Amendment to PAGCOR Charter Franchise Term

Republic Act No. 9487 further amends Presidential Decree No. 1869, the PAGCOR Charter.
Presidential Decree No. 1869 is amended by substituting specific provisions on the franchise term, franchise conditions, and corporate powers.

Section 10 (as amended) grants the Philippine Amusement and Gaming Corporation (PAGCOR) from the expiration of its original term on July 11, 2008 another period of twenty-five (25) years.
The franchise is renewable for another twenty-five (25) years.
PAGCOR is granted the rights, privileges, and authority to operate and license gambling casinos, gaming clubs and other similar recreation or amusement places, gaming pools (i.e., basketball, football, bingo, etc.) except jai-alai.
The authority covers operations within the territorial jurisdiction of the Republic of the Philippines.
Operation remains subject to the terms and conditions established in Presidential Decree No. 1869.

PAGCOR must obtain the consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations.

The operation of slot machines and other gambling paraphernalia and equipment is not allowed in establishments open or accessible to the general public unless the operations are conducted in three-star hotels and resorts.
The three-star hotels and resorts must be accredited by the Department of Tourism.
The operations must also be authorized by PAGCOR and by the local government unit concerned.

PAGCOR’s authority and power to authorize, license, and regulate games of chance, games of cards, and games of numbers does 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;
- (2) games of chance, games of cards, and games of numbers authorized, licensed, and regulated by, in, and under special laws such as Republic Act No. 7922; and
- (3) games of chance, games of cards, and games of numbers like cockfighting, authorized, licensed, and regulated by local government units.
The conduct of games covered by existing franchises, regulatory bodies, or special laws is outside PAGCOR’s licensing authority and regulatory powers to the extent of the jurisdiction and powers granted under those franchises and special laws.

Section 3 (h) (as amended) authorizes PAGCOR “to enter into, make, conclude, perform, and carry out contracts of every kind and nature and for any lawful purpose which are necessary, appropriate, proper or incidental” to any business or purpose of PAGCOR.
The contracting authority includes, among others, investment agreements, joint venture agreements, management agreements, agency agreements (whether as principal or as an agent), manpower supply agreements, and other similar agreements or arrangements.
Such agreements may be entered with any person, firm, association, or corporation.

Section 2 repeals, amends, or modifies all laws, decrees, executive orders, proclamations, rules and regulations, and other issuances (or parts thereof) that are inconsistent with the provisions of Republic Act No. 9487.