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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
Introduced by Senator Juan Ponce Enrile 
Explanatory Note 
Presidential Decree 1869, the charter of the Philippine Amusement and Gaming 
Corporation (PAGCOR), was crafted during the Marcos administration to consolidate 
PAGCOR's various enabling laws, namely PD 1067-A, 1067-B, 1067-C, 1399,1632, and 
their amendments, 
P.D. No. 1869 covers, among others, the power and functions of PAGCOR, the 
nature and scope of its franclike, activities, and privileges, and the nature and scope of 
the regulatory powers granted to it. 
Under P.D. 1869, PAGCOR is authorized to operate and, at the same time, is 
assigned the task to regulate all games of chance in the country with some exceptions. 
PAGCOR is also intended to serve as a channel to improve, promote and expand our 
tourism industry. Finally, PAGCOR is used as a mechanism to help in raising funds for 
the socio-civic and national development programs of the government. 
In line with its mandate, PAGCOR has become a major benefactor to a number of 
public services and socio-civic project of the country. Such projects include programs for 
the alleviation of poverty, for the promotion of sports development in the country, for the 
improveinent of the health and education of the people, and for the restoration of peace 
and order in the land. 
The rising number of PAGCOR's gaming activities over the years in our major 
cities paved the way for the vibrant growth of the gaming industry, and this has made 
PAGCOR an important income earner of the government. Presently, PAGCOR earns an 
average income of over Twenty Billion Pesos(P20,000,000,000) a year for the 
goveriunent. 
While PAGCOR contributes a hefty yearly sum of money to the government, 
there is still a wide room to expand its operations and to boost its earning capacity via the 
application of creative and modern business methods, strategies, and techniques, by 
broadening the nature and scope of its present corporate activities. 
Its outmoded charter, however, has outlived its usefulness and is now a roadblock 
to the utilization of PAGCOR's full potential. Moreover, PAGCOR's franchise has been 
overtaken by new practices in the gaming industry and by the demand of the present 
business milieu, like globalization, privatization, mergers, joint ventures, and similar 
other aggressive corporate arrangements and practices. 


This proposed measure intends to correct all of that. It intends to amend and 
modernize the charter of PAGCOR to provide it with potent and effective tools to realize 
its full potential as an income-generating agency of the government. 
One of the changes being introduced in the proposed legislation is to include 
whatever newly conceived and developed games of chance and amusements activities 
there are that are not named or mentioned in PAGCOR’s existing franchise. This is 
intended to remove any misgivings regarding PAGCOR’s authority and power to engage 
in such newly conceived and developed games of chance and amusement activities. 
It is also the intent of the proposed measure to clarify and remove any doubt about 
PAGCOR’s power to enter into joint ventures and similar undertakings. This is also 
essential to encourage, achieve, and promote competition in the gaming industry. 
Under the proposed measure, PAGCOR will expand its authority, powers, 
functions, and operations beyond its present gaming activities. 
PAGCOR will he given under the proposed measure an unequivocal authority and 
power to engage in activities that shall include the construction, establishment, 
maintenance, operation, and management of hotels, inns, clubs, resorts, convention 
centers, theme parks, aquariums, integrated amusement areas or communities, and other 
recreational and entertainment facilities, casinos where all forms of card games or games 
of numbers or other forms of games of chance are held and where bets are made, roulette 
tables, dice tables, slot or pinball machine parlors, bingo parlors and other places where 
other forms of lotteries are held, racetracks For all kinds of races, jai alai frontons, sports 
gaming pools, and other forms of games of chance or games of numbers, whether 
specifically included or mentioned in the proposed measure, or not, including newly 
conceived and developed games of chance or games of numbers that are not yet named, 
mentioned, or authorized in any existing franchises, or in any general gaming law of the 
country, or in any special laws such as Republic Act No. 7922, otherwise known as the 
Cagayan Special Economic Zone Act of 1995. 
It i s  also made very clear in the proposed legislation that PAGCOR may engage in 
said activities, either by itself directly or indirectly through a joint venture with others. 
It is with the above-cited reasons and objectives that I urge my colleagues to fully 
support the passage of this measure as soon as possible. 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
QC) 
S.B. No. 
v
-
 
Introduced by Senator Juan Ponce Enrile 
AN ACT 
TO STRENGTHEN AND RATIONALIZE THE AUTHORITY, POWERS, 
FUNCTIONS, AND ACTIVITIES OF THE PHILIPPINE AMUSEMENT AND 
GAMING CORPORATION (PAGCOR) IN ORDER TO ENHANCE THE 
GROWTH OF THE GAMING INDUSTRY, AMENDING FOR THIS PURPOSE 
PRESIDENTIAL DECREE 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. Title. - This Act shall be known as the “Revised Philippine 
Amusement and Gaming Corporation (PAGCOR) Act of 2007”. 
SEC. 2. Section 1, under Title I of Presidential Decree No. 1869, otherwise 
known as the charter of the Philippine Amusement and Gaming Corporation, is hereby 
amended to read as follows: 
TITLE I - GENERAL PROVISIONS 
SECTION 1. Declaration of Policy -- It is hereby declared a policy 
of the State to [centralize and integrate all games of chance not heretofore 
authorized by existing franchises or permitted by] AUTHORIZE, 
LICENSE, AND REGULATE ALL GAMES OF CHANCE, GAMES 
OF CARDS AND GAMES OF NUMBERS WITHIN THE 
TERRITORY OF THE PHILIPPINES AND TO GRANT THE 
POWER TO AUTHORIZE, LICENSE, AND REGULATE ALL 


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SUCH GAMES OF CHANCE, GAMES OF CARDS, AND GAMES 
OF NUMBERS TO THE PHILIPPINE AMUSEMENT AND 
GAMING CORPORATION (PAGCOR), in order to attain the 
following objectives: 
(a) To centralize [and integrate] IN ONE GOVERNMENT 
CORPORATE 
ENTITY 
THE 
POWER 
TO 
AUTHORIZE, 
LICENSE, AND REGULATE the right, PRIVILEGE, and authority to 
operate and conduct games of chance, GAMES OF CARDS, AND 
GAMES OF' NUMBERS [into one corporate entity to be controlled, 
administered and supervised by the Government] WITHIN THE 
TERRITORY OF THE PHILIPPINES, EXCEPT AS PROVIDED 
HEREIN; and, 
(b) [To establish and 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, which niay be allowed by law within the territorial jurisdiction of 
the Philippines and which will: (1) generate sources of additional revenue 
to fund infrastructure and socio-civic projects, such as flood control 
programs, beautification, sewerage and sewage projects, Tulungan Bayan 
Centers, Nutritional Programs, Population Control and such other essential 
public services; (2) create recreation and integrated facilities which will 
expand and improve the country's existing tourist attractions; and (3) 
maximize, if not totally eradicate, the evils, malpractices and corruptions 
that are normally prevalent in the conduct and operation of gaming clubs 


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and casinos without direct government involvement.] TO ENABLE THE 
GOVERNMENT 
THROUGH 
PAGCOR 
TO 
CONSTRUCT, 
ESTABLISH, MAINTAIN, OPERATE, AND MANAGE HERE OR 
ABROAD HOTELS, INNS, CLUBS, RESORTS, CONVENTION 
CENTERS, THEME PARKS, 
AQUARIUMS, INTEGRATED 
AMUSEMENT AREAS OR COMMUNITIES, AND OTHER 
RECREATIONAL 
AND 
ENTERTAINMENT 
FACILITIES, 
CASINOS WHERE ALL FORMS OF CARD GAMES AND GAMES 
OF NUMBERS OR OTHER FORMS OF GAMES OF CHANCE 
ARE HELD AND WHERE BETS ARE MADE, ROULETTE 
TABLES, DICE TABLES, SLOT OR PINBALL MACHINE 
PARLORS, BINGO PARLORS AND OTHER PLACES WHERE 
OTHER FORMS OF LOTTERIES ARE HELD, RACETRACKS 
FOR ALL KINDS OF RACES, JAI ALAI FRONTONS, SPORTS 
BETTING, AND OTHER FORMS OF GAMES OF CHANCE OR 
GAMES OF NUMBERS, INCLUDING NEWLY CONCEIVED AND 
DEVELOPED GAMES OF CHANCE OR GAMES OF NUMBERS 
IRRESPECTIVE OF WHETHER THEY ARE SPECIFICALLY 
INCLUDED OR MENTIONED IN THIS ACT, OR NOT. 
THE AUTHORITY AND POWER OF PAGCOR TO 
AUTHORIZE, LICENSE, AND REGULATE GAMES OF CHANCE, 
GAMES OF CARDS AND GAMES OF NUMBERS S U L  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; AND (2) 
GAMES OF CHANCE, GAMES OF CARDS, AND GAMES OF 
NUMBERS AUTHORIZED, LICENSED, AND REGULATED OR 


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TO BE AUTHORIZED, LICENSED, AND REGULATED BY, IN, 
AND UNDER SPECIAL. LAWS SUCH AS REPUBLIC ACT NO. 
7922. 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 PAGCOR 
SEC. 3. Section 2 under Title I1 of PD 1869 is hereby amended to read as follows: 
TITLE I1 - 
CREATION OF PHILIPPINE AMUSEMENT AND GAMING 
CORPORATION 
SEC. 2. Philippine Amusement and Gaming Corporation 
(PAGCOR), Creation and Purpose. -To 
implement THE DECLARED 
State policy and to pursue the objectives set forth in [the preceding 
section] SECTION 1 OF THIS ACT, there is hereby created a body 
corporate to be known as the Philippine Amusement and Gaming 
Corporation, hereinafter referred to as [the “Corporation”] “PAGCOR”, 
which shall have its principal office in Metropolitan Manila. 
[The 
Corporation] PAGCOR may establish such OTHER offices, agencies, 
subsidiaries, and branches in AND OUTSIDE the Philippines, as [its] 
THE operations AND BUSINESSES OF PAGCOR would require and 
[as] its Board of Directors may [determine] DEEM NECESSARY AND 
PROPER. 


