize, and license games of chance, games of 
cards and games of numbers, particularly casino gaming;
2. to generate revenues for the government’s socio-civic and national 
development programs; and
3. to help promote the tourism industry.
With its mandates, PAGCOR has made significant contributions to nation 
building, addressing poverty alleviation, peace and order restoration, health and 
education improvement, and arts, culture, and sports development, among others, 
with its programs and projects.
By virtue of PD 1869, PAGCOR also shares its earnings to Local 
Government Units (LGUs) for hosting Casino Filipino branches. PAGCOR 
operates ten (10) casino branches in major cities in the country, aside from mini 
casinos, slot machine arcades, and PAGCOR clubs. These casinos are Casino


Filipino in Manila Pavilion, Malate, Angeles, Bacolod, Cebu, Davao, Iloilo, 
Laoag, Olongapo, and Tagaytay.1
Unlike other PAGCOR’s mandatory contributions which percentages or 
amounts were specifically stated in their respective legislations, the host cities’ 
share is not fixed in PD 1869. The amount thereof is dependent on the approval 
of the PAGCOR Board of Directors.
The share in PAGCOR’s earnings is likewise limited to cities where 
PAGCOR conducts its gaming operations through Casino Filipino. Cities where 
casinos were being operated by franchisees, nonetheless, were not given host 
shares.
It is noteworthy that franchise holders are only liable to pay a Franchise 
Tax of five percent (5%) of the gross revenue or earnings derived from its 
operation under the franchise and such tax is 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 agency. 
Consequently, cities where these franchisees are located lose their taxing power 
over the said establishments and activities which entitles them to receive their 
share in PAGCOR’s earnings.
This bill, therefore, earnestly seeks for the fixing of host city’s shares on 
PAGCOR’s earnings.
ncis
ol” N. Tolentino
1 COA 2016 Annual Audit Report - Notes to Financial Statements, and Facts and Figures - 
Congressional Policy and Budget Research Development, House of Representatives, February 
2018-No. 6)


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
s. No. 2061
senate
23 ftBRll p138
-
RtC£ixvcD, /,L ^—■
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT FIXING THE HOST CITY SHARE ON THE EARNINGS OF THE 
PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR), 
AMENDING FOR THIS PURPOSE SECTION 12 OF PRESIDENTIAL DECREE 
NO. 1869, OTHERWISE KNOWN AS THE "CHARTER OF PAGCOR" AS
AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 12 under Title IV of PD 1869 is hereby amended to read as 
follows:
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"SEC 12. Special Conditions of Franchise - After deducting five percent 
(5%) as Franchise Tax, the fifty percent (50%) share of the Government 
in the aggregate gross earnings of the Corporation from this Franchise, 
or sixty percent (60%) if the aggregate gross earnings be less than 
P150,000,000.00 shall 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.
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Five percent (5%) of the aggregate gross earnings of PAGCOR on both 
operated and regulated activities/establishments shall be remitted to the 
Host City or the Local Government Unit (LGU) where such operation 
and/or regulated activities/establishments are located."


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SECTION 2. Separability Clause. - If any provision of this Act is declared invalid or
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unconstitutional, the other provisions not affected thereby shall remain valid and
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subsisting.
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SECTION 3. Repealing Clause. - All laws, executive orders, memorandum circulars,
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guidelines, and other issuances or parts thereof, which are inconsistent with this Act,
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are hereby repealed or modified accordingly.
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SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication In the Official Gazette or In newspaper of general circulation.
Approved,