Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. __________ 
______________________________________________________________________ 
INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO 
EXPLANATORY NOTE 
This is a refiled bill originally filed last Congress by Representative Xavier Jesus D. 
Romualdo of the Lone District of Camiguin. 
His explanatory note is adapted as my rationale for pushing for this legislative measure: 
“This measure, in the main, seeks to withdraw from the Philippine Amusement 
and Gaming Corporation (PAGCOR) the authority to grant franchises and 
licenses for the establishment and operation of gaming enterprises. 
Consequently, persons who wish to engage in such an enterprise must first 
obtain a franchise from Congress. 
Under this measure, the PAGCOR may issue licenses to operate gaming 
establishments; however, a prospective gaming operator must first obtain a 
franchise from Congress. Unless and until the prospective gaming operator is 
granted a legislative franchise, the PAGCOR cannot issue a license to 
operate. Nonetheless, this bill provides that existing gaming franchises, 
licenses, contracts, and other similar arrangements granted by or entered into 
by the PAGCOR shall remain unimpaired and shall continue in full force and 
effect until they expire or the term of the PAGCOR’s own franchise to 
establish, operate, regulate, and issue licenses to operate to gaming 
establishments expires, whichever comes earlier.  
In addition, this measure seeks to amend Section 15 of Presidential Decree 
No. 1869, which provides that the funds of the PAGCOR that may be audited 
is limited to the 5% franchise tax and the 50% of the gross earnings of the 
PAGCOR pertaining to the government as its share. Under this measure, all 
funds and transactions, including revenues, income, and expenditures, of the 
PAGCOR shall be subject to audit by the Commission on Audit.  
Gambling is widely considered to be reprehensible and even immoral. On the 
other hand, it is a reliable source of revenue for the Government and a 
significant source of funding for social and development projects and 
programs. Allowing the operation of gaming establishments in the country is 
thus a policy question that involves a delicate balancing of interests, which 
July 19, 2022
12:41 pm
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should be decided by the Members of Congress, who represent and are 
accountable to the people.” 
 
In view of the foregoing, the support of the Members of Congress for the prompt and 
timely passage of this measure is earnestly sought. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO 
AN ACT  
FURTHER AMENDING PRESIDENTIAL DECREE NO. 1869, AS AMENDED, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 3 of Presidential Decree No. 1869, as amended, is hereby 
1 
further amended to read as follows: 
2 
Section 3.  Corporate Powers. – The Corporation shall have the 
3 
following powers and functions, among others: 
4 
(a) to prescribe its By-Laws;
5 
(b) to adopt, alter, and use a corporate seal;
6 
(c) to own real or personal property, to sell, alienate, mortgage, encumber,
7 
or otherwise dispose of the same;
8 
(d) to make contracts and to sue and be sued;
9 
(e) to employ such officers and personnel as may be necessary or proper to
10 
carry on its business;
11 
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(f) to acquire, lease, or maintain, whether on land, water, or air, personal 
1 
property and such other equipment and facilities as may be necessary or 
2 
proper to carry out its purposes; 
3 
(g) to import, buy, sell, or otherwise trade or deal in merchandise, goods, 
4 
wares, and objects of all kinds and descriptions that may be necessary or 
5 
proper to carry out the purposes for which it has been created; 
6 
(h) to enter into, make, conclude, perform, and carry out contracts of every 
7 
kind and nature and for any lawful purpose which are necessary, 
8 
appropriate, proper, or incidental to any business or purpose of the 
9 
CORPORATION; [PAGCOR; , including but not limited to investment 
10 
agreements, joint venture agreements, management agreements, 
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agency agreements, whether as principal or as an agent, manpower 
12 
supply agreements, or any other similar agreements or arrangements 
13 
with any person, firm, association or corporation.]  
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(i) to borrow money from local or foreign sources as may be necessary or 
15 
proper for its operations; 
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(j) to invest its funds as the Corporation may deem necessary or proper in 
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any activity related to its principal operation, including in any bonds or 
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securities issued or guaranteed by the Government of the Philippines; 
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(k) to perform such other powers and functions as may be provided by law; 
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and 
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(l) to do anything and everything necessary, proper, desirable, convenient 
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or suitable for the accomplishment of any of the purposes or the 
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attainment of any of the objects or the furtherance of any of the powers 
24 
herein stated, either alone or in association with other corporations, firms 
25 
or individuals, and to do every other act or thing incidental, pertaining to, 
26 


growing out of, or connected with, the aforesaid purposes, objects or 
1 
powers, or any part thereof. 
2 
PROVIDED, THAT, NONE OF THE POWERS STATED ABOVE SHALL BE 
3 
UNDERSTOOD AS GIVING AUTHORITY TO THE CORPORATION TO 
4 
GRANT 
LICENSES, 
CONTRACTS, 
OR 
OTHER 
SIMILAR 
5 
ARRANGEMENTS TO PRIVATE PERSONS OR ENTITIES FOR THE 
6 
ESTABLISHMENT OR OPERATION OF ANY GAMBLING OR GAMING 
7 
ENTERPRISE WITHOUT THE LATTER FIRST BEING GRANTED A 
8 
FRANCHISE FROM CONGRESS.  
9 
 
10 
SEC. 2. Section 8 of the same Decree is hereby amended to read as follows: 
11 
Section 8. Registration. – All persons primarily engaged in THE 
12 
gambling OR GAMING BUSINESS, together with their allied businessES, 
13 
with A [contract or franchise] LICENSE TO OPERATE from the 
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Corporation, shall OBTAIN A LEGISLATIVE FRANCHISE BEFORE THEY 
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MAY register and affiliate their businesses with the Corporation. The 
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Corporation shall issue the corresponding certificates of affiliation upon 
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compliance by the registering entity with the promulgated rules and 
18 
regulations thereon. 
19 
 