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SEC. 4. Section 3 under Title I1 of PD 1869 is hereby amended to read as follows: 
SEC. 3. Corporate Powers - [The Corporation] PAGCOR shall 
have the following powers and functions, among others: 
a) to prescribe its By-Laws; 
b) to adopt, alter and use a corporate seal; 
c) to own real or personal property, and to sell, alienate, mortgage, 
encumber or otherwise dispose the same; 
d) to make ALL KINDS OF contracts, and to sue and be sued; 
e) to employ such officers and personnel as may be necessary or proper 
to carry on its OPERATIONS AND businesses; 
f) 
to acquire, lease or maintain, whether on land, on water, or in the air, 
personal property and such other equipment, instruments, machines, 
devices, tools, and facilities as may be necessary, appropriate, or 
proper to carry out its purposes and to serve and maintain its 
businesses; 
g) to import, buy, sell, or otherwise trade or deal in merchandise, goods, 
wares, and objects of all kinds and descriptions that may be necessary, 
APPROPRIATE, or proper to carry out the purposes for which it has 
been created; 


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h) to enter into, make, CONCLUDE, perform, and carry out contracts of 
every kind AND NATURE and for any lawful purpose [pertaining to 
the business of the Corporation, or in any manner incident thereto, as 
principal, agent or otherwise, with any reason, firm, association, or 
corporation], WHICH ARE NECESSARY, APPROPRIATE, 
PROPER, OR INCIDENTAL TO ANY BUSINESS OR 
PURPOSE OF PAGCOR, 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: 
i) to borrow money from local or foreign BGNKS, FINANCIAL 
INSTITUTIONS, OR OTHER sources as may be necessary or 
proper for its operations OR BUSINESS; 
j) to invest its funds as [the Corporation] IT may deem necessary or 
proper in any activity related to its [principal] CORPORATE OR 
BUSINESS operation, including in [any] bonds and securities issued 
or guaranteed by the Govermnent of the Philippines, OR ISSUED 
OR GUARANTEED BY ANOTHER GOVERNMENT OWNED 
OR CONTROLLED FINANCIAL CORPORATION; 
k) (to perform such other powers and functions as may be provided by 
law; and] TO LEASE, CONSTRUCT, ESTABLISH, MAINTAIN, 
OPERATE, 
AND 
MANAGE 
HOTELS, 
INNS, 
CLUBS, 


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RESORTS, CONVENTIONS CENTERS, THEME PARKS, 
AQUARIUMS, INTEGRATED AMUSEMENT AREAS OR 
COMMUNITIES, 
AND 
OTHER RECREATIONAL AND 
ENTERTAINMENT FACILITIES, CASINOS WHERE ALL 
FORMS OF CARD GAMES OR GAMES OF NUMBERS OR 
OTHER FORMS OF GAMES OF CHANCE ARE HELD AND 
WHERE BETS ARE MADE, ROULETTE TABLES, DICE 
TABLES, SLOT OR PINBALL MACHINE PARLORS, BINGO 
PARLORS AND OTHER PLACES WHERE OTHER FORMS 
OF LOTTERIES ARE HELD, RACETRACKS FOR ALL KINDS 
OF RACES, JAI ALA1 FRONTONS, SPORTS BETTING, AND 
OTHER FORMS OF GAMES OF CHANCE OR GAMES OF 
NUMBERS, 
INCLUDING 
NEWLY 
CONCEIVED 
AND 
DEVELOPED GAMES OF CHANCE OR GAMES OF 
NUMBERS IRRESPECTIVE OF WHETHER THEY ARE 
SPECIFICALLY INCLUDED OR MENTIONED IN THIS ACT, 
OR NOT; 
L) TO PARTICIPATE IN THE OWNERSHIP OR IN THE 
MANAGEMENT 
OF 
BUSINESS 
ENTITIES, 
FIRMS, 
PARTNERSHIPS, CORPORATIONS, ASSOCIATIONS, JOINT 
VENTURES, 
OR 
OTHER FORMS OF 
INVESTMENT 
ARRANGEMENTS, 
WHICH 
ARE 
RELATED 
TO 
OR 
CONNECTED WITH ITS BUSINESSES, OPERATIONS, 
POWERS, AND FUNCTIONS; 
M) TO CREATE, ORGANIZE, OR OTHERWISE ESTABLISH, 
ALONE 
OR 
IN 
ASSOCIATION 
WITH 
OTHERS, 
SUBSIDIARIES AND, WHEN APPROPRIATE AND FEASIBLE, 


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TO LIST THE SHARES OF STOCK OF SUCH SUBSIDIARIES 
AND OFFER SUCH SHARES OF STOCK FOR SALE TO THE 
GENERAL PUBLIC THROUGH THE STOCK MARKET, AS 
THE EXIGENCIES OF THE BUSINESSES OF PAGCOR’S 
SUBSIDIAFUES OR OF ITS OWN BUSINESSES MAY 
REQUIRE; 
N) TO CONSTRUCT, ESTABLISH, MAINTAIN, OPERATE, AND 
MANAGE 
TRANSPORTATION 
FACILITIES 
LIKE 
AIRFIELDS, AIRPORTS, AIRCRAFTS, WHARVES, SHIPS, 
VESSELS, AND LAND TRANSPORTATION VEHICLES AND 
EQUIPMENT AS ITS OPERATIONS AND BUSINESSES OR 
THE 
OPERATIONS 
AND 
BUSINESSES 
OF 
ITS 
SUBSIDIARIES MAY REQUIRE; 
0 ) T O  
OWN 
ALIENABLE 
AND 
DISPOSABLE 
PUBLIC 
AGRICULTURAL LANDS (WHETHER RECLAIMED FROM 
RIVERS, LAKES, BAYS, OR SEAS, OR NOT) BY GRANT OR 
BY PURCHASE FROM THE GOVERNMENT AND TO HOLD 
LANDS OF THE PUBLIC DOMAIN OTHER THAN PUBLIC 
AGRICULTURAL 
LANDS, 
INCLUDING 
ISLETS 
AND 
ISLANDS, 
BY 
LEASE 
FROM 
THE 
GOVERNMENT, 
WHETHER SUCH LANDS OF THE PUBLIC DOMAIN ARE 
ALIENABLE AND DISPOSABLE OR NOT; 
P) THE PROVISIONS OF ANY LAW TO THE CONTRARY 
NOTWITHSTANDING, 
TO 
RECLAIM 
LANDS 
FROM 
RIVERS, LAKES, BAYS, OR SEAS AND TO LET OUT SUCH 


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LANDS AS ITS OPERATIONS AND BUSINESSES MAY 
REQUIRE; 
Q)TO EXERCISE THE POWER OF EMINENT DOMAIN 
WHENEVER IT IS NEEDED TO CARRY OUT ITS PURPOSES 
OR WHENEVER IT IS NECESSARY TO SERVE THE PUBLIC 
INTEREST; AND, 
[l] R) [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 objectives 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.] TO DO 
ALL SUCH OTHER ACTS AND THINGS, EITHER ALONE OR 
WITH OTHER CORPORATIONS, FIRMS, OR INDIVIDUALS, 
WHICH MAY BE NECESSARY, PROPER, DESIRABLE, 
CONVENIENT, SUITABLE, OR INCIDENTAL FOR THE 
ATTAINMENT 
AND 
ACCOMPLISHMENT 
OF 
THE 
PURPOSES, OBJECTIVES, OR POWERS GRANTED TO IT IN 
THIS ACT. 
SEC. 5. Section 4 of PD 1869 is hereby amended to read as follows: 
SEC. 4. Authorized Capital Stock. - [The Corporation shall have 
an authorized capital stock divided into one million voting and no par 
values shares, to be subscribed, paid for and voted as follows: 


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550,000 shares of stock to be subscribed to and paid for by the 
Government of the Republic of the Philippines at an original issue 
value of P200.00 per share; and, 
450,000 shares remaining may be subscribed to by persons or entities 
acceptable to the Board of Directors at issue value to be determined 
by such Board of Directors.] 
[The voting power pertaining to shares of stock subscribed to by 
the Government of the Republic of the Philippines shall be vested in the 
President of the Philippines or in such person or persons as he may 
designate.] 
[The voting power pertaining to shares of stock subscribed by 
private persons or entities shall be vested in them.] 
PAGCOR’S AUTHORIZED CAPITAL STOCK OF ONE 
MILLION (1,000,000) VOTING NO PAR VALUE SHARES, OF 
mmi FIVE 
HUNDRED 
FIFTY 
THOUSAND 
(550,000) 
EQUIVALENT TO FIFTY FIVE (55%) PERCENT OF THE 
ENTIRE ORIGINAL 1,000,000 VOTING, NO PAR VALUE 
SHARES HAD BEEN PREVIOUSLY SUBSCRIBED AND PAID 
FOR BY THE REPUBLIC OF THE PHILIPPINES AT AN ISSUE 
VALUE OF TWO HUNDRED PESOS (P200.00) PER SHARE, IS 
HEREBY INCREASED TO TWO (2,000,000) MILLION VOTING 
NO PAR VALUE SHARES. 
UNLESS CONGRESS SHALL AUTHORIZE AND ALLOW 
A LOWER PERCENTAGE, AT LEAST FIFTY FIVE (55%) 
PERCENT OF THE OUTSTANDING ISSUED SHARES OF STOCK 


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OF PAGCOR SHALL, AT ALL TIMES, BE OWNED BY THE 
REPUBLIC OF THE PHILIPPINES. 
IF REQUIRED FOR ANY PURPOSE, QUALIFYING 
SHARES MAY BE ISSUED TO INDIVIDUALS, WHO SHALL 
HOLD THE QUALIFYING SHARES ISSUED TO THEM IN 
TRUST FOR THE REPUBLIC OF THE PHILIPPINES. 
EXCEPT FOR THE REPUBLIC OF THE PHILIPPINES, NO 
OTHER STOCKHOLDER OF PAGCOR SHALL OWN OR HOLD 
MORE THAN TEN (loyo) PERCENT OF THE OUTSTANDING 
ISSUED SHARES OF STOCK OF PAGCOR. 
NO UNISSUED SHARES OF STOCK OF PAGCON SHALL 
BE SOLD WITHOUT A THOROUGH EXAMINATION AND 
VALUATION 
OF 
THE 
ASSETS, 
BUSINESSES, 
AND 
INVESTMENTS OF 
PAGCOR 
BY 
A 
RELIABLE 
AND 
REPUTABLE APPRAISER OR APPRAISERS AND WITHOUT 
THE FAVORABLE RECOMMENDATION OF THE SECRETARY 
OF FINANCE AND THE APPROVAL OF THE PRESIDENT OF 
THE PHILIPPINES. 
THE SALE OF UNISSUED SHARES OF STOCK OF 
PAGCOR SHALL BE DONE SOLELY THROUGH OPEN, 
TRANSPARENT, AND COMPETITIVE PUBLIC BIDDING WITH 
PRIOR NOTICE TO THE GENERAL PUBLIC. 
THE NOTICE TO THE GENERAL PUBLIC SHALL BE 
DONE THROUGH ADVERTISEMENTS IN AT LEAST THREE 


