Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 1508

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO.

EXPLANATORY NOTE

Republic Act No. 9487, approved in 2007, has extended PAGCOR's franchise for another
twenty-five (25) years and granted PAGCOR the authority to operate and license gambling
casinos, gaming clubs, and other similar recreation or amusement places and gaming pools
Consequently, the law delegated more powers to PAGCOR compared to its original mandate —
that of operating and maintaining casinos

Since then, PAGCOR has issued a number of licenses to various companies to operate
casinos and gaming clubs in different parts of the country, The procedures of licensing being
implemented by the agency were not transparent including the laying down of the terms of
reference (TOR) for each licensee in the past administration. Because of the grant of the
delegated authority in licensing, the mandates of Congress in terms franchising relatively
diminished. A consequence also is the extension of the franchise of PAGCOR to its affiliates and
licensees.

Clearly, with the given additional mandate, PAGCOR has encroached with Congressional
mandates as provided by the 1987 Constitution, This bill therefore seeks to rectify the situation
and proposes to revoke the authority of PAGCOR to license casino and gaming club operators. In
addition, it also seeks to give back to Congress its supervisory oversight with PAGCOR by
mandating that the contracts entered by PAGCOR, in whatever form, will be subject to the
approval of Congress

The expeditious approval of this amendatory bill to the PAGCOR Charter is earnestly
sought

MARCELINO “MARCY” R. TEODORO
Ist District, Marikina City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

508
uouse Brno, 1508

INTRODUCED BY REP, MARCELINO “MARCY” R. TEODORO.

AN ACT FURTHER AMENDING PRESIDENTIAL DECREE NO. 1869, AS AM)
REPUBLIC ACT NO. 9487, OTHERWISE KNOWN AS THE PAGCOR CHARTER, AND
FOR OTHER PURPOSES

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

SECTION |. Section 3 of Presidential Decree No. 1869, as amended by Republic Act No
9487, otherwise known as the PAGCOR Charter, is hereby further amended to read as follows:

“SEC. 3. Corporate Powers. — The Corporation shall have the following powers and
functions, among others:

“(a) to prescribe its By-Laws;

“(b) to adopt, alter and use a corporate seal;

“(© to own real or personal property, to sell, alienate, mortgage, encumber or
otherwise dispose of the same;

“(d) 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;

“(h) 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 incidental
to any business or purpose of the PAGCOR J, including but not limited to investment
agreements, joint venture agreements, management agreements, agency agreements,
whether as principal or as an 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,

(i) to borrow money from local or foreign 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 Government of the Philippines;

“(k) 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 purposes or the attainment of any of the
objects or the furtherance of any of the powers herein stated, either alone or in association
with other corporations, firms or individuals, 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”

SEC. 2. Title Il, Section 8 of the same Decree, as amended, is hereby amended to read as

follows:

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 businesses with the Corporation, The Corporation shall issue the
corresponding certificates of affiliation upon compliance by the registering entity with the

promulgated rules and regulations thereon.”

SEC. 3. Title IV, Section 10 of the same Decree, as amended, is hereby further amended to read

as follows:

“SEC. 10. Nature and Term of Franchise, — Subject to the terms and conditions

established in this Decree, the [Corporation] 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 rights, 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 PAGCOR OF A
ENSE 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 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]
ESTABLISH, OPERATE, REGULATE AND ISSUE A LICENSE [O 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 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 (3) 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.”

SEC. 4. There shall be incorporated after Title VI, Section 16 of Presidential Decree No. 1869, as
amended, a new provision to read as follows
“SEC. 17. RESPECT FOR EXISTING FRANCHISES, LICENSES AND
CONTRACTS. - ALL FRANCHISES, LICENSES, CONTRACTS AND OTHER
SIMILAR ARRANGEMENTS GRANTED BY, OR ENTERED INTO, WITH
PRIVATE INDIVIDUALS 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 EXPIRATION: PROVIDED, THAT THESE SHALL NOT
EXCEED THE FRANCHISE TERM OF THE PAGCOR. THEREAFTER, SUCH
'ENSES, CONTRAC’ AND OTHER SIMILAR ARRANGEMENTS SHALL
[ENDED UNLESS A FRANCHISE IS GRANTED TO.
PROVIDED, FURTHER, ‘T FROM THE
TIVITY OF THIS ACT, ALL CASINO LICENSE APPLICANTS SHALL
SLATIVE FRANCHISE BEFORE ANY LICENSE TO OPERATE
GRANTED TO PROVIDED, FINALLY, THAT CONGRESS
SHALL HAV
FRANCHISE, CONTRACT OR SIMILAR ARRANG
COMMON GOOD SO REQUIRES.”

EI

SEC. 5. Title VI, Section 17 and Title VIII, Sections 18, 19 and 20 of Presidential Decree No.
1869, as amended, are hereby renumbered as Title VIII, Section 18 and Title IX, Sections 19, 20 and

21, respectively.


SEC. 6, Separability Clause, — If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected thereby shall continue to be in full force and effect,
SEC. 7. Repealing Clause, — All laws, decrees, executive orders, proclamations, rules and
regulations and other issuances or parts thereof which are inconsistent with the provisions of this Act

are hereby repealed or modified accordingly.

SEC. 8. Kffeetivity Clause, ~ This Act shall take effect fifteen (15) days after its publication in

at least two (2) newspapers of general circulation.

Approved,