Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitutional Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6111

Introduced by REPS. ENRICO A. PINEDA and MICHAEL ODYLON L.
ROMERO, PhD.

EXPLANATORY NOTE

The country’s gaming industry is presently in a quandary because of too
many regulators and regulatory regimes and the inconvenience of having an
agency which is a regulator and at the same time an operator of the industry it
regulates. This dilemma in regulation has opened opportunities to enterprising
individuals to capitalize on the grey areas of the law to operate gaming and
gambling which may legally be running afoul with existing public policies and
more importantly, with the morals of society.

When what has been foreseen as a catalyst for economic growth in the
countryside, our existing economic zone authorities seem to have been used as a
haven for the operation of illegal gambling activities. The privileges extended by
special laws establishing our ecozones were conveniently used to allegedly mask
gaming activities for the sole purpose of insulating it from the application of the
strict guidelines and requirements of national regulators.

Similarly, advances in technology when it is supposed to assist in the
development of the standard of life in the country is likewise being utilized to
muddle the legal standard for the operation of gaming and gambling the
country. Cockfighting now has gone digital and existing regulations and
regulators though many, cannot seem to cope and decide on whether to consider
it as within the law or otherwise. Whether legal or illegal may later be deemed
with future enactments but it is imperative that this be regulated and clearly be
under a certain regulatory agency.

As regards casino operations, recent developments in the casino industry
proved that the government can be better off by focusing on the more important
aspect of its mandate as regulator of casinos rather than an actual operator.
Private enterprises have proven to be better in gaming operations with the recent
boom in the number of better equipped and advance casinos in the country.


Alll told, these issues may rightfully and adequately be addressed with a
single agency that would consolidate all regulations related to gambling, gaming
and games of chance. With this single regulator, no entity may raise the
protection that a different law or regulation applies relative to its operation.
Further, no entity investing in the industry may cry foul because it operates in a
regime where it competes with a regulator nor it may worry that other operators
are given undue advantage by operating under differing regulatory regimes.
Moreover, this measure will also provide an opportunity for the single regulator
to unlimited possibilities for programs and projects through a more empowered
mandate.

Approval of this measure is earnestly sought.

(0 A.\PINEDA MICHAEL ODYLON L, ROMERO, PhD
1-PA‘ 1-PACMAN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitutional Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

6111

HOUSE BILL NO.

Introduced by REPS. ENRICO A. PINEDA and MICHAEL ODYLON L.
ROMERO, PhD.

AN ACT RATIONALIZING AND CONSOLIDATING GOVERNMENT
REGULATIONS RELATING TO ALL GAMES OF CHANCE UNDER
PAGCOR, GAB, PCSO AND SPECIAL ECONOMIC ZONES, CREATING
FOR THE PURPOSE THE PHILIPPINE AMUSEMENTS AND GAMING
AUTHORITY (PAGA)

TITLE I - General Provisions

SECTION 1. Declaration of Policy. - It is the policy of the State to
centralize and integrate, for purpose of effective regulation, all games of chance,
sweepstakes, lotteries, or similar activities, those operated online or otherwise,
including those authorized by existing franchises or permitted by law such as,
but not limited to: those operating under R.A 7922, also known as the “Cagayan
Special Economic Zone Act of 1995,” R.A 9490, also known as the “Aurora
Special Economic Zone Act of 2007,” R.A 9728, also known as the “Freeport Area
of Bataan (FAB) Act of 2009,” E.0. No. 392, s. 1950, which created the “Games
and Amusements Board”, and R.A 1169 which created the “Philippine Charity
Sweepstakes Office,” and such other laws creating Special Economic Zones, in
order to attain the following objectives:

(a) To centralize and integrate the right and authority to exclusively
regulate effectively all games of chance into one corporate entity to be
controlled, administered and supervised by the Government;

(b) To establish and create conditions conducive for private entities to
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,
remote gambling, online or otherwise, and which will: (1) generate
sources of additional revenue to fund government expenditures; (2)
create recreation and integrated facilities which will expand and


improve the country’s existing tourist attractions; and (3) minimize, if
not totally eradicate, the evils, malpractices and corruptions that are
normally prevalent in the conduct and operation of gambling clubs
and casinos without direct government involvement.”

TITLE Il - Establishment and Constitution of the Philippine Amusements and
Gaming Authority

SEC 2 Renaming PAGCOR and Establishment of PAGA. - The
Philippine Amusements and Gaming Corporation (PAGCOR) is hereby renamed
into the Philippine Amusements and Gaming Authority, hereinafter referred to
as the “Authority”, which shall be a corporate body under the Office of the
President, and shall regulate and consolidate all regulatory functions relating to
all games of chance in the Philippines.

