Presidential Decree 1869

July 11, 1983

PRESIDENTIAL DECREE NO. 1869
CONSOLIDATING AND AMENDING PRESIDENTIAL DECREE NOS. 1067-A, 1067-B,
1067-C, 1399 AND 1632, RELATIVE TO THE FRANCHISE AND POWERS OF THE
PHILIPPINE AMSEMENT AND GAMING CORPORATION !PAGCOR"
WHEREAS, Presidential Decree No. 16!"A, 16!"#, 16!"$, 1399 and 163%, relati&e to t'e
(ranc'ise and Po)ers o* t'e P'ili++ine A,use,ent and -a,in. $or+oration /PA-$0R1, )ere
enacted to ena2le t'e -o&ern,ent to re.ulate and centrali3ed t'ru an a++ro+riate institution all
.a,es o* c'ance aut'ori3ed 2y e4istin. *ranc'ise or +er,itted 2y la)5
WHEREAS, to *acilitate t'e en*orce,ent and a++lication o* t'e a2o&e",entioned Presidential
Decrees, it is i,+erati&e to consolidate t'e, into one statute5
WHEREAS, since its creation in 19!!, PA-$0R 'as de,onstrated its relia2ility as a source o*
inco,e *or t'e -o&ern,ent, +articularly *or t'e *undin. o* .o&ern,ent in*rastructure +ro6ects,
suc' t'at, as o* Dece,2er 198%, PA-$0R 'as .enerated .ross re&enue o* P1.6!! #illion,
contri2utin. P976 8illion as t'e 69 s'are o* t'e -o&ern,ent +lus P83 8illion in t'e *or, o*
79 *ranc'ise ta45
WHEREAS, PA-$0R:s o+eration 'as ena2led t'e -o&ern,ent to identi*y t'e +otential sources
o* additional re&enue, +ro&ided .a,es o* c'ances are strictly ,ana.ed and ,ade su26ect to close
scrutiny, re.ulation, su+er&ision and control 2y t'e -o&ern,ent5
WHEREAS, to ,a;e it ,ore dyna,ic and e**ecti&e in its tas;s, PA-$0R s'ould no) 2e
reor.ani3ed 2y /a1 increasin. t'e +artici+ation o* t'e +ri&ate sector in t'e su2scri+tion o* t'e
aut'ori3ed ca+ital stoc; o* PA-$0R and 2y ad6ustin. t'e s'are o* t'e -o&ern,ent in t'e .ross
earnin. to 795 +ro&ided, t'at t'e annual inco,e o* t'e -o&ern,ent is not less t'an P17
8illion and, i* it is less, t'en t'e s'are o* t'e -o&ern,ent s'all 2e 69 o* t'e .ross earnin.s5 /21
+ro&idin. *or a settle,ent o* t'e +ortion o* t'e -o&ern,ent:s s'are t'at )as utili3ed *or t'e
sta2ili3ation o* casino o+erations, and /c1 +ro&idin. *or .reater *le4i2ility in o+eration 2y li,itin.
.o&ern,ental audit only to t'e deter,ination o* t'e 79 *ranc'ise ta4 and t'e -o&ern,ent:s
s'are o* 79 o* t'e .ross earnin.s5
WHEREAS, in order to ,a;e PA-$0R:s re.ulatory +o)ers ,ore e**ecti&e, it is necessary t'at
2usinesses +ri,arily en.a.ed in .a,2lin. o+erations 2e a**iliated )it' PA-$0R, and 2eco,e
su26ect to its re.ulatory +o)ers )it' res+ect to o+eration, ca+itali3ation and or.ani3ational
structure5
WHEREAS, under Presidential Decree No. 1<16, as a,ended, t'e President o* t'e P'ili++ines is
aut'ori3ed to reor.ani3ed t'e ad,inistrati&e structure o* .o&ern,ent o**ices=
N0W, >HERE(0RE, ?, (ERD?NAND E. 8AR$0S, President o* t'e P'ili++ines, 2y &irtue o*
t'e +o)ers &ested in ,e 2y t'e $onstitution and 2y Presidential Decree No. 1<16, as a,ended,
do 'ere2y decree5
TITLE I #$% GENERAL PROVISIONS
S&'()*+ 1. Declaration o* Policy. @AB ?t is 'ere2y declared to 2e t'e +olicy o* t'e State to
centrali3e and inte.rate all .a,es o* c'ance not 'ereto*ore aut'ori3ed 2y e4istin. *ranc'ises or
+er,itted 2y la) in order to attain t'e *ollo)in. o26ecti&es=
a. >o centrali3e and inte.rate t'e ri.'t and aut'ority to o+erate and conduct .a,es o*
c'ance into one cor+orate entity to 2e controlled, ad,inistered and su+er&ised 2y t'e
-o&ern,ent5
b. >o esta2lis' and o+erate clu2s and casinos, *or a,use,ent and recreation, includin.