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NATIONAL NEWSPAPERS OF GENERAL CIRCULATION, AND 
THE NOTICE SHALL STATE, AMONG OTHER THINGS, THE 
MINIMUM BID PRICE FOR THE SHARES TO BE SOLD AND 
THE DATE, TIME, AND PLACE OF THE PUBLIC BIDDING. 
THE MINIMUM BID PRICE SHALL NOT BE LESS THAN 
THE MINIMUM ISSUE VALUE OF THE UNISSUED SHARES OF 
STOCK OF PAGCOR BEING OFFERED FOR SALE, AND THE 
MINIMUM ISSUE VALUE SHALL EQUAL AT LEAST THE SUM 
TOTAL OF THE FAIR MARKET VALUE OF ALL THE ASSETS 
AND BUSINESSES OF PAGCOR LESS ITS LIABILITIES PER ITS 
BOOKS OF ACCOUNT PLUS THE SHARE OF PAGCOR IN THE 
VALUE OF ITS SUBSIDIARIES PLUS THE VALUE OF ITS 
OTHER INVESTMENTS DIVIDED BY THE NUMBER OF 
PAGCOR’S OUTSTANDING ISSUED SHARES OF STOCK. 
IN ORDER TO MAINTAIN THE FIFTY FIVE (55%) 
PERCENT 
CONTROL 
OF 
THE 
REPUBLIC 
OF 
THE 
PHILIPPINES IN PAGCOR, 
ALL 
SHARES OF STOCK 
ACCRUING OR ALLOTTED TO THE REPUBLIC OF THE 
PHILIPPINES FROM ANY INCREASE IN THE NUMBER OF 
ISSUED SHARES OF STOCK OF PAGCOR OR FROM ANY 
INCREASE IN THE AMOUNT OF ITS CAPITAL STOCK SHALL 
BE ISSUED TO OR SHALL BE SUBSCRIBED BY THE REPUBLIC 
OF THE PHILIPPINES, AS THE CASE MAY BE, AND SHALL BE 
PAID FOR BY THE NATIONAL TREASURY. 
THE RIGHT TO VOTE THE SHARES OF STOCK OWNED 
BY THE REPUBLIC OF THE PHILIPPINES IN PAGCOR IN ANY 


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MEETING OF ITS RECORDED STOCKHOLDERS SHALL BE 
EXERCISED BY THE PRESIDENT OF THE PHILIPPINES OR BY 
THE PERSON OR PERSONS THAT HE OR SHE MAY DULY AND 
PERSONALLY DESIGNATE IN WRITING. 
THE SHARES OF STOCK OWNED BY THE REPUBLIC OF 
THE PHILIPPINES IN PAGCOR SHALL NOT BE PLEDGED, 
MORTGAGED, OR OTHERWISE ENCUMBERED IN ANY 
MANNER, NOR SHALL SUCH SHARES OF STOCK BE SOLD OR 
DISPOSED WITHOUT THE PRIOR APPROVAL OF CONGRESS. 
SEC. 6. Section 5 of PD 1869 is hereby amended to read as follows: 
SEC. 5. Government Investment - [The Government advances to 
the Corporation authorized on May 29, 1978, having reached the amount 
of P70,430,752.03, shall be converted into equity as part of the investment 
of the Government to be applied to the subscription of 550,000 shares.] 
ALL OUTSTANDING ADVANCES OF THE GOVERNMENT TO 
PAGCOR, IF ANY, SHALL BE CONVERTED INTO EQUITY AND 
SHALL FORM PART OF THE CAPITAL INVESTMENT OF THE 
REPUBLIC OF THE PHILIPPINES IN THE CAPITAL STOCK OF 
PAGCOR. 
SEC. 7. Section 6 of PD 1869 is hereby amended to read as follows: 
SEC. 6. Board ofDirectors, Chairman ofthe Board, and President 
of PAGCOR - 
[The Corporation shall be governed and its activities be 
directed, controlled and managed by a Board of Directors, hereinafter 
referred to as the Board, composed of five (5) members, three (3) of whom 


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shall come from the Government sector and shall be appointed by the 
President, while the other two (2) shall be from the private sector who own 
at least 1 share of stock in the Corporation and who shall be elected by the 
stockholders of the corporation in the annual general meeting or in a 
special meeting called for such purpose.] 
PAGCOR SHALL BE GOVERNED AND ITS ASSETS, 
BUSINESSES, 
OPERATIONS, 
AND 
OTHER 
ACTIVITIES, 
EITHER AS A CORPORATE OR AS A REGULATORY BODY, 
SHALL BE DIRECTED, CONTROLLED, MANAGED, HANDLED, 
AND DISPOSED BY A BOARD OF DIRECTORS, HEREINAFTER 
REFERRED TO AS THE “BOARD”, COMPOSED OF FIVE (5) 
MEMBERS, THREE (3) OF WHOM SHALL BE FROM THE 
GOVERNMENT SECTOR, WHO SJULL BE APPOINTED BY 
THE PRESIDENT OF THE PHILIPPINES; AND TWO (2) OF 
WHOM SHALL BE FROM THE PRIVATE SECTOR, WHO 
SHALL BE ELECTED BY THE STOCKHOLDERS OF PAGCOR 
IN THE ANNUAL GENERGZ, MEETING OR IN A SPECIAZ, 
MEETING CALLED FOR THAT PURPOSE. EACH OF THE TWO 
MEMBERS OF THE BOARD FROM THE PRIVATE SECTOR 
MUST BE A REGISTERED HOLDER OF AT LEAST ONE (1) 
SHARE OF STOCK OR PAGCOR TO QUALIFY HIM AS A 
MEMBER OF THE BOARD; PROVIDED, THAT THE TWO (2) 
PRIVATE 
SECTOR 
REPRESENTATIVES 
SHALL 
BE 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES IN 
THE ABSENCE OF PRIVATE INVESTORS OR SHAAEHOLDERS 
WITH 
SUFFICIENT SHAREHOLDINGS TO ELECT THE 
PRIVATE SECTOR REPRESENTATIVlES TO THE BOARD. 


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Each Director shall serve for a term of [one (1) year] THRFE (3) 
YEARS and until his successor shall have been duly appointed and 
qualified. 
THE CHAIRMAN OF THE BOARD OF PAGCOR, 
HEREINAFTER REFERRED TO AS THE "CHAIRMAN", SHALL 
BE ITS CHIEF EXECUTIVE OFFICER. HE SHALL BE 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES FOR A 
FIXED TERM OF SIX (6) YEARS UNLESS SOONER REMOVED 
FOR CAUSE. HE MAY BE REAPPOINTED FOR ANOTHER 
TERM OF SIX (6) YEARS, PROVIDED, THAT NO INDIVIDUAL 
SHALL BE REAPPOINTED AS CHAIRMAN OF THE BOARD 
MORE THAN ONCE. 
IN THE EVENT OF DEATH, RESIGNATION, OR 
REMOVAL OF THE CHAIRMAN OF PAGCOR DURING HIS 
TERM OF OFFICE, HIS SUCCESSOR SHALL ONLY SERVE THE 
REMAINING TERM OF THE DECEASED, RESIGNED, OR 
REMOVED CHAIRMAN. 
THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF 
PAGCOR AT THE TIME OF THE EFFECTIVITY OF THIS ACT 
SHALL CONTINUE TO SERVE AS SUCH FOR A NEW TERM OF 
SIX (6) YEARS. 
PAGCOR SHALL HAVE A PRESIDENT WHO SHALL BE 
ITS CHIEF OPERATING OFFICER AND WHO SHALL BE 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES FOR A 
TERM OF SIX (6) YEARS UNLESS SOONER REMOVED FOR 


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CAUSE. HE MAY BE REAPPOINTED FOR ANOTHER TERM 
OF SIX (6) YEARS, PROVIDED, THAT NO INDIVIDUAL SHALL 
BE REAPPONTED AS PRESIDENT MORE THAN ONCE. 
IN THE EVENT OF DEATH, RESIGNATION, OR 
REMOVAL OF THE PRESIDENT OF PAGCOR DURING HIS 
TERM OF OFFICE, HIS SUCCESSOR SHALL ONLY SERVE THE 
REMAINING TERM OF THE DECEASED, RESIGNED OR 
REMOVED PRESIDENT. 
THE MEMBERS OF THE BOARD OF PAGCOR, ITS 
PRESIDENT, ITS VICE-PRESIDENTS, AND ITS DIVISION 
HEADS ARE ABSOLUTELY PROHIBITED AND DISQUALIFIED 
TO HAVE ANY BUSINESS OR FINANCIAL DEALINGS OR 
INTERESTS IN PAGCOR, AND NEITHER SHALL THEY OR ANY 
ONE OF THEM HOLD ANY POSITION NOR RECEIVE 
ADDITIONAL 
COMPENSATION, 
ALLOWANCES, 
OR 
EMOLUMENTS OF WHATEVER KIND OR FORM FROM ANY 
ENTITY, 
FIRM, 
PARTNERSHIP, 
CORPORATION, 
ASSOCIATION, OR JOINT VENTURE THAT HAS BEEN 
AUTHORIZED OR LICENSED BY PAGCOR TO OPERATE A 
GAME OF CHANCE WITHIN THE TERRITORY OF THE 
PHILIPPINES. 
THE SAME PROHIBITION AND DISQUALIFICATION 
SHALL EXTEND, WITH EQUAL FORCE AND EFFECT, TO 
RELATIVES OF THE MEMBERS OF THE BOARD OF PAGCOR, 
ITS PRESIDENT, ITS VICE-PRESIDENTS, AND ITS DNISION 


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HEADS, WHETHER THE RELATION IS BY CONSANGUINITY 
OR AFFINITY WITHIN THE FOURTH CIVIL DEGREE. 
SEC. 8. Section 7 of PD 1869 is hereby amended to read as follows: 
SEC. 7. Powers, Functions, and Duties of the Board of 
Directors. -The 
Board shall have the following powers, functions and 
duties: 
a) To allocate and distribute, with the approval of the [Office of the] 
President of the Philippines, the earnings of [the Corporation] 
PAGCOR earmarked to finance infrastructure and socio-civic 
projects; 
b) To designate the commercial bank that shall act as the depository 
[bank] of [the Corporation] PAGCOR and [/or] THE trustee of [the] 
ITS funds [of the Corporation]; 
c) To prepare and approve at the beginning of each calendar year a 
budget that may be [necessary] REQUIRED under [any] ITS 
franchise [granted to it], OR THAT MAY BE NEEDED to insure the 
smooth operation of [the Corporation] PAGCOR; and to evaluate and 
approve the budgets submitted to it by other corporations or entities 
with which it might have any existing contractual arrangement OR 
OBLIGATION; 
d) To submit to the [Office of the] President of the Philippines before the 
end of February of each year a list of all the infrastructure and[/or] 
socio-civic projects that [might have] HAD been financed DURING 