The power of the Authority shall be purely regulatory in nature. It shall
not be an operator of games of chance, The Authority shall be allowed to
establish such office, agencies, subsidiaries, or branches in the Philippines as its
operations would require and its Board of Directors may determine.

SEC. 3. PAGA Board of Directors. - The Authority shall be governed by a
Board of Directors, consisting of five (5) members who shall be appointed by the
President of the Philippines, and whose members shall have the following
qualifications:

(a) Filipino;

(b) at least 30 years old;

(c) at least 2 years of experience in the gaming industry; and
(d) of good moral character

‘The Board of Directors, hereinafter referred to as the “Board”, shall serve
as the Board governing the Authority and PCSO. The Board shall nominate to
the President of the Republic of the Philippines from amongst themselves, the
Chairman as Chief Executive Officer, and the President as Chief Operations
Officer. The President of the Republic of the Philippines shall cause the
appointment and confirmation of the aforesaid Officers of the Authority.

SEC. 4. Term of Office of the PAGA Board of Directors. - Each Director
shall serve at the pleasure of the President.

SEC. 5. Powers and Functions of the Board. The Board shall have the
following functions and duties:

(a) To prepare and approve at the beginning of each calendar year the budget
that may be necessary to ensure the smooth operations of the
Corporation;


(b) To submit to the Office of the President of the Philippines before the end
of February of each year reports as may be required of it from time to
time;

(©) To effectively regulate all games of chance, including sweepstakes, races,
lotteries, or similar activities, those operated remotely, online or
otherwise, including those authorized by existing franchises or permitted
by law such as, but not limited to: those operating under R.A. 7922, also
known as the Cagayan Special Economic Zone Act of 1995,” R.A. 9490,
also known as the “Aurora Special Economic Zone Act of 2007,” R.A
9728, also known as the “Freeport Area of Bataan (FAB) Act of 2009,”
E.O. No. 392, s. 1950, which created the “Games and Amusements
Board”, and R.A 1169 which created the “Philippine Charity Sweepstakes
Office;”

‘The entities created by R.A. 1168, otherwise known as “An Act Providing
for Charity Sweepstakes, Horse Races, and lotteries,” shall be offices
under the Authority.

(d) To organize the Authority by creating Departments and Committees that
may be necessary to assist the Authority and the Board of Directors in the
performance if its functions pursuant to the provisions of this Act;

() To appoint such other Officers, employees, consultants, inspectors and
agents, and employ them on such terms and conditions as the Authority
may determine, as it thinks fit and subject to such conditions or
restrictions under existing laws. The Authority may, from time to time,
authorize any person to perform any function or duty or to exercise any
power under this Act.

() 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 or its purposes and
objectives.

TITLE II - Rationalization of Functions of PCSO, GAB, CEZA and APECO

Alll functions relating to gaming and amusements of the Philippine
Charity Sweepstakes Office (PCSO), Gaming and Amusements Board (GAB),
Cagayan Special Economic Zone (CEZA), Aurora Pacific Economic Zone and
Freeport (APECO), and such other Special Economic Zones shall be transferred
to the Authority.

SEC. 6, Transfer of PCSO’s regulatory function. The regulatory function
of PCSO is hereby transferred to the Authority, thereby amending Section 10 of
RA 1169, as amended. Accordingly, PCSO shall be a purely charitable institution,
and a recipient of the share of funds from sweepstakes operations conducted by
private operators.


SEC. 7. Abolition of GAB and Transfer of GAB’s regulatory function.
The regulatory authority of GAB, which was created by E.O. No. 392, s. 1950, to
operate games of chance shall be transferred to the Authority. Correspondingly,
GAB is hereby abolish, repealing for this purpose Sec. 6 and Sec. 7 of E.O. No.
392.

SEC. 8, Repealing the gaming authority of Special Economic Zones. The
authority of CEZA under Section 6 (f) of R.A 7922, APECO under Section 12 (f) of
R.A 9490, and FAB under Section 13 (j) of R.A. 9728, and such other Special
Economic Zones to operate games, amusements, recreational facilities such as
gambling casinos is hereby repealed.

SEC. 9. Regulation of Gaming in Economic Zones. - The Authority shall
promulgate rules and regulations for the operations of games, amusements, and
recreational facilities in the economic zones.