s+orts .a,in. +ools /2as;et2all, *oot2all, lotteries, etc.1 and suc' ot'er *or,s o*
a,use,ent and recreation includin. .a,es o* c'ance, )'ic' ,ay 2e allo)ed 2y la)
)it'in t'e territorial 6urisdiction o* t'e P'ili++ines and )'ic' )ill=/11 .enerate sources o*
additional re&enue to *und in*rastructure and socio"ci&ic +ro6ects, suc' as *lood control
+ro.ra,s, 2eauti*ication, se)era.e and se)a.e +ro6ects, >ulun.an n. #ayan $enters,
Nutritional Pro.ra,s, Po+ulation $ontrol and suc' ot'er essential +u2lic ser&ices5 /%1
create recreation and inte.rated *acilities )'ic' )ill e4+and and i,+ro&e t'e country:s
e4istin. tourist attractions5 and /31 ,ini,i3e, i* not totally eradicate, t'e e&ils,
,al+ractices and corru+tions t'at are nor,ally +re&alent in t'e conduct and o+eration o*
.a,2lin. clu2s and casinos )it'out direct .o&ern,ent in&ol&e,ent.
TITLE II #$% CREATION OF PHILIPPINE AMSEMENT AND GAMING
CORPORATION
S&'()*+ 2. P'ili++ine A,use,ent and -a,in. $or+oration /PA-$0R1, $reation and Pur+ose.
@AB >o i,+le,ent State +olicy and +ursue t'e o26ecti&es set *ort' in t'e +recedin. Section, t'ere
is 'ere2y created a 2ody cor+orate to 2e ;no)n as t'e P'ili++ine A,use,ent and -a,in.
$or+oration, 'ereina*ter re*erred to as t'e C$or+orationB, )'ic' s'all 'a&e its +rinci+al o**ice in
8etro+olitan 8anila. >'e $or+oration ,ay esta2lis' suc' o**ices, a.encies, su2sidiaries, or
2ranc'es in t'e P'ili++ines as its o+erations )ould reDuire and its #oard o* Directors ,ay
deter,ine.
S&'()*+ 3. $or+orate Po)ers. @AB >'e $or+oration s'all 'a&e t'e *ollo)in. +o)ers and
*unctions, a,on. ot'ers=
a. to +rescri2e its #y"Ea)s5
2. to ado+t, alter and use a cor+orate seal5
c. to o)n real or +ersonal +ro+erty, and to sell, alienate, ,ort.a.e, encu,2er or ot'er)ise
dis+ose o* t'e sa,e5
d. to ,a;e contracts, and to sue and 2e sued5
e. to e,+loy suc' o**icers and +ersonnel as ,ay 2e necessary or +ro+er to carry on its
2usiness5
*. to acDuire, lease or ,aintain, )'et'er on land, )ater or air, +ersonal +ro+erty and suc'
ot'er eDui+,ent and *acilities as ,ay 2e necessary or +ro+er to carry out its +ur+oses5
.. to i,+ort, 2uy, sell, or ot'er)ise trade or deal in ,erc'andise, .oods, )ares and o26ects
o* all ;inds and descri+tions t'at ,ay 2e necessary or +ro+er to carry out t'e +ur+oses *or
)'ic' it 'as 2een created5
'. to enter into, ,a;e, +er*or,, and carry out contracts o* e&ery ;ind and *or any la)*ul
+ur+ose +ertainin. to t'e 2usiness o* t'e $or+oration, or in any ,anner incident t'ereto,
as +rinci+al, a.ent or ot'er)ise, )it' any +erson, *ir,, association, or cor+oration.