20 
SEC. 3. Section 10 of the same Decree, as amended, is hereby further amended 
21 
to read as follows: 
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Section 10. Nature and Term of Franchise. – Subject to the terms 
23 
and conditions established in this Decree, the Corporation is hereby 
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granted, from the expiration of its original term on July 11, 2008, FOR 
25 
another period of twenty-five (25) years, [renewable for another twenty-five 
26 
(25) years,] the right, privilege, and authority to ESTABLISH AND [,] 
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operate BY ITSELF, REGULATE, and ISSUE licenses TO OPERATE TO 
1 
gambling casinos, gaming clubs and other similar recreation or amusement 
2 
places, and gaming pools, i.e. basketball, football, bingo, [etc.] POKER 
3 
CLUBS, AND E-GAMES, except jai-alai, whether on land or sea, within the 
4 
territorial jurisdiction of the Republic of the Philippines; PROVIDED, THAT 
5 
PRIOR TO THE ISSUANCE BY THE CORPORATION OF A LICENSE TO 
6 
OPERATE A GAMBLING CASINO, GAMING CLUB AND OTHER 
7 
SIMILAR RECREATION OR AMUSEMENT PLACE, OR GAMING POOL, 
8 
A FRANCHISE SHALL FIRST BE OBTAINED FROM AND GRANTED BY 
9 
CONGRESS: Provided, FURTHER, That the corporation OR ITS 
10 
LICENSEE shall obtain the consent of the local government unit that has 
11 
territorial jurisdiction over the area chosen as the site for any of its 
12 
operations. 
13 
 
14 
The operation of slot machines and other gambling paraphernalia and 
15 
equipment[,] shall not be allowed in establishments open or accessible to the 
16 
general public unless the site of these operations are three-star hotels and 
17 
resorts accredited by the Department of Tourism AND authorized by BOTH 
18 
the Corporation and by the local government unit concerned. 
19 
 
20 
The authority and power of the CORPORATION [PAGCOR] to [authorize, 
21 
license and regulate] ESTABLISH, OPERATE, REGULATE, AND ISSUE 
22 
LICENSES TO OPERATE games of chance, games of cards, and games of 
23 
numbers shall not extend to: (1) games of chance authorized, licensed and 
24 
regulated or to be authorized, licensed and regulated by, in, and under 
25 
existing franchises or other regulatory bodies; (2) games of chance, games 
26 
of cards, and games of numbers authorized, licensed, regulated by, in, and 
27 


under special laws such as Republic Act No. 7922; and (3) games of 
1 
chance, games of cards, and games of numbers like cockfighting, 
2 
authorized, licensed and regulated by local government units. The conduct 
3 
of such games of chance, games of cards, and games of numbers covered 
4 
by existing franchises, regulatory bodies, or special laws, to the extent of the 
5 
jurisdiction and powers granted under such franchises and special laws, 
6 
shall be outside the licensing authority and regulatory powers of the 
7 
CORPORATION [PAGCOR]. 
8 
 
9 
SEC. 4. Section 15 of the same Decree, as amended, is hereby amended to read 
10 
as follows: 
11 
SEC. 15.  Audit[or]. – The Commission of Audit [or any government 
12 
agency that the Office of the President may designate shall appoint a 
13 
representative who shall be the Auditor of the Corporation and such 
14 
personnel as may be necessary to assist said representative in the 
15 
performance of his duties. The salaries of the Auditor or representative and 
16 
his staff shall be fixed by the Chairman of the Commission on Audit or 
17 
designated government agency, with the advice of the Board, and said 
18 
salaries and other expenses shall be paid by the Corporation. The funds of 
19 
the Corporation to be covered by the audit shall be limited to the 5% 
20 
franchise tax and the 50% of the gross earnings pertaining to the 
21 
Government 
as 
its 
share.] 
SHALL 
AUDIT 
ALL 
FUNDS 
AND 
22 
TRANSACTIONS, 
INCLUDING 
REVENUES, 
INCOME, 
AND 
23 
EXPENDITURES, OF THE CORPORATION. 
24 
 
25 
SEC. 5. Non-Impairment of Existing Franchises, Licenses, and Contracts. – All 
26 
franchises, licenses, contracts, and other similar arrangements granted by or entered 
27 


into by the Philippine Amusement and Gaming Corporation (PAGCOR) with private 
1 
individuals or entities for the establishment, operation, and maintenance of gambling 
2 
casinos, gaming clubs, and other similar recreation or amusement places devoted to 
3 
gambling and the playing of games of chance before the effectivity of this Act shall 
4 
remain in full force and effect until their expiration; Provided, that these shall not exceed 
5 
the term of the PAGCOR’s franchise. Thereafter, such licenses, contracts, and other 
6 
similar arrangements shall not be renewed or extended, unless the licensee, contracting 
7 
party, or grantee, as the case may be, is granted a legislative franchise by Congress; 
8 
Provided, further, any such franchise may, by law, be altered, amended, or repealed 
9 
when the common good so requires. 
10 
 
11 
SEC. 6. Separability Clause. – If any provision of this Act is declared invalid or 
12 
unconstitutional, the other provisions not affected thereby shall remain in full force and 
13 
effect. 
14 
 
15 
SEC. 7. Repealing Clause. – All laws, decrees, executive orders and issuances, 
16 
rules and regulations, and other issuances, or parts thereof, that are inconsistent with 
17 
the provisions of this Act are hereby repealed or modified accordingly. 
18 
 
19 
SEC. 8. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
20 
publication in the Official Gazette or a newspaper of general circulation. 
21 
 
22 
Approved, 
23 
 
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