TITLE IV - Powers, Functions and Duties of the Authority

SEC. 9. Purpose of the Authority. The Authority shall maintain and
administer systems for the regulation, supervision, and control of gaming
operators with legislative franchises, which shall include those previously
licensed by virtue of Presidential Decree No. 1869 as amended, Republic Act
7922, Republic Act 9490, Republic Act 9728, Presidential Decree No. 420,
Republic Act 1169, Republic Act 1168, and such other laws that allowed licensing
of gaming (gambling) operations for the following purposes:

(a) collecting the Franchise fees from those who are issued a legislative
franchise to operate and conduct gaming (gambling) activities;

(b) ensuring that only those who are issued a legislative franchise are
authorized to operate and conduct gaming (gambling).

(©) ensuring that the management and operation of all gaming (gambling)
activities are carried out by persons who are suitable, and remains free
from criminal influence or exploitation;

(d) ensuring that all gaming (gambling) activities are conducted honestly;
and;

(€) containing and controlling the potential of a gaming (gambling) activities
to cause harm to minors, vulnerable persons and society at large.

SEC. 10. Functions and Duties of the Authority. Subject to the provisions
of this Act, the functions and duties of the Authority shall be as follows:

(a) to regulate the operation of all gaming (gambling) activities;

(b) to approve any system of controls and administrative and accounting
procedures of all gaming (gambling) activities;

(©) to advise the President of the Republic of the Philippines concerning
policy in relation to supervision and inspection of casinos;

(d) to do alll things it is authorized or required to do under this Act, including
but not limited to —


i. supervising the operation of all gaming (gambling) activities, the
persons responsible for such operations and the conduct of gaming;
ii, ensuring that the handling, collection, disbursement and counting
of money within gaming (gambling) premises is supervised;
iii, detecting offences committed within the said premises;
iv. receiving and investigating complaints from patrons concerning
the conduct of gaming;
v. adjudicating cases of dispute between an operator and patrons;
vi. checking gaming (gambling) records as required;
vii, inspecting, testing and approving gaming premises, equipment and
paraphernalia; and
viii, preparing and giving to the President of the Republic of the
Philippines such reports concerning the operation of all gaming
(gambling) activities and the as the Authority thinks fit or as the
President may request.
(©) to sell gaming operation-related assets; and
(® to perform such other functions and powers, as conferred or imposed on
the Authority, by or under this Act or any other written law.

The Authority may undertake such other functions and duties as the
President of the Republic of the Philippines may assign to the Authority, and in
so doing, the Authority shall be deemed to be fulfilling the purposes of this Act.
Further, the provisions of this Act shall apply to the Authority in respect to such
functions and duties.

SEC. 11, Corporate Powers of Authority. Subject to the provisions of this
Act, the Authority may carry on such activities as may appear to the Authority to
be advantageous, necessary, or expedient for it to carry on for or in connection
with the performance of its functions and the discharge of its duties under this
Act or any other written law.

Without prejudice to the generality of this section, the Authority may
conduct the following:

(a) prescribe its By-Laws;

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

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

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

(@) 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;

(8) conduct investigations as may be necessary for enforcing this Act;

(g) require any person to furnish such returns and information as may be
necessary for implementing the provisions of this Act;

(h) issue or approve codes of practice relating to gaming (gambling)
operations;

(i) publish educational materials or carry out research or other educational
activities relating to gaming (gambling), or to support (financially or


otherwise) the carrying out by others of such activities or the provision by
others of information or advice;

(j enter into such contracts as may be necessary or expedient for the purpose
of performing its functions or discharging its duties;

(k) become a member or an affiliate of any international body, the functions,
objects or duties of which are similar to those of the Authority;

(l) make provision for gratuities, pensions, allowances or other benefits for
employees or former employees of affected government agencies;

(m) make provision for the specialized training of any employee of the
Authority and, in that connection, to offer scholarships to intending
trainees or otherwise pay for the cost of the training and all
expenditure incidental thereto; and

(n) perform such other powers and functions necessary in carrying out the
purpose of this Act.

The Authority shall furnish the President of the Republic of the
Philippines information with respect to its property and activities, in such
manner and at such times as the President may, from time to time, require.

Title V ~ Inspectors

SEC. 12. Appointment of Inspectors. - The Authority, through its Board
of Directors, shall appoint Inspectors to monitor the operations of all legislative
gaming franchisees and ensure that their operations are in accordance with this
Act and their respective legislative franchise.