i. to 2orro) ,oney *ro, local or *orei.n sources as ,ay 2e necessary or +ro+er *or its
o+erations5
6. to in&est its *unds as t'e $or+oration ,ay dee, necessary or +ro+er in any acti&ity
related to its +rinci+al o+eration, includin. in any 2onds or securities issued or .uaranteed
2y t'e -o&ern,ent o* t'e P'ili++ines
;. to +er*or, suc' ot'er +o)ers and *unctions as ,ay 2e +ro&ided 2y la)5 and
l. to do anyt'in. and e&eryt'in. necessary, +ro+er, desira2le, con&enient or suita2le *or t'e
acco,+lis',ent o* any o* t'e +ur+ose or t'e attain,ent o* any o* t'e o26ects or t'e
*urt'erance o* any o* t'e +o)ers 'erein stated, eit'er alone or in association )it' ot'er
cor+orations, *ir,s or indi&iduals, and to do e&ery ot'er act or t'in. incidental, +ertainin.
to, .ro)in. out o*, or connected )it', t'e a*oresaid +ur+oses, o26ects or +o)ers, or any
+art t'ereo*.
S&'()*+ ,. Aut'ori3ed $a+ital Stoc;. @AB >'e $or+oration s'all 'a&e an aut'ori3ed ca+ital stoc;
di&ided into one ,illion &otin. and no +ar &alue s'ares, to 2e su2scri2ed, +aid *or and &oted as
*ollo)s=
a. 77, s'ares o* stoc; to 2e su2scri2ed to and +aid *or 2y t'e -o&ern,ent o* t'e
Re+u2lic o* t'e P'ili++ines at an ori.inal issue &alue o* P%. +er s'are5 and
2. <7, s'ares re,ainin. ,ay 2e su2scri2ed to 2y +ersons or entities acce+ta2le to t'e
#oard o* Directors at issue &alue to 2e deter,ined 2y suc' #oard o* Directors.
>'e &otin. +o)er +ertainin. to s'ares o* stoc; su2scri2ed to 2y t'e -o&ern,ent o* t'e Re+u2lic
o* t'e P'ili++ines s'all 2e &ested in t'e President o* t'e P'ili++ines or in suc' +erson or +ersons
as 'e ,ay desi.nate.
>'e &otin. +o)er +ertainin. to s'ares o* stoc; su2scri2ed 2y +ri&ate +ersons or entities s'all 2e
&ested in t'e,.
S&'()*+ -. -o&ern,ent ?n&est,ent. @AB >'e -o&ern,ent ad&ances to t'e $or+oration aut'ori3ed
on 8ay %9, 19!8, 'a&in. reac'ed t'e a,ount o* P!,<3,!%7.3, s'all 2e con&erted into eDuity
as +art o* t'e in&est,ent o* t'e -o&ern,ent to 2e a++lied to t'e su2scri+tion o* 77, s'ares.
S&'()*+ 6. #oard o* Directors. @AB >'e $or+oration s'all 2e .o&erned and its acti&ities 2e
directed, controlled and ,ana.ed 2y a #oard o* Directors, 'ereina*ter re*erred to as t'e #oard,
co,+osed o* *i&e /71 ,e,2ers, t'ree /31 o* )'o, s'all co,e *ro, t'e -o&ern,ent sector and
s'all 2e a++ointed 2y t'e President, )'ile t'e ot'er t)o /%1 s'all 2e *ro, t'e +ri&ate sector, )'o
o)n at least 1 s'are o* stoc; in t'e $or+oration and )'o s'all 2e elected 2y t'e stoc;'olders o*
t'e cor+oration in t'e annual .eneral ,eetin. or in a s+ecial ,eetin. called *or suc' +ur+ose.
Eac' Director s'all ser&e *or a ter, o* one /11 year and until 'is successor s'all 'a&e 2een duly
a++ointed and Duali*ied.
