Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

1454

House Bill No.,

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

EXPLANATORY NOTE

Consistent with the policy of having games of chances strictly managed and made
subject to close scrutiny, regulation, supervision and control by the Government,
this bill seeks to regulate Internet Casino operations within the Philippines.

‘The unregulated operations of these Internet Casinos in the Philippines deprived
the Government of the possible billions of Pesos in taxes, which if collected, may be
used to bolster the social services provided to the public.

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Under this legislative proposal, all internet casino operators must first get a license

to operate from the Philippine Amusement and Gaming Corporation (PAGCOR), or
from the Autonomous Economic Zones with their own charter granting them to
provide license to internet casino applicants, for those internet casinos operating
inside a Free Port Zone.

Furthermore, it is proposed that Internet Casinos operating without the required
license to operate shall be subjected to a stiffer penalty of imprisonment and fines,

The approval of this bill is therefore, earnestly requested.

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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

1454

House Bill No.,

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

AN ACT
REGULATING INTERNET GAMBLING OPERATIONS IN THE PHILIPPINES
AND PROVIDING PENALTIES FOR ITS VIOLATION

‘Bo it enacted by the Senato and tho House of Ropresontativos of the Phiopines in Congress assembled:
SECTION 1. Title, - This Act shall be known and cited as the “Internet

Gambling Act of the Philippines”

SECTION 2. Declaration of Policy. ~ It is hereby declared to be the policy of
the State to have games of chances strictly managed and made subject to close
scrutiny, regulation, supervision and control by the Government. With the ever-
increasing numbers of virtual casinos or the internet casinos operating in the
Philippines, the State shall regulate them to ensure their harmonious and orderly
operations, beneficial to the economic growth of the State, and not detrimental to
the social and moral well-being of the people.

SECTION 3. Definitions. - As used in this Act, the following terms shall
mean:

(a) Internet gambling or internet casino. - Also known as virtual
casinos or online casinos, are online versions of traditional casinos.
Online casinos enable gamblers to play and wager on casino
games through the Internet.

(b) Web-based online casinos. - Websites where users may play casino
games without downloading software to the local computer. Games are
mainly represented in the browser plug-ins and require browser support.

(c) Download-based online casinos. - Require the download of the software
client in order to play and wager on the casino games offered, The online
casino software connects to the casino service provider and handles
contact without browser support.


(d) Autonomous Economic Zone, ~ A special economic zone with its own
charter, having power to provide a license to internet casino operators.

SECTION 4. Regulatory power, - All internet casinos shall first obtain a license to
operate, subject to the requirements, and the rules and procedures of either:

{a) PAGCOR or the Philippine Gaming and Amusement Corporation.
{b) Autonomous Economic Zones for internet casinos operating inside such
zones.

SECTION 5. Penalty, - Internet casinos operating without the license to operate
prescribed by the next preceding Section shall be subjected to a fine of not less
than One Million Pesos (P1,000,000.00}, but not more than ‘Three Million Pesos
(P3,000,000.00).

The corporate officers such as the President, Vice President, Corporate
Secretary, Treasurer, and the General Manager shall be punished by prision mayor
in its medium and maximum periods and a fine not less than Five Hundred
Thousand Pesos (PS00,000.00) but not exceeding ‘Two Million Pesos
(P2,000,000,00).

The employees of the internet casinos operating without the license to
operate shall be punished by prision correccional in its minimum and medium
periods and a fine not less than Fifty Thousand Pesos (P50,000.00) but not
exceeding One Hundred Thousand Pesos (P100,000.00).

SECTION 6. Repeating Clause. - All laws, decrees, executive orders, proclamations,
rules and regulations, or parts thereof inconsistent herewith are hereby repealed or
modified accordingly.

SECTION 7. Separability Clause. - If any provision of this Act is held invalid or
unconstitutional, the other provisions not affected’ hereby shall remain valid and
subsisting,

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

Approved,