SEC, 13, Functions of Inspectors. The functions of an inspector are as
follows:

(a) to ascertain whether or not a legislative franchisee is complying with the
provisions of this Act, the conditions of the legislative franchise, and any
direction issued by the Authority under this Act. The inspectors shall
have the following functions:

(i) to inspect Gaming (gambling) premises;

(i) to monitor the operations of the premises; and

(iii) to examine gaming facilities, equipment, and paraphernalia
used in any gaming (gambling) activities and records in
relation thereto;

(b) To monitor the handling and counting of money in all gaming (gambling)
operations;

(¢) to assist in any other manner, where necessary, in the detection of offences
committed under this Act;

(d) to receive and investigate complaints from patrons relating to the conduct
of gaming;

(e) to report to the Authority regarding gaming (gambling) operations; and;

(8) to perform any other functions as are conferred on inspectors under this
Act.


SEC. 14. Powers of Inspectors, An inspector may do any one or more of
the following:

(a) require any person in possession of, or having control of, any machinery,
equipment, record, or other thing related to gaming (gambling)
operations, to produce the machinery, equipment, record, or other thing
for inspection and to answer questions or provide information relating to
the machinery, equipment, record or other thing;

(b) inspect any machinery, equipment, record or other thing referred to in
paragraph (a) and take copies of, extracts from, or notes relating to, such
record;

(0) seize any machinery, equipment, record or other things considered by the
inspectors as necessary for the purpose of obtaining evidence of the
contravention of any provision of this Act.

(d) stop any game conducted;

(e) by written notice require -

(i) the holder of a legislative franchise;

(i) an employee of a person referred to in sub-paragraph (i); or

(ii) any other person associated with operations or their
management in premises the inspector is authorized to
enter, to attend before the inspector at a specified time and
place and to answer questions, or to provide information
within a reasonable period specified in the notice, with
respect to any activity regulated by this Act;

(f) examine and test any machinery, equipment or other thing referred to in
paragraph (a) and order the person in charge of it to withdraw it from use
if it is unsatisfactory for use;

(g) investigate any complaint from a patron relating to the conduct of any
activity regulated by this Act;

(h) any other thing authorized by this Act to be done by an inspector.

If an inspector seizes any thing under this section, the inspector may
retain it until the completion of any proceedings (including proceedings on
appeal) in which it may be evidence but, in the case of records, the person from
whom the records were seized shall be permitted to inspect and make copies of
the records.

The condition in the preceding paragraph ceases to have effect in relation
to things seized if, on the application of a person aggrieved by the seizure, the
court in which proceedings referred to in that subsection are instituted so orders.

SEC. 15. Power to require names and addresses. An inspector who
exercises a right of entry to gaming (gambling) premises or under a search
warrant may require a person on the premises to state the person’s full name and
residential address.

An inspector is not authorized to require a person to state his name or
address unless the inspector suspects on reasonable grounds that the person has
committed an offence.


Any person who fails to comply with the foregoing requirement shall be
guilty of the offence of violating the terms of the legislative franchise.

SEC. 16. Seizure and forfeiture of equipment, etc. - An inspector may
seize the following:

(a) any thing that the inspector reasonably suspects is gaming (gambling)
equipment that is not authorized under this Act to be on the gaming
(gambling) premises; or

(b) any article or thing the use or possession of which is unlawful.

A police officer or an inspector may apply to a court upon completion of
the investigation in relation to any item seized under this section for an order
that the item seized under that subsection be forfeited to the Authority.

On an application, the court shall order that the item be forfeited to the
Authority if the court is satisfied that the item is —

(a) gaming equipment that is not authorized under this Act to be in a gaming
(gambling) premises; or

(©) any article or thing the use or possession of which is unlawful, as the case
may be, regardless of whether a charge has been filed in relation to the
item or whether a person has been convicted of an offence in relation to
the item.

Any item forfeited under this section shall be disposed of in accordance
with any direction of the court.

SEC. 17, Appeals. The party adversely affected by an order, or findings of
the Authority, may, within thirty (30) days from notice of such decision, order or
ruling, may file a motion for reconsideration to the Board. Within fifteen (15)
days after notice of denial for motion for reconsideration, the party may file a
petition to be known as petition for review, with the Office of the President,
which shall have jurisdiction to review such decision, order, or ruling, and to
modify or set aside the same when it clearly appears that there was no evidence
before the Board to reasonably support such decision, order, or ruling, or that the
same is contrary to law, or that it was without the jurisdiction of the Board.