S&'()*+ 7. Po)ers, (unctions and Duties o* t'e #oard o* Directors. @AB >'e #oard s'all 'a&e t'e
*ollo)in. +o)ers, *unctions and duties5
a. >o allocate and distri2ute, )it' t'e a++ro&al o* t'e 0**ice o* t'e President o* t'e
P'ili++ines, t'e earnin.s o* t'e $or+oration ear,ar;ed to *inance in*rastructure and
socio"ci&ic +ro6ects5
2. >o desi.nate t'e co,,ercial 2an; t'at s'all act as t'e de+ository 2an; o* t'e $or+oration
andFor trustee o* t'e *unds o* t'e $or+oration5
c. >o +re+are and a++ro&e at t'e 2e.innin. o* eac' calendar year t'e 2ud.et t'at ,ay 2e
necessary under any *ranc'ise .ranted to it, to insure t'e s,oot' o+eration o* t'e
$or+oration5 and to e&aluate and a++ro&e 2ud.ets su2,itted to it 2y ot'er cor+orations or
entities )it' )'ic' it ,i.'t 'a&e any e4istin. contractual arran.e,ent5
d. >o su2,it to t'e 0**ice o* t'e President o* t'e P'ili++ines 2e*ore t'e end o* (e2ruary o*
eac' year a list o* all t'e in*rastructure andFor socio"ci&ic +ro6ects t'at ,i.'t 'a&e 2een
*inanced *ro, t'e $or+oration:s earnin.s, and to su2,it suc' +eriodic or ot'er re+orts as
,ay 2e reDuired o* it *ro, ti,e to ti,e5 and
e. >o +er*or, suc' ot'er +o)ers, *unctions and duties as ,ay 2e directed and aut'ori3ed 2y
t'e President o* t'e P'ili++ines or as ,ay 2e necessary or +ro+er *or t'e acco,+lis',ent
o* its +ur+oses and o26ecti&es.
TITLE III #$% AFFILIATION PROVISIONS
S&'()*+ 8. Re.istration. @AB All +ersons +ri,arily en.a.ed in .a,2lin., to.et'er )it' t'eir allied
2usiness, )it' contract or *ranc'ise *ro, t'e $or+oration, s'all re.ister and a**iliate t'eir
2usinesses )it' t'e $or+oration. >'e $or+oration s'all issue t'e corres+ondin. certi*icates o*
a**iliation u+on co,+liance 2y t'e re.isterin. entity )it' t'e +ro,ul.ated rules and re.ulations
t'ereon.
S&'()*+ 9. Re.ulatory Po)er. @AB >'e $or+oration s'all ,aintain a Re.istry o* t'e a**iliated
entities, and s'all e4ercise all t'e +o)ers, aut'ority and t'e res+onsi2ilities &ested in t'e
Securities and E4c'an.e $o,,ission o&er suc' a**iliated entities ,entioned under t'e +recedin.
section, includin. 2ut not li,ited to a,end,ents o* Articles o* ?ncor+oration and #y"Ea)s,
c'an.es in cor+orate ter,, structure, ca+itali3ation and ot'er ,atters concernin. t'e o+eration o*
t'e a**iliatin. entities, t'e +ro&isions o* t'e $or+oration $ode o* t'e P'ili++ines to t'e contrary
not)it'standin., e4ce+t only )it' res+ect to ori.inal incor+oration.
TITLE IV #$% GRANT OF FRANCHISE
S&'()*+ 10. Nature and ter, o* *ranc'ise. @AB Su26ect to t'e ter,s and conditions esta2lis'ed in
t'is Decree, t'e $or+oration is 'ere2y .ranted *or a +eriod o* t)enty"*i&e /%71 years, rene)a2le
*or anot'er t)enty"*i&e /%71 years, t'e ri.'ts, +ri&ile.e and aut'ority to o+erate and ,aintain
.a,2lin. casinos, clu2s, and ot'er recreation or a,use,ent +laces, s+orts, .a,in. +ools, i.e.
2as;et2all, *oot2all, lotteries, etc. )'et'er on land or sea, )it'in t'e territorial 6urisdiction o* t'e
Re+u2lic o* t'e P'ili++ines.
S&'()*+ 11. Sco+e o* (ranc'ise. @AB ?n addition to t'e ri.'ts and +ri&ile.es .ranted it under t'e
+recedin. Section, t'is (ranc'ise s'all entitle t'e $or+oration to do and underta;e t'e *ollo)in.=
1. Enter into o+eratin. andFor ,ana.e,ent contracts )it' any re.istered and accredited
co,+any +ossessin. t'e ;no)led.e, s;ill, e4+ertise and *acilities to insure t'