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THE PREVIOUS CALENDAR YEAR from [the Corporation’s] 
PAGCOR’s earnings, and to submit such [periodic or] OTHER 
reports [as] THAT THE PRESIDENT OF THE PHILIPPINES 
may [be] requireD [of it] FROM PAGCOR from time to time; [andl 
(E) 
TO PREPARE 
AND 
APPROVE 
THE 
PERSONNEL 
MANAGEMENT POLICIES AND STANDARDS AND THE 
RULES AND REGULATIONS THAT SHALL GOVERN 
PAGCOR’S EMPLOYEES, INCLUDING THEIR WAGES, 
SALARIES, 
ALLOWANCES, 
AND 
BENEFITS, 
ANY 
PROVISIONS OF EXISTING LAWS TO THE CONTRARY 
NOTWITHSTANDING, 
AND 
TO 
DETERMINE 
AND 
ESTABLISH 
THE 
APPROPRIATE 
ORGANIZATIONAL 
STRUCTURE OF PAGCOR AS THE BOARD MAY DEEM FIT 
TO ADOPT, AND TO CHANGE SUCH ORGANIZATIONAL 
STRUCTURE WHENEVER 
SUCH 
CHANGE 
BECOME 
NECESSARY IN THE INTEREST OF EFFICIENCY AND 
CONVENIENCE OF PAGCOR; 
(F) TO SERVE AS THE GOVERNING ORGAN OF PAGCOR AND 
AS 
THE REGULATORY BODY FOR PURPOSES OF 
EXERCISING AND ENFORCING THE POWERS GRANTED 
TO PAGCOR UNDER AND BY VIRTUE 
OF TITLE rrr, 
PARTICULARLY SECTION 9, OF THIS ACT; AND 
[(e)](G) 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 of [its] PAGCOR’S 
purposes 
and 
objectives 
AND 
FOR 
THE 
EFFECTIVE 


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IMPLEMENTATION 
AND 
ENFORCEMENT 
OF 
ITS 
LICENSING AND REGULATORY POWERS. 
9. Section 8 under Title 111 of PD 1869 is hereby amended to read as follows: 
TITLE 111 - [AFFILIATION] REGULATORY PROVISIONS 
[SEC. 8. REGISTRATION. - All persons primarily engaged in 
gambling, together with their allied business, with contract or franchise 
from the Corporation, shall register and affiliate their businesses with the 
Corporation. The Corporation shall issue the coiresponding certificates of 
affiliation upon compliance by the registering entity with the promulgated 
rules and regulations thereon.]LICENSING POWERS OF PAGCOR - 
EXCEPT (1) FOR THOSE GAMES OF CHANCE, GAMES OF 
CARDS, AND 
GAMES OF NUMBERS THAT MAY 
BE 
AUTHORIZED, LICENSED, AND REGULATED BY, IN, AND 
UNDER 
EXISTING 
FRANCHISES 
OR 
BY 
OTHER 
REGULATORY BODIES, OR (2) FOR THOSE GAMES OF 
CHANCE, GAMES OF CARDS, AND GAMES OF NUMBERS 
THAT MAY BE AUTHORIZED, LICENSED, AND REGULATED 
BY, IN, AND UNDER SPECIAL LAWS, SUCH AS REPUBLIC ACT 
NO. 7922, NO PERSON, WHETHER NATURAL OR JURIDICAL, 
AND WHETHER FILIPINO OR FOREIGN, MAY ENGAGE IN 
THE BUSINESS OF OPERATING WITHIN THE TERRITORY OF 
THE PHILIPPINES CASINOS WHERE ALL FORMS OF CARD 
GAMES OR GAMES OF NUMBERS AND OTHER FORMS OF 
GAMES OF CHANCE ARE HELD AND WHERE BETS ARE 
MADE, ROULETTE TABLES, DICE TABLES, SLOT OR 
PINBALL MACHINE PARLORS, BINGO PARLORS AND OTHER 


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PLACES WHERE OTHER FORMS OF LOTTERIES ARE HELD, 
R4CETRACKS FOR ALL KINDS OF RACES, JAI ALA1 
FRONTONS, SPORTS BETTING, OR OTHER FORMS OF 
GAMES OF CHANCE OR GAMES OF NUMBERS, INCLUDING 
NEWLY CONCEIVED AND DEVELOPED GAMES OF CHANCE 
OR GAMES OF NUMBERS IRRESPECTIVE OF WHETHER 
THEY ARE SPECIFICALLY INCLUDED OR MENTIONED IN 
THIS ACT, OR NOT, WITHOUT AN AUTHORITY GRANTED 
AND LICENSE ISSUED BY PAGCOR FOR THAT PURPOSE. 
EXCEPT (1) FOR THOSE GAMES OF CHANCE, GAMES 
OF CARDS, AND GAMES OF NUMBERS THAT MAY BE 
AUTHORIZED, LICENSED, AND REGULATED BY, IN, AND 
UNDER 
EXISTING 
FRANCHISES 
OR 
BY 
OTHER 
REGULATORY BODIES OR (2) FOR THOSE GAMES OF 
CHANCE, GAMES OF CARDS, AND GAMES OF NUMBERS 
THAT MAY BE AUTHORIZED, LICENSED, AND REGULATED 
BY, IN, AND UNDER SPECIAL LAWS, SUCH AS REPUBLIC 
ACT NO. 7922, NO PERSON, WHETHER NATURAL OR 
JURIDICAL, AND WHETHER FILIPINO OR FOREIGN, MAY 
MANUFACTURE OR POSSESS WITHIN THE TERRITORY OF 
THE PHILIPPINES OR IMPORT INTO ANY PHILIPPINE 
TERRITORY ANY GAMING PARAPHERNALIA - PLAYING 
CARDS, GAMING TABLES, ROULETTE MACHINES, DICE AND 
DICE TABLES, BINGO CARDS AND BINGO BALLS OR CHIPS, 
SLOT OR PINBALL MACHINES, MACHINES AND EQUIPMENT 
FOR LOTTERIES, JAI ALA1 BALLS AND EQUIPMENT, AND 
OTHER CONTRAPTIONS OR CONTRIVANCES AND DEVICES 
USED FOR GAMBLING OF WHATEVER NATURE AND FOR 


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WHATEVER PURPOSE -- UNLESS THAT PERSON IS A 
HOLDER OF AN AUTHORITY AND LICENSE FROM PAGCOR 
TO ENGAGE WITHIN THE TERRITORY OF THE PHILIPPINES 
IN THE BUSINESS OF OPERATING CASINOS WHERE ALL 
FORMS OF CARD GAMES OR GAMES OF NUMBERS AND 
OTHER FORMS OF GAMES OF CHANCE ARE HELD AND 
WHERE BETS ARE MADE, ROULETTE TABLES, DICE 
TABLES, SLOT OR PINBALL MACHINE PARLORS, BINGO 
PARLORS AND OTHER PLACES W H E m  OTHER FORMS OF 
LOTTERIES ARE HELD, RACETRACKS POR ALL KlNDS OF 
RACES, JAI ALAI FRONTONS, SPORTS BETTING, OR OTHER 
FORMS OF GAMES OF CHANCE OR GAMES OF NUMBERS, 
INCLUDING NEWLY CONCEIVED AND DEVELOPED GAMES 
OF CHANCE, GAMES OF CARDS OR GAMES OF NUMBERS 
IRRESPECTIVE OF WHETHER THEY ARE SPECIFICALLY 
INCLUDED OR MENTIONED IN THIS ACT. OR NOT. 
PAGCOR SHALL GRANT SUCH AUTHOFUTY AND ISSUE 
SUCH LICENSE TO ENGAGE IN THE BUSINESS OF 
OPERATING GAMBLING CASINOS, ROULETTE TABLES, DICE 
TABLES, SLOT MACHINE PARLORS, LOTTERIES, JAI ALAI 
PRONTONS, SPORTS BETTING, OR ANY GAME OF CHANCE 
WITHIN THE TERRITORY OF THE PHILIPPINES ONLY TO 
PERSONS, WHETHER NATURAL OR JURIDICAL, AND 
WHETHER FILIPINO OR FOREIGN, WITH SUFFICIENT 
TECHNICAL KNOWLEDGE, EXPERIENCE, EXPERTISE, AND 
SKILLS, AND WITH PROVEN FINANCIAL RESOURCES AND 
FACILITIES TO ENGAGE IN SAID BUSINESS. 


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SEC. 9. 
REGISTRATION AND Regulatory Powers OF 
4 
PAGCOR - [The Corporation shall maintain a Registry of the affiliated 
5 
entities, and shall exercise all the powers, authority and the responsibilities 
6 
vested in the Securities and Exchange Commission over such affiliated 
7 
entities mentioned under the preceding section, including but not limited 
SEC. 10. Section 9 of PD 1869 is hereby amended to read as follows: 
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to amendments of Articles of lncorporation and By-Laws, changes in 
corporate term, structure, capitalization and other matters concerning the 
operation of the affiliating entities, the provisions of the Corporation Code 
of the Philippines to the contrary notwithstanding, except only with 
respect to original incorporation.] (A) EVERY PERSON, WHETHER 
NATURAL OR JURIDICAL, AND WHETHER FILIPINO OR 
FOREIGN, WHICH IS ENGAGED IN THE BUSINESS OF 
OPERATING A GAMBLING CASINO, ROULETTE TABLE, DICE 
TABLE, SLOT MACHINES PARLOR, BINGO PARLOR, SPORTS 
BETTING, 
OR 
ANY 
GAME 
OF 
CHANCE, 
WHETHER 
SPECIFICALLY INCLUDED OR MENTIONED IN THIS ACT, 
UNDER AN AUTHORITY AND LICENSE FROM 
PAGCOR, 
SHALL AFFILIATE AND REGISTER WITH PAGCOR HIS OR 
ITS GAMING BUSINESS AS WELL AS HIS OR ITS ALLIED 
BUSINESS OR BUSINESSES, AND PAGCOR SHALL ISSUE A 
CORRESPONDING CERTIFICATE OF AFFILIATION AND 
REGISTRATION TO SUCH PERSON UPON HIS OR ITS 
COMPLIANCE WITH THE RULES AND REGULATIONS 
THEREON. 


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(B)PAGCOR SHALL MAINTAIN A REGISTRY OF ALL 
AFFILIATED AND REGISTERED PERSONS, WHICH SHALL 
BE OPEN TO ANY INTERESTED PARTY. 
(C)PAGCOR 
SHALL 
BE 
RESPONSIBLE 
FOR 
THE 
REGULATION AND SUPERVISION OF ALL GAMES OF 
CHANCE OR GAMES OF NUMBERS AND FOR THE 
REGULATION AND SUPERVISION OF ALL REGISTERED 
AND AFFILIATED PERSONS, EXCEPT (1) THOSE COVERED 
BY SPECIFIC FRANCHISES ENACTED BY CONGRESS, AND 
(2) THOSE AUTHORIZED AND LICENSED BY, IN, AND 
UNDER REPUBLIC ACT NO. 7922. 
(D)PAGCOR 
SHALL 
ISSUE 
AND 
PROMULGATE 
THE 
ESSENTIAL RULES AND REGULATIONS REQUIRED TO 
REGULATE AND GOVERN THE GAMING ACTIVITIES OF 
AFFILIATED AND REGISTERED PERSONS. THE RULES 
AND REGULATIONS SHALL INCLUDE THE APPROPRIATE 
SANCTIONS: 
1) FOR REFUSAL OF A REGISTERED AND AFFILIATED 
PERSON OR A PLAYER, PATRON, OR CUSTOMER TO 
COMPLY 
WITH 
THE 
GAMING 
RULES 
AND 
REGULATIONS PROMULGATED BY THE BOARD OF 
DIRECTORS OF PAFCOR OR WITH ANY REASONABLE 
AND LAWFUL ORDER OF THE BOARD OF DIRECTORS 
OF PAGCOR, 


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2) FOR ANY FRAUD COMMITTED BY A REGISTERED AND 
AFFILIATED 
PERSONS 
AGAINST 
ANY 
PLAYER, 
PATRON, OR CUSTOMER; 
3) FOR ANY INFRACTION OR VIOLATION OF THE 
GAMING RULES AND REGULATION BY ANY PLAYER, 
PATRON, OR CUSTOMER; 
4) FOR REPEATED REFUSAL OR FAILURE, WITHOUT 
VALID 
EXPLANATION, 
TO 
SUBMIT 
REQUIRED 
REPORTS OR TO FILE WITHIN PRESCRIBED PERIOD 
ESSENTIAL DOCUMENTARY REQUIREMENTS; 
5) FOR FAILURE TO PAY HIS OR ITS VALID AND 
LEGITIMATE MONEY OBLIGATIONS 
TO PAGCOR; 
AND, 
6) FOR VIOLATION OF ANY CONDITION OF THE 
REGISTERED AND AFFILIATED PERSONS AUTHORITY 
AND LICENSE TO ENGAGE IN GAMING BUSINESS 
WITHIN THE TERRTTORY OF THE PHILIPPINES. 
(E)THE BOARD OF DIRECTORS OF PAGCOR, IN THE 
EXERCISE OF ITS REGULATORY POWERS AND QUASI- 
JUDICIAL FUNCTIONS AND POWERS, MAY IMPOSE, 
AFTER DUE NOTICE AND HEARING WHERE THE GUILTY 
PARTY IS GIVEN AN OPPORTUNITY TO BE HEARD, A 
FINK RANGING FROM FIFTY THOUSAND (P50,OOO.OO) 
PESOS, TO ONE MILLION (P1,000,000.00) PESOS FOR 


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VIOLATION EACH OF ANY OF THE SUB-PARAGRAPHS OF 
THE PRECEDING PARAGRAPH (D). THE FINE IMPOSED IN 
EACH CASE SHALL DEPEND UPON THE GRAVITY OF THE 
OFFENSE COMMITTED BY THE GUILTY PARTY. 
(F)WHEN A REGISTERED AND AFFILIATED PERSON IS 
FOUND TO HAVE REFUSED WITHOUT ANY JUSTIFIABLE 
CAUSE TO COMPLY WITH ANY PROVISION OF THE 
.GAMING RULES AND REGULATIONS PROMULGATED BY 
THE BOARD OF DIRECTORS OF PAGCOR OR WITH ANY 
REASONABLE AND LAWFUL ORDER OF THE BOARD OF 
DIRECTORS OF PAGCOR OR TO HAVE VIOLATED ANY 
CONDITION OF HIS OR ITS AUTHORITY AND LICENSE TO 
OPERATE A GAMING BUSINESS WITHIN THE TERRITORY 
OF THE PHILIPPINES; OR TO HAVE VIOLATED ANY 
PROVISION OF THE GAMING RULES AND REGULATIONS; 
OR TO HAVE REFUSED OR FAILED WITHOUT A VALID 
EXPLANATION TO SUBMIT ANY REQUIRED REPORT OR 
TO 
FILE 
ANY 
ESSENTIAL 
DOCUMENTARY 
REQUIREMENT; OR TO HAVE FAILED TO PAY HIS OR ITS 
VALID AND LEGITIMATE MONEY OBLIGATION TO 
PAGCOR, OR TO HAVE COMMITTED ANY FRAUD OR 
MISCONDUCT AGAINST HIS OR ITS PLAYER, PATRON, OR 
CUSTOMER, THE BOARD OF DIRECTORS OF PAGCOR 
MAY FORTHWITH 
SUSPEND OR TERMINATE THE 
OPERATION OF THE DISOBEDIENT REGISTERED AND 
AFFILIATED PERSON, PAGCOR SHALL FORTHWITH 
ISSUE A CLOSURE ORDER TO TEMPORARILY OR 
PERMANENTLY CLOSE THE GAMING OPERATIONS AND 


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FACILITIES OF SAID AFFILIATED AND REGISTERED 
PERSON, AFTER DUE NOTICE AND HEARING GIVEN TO 
THE GUILTY AFFILIATED AND REGISTERED PERSON. 
(G)THE BOARD OF DIRECTORS OF PGCOR IS HEREBY 
GRANTED THE AUTHORITY TO CALL UPON ANY LAW 
ENFORCEMENT AGENCY OF THE GOVERNMENT AND 
ENLIST ITS SERVICES TO ENFORCE ITS CLOSURE 
ORDERS OR ANY OF ITS ORDERS. 
@)THE BOARD OF DIRECTORS OF PAGCOR, IN THE 
EXERCISE OF ITS REGULATORY AND QUASI-JUDICIAL 
FUNCTIONS AND POWERS, IS HEREBY AUTHORIZED 
ISSUE SUBPOENA AD TESTIFICANDUM AND SUBPOENA 
DUCES TECUM AND PUNISH PERSONS FOR DIRECT AND 
INDIRECT CONTEMPT. 
SEC. 1 1. Section 1 1 under Title IV of PD 1869 is hereby amended by Executive Order 
No. 260, dated 25 July 1987, is hereby further amended to read as follows: 
SEC. 11. Scope of Franchise.-In 
addition to the rights and 
privileges granted [it] TO PAGCOR under [the preceding] Section 10 
HEREOF, [this Franchise shall entitle the Corporation to do and 
undertake the following] PAGCOR HAS THE POWER 
A) TO AUTHORIZE AND ISSUE LICENSES TO QUALIFIED 
28 
PERSONS, WHETHER NATURAL OR JURIDICAL, AND 


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WHETHER FILIPINO OR FOREIGN, FOR GAMES OF 
CHANCE, GAMES OF CARDS OR GAMES OF NUMBERS; 
[a] B) 
TO GRANT, enter into, CONCLUDE WITH, OR BE A 
PARTY TO AN operating [andor management] AGREEMENT 
[contracts] OR MANAGEMENT AGREEMENT with any 
AFFILIATED AND registered [and accredited company or qualified 
person] ENTITY, FIRM, PARTNERSHIP, CORPORATION, OR 
INDIVIDUAL THAT possess[ing]ES the TECHNICAL knowledge, 
EXPERIENCE, expertise, and skills, AND THE FINANCIAL 
RESOURCES and facilities to [insure the efficient operation of 
gambling casinos] UNDERTAKE, ESTABLISH, MAINTAIN, 
AND MANAGE AN EFFICIENT OPERATION OF CASINOS 
WHERE ALL FORMS OF CARD GAMES OR GAMES OF 
NUMBERS AND OTHER FORMS OF GAMES OF CHANCE 
ARE HELD AND WHERE BETS ARE MADE, ROULETTE 
TABLES, DICE TABLES, SLOT OR PINBALL MACHINE 
PAEUORS, BINGO PARLORS AND OTHER PLACES WHERE 
OTHER FORMS OF LOTTERIES ARE HELD, RACETRACKS 
FOR ALL KINDS OF RACES, JAI ALA1 FRONTONS, SPORTS 
BETTING, AND OTHER FORMS OF GAMES OF CHANCE OR 
GAMES OF NUMBERS, INCLUDING NEWLY CONCEIVED 
AND DEVELOPED GAMES OF CHANCE, GAMES OF CARDS 
OR GAMES OF NUMBERS, IRRESPECTIVE OF WHETHER 
THEY ARE SPECIFICALLY MENTIONED IN THIS ACT, OR 
NOT: Provided, hat, {such service fees of such management andor 
operator companies whose services may be retained by the 
Corporation shall not in the aggregate exceed ten (l0Y0) percent of the 
gross 
income;] 
THE 
ENTITY, 
FIRM, 
PARTNERSHIP, 


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CORPORATION, OR INDIVIDUAL WHOSE SERVICES HAVE 
BEEN 
CONTRACTED 
UNDER 
A 
MANAGEMENT 
AGREEMENT OR AN OPERATING AGREEMENT BY 
PAGCOR SHALL EITHER RETAIN AS HIS OR ITS SERVICE 
FEE AN AMOUNT THE AGGREGATE OF WHICH SHALL 
NOT EXCEED TEN (10%) PERCENT OF THE GROSS 
INCOME, OR PAY A FIXED MONTHLY RENTAL FOR HIS 
OR ITS OPERATION; 
(C) TO purchase foreign exchange that may be required [for the 
importation ofj TO IMPORT equipment, facilities, and other 
gambling paraphernalia WHICH ARE indispensabl[yJE [needed] or 
useful to [insure the successful] the operation of gambling casinos, 
ROULETTE TABLES, DICE TABLES, SLOT MACHINE 
PARLORS, LOTTERIES, JAI ALA1 FRONTONS, SPORTS 
BETTING, AND OTHER FORMS OF GAMES OF CHANCE; 
(D) TO acquire rights of way [or access to or thru public land, public 
waters or harbors, including the Mania Bay Area; such right shall 
include but not limited to the right to lease and/or purchase public 
lands, government reclaimed lands, as well as lands of private 
ownership or those leased from the Government.] of whatever nature 
and for whatever purpose, [This right shall carry with it the privilege 
of the Corporation] INCLUDING THE RIGHT AND PRIVILEGE 
to utilize piers, quays, boat landings, and [such] ANY other [pertinent 
and related] facilities [within these specified areas] for [use as] 
LOADING AND UNLOADING, landing, anchoring, or berthing 
[sites in connection with its authorized casino operations] VESSELS, 
SHIPS, YACHTS, BOATS, AND OTHER WATER CRAFTS; 


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(E) To [BJbuild or construct structures, buildings, [castways] COAST 
WAYS, piers, decks, as well as any other form of landing and 
boarding facilities for its floating casinos; [and] 
@)TO CONDUCT MARKETING 
PROGRAMS 
FOR 
THE 
PROMOTION 
OF 
ITS 
BUSINESS 
WITH 
FEATURES, 
INCENTIVES AND AMENITIES THAT PAGCOR MAY DEEM 
NECESSARY, PROPER, AND SUITABLE TO ENABLE IT TO 
ATTAIN GLOBAL. COMPETITIVENESS IN THE GAMING, 
RECREATIONAL, AND AMUSEMENT INDUSTRY; AND, 
(G) To do and perform such other acts AND THINGS directly related to 
the efficient, SAFE, and [successful operation] PROFITABLE 
conduct AND OPERATION of games of chance [in accordance with 
existing laws and decrees. 
SEC. 12. Section 12 under Title IV of PD 1869 is hereby amended to read as follows: 
SEC. 12. Special Conditions of Franchise - [After deducting five 
(5%) percent as Franchise Tax, the Fifty (50%) percent share of the 
Government in the aggregate gross earnings of the Corporation from this 
Franchise, or 60% if the aggregate gross earnings be less than 
P150,000,000.00 shall be immediately he 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 
calamities, as may be directed and authorized by the Office of the 
President o f  the Philippines.] 


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FIVE PERCENT (5%) OF THE AGGREGATE GROSS 
EARNINGS OF PAGCOR SHALL BE REMITTED TO THE 
BUREAU OF INTERNAL REVENUE AS FRANCHISE TAX OF 
PAGCOR. 
THE GROSS WINNINGS OF PAGCOR ON GAMING 
SHALL BE DISTRIBUTED AS FOLLOWS: 
(A) FIVE PERCENT (5%) SHALL BE RETAINED BY PAGCOR 
TO FUND ITS EXPANSION PROGRAM AND CAPITAL 
EXPENDITURES, INCLUDING BUT NOT LIMITED TO THE 
ACQUISITION 
OF 
NEEDED 
LANDS 
AND 
THE 
CONSTRUCTION OF HOTELS, INNS, CLUBS, RESORTS, 
CONVENTION CENTERS, THEME PARKS, AQUARIUMS, 
INTEGRATED AMUSEMENT AREAS OR COMMUNITIES, 
RACETRACKS, 
JAI 
ALA1 
FRONTONS, 
AND 
OTHER 
RECREATIONAL 
AND 
ENTERTAINMENT FACILITIES 
REQUIRED BY OR RELATED TO ITS BUSINESS; 
(B) AFTER DEDUCTING THE FOREGOING, THE FIVE 
PERCENT (5%) SHARE OF THE PHILIPPINES SPORTS 
COMMISSION (PSC) SHALL BE COMPUTED AND DIRECTLY 
REMITTED TO THE PSC: 
(C) AFTER DEDUCTING THE FOREGOING, TEN PERCENT 
(10%) OF THE REMAINING AMOUNT SHALL BE DIRECTLY 
REMITTED TO THE DEPARTMENT OF EDUCATION FOR 
THE CONSTRUCTION OF SCHOOL BUILDINGS, THE 
MODERNIZATION OF EXISTING SCHOOL FACILITIES, AND 


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THE RESTORATION AND MAmTENANCE OF HISTORICAL, 
CULTURAL, 
AND 
HERITAGE 
SITES, 
AS 
MAY 
BE 
DETERMINED BY THE PRESIDENT OF THE PHILIPPINES; 
(D) AFTER DEDUCTING THE FOREGOING, TEN PERCENT 
(loyo) OF THE REMAINING AMOUNT SHALL BE DIVIDED 
EQUALLY BETWEEN, AND DIRECTLY REMITTED TO, THE 
ARMED FORCES OF THE PHILIPPINES (AFP) AND THE 
PHILIPPINE 
NATIONAL, 
POLICE 
(PNP) 
FOR 
THE 
MODERNIZATION 
AND 
UPGRADING 
OF 
THEIR 
EQUIPMENT 
AND 
FOR 
THE 
HOUSING 
OF 
THEIR 
PERSONNEL; 
(E) AFTER DEDUCTING THE FOREGOING, ONE PERCENT 
(1%) OF THE REMAINING AMOUNT SHALL BE REMITTED 
TO THE BOARD OF CLAIMS; 
(F) AFTER DEDUCTING THE FOREGOING, THREE PERCENT 
(3%) OF THE REMAINING AMOUNT SHALL BE ALLOCATED 
TO FUND THE LAWS ENACTED BY THE CONGRESS OF THE 
PHILIPPINES; AND, 
(G) 
AFTER DEDUCTING THE 
FOREGOING, 
THIRTY 
PERCENT (30%) OF THE REMAINING AMOUNT SHALL BE 
REMITTED TO THE NATIONAL TREASURY. 
(H) THE REMAINDER SHALL BE ALLOCATED BY THE 
BOARD FOR THE OPERATIONAL EXPENSES OF PAGCOR 


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AND FOR THE SOCIAL FUND OF THE PRESIDENT OF THE 
PHILIPPINES. 
13. Section 14 of PD 1869 is hereby amended to read as follows: 
SEC. [14] 13. Other Conditions OF THE FRANCHISE. --- IN 
ADDITION TO THE SPECIAL CONDITIONS IMPOSED IN 
SECTION 12 HEREOF, PAGCOR IS REQUIRED TO COMPLY 
WITH FOLLOWING OTHER CONDITIONS: 
(a) Place - [The Corporation] PAGCOR shall conduct its [gambling] 
GAMING activities 
[or games of 
chance] UNDER ITS 
FRANCHISE on land or ON water within the [territorial jurisdiction] 
TERRITORY of the [Republic of the] Philippines. When [conducted] 
IT CONDUCTS ITS GAMING ACTIVITIES on water, [the 
Corporation] PAGCOR shall have the AUTHORITY AND right to 
dock [the floating casinos] in any part of the Philippines [where 
vesselshoats 
are] ITS OWN FLOATING CASINOS OR 
FLOATING CASINOS authorized [to dock under the Customs and 
Maritime Laws.] AND LICENSED BY IT TO OPERATE IN THE 
PHILIPPINES AND TO USE ANY GOVERNMENT PIERS, 
WHARVES, AND DOCKING FACILITIES SUBJECT TO THE 
REQUIREMENTS OF IMMIGRATION, CUSTOMS, AND 
MARINES LAWS OF THE PHILIPPINES. 
(b) Time --- [Gambling activities may be held and conducted] CASINO 
OPERATIONS WHERE ALL FORMS OF CARD GAMES OR 
GAMES OF NUMBERS AND OTHER FORMS OF GAMES OF 
CHANCE ARE HELD AND WHERE BETS ARE MADE, 


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ROULETTE OPERATIONS, 
DICE 
GAMES, SLOT OR 
PINBALL MACHINE OPERATIONS, BINGO AND OTHER 
FORMS OF LOTTERY OPERATIONS, JAI ALA1 GAMES, 
SPORTS BETTING AND OTHER SIMILAR OPERATIONS 
MAY TAKE PLACE at any time of [the] day AND/or 
night[;provided, however, that in places where curfew hours are 
observed, all players and personnel of the gambling casinos shall 
remain within the premises of the casinos]. 
(c) Persons Allowed to Pluy --- THE FOLLOWING PERSONS 
SHALL BE ALLOWED TO PLAY IN ANY GAMING 
ESTABLISHMENTS OWNED, OPERATED, MAINTAINED, 
AND MANAGED BY PAGCOR OR AUTHORIZED AND 
LICENSED BY PAGCOR. 
(i) FOREIGN 
tourists and 
[/or] foreigners who are not 
PERMANENT residents of the Philippines; 
(ii)Residents OF THE PHILIPPINES with a gross MONTHLY 
income [for the previous year] of at least FIFTY THOUSAND 
(P50,OOO.OO) pesos IN THE PREVIOUS YEAR which fact shall 
be certified to by the Bureau of Internal Revenue; and 
(iii)The [number ofl guests of [the above-mentioned] qualified persons 
UNDER P A U G U P N S  1 AND 2 ABOVE [shall be limited to 
tow (2) only; provided that the said guests] WHO are at least 
TWENTY-ONE (21) years of age. 


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(d) Persons nof Allowed to Play --- THE FOLLOWING PERSONS 
SHALL NOT BE ALLOWED TO ENTER OR PLAY IN 
GAMING ESTABLISHMENTS: 
(i) Government officials [connected directly with the operation of the 
Government or any ofits agencies]; 
(ii) Members of the Armed Forces of the Philippines [including the 
Army, Navy, Air Force or Constabulary]; 
(111) 
MEMBERS OF THE PHILIPPINE NATIONAL 
POLICE, MEMBERS OF THE NATIONAL BUREAU OF 
INVESTIGATION, AND MEMBERS OF OTHER LAW 
ENFORCEMENT UNITS 
OF 
THE 
GOVERNMENT 
EXCEPT WHEN SUCH MEMBERS ARE IN THE ACTUAL 
PERFORMANCE OF THEIR OFFICIAL DUTY TO 
ARREST A CRIMINAL OR A MALEFACTOR, TO 
PREVENT THE COMMISSION OF A CRIME, TO SERVE A 
WARRANT OF ARREST TO SOMEONE INSIDE A 
GAMING ESTABLISHMENT, TO LEND SUCCOR TO A 
PERSON UNDER THREAT, TO RESCUE A PERSON OR 
PERSONS, OR TO HELP IN THE EVACUATION OF 
PERSONS OR IN MAINTENANCE OF ORDER IN THE 
EVENT OF ACCIDENTS, EARTHQUAKES, FIRES, AND 
OTHER CALAMITIES; AND, 
(iv) STUDENTS AND persons [under] BELOW twenty-one (21) 
years of age [or students of any school, college or university in the 
Philippines]. 


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THE PROHIBITION CONTAINED IN PARAGRAPH (D) HEWOF 
SHALL NOT APPLY TO THE MEMBERS OF THE BOARD, 
OFFICIALS, AND 
EMPLOYEES OF PAGCOR AND 
TO 
GOVERNMENT MEDICAL DOCTORS AND MEDICAL AIDS 
WHO RESPOND TO AN EMERGENCY CASE. 
SEC. 14. Section 13 of PD 1869 is hereby amended to read as follows: 
TITLE IV --- EXEMPTIONS FROM CUSTOMS DUTIES AND 
TAXES AND UTILIZATION OF FOREIGN CURRENCIES 
SEC. [13] 14. Customs duties, taxes and other imposts on 
importations. - ANY PROVISION OF REVENUE LAWS OR 
REGULATIONS TO THE CONTRARY NOTWITHSTANDING, 
[Alall importations of equipment, TOOLS, vehicles, [automobiles], 
VESSELS, ships, YACHTS, boats, barges, aircrafts, [and such other] 
INCLUDING gambling paraphernalia, [including] EQUIPMENT, 
INSTRUMENTS, accessories, or related facilities, for the sole and 
exclusive use of [the] casinos AND OTHER FORMS OF GAMES OF 
CHANCE SUCH AS ROULETTE TABLES, DICE TABLES, SLOT 
OR PINBALL MACHINE PARLORS, BINGO PARLORS AND 
OTHER PLACES WHERE OTHER FORMS OF LOTTERIES ARE 
HELD, JAI ALA1 FRONTONS, RACETRACKS FOR ALL KINDS 
OF RACES, HOTELS, INNS, CLUBS, RESORTS, CONVENTION 
CENTERS, THEME PARKS, 
AQUARIUMS, INTEGRATED 
AMUSEMENT AREAS OR COMMUNITIES, AND OTHER 
RECREATIONAL AND ENTERTAINMENT FACILITIES [the 
proper and efficient management and administration thereof, and such 
other clubs, recreation and amusement places to be] CONSTRUCTED, 


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established, MAINTAINED, OPERATED, AND MANAGED under 
and by virtue of (this] THE franchise OF PAGCOR shall be exempted 
from [the payment of all kinds ofl customs duties, taxes, and other 
imposts, including all [kinds of] OTHER fees, levies, assessments, or 
charges of any kind, nature OR DESCRIPTION, whether IMPOSED, 
CHARGED, 
LEVIED, 
OR 
ASSESSED 
BY 
THE National 
GOVERNMENT or BY THE local GOVERNMENTS. 
[Vessels andor accessory] SHIPS, YACHTS, boats, OR OTHER 
WATER CRAFTS AND THEIR EQUIPMENT, INSTRUMENTS, 
AND ACCESSORIES imported OR TO BE IMPORTED by any 
[corporation having existing contractual arrangements with the 
Corporation] NATURAL OR JURIDICAL PERSON WHICH IS 
AUTHORIZED AND LICENSED BY PAGCOR to operate any game 
of chance or imported by someone that has a valid and subsisting 
operating agreement or management agreement with PAGCOR, for the 
sole and exclusive use of the [casino or to be used to service the operations 
and requirements of the casino] IMPORTER IN HIS GAMING 
BUSINESS, shall [likewise] ALSO be [totally] exemptED from the 
payment of ALL customs duties, taxes, and other imposts [,including] and 
[kinds ofl ALL OTHER fees, levies, assessments, or charges of any 
kind,[or] nature, OR DESCRIPTION, whether IMPOSED, CHARGED, 
LEVIED, OR ASSESSED BY THE National GOVERNMENT or BY 
THE local GOVERNMENTS. 
SEC. 15. A new section 15 is hereby inserted 
SEC. 15. Income TAX and other taxes.- 
(a) [Franchise 
HolderIPAGCOR: ANY PROVISIONS OF REVENUE LAWS OR 


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REGULATIONS TO THE CONTRARY NOT WITHSTANDING, no 
NATIONAL OR LOCAL tax of [any] WHATEVER kind, NATURE, 
form, (income or otherwise, as well as fees, charges, or levies of whatever 
nature, whether National or Local,] OR DESCRIPTION, INCLUDING 
TAXES ON WINNINGS, DOCUMENTARY STAMP TAX, VALUE 
ADDED TAX, AND INCOME TAX shall be LEVIED, assessed, and 
collected [under this Franchise from the Corporation; nor shall any form 
of tax or charge attach in any way to the earnings of the Corporation] 
FROM PAGCOR AND NO OTHER 
TAXES, FEES, LEVIES, 
ASSESSMENTS,. OR 
CHARGES OF WHATEVER 
KIND, 
NATURE, FORM, OR DESCRIPTION, WHETHER IMPOSED, 
CHARGED, LEVIED, OR ASSESSED BY THE NATIONAL 
GOVERNMENT OR BY LOCAL GOVERNMENTS, SHALL BE 
LEVIED AND ASSESSED AND COLLECTED FROM, except a 
Franchise Tax of five (5%) percent [of the gross revenue or earnings] ON 
THE AGGREGATE GROSS EARNINGS derived by [the Corporation] 
PAGCOR fiom its operation under [this] ITS [F] Franchise. 
[Such] THE FRANCHISE tax shall be due and payable quarterly 
to the National Government and shall be in lieu of all [kinds ofl DUTIES, 
taxes, fees, levies, assessments, OR CHARGES, of [any] WHATEVER 
kind, nature, FORM, or description, [levied, established or collected by 
any municipal, provincial, or national government authority] WHETHER 
IMPOSED, CHARGED, LEVIED, OR ASSESSED BY THE 
NATIONAL 
GOVERNMENT 
OR 
BY 
THE 
LOCAL 
GOVERNMENTS. 
(b) OTHERS: GRANTEES, LICENSEES, INVESTORS, OPERATORS, 
CLIENTS, AND PATRONS: ANY PROVISION OF REVENUE 


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LAWS 
OR 
REGULATIONS 
TO 
THE 
CONTRARY 
NOTWITHSTANDING, [Tlthe exemption [herein granted for 
earnings] FROM TAXES ON WINNINGS, DOCUMENTARY 
STAMP TAX, VALUE ADDED TAX, AND INCOME TAX 
GRANTED TO PAGCOR ON ITS EARNINGS, WHICH IT 
derived from the operations [conducted] OF GAMES OF CHANCE 
OR GAMES OF NUMBERS under [the] ITS franchise [specifically 
from the payment of any tax, income or otherwise as well as any form 
of charges, fees or levies,] shall inure to the benefit of ITS 
GRANTEES, 
LICENSEES, 
INVESTORS, 
OPERATORS, 
CLIENTS, AND PATRONS [and extend to corporation(s), 
association(s), agency(ies), or individual(s) with whom the corporation 
or operator has any contractual relationship], INCLUDING THOSE 
WITH WHOM PAGCOR HAS AN OPERATING AGREEMENT 
OR MANAGEMENT AGREEMENT in connection with the 
ESTABLISHMENT, 
operation[s], 
MAINTENANCE, 
AND 
MANAGEMENT of [the] HOTELS, INNS, CLUBS, RESORTS, 
CONVENTION CENTERS, THEME PARKS, INTEGRATED 
AMUSEMENT AREAS OR COMMUNITIES, AND OTHER 
RECREATIONAL AND ENTERTAINMENT FACILITIES, 
casinos [authorized to be conducted under this hnchise and to those 
receiving compensation or other remuneration from the Corporation or 
operator as a result of essential facilities furnished and/or technical 
services rendered to the Corporation or operator] WHERE ALL 
FORMS OF CARD GAMES OR GAMES OF NUMBERS, AND 
OTHER FORMS OF GAMES OF CHANCE ARE HELD AND 
WHERE BETS ARE MADE, ROULETTE TABLES, DICE 
TABLES, SLOT OR PINBALL MACHINE PARLORS, BINGO 
PARLORS AND OTHER PLACES WHERE OTHER FORMS 


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OF LOTTERIES ARE HELD, RACETRACKS FOR ALL KINDS 
OF RACES, JAI ALA1 FRONTONS, SPORTS BETTING, AND 
OTHER FORMS OF GAMES OF CHANCE THAT ARE 
CONDUCTED AND OPERATED UNDER THE FRANCHISE 
OF PAGCOR OR ARE AUTHORIZED AND LICENSED BY IT. 
(c) ENTERTAINERS? 
THE 
REMUNERATION 
OF 
ENTERTAINERS HIRED OR CONTRACTED BY PAGCOR 
OR BY ITS OPERATORS OR INVESTORS IN PURSUANCE 
OF THE FRANCHISE OF PAGCOR AND TO PROMOTE THE 
OBJECTIVES OF THIS ACT SHALL BE EXEMPTED FROM 
ALL 
TAXES, 
LEVIES, 
ASSESSMENTS, 
FEES, 
AND 
CHARGES, WHETHER IMPOSED, LEVIED, CHARGED, 
ASSESSED, 
AND COLLECTED BY THE NATIONAL 
GOVERNMENT OR BY LOCAL GOVERNMENTS. 
(d) SERPTCE ZNCENTZPES FROM CUSTOMERS: ANY AMOUNT 
RECEIVED BY 
EMPLOYEES OF PAGCOR OR ITS 
GRANTEES, LICENSEES, INVESTORS OR OPERATORS BY 
WAY OF SERVICE INCENTIVES OR TIPS FROM CLIENTS 
AND PATRONS IN GAMING ESTABLISHMENTS SHALL BE 
EXEMPT FROM INCOME TAX. 
(e) Dividend Income - [Notwithstanding any provision of law to the 
contrary, in the event the Corporation should declare a cash dividend, 
that portion of the dividend income corresponding to the participation 
of the private sector shall, as an incentive to the beneficiaries, be 
subject only to a final income tax rate of ten (10%) percent in lieu of 
the regular income tax rates. The dividend income shall not in such 


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case be considered as part of beneficiaries’ taxable income; provided,] 
ANY 
PROVISION 
OF 
LAW 
TO 
THE 
CONTRARY 
NOTWITHSTANDING, A FINAL INCOME TAX OF TEN 
(loo/) PERCENT, IN LIEU OF THE REGULAR INCOME TAX, 
SHALL BE IMPOSED AND COLLECTED ON THAT 
PORTION 
OF 
ANY 
DIVIDEND 
DECLARED 
AND 
DISTRIBUTED 
BY 
PAGCOR 
TO 
ITS 
PRIVATE 
STOCKHOLDERS, WHETHER SUCH DIVIDEND IS IN CASH 
OR IN PROPERTY, THE CLEAR INTENT OF CONGRESS 
BEING NOT TO TREAT SUCH CASH OR PROPERTY 
DIVIDEND AS A PART OF THE REGULAR TAXABLE 
INCOME OF THE PRIVATE STOCKHOLDERS IN ORDER 
TO GIVE THEM AN INCENTIVE TO INVEST IN THE 
SHARES OF SOCK OF PAGCOR. 
[hIHowever, [that] such CASH OR PROPERTY dividend [income] shall 
be totally exempted from THE TEN (l0Yn) PERCENT FINAL 
income [or other forms of taxes] tax [if invested] IF THE 
RECIPIENT SHALL INVEST THE CASH DIVIDEND OR THE 
CASH EQUIVALENT OF THE PROPERTY DIVIDEND within 
six (6) months from the [date the dividend income is received, in the 
following] RECEIPT OF THE CASH OR PROPERTY 
DIVIDEND: 
(i) [operation of the casino(s) or investments in any affiliate activity 
that will ultimately redound to the benefit of the Corporation or 
any other corporation with whom the Corporation has any existing 
arrangements in connection with or related to the operations of the 
casino(s)] IN A BUSINESS ENGAGED IN ANY GAME OF 


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CHANCE SUCH AS, BUT NOT LIMITED TO, GAMBLING 
CASINOS, ROULETTE TABLES, DICE TABLES, SLOT 
MACHINE 
PARLORS, 
LOTTERIES, 
JAI 
ALAI 
FRONTONS, RACE TRACKS, OR SPORTS BETTING 
ESTABLISHED, 
MAINTAINED, 
OPERATED, 
AND 
MANAGED UNDER THE FRANCHISE OF PAGCOR, 
(ii) IN Government bonds, securities, treasury notes, [or] AND 
debentures WITH MATURITIES OF NOT LESS THAN FIVE 
(5) YEARS; or 
(iii)IN SHARES OF STOCK OF €301-registered [or export-oriented] 
corporations OR IN SHARES OF STOCK OF EXPORT OR 
TOURISM ORIENTED CORPORATIONS. 
SEC. 16. A new section 16 is hereby inserted: 
SEC. 16. Utilization of Foreign Currencies. --- [The Corporation] 
PAGCOR shall have the right and authority, solely and exclusively [in 
connection with the] FOR operations of [the casino(s),] ITS GAMING, 
RECREATIONAL, AND AMUSEMENT BUSINESS to purchase, 
receive, exchange, HOLD, OWN, and disburse foreign exchange, subject 
to the following terms and conditions: 
(a) [A] Specific areas in [the casino(s) or] PAGCOR’S gaming [pit] 
ESTABLISHMENTS shall be [put up) RESERVED solely and 
exclusively for players and patrons utilizing OR AND BETTING 
IN foreign currencies; 


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@) [The Corporation]PAGCOR shall designate a duly accredited 
commercial bank agent of the [Central Bank] BANGKO 
SENTRAL NG PILIPINAS to handle, administer, and manage 
the [use] RECORDING, REPORTING, AND UTILIZATION 
of 
foreign 
currencies 
[in 
the 
casino(s)] 
RECEIVED, 
ACQUIRED, AND EARNED BY PAGCOR FROM THE 
OPERATIONS OF ITS GAMING BUSINESS ACTIVITIES. 
(c) [The Corporation] PAGCOR shall provide a[n] SUITABLE AND 
ADEQUATE office [at casino(s) exclusively for the employees of 
designated bank, agent of the Central Bank,] FOR THE USE OF 
THE 
CHOSEN 
COMMERCIAL 
BANK 
where 
[the 
Corporation] PAGCOR shall maintain a [dollar1 FOREIGN 
CURRENCY account [which will be utilized exclusively for the 
above purpose and the casino dollar treasury employees] FOR 
THE SOLE AND EXCLUSIVE USE OF ITS GAMING 
BUSINESS OPERATIONS: 
(d) Only [persons with] HOLDERS OF foreign passports or 
[certificates of identity (for Hong Kong patron only)] SIMILAR 
IDENTITY DOCUMENTS duly issued by the governments [or 
country of residence will] OF THEIR RESPECTIVE 
COUNTRIES SHALL be allowed to play in the [the foreign 
exchange gaming pit] SPECIFIC AREAS 
UV PAGCOR’S 
GAMING ESTABLISHMENTS RESERVED SOLELY AND 
EXCLUSIVELY FOR PLAYERS AND PATRONS WHO 
UTILIZE AND BET IN FOREIGN CURRENCIES. 


.
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(e) Only foreign currenc[y]IES ACCEPTABLE AND prescribed BY 
THE BANGKO SENTRAL NG PILIPINAS [to form] AS part 
of the [Philippine] International Reserve OF THE PHILIPPINES 
[and the following currencies: 
Australian Dollar, Singapore 
Dollar, Hong Kong Dollar] shall be used in [this] THE gaming 
[pit] ESTABLISHMENTS OF PAGCOR. 
(9 The disbursements, administration, management, and recording of 
foreign [exchange] currencies used in the [casino(s)] GAMING 
ESTABLISHMENTS OF PAGCOR shall be carried out in 
accordance with [existing] foreign exchange regulations[;] 
ISSUED AND 
PROMULGATED BY THE BANGKO 
SENTRAL NG PILIPINAS. [and periodical] 
PERIODIC 
reports of the transactions OF PAGCOR in foreign [exchange] 
currencies [by the Corporation] shall be duly recorded and reported 
to the [Central Bank] BANGKO SENTRAL NG PILIPINAS 
thru 
[the 
designated 
Agent 
Sank1 
ITS 
AGENT 
COMMERCIAL BANK; and 
(g) [The Corporation] PAGCOR shall issue the necessary rules and 
regulations for the guidance and information of players WHO 
ARE qualified to lparticipate in the foreign exchange gaming pit, 
in order to make certain that the terms and conditions as above set 
forth are strictly complied with] PLAY IN THE SPECIFIC 
AREAS IN PAGCOR’S GAMING ESTABLISHMENTS 
RESERVED 
SOLELY AND 
EXCLUSIVELY 
FOR 
PLAYERS AND PATRONS WHO UTILIZE AND BET IN 
FOREIGN CURRENCIES. 


46 
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SEC. 17. Section 15 of PD 1869 is hereby amended to read as follows: 
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TITLE V-GOVERNMENT 
AUDIT 
SEC. 1151 17. Auditor.- The Commission on Audit [or any government 
agency that the Office of the President may designate] shall appoint a 
representative who shall be the Auditor of [the Corporation] PAGCOR 
[and] TOGETHER WITH such personnel as may be necessary to assist 
said [representative] AUDITOR in the performance of his duties. The 
salaries of the Auditor [or representative] and his staff shall be fixed by 
the [Chairman of the] Commission on Audit [or designated government 
agency, with the advice of the Board,] and said salaries and other expenses 
shall be paid by [the Corporation] THE COMMISSION ON AUDIT. 
The funds of the [Corporation] PAGCOR to be covered by the 
audit shall be limited to the 5% franchise tax and the [SO% of the gross 
earnings pertaining to ihe Government as its share] GOVERNMENT 
SHARE IN PAGCOR’S GROSS WINNINGS AS PROVIDED IN 
SECTION 12 HEREOF. A COPY OF THE AUDIT REPORT FOR 
THE IMMEDIATELY PRECEDING CALENDAR YEAR SHALL 
BE SUBMITTED BY THE COMMISSION ON AUDIT TO THE 
PRESIDENT OF THE PHILIPPINES NOT LATER THAN THE 
END OF THE SECOND QUARTER OF THE IMMEDIATELY 
SUCCEEDING CALENDAR YEAR. 
THE AUDITOR AND THE MEMBERS OF HIS STAFF, 
INCLUDING THEIR RELATIVES BY CONSANGUINITY OR 
AFFINITY WITHIN THE FOURTH CIVIL DEGREE, SHALL 
HAVE NO BUSINESS OR ANY KIND OF FINANCIAL DEALINGS 


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DIRECTLY OR INDIRECTLY WITH PAGCOR OR WITH ITS 
SUBSIDIARIES, AFFILIATES, GRANTEES, AND LICENSEES, 
NOR SHALL SUCH AUDITOR AND MEMBERS OF HIS STAFF, 
INCLUDING THEIR RELATIVES BY CONSANGUINITY OR 
AFFINITY, RECEIVE ANY KIND OF ADDITIONAL SALARIES, 
COMPENSATION, ALLOWANCES, FRlNGE BENEFITS, OR 
ANY OTHER FORM OF EMOLUMENTS DIRECTLY OR 
INDIRECTLY FROM PAGCOR OR FROM ITS SUBSIDIARIES, 
AFFILIATES, GRANTEES, AND LICENSEES. 
SEC.18. Section 16 under Title VI of PD 1869 is hereby amended to read as 
follows: 
TITLE VI-EXEMPTION FROM CIVIL SERVICE LAW 
SEC. [16] 18. Exemptiox- All positions in [the Corporation] 
PAGCOR, whether technical, administrative, professional or managerial 
are exempt from the provisions of the Civil Service Law, rules and 
regulations, and shall be governed only by the personnel management 
policies set by the Board of Directors. All employees of the [casinos] 
GAMING and related services OF PAGCOR shall be classified as 
“confidential” appointees. 
SEC. 19. Section 17 and Section 18 under Title VI1 of PD 1869 are hereby 
deleted. 
SEC. 20. Section. 19 under Title VI11 of PD 1869 is hereby amended to read as 
follows: 


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TITLE [VIII] VII- REPEALING, SEPARABILITY 
AND EFFECTIVITY CLAUSES 
SEC. 19. Repealing Clause-All 
laws, decrees, executive orders, 
[administrative orders], PROCLAMATIONS, rules and regulations, 
AND OTHER ISSUANCES, OR PARTS THEREOF, WHICH ARE 
inconsistent [herelwith THE PROVISIONS OF THIS ACT, are hereby 
repealed, amended, or modified [accordingly]. 
SEC. 21. A new Section 20 is hereby inserted to read as follows: 
SEC. 
SECTION 
20. 
SEPARABZLZTY 
CUUSE. 
-THE 
PROVISIONS OF THIS ACT ARE SEPARABLE, AND IN THE 
EVENT ONE OR MORE OF SUCH PROVISIONS ARE 
DECLARED UNCONSTITUTIONAL, THE VALIDITY OF THE 
OTHER PROVISIONS NOT DECLARED UNCONSTITUTIONAL 
SHALL NOT BE AFFECTED. 
22. Section 20 of PD 1869 is hereby amended to read as follows: 
SECTION [20] 21. Effectivity--This 
[Decree] ACT shall take 
effect [immediately] FIFTEEN (15) DAYS FROM THE DATE OF ITS 
PUBLICATION, UPON THE INITIATIVE OF THE GRANTEE, IN 
AT 
LEAST 
TWO 
(2) 
NEWSPAPERS 
OF 
GENERAL 
CIRCULATION IN THE PHILIPPINES. 
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Approved 
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JGWcklnra~alit/tere/2452PAGCOIUD 
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