TITLE VI - Taxation of Persons Engaged in Gambling

SEC. 18. Applicable Taxes. - Persons engaged in gambling, upon
securing a legislative franchise from Congress, and registering with the
Authority, shall be subject to a five percent (5%) Franchise Tax on its aggregate
gross earnings from fees, fines, composition sums and financial penalties.

‘The full amount generated by the taxes collected under this Section shall,
to the extent applicable, be appropriated to fund the charitable and social
obligations financially supported by PAGCOR, GAB, and PCSO prior to the
effectivity of this Act.


TITLE VII - Financial Provisions

SEC. 19, Funds of the Authority. - The funds and property of the
Authority shall consist of the following:

(a) franchise fees

(b) grants;

(0) all fees, fines, composition sums and financial penalties paid into the
funds of the Authority under this Act;

(d) all moneys paid to the Authority for the purposes of the Authority;

(e) all moneys paid to the Authority by way of grants, subsidies, donations,
gifts and contributions;

( all moneys received by the Authority by way of charges and fees for
services rendered by the Authority;

(g) all moneys, dividends, royalties, interest or income received from any
transaction made pursuant to the powers conferred on the Authority
under this Act or any other written law;

(h) all moneys borrowed by the Authority under this Act;

(i) all other moneys and property lawfully received by the Authority for the
purposes of the Authority; and

() all accumulations of income derived from any such property or money.

SEC. 20, Mandated Remittances. - All the mandated remittances of
PAGCOR, GAB, and PCSO as provided under Special laws that are still in effect
upon the enactment of this measure shall continuously be honored by the
Authority but, shall be taken from the excess of funds of the Authority necessary
for its operations; Provided, however, that the Board shall set a fixed amount
equivalent or higher than the existing value being remitted by PAGCOR to fund

the Special laws.

SEC. 21 - Moneys recovered or collected by the Authority. Except where
otherwise provided, all moneys recovered and charges, fees, fines, composition
sums and financial penalties collected by the Authority under this Act shall be
paid into and form part of the moneys of the Authority. The revenue shall be
used to fund the operational costs of the Authority and PCSO, existing social and
charitable obligations of PAGCOR, GAB, and PCSO, and mandated remittances
as provided by Special Laws. The balance of the funds shall be remitted annually
to the National Treasury.

SEC. 22, Bank Account. The Authority shall open and maintain an
account with the Landbank of the Philippines.

SEC. 23. Accounts and Records. The Authority shall keep proper
accounts and records of its transactions and affairs, and shall do all things
necessary to ensure the following:

(a) that all payments out of its moneys are correctly made and properly
authorized; and

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(b) that adequate control is maintained over the assets of, or in the custody of,
the Authority and over the expenditure incurred by the Authority.

SEC. 24. Audit of Accounts. The accounts of the Authority shall be
audited by the Commission on Audit (COA).

‘The Authority shall, as soon as practicable after the close of each financial
year, prepare and submit the financial statements, in respect to that year, to COA
who shall audit and report on them. COA Report shall, in its report, state the
following:

(a) whether the financial statements show fairly the financial transactions and
the state of affairs of the Authority;

(b) whether proper accounting and other records have been kept, including
records of all assets of the Authority whether purchased, donated, or
otherwise;

(©) whether the receipts, expenditure and investment of moneys and the
acquisition and disposal of assets by the Authority during the financial
year were in accordance with the provisions of this Act; and

(d)such other matters arising from the audit that the Commission shall
consider necessary.

The auditor shall, as soon as practicable after the accounts have been
submitted for audit, send a report of his audit to the Authority.

The auditor shall submit such periodical and special reports to the
President of the Republic of the Philippines and to the Authority as may appear
to him to be necessary, or as the President or the Authority may require.

SEC. 25. Annual Report - The Authority shall, as soon as practicable after
the end of each financial year, prepare and transmit to the President of the
Republic of the Philippines a report dealing generally with the activities of the
Authority during the preceding financial year and containing such information
relating to the proceedings and policy of the Authority as the President may,
from time to time, direct.

SEC. 26. Joint Congressional Oversight Committee on Gaming
Regulations. The Senate and the House of Representatives shall create a Joint
Congressional Oversight Committee on Gaming Regulation, to monitor the
gaming industry and operations of the Authority, all for the purpose of
recommending necessary policy adjustments to improve the regulation and
operations of the gaming industry.

The Authority shall submit a report to the Joint Congressional Oversight
Committee every year containing the annual accomplishments as well as the
Authority's financial status and COA Audit Report.

SEC. 27. Presentation of financial statements and auditor's report to the
Office of the President. - The Authority shall, as soon as its accounts and
financial statements have been audited in accordance with the provisions of this

12


Act, send to the President a copy of the audited financial statements, signed by
the Chairman, together with a copy of the auditor's report.

TITLE VIII - Conversion of existing licenses

SEC. 28-A. All gaming (gambling) operations shall secure a legislative
franchise from Congress in order to operate and conduct gaming activities
legitimately.

SEC. 28-B. All gaming (gambling) operations, which had been licensed
pursuant to Presidential Decree No. 1869 as amended, Republic Act 7922,
Republic Act 9490, Republic Act 9728, Presidential Decree No. 420, Republic Act
1169, Republic Act 1168 and such other laws that allowed licensing of gaming
(gambling) operations, and without a legislative franchise, shall have a period of
one (1) year from the effectivity of this Act to secure a legislative franchise;
otherwise such operations shall be illegal.

TITLE IX - Final Provisions

SEC. 29. Transitory Provisions - To ensure the smooth transition into the
new structure of PAGCOR given the shift from its status as operator and
regulator, into a purely regulatory function, as well as the transfer of the
functions of the “Charity Sweepstakes, Horse Races, and Lotteries,” under R.A
1169, as well as the regulatory functions of the “Games and Amusements Board,”
which was created by E.O. No. 392, s. 1950, as well as those created under R.A.
7922, also known as the “Cagayan Special Economic Zone Act of 1995,” R.A.
9490, also known as the ‘Aurora Special Economic Zone Act of 2007,” R.A. 9728,
also known as the “Freeport Area of Bataan (FAB) Act of 2009,” all officers and
employees of the herein enumerated entities directly affected by this Act shall
continue to exercise their usual functions, duties, and responsibilities, but now
under the Authority insofar as those related to the Authority’s regulatory powers
over gambling, games of chance, sweepstakes races, lotteries, or similar activities,
online or otherwise, unless otherwise directed.

The Authority shall effect the transfer herein provided in a manner that
ensures the least disruption and maximum absorption of offices. The qualified
and the necessary personnel of the absorbed offices shall be transferred and
absorbed by the Authority: Provided, that the tenure, rank, salaries, benefits and
privileges of such personnel are not reduced or adversely affected.

Personnel who were separated from the services shall be granted by the
Authority with separation pay, and retirement and other benefits provided
under existing laws but, in no case shall the separation pay be less than one (1)
month for every year of service.

13


Further, the Authority shall herein conduct an inventory of all its assets
related to its casino operations and shall liquidate said assets through a public
sale at prices most advantageous to the government, and equivalent to, or more
than the prevailing market prices.

From the time of effectivity of this Act, the Authority shall have three (3)
years during which to wind down its operations related to gambling and games
of chance, online or otherwise. The Authority contracts pertaining the existing
lease agreements and the like shall expire upon the end of the three (3) year
period herein provided.

SEC. 30. Separability Clause. - If any portion or provisions of this Act is
declared void or unconstitutional, the remaining portions or provisions hereof
shall not be affected by such declaration.

SEC. 31. Repealing Clause. - Presidential Decree No. 1869 or the Decree
“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 Sec. 6 and Sec. 7 of E.O.
No. 392, s. 1950, which created the “Games and Amusements Board,” are hereby
repealed.

All other laws, decrees, orders, rules and regulations, issuances, or parts
thereof inconsistent with the provisions of this Act insofar as it allows gaming
operations to be conducted without first securing a legislative franchise and
registering with the Authority, as well as insofar as it allows gambling activities,
games of chance, sweepstakes races, lotteries or similar activities, online or
otherwise, to operate outside the direct and exclusive regulatory powers of the
Authority, in particular provisions as found in R.A 7922, also known as the
Cagayan Special Economic Zone Act of 1995,” R.A 9490, also known as the
“Aurora Special Economic Zone Act of 2007,” R.A 9728, also known as the
“Freeport Area of Bataan (FAB) Act of 2009,” P.D. No. 420 creating the
“Philippine Racing Commission,” and R.A 1169 which created the “Philippine
Charity Sweepstakes Office,” are also hereby repealed or modified accordingly.

SEC. 32. Effectivity Clause - This Act shall take effect fifteen (15) days
after its complete publication in at least two (2) national newspapers of general
circulation.

Approved,

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