NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
24 JUL 29 P1 35
SENATE
S. No. 2753
Rl-CEi.'tDC1
Introduced by Senator Raffy T. Tulfo
AN ACT
FIXING THE SHARE OF THE LOCAL GOVERNMENT UNIT (LGU) HOSTING 
GAMING OPERATIONS LICENSED OR OPERATED BY THE PHILIPPINE 
AMUSEMENT AND GAMING CORPORATION (PAGCOR) IN THE PROCEEDS OF 
THE FRANCHISE TAX, AMENDING SECTION 12 OF PRESIDENTIAL DECREE 
NO. 1869, AS AMENDED
EXPLANATORY NOTE
In accordance with the mandate provided in Presidential Decree No. 1869, the 
Philippine Amusement and Gaming Corporation (PAGCOR) has the following 
responsibilities;
1. The regularization, operation, authorization, and license of games of 
chance, games of cards, and games of numbers, particularly in casino 
gaming;
2. To generate revenues for the government's socio-civic and national 
development; and
3. To aid in promoting the country's tourism industry.
With such directives, PAGCOR has significant contributions in the overall well­
being of the Philippine society as its profits aid in addressing key issues the country is 
facing today such as, poverty alleviation, health and education improvement, and 
many more.
Based upon the stipulations of Presidential Decree No. 1869, PAGCOR must 
share its earnings to the Local Government Units (LGUs) who are hosting Casino


Filipino branches, a casino chain operated by PAGCOR. With that being said, unlike 
other mandatory contributions of PAGCOR, whose amounts were specifically stated in 
their respective legislations, host cities of Casino Filipino branches do not have a fixed 
share; whose amount is dependent upon the approval of the PAGCOR Board of 
Directors. It was seen that the profits earned by PAGCOR is limited to cities where 
PAGCOR conducts its operations through Casino Filipino, and not in areas operated by 
franchises. Due to a lack of legislation on the matter, it is evident that there is an 
inequality of shares given to cities operated by franchises and branches operated by 
Casino Filipino.
This proposed measure seeks for the fixing of host city's shares on PAGCOR's 
earnings, with 5% of franchise tax being remitted as follows: 3% will go to the national 
government and 2% shall go directly to the LGUs where PAGCOR-operated and 
licensed gaming operations are located.
In view of the foregoing, the approval of this bill is earnestly sought.
RAFFY T. TULFO
/Idv
/ama


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
SENATE
2753
S. No.
i 
? \ .v\ .
of ill-'
24 JUL29 PI 35
RITEIVLD S'1
Introduced by Senator Raff/ T. Tulfo
AN ACT
FIXING THE SHARE OF THE LOCAL GOVERNMENT UNIT (LGU) HOSTING 
GAMING OPERATIONS LICENSED OR OPERATED BY THE PHILIPPINE 
AMUSEMENT AND GAMING CORPORATION (PAGCOR) IN THE PROCEEDS OF 
THE FRANCHISE TAX, FURTHER AMENDING SECTION 12 OF PRESIDENTIAL 
DECREE NO. 1869, AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Section 12 of Presidential Decree No. 1869 is hereby further
2 
amended to read as follows:
3 
"Sec. 12. Special Condition of Franchise. - After deducting five percent (5%) as
4 
Franchise Tax, the fifty percent (50%) share of the government in the
5 
[aggregate gross earnings] GROSS GAMING REVENUE of the Corporation
6 
from this Franchise, or 60% if the [aggregate gross earnings] GROSS
7 
GAMING REVENUE be less than P150,000,000.00, shall immediately be set
8 
aside and shall accrue to the General Fund to finance the priority infrastructure
9 
development projects and to finance the restoration of damaged or destroyed
10 
facilities due to calamities, as may be directed and authorized by the Office of
11 
the President of the Philippines.
12 
"THE ABOVE FIVE PERCENT (5%) FRANCHISE TAX SHALL BE
13 
REMITTED AS FOLLOWS: THREE PERCENT (3%) TO THE NATIONAL
14 
GOVERNMENT AND TWO PERCENT (2%) TO THE LOCAL
15 
GOVERNMENT UNIT (LGU) WHERE PAGCOR-OPERATED AND


1 
LICENSED GAMING OPERATIONS SUCH AS, BUT NOT LIMITED TO,
2 
LAND-BASED CASINOS, ONLINE CASINOS, BINGO, ELECTRONIC
3 
GAMES (E-GAMES), AND ELECTRONIC BINGO (E-BINGO) ARE
4 
LOCATED: PROVIDED, THAT THE TWO PERCENT (2%) SHARE SHALL
5 
BE PAID DIRECTLY TO THE LGU CONCERNED.”
6 
Sec. 2. If any provision of this Act is declared invalid or unconstitutional, the
7 
other provisions not affected thereby shall remain valid and subsisting.
8 
Sec. 3. Section 12 of P.D. No. 1869 entitled, "Consolidating and Amending
9 
Presidential Decree Nos. 1067-A, 1067-B, 1067-C, 1399 and 1632, Relative to the
10 
Franchise and Powers of the Philippine Amusement and Gaming Corporation
11 
(PAGCOR)," as amended by Presidential Decree No. 1993 entitled, "Amending Section
12 
Twelve of Presidential Decree No. 1869 Consolidating and Amending Presidential
13 
Decree Nos. 1067-A, 1067-B, 1067-C, 1399, and Corporation (PAGCOR)", and all laws,
14 
executive orders, memorandum circulars, guidelines, and other issuances or parts
15 
thereof, which are inconsistent with this Act, are hereby repealed or modified
16 
accordingly.
17 
Sec. 4. This Act shall take effect fifteen (15) days after its publication in the
18 
Official Gazette or in a newspaper of general circulation.
Approved,