Republic of the Philippines
HOUSE 0F REPRESENTATIVE
Constitution Hills, Quezon City
NINHTEENTH CONGRE SS
First Regular Session
HOus;ri]]NO.5283
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ
"AN ACT FIXING TIIE HOST CITY SIIARE ON THE EARNINGS OF
THE PHILIPPINE AMUSEMENT AND GAMING CORTORATI0N
(PAGCOR), AMHNDING FOR THIS PURPOSE SECTION 12 0F
PRESIDENTIAL DECREE NO. 1869, OTHHRWISE KNOWN AS THE
"CHARTER 0F PAGCOR", AS AMENDHD
EXPLANATORY NOTH
Under Presidential Decrees (PD) Nos.1067-A,1067-a,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 ganes of numbers, particularly casino gaming;
2.   to  generate  revenues  for  the  govemment'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 Goverrment
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. I
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°/o) 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 eanings.
This bill,  therefore,  eamestly  seeks for the  fixing of host city's  shares  on
PAGCOR' s earnings.
EDWIN L. OLIVA
t     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)


Republic of the Philippines
HOUSE 0F REPRESHNTATIVEI
Constitution Hills, Quezon City
NINETEHNTH CONGRE SS
First Regular Session
Hous`eB`i|'|No.5283
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ
AN ACT FI}EN-G THE HOST CITY SIIARE 0N TIIE HARNINGS 0F THH
pHILlpplNH GAMING cORpORATION aIAGcOR>, AMENIDING FOR
THIS PURPOSE SECTION 12 0F 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:
"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 calanities as may be directed and authorized by the
Office of the President of the Philippines.
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."


SEC.  2.  Sepczrczbz./z.fy a/czc4se.  -  If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.
SEC.  3.  Repecz/z.ng Cycz"se.  - All  laws,  executive  orders,  memorandum  circulars,
guidelines,andotherissuancesorpartsthereof,whichareinconsistentwiththisAct,
are hereby repealed or modified accordingly.
SEC. 4. EJorecfz.vz.fy.  -This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in newspaper of general circulation.
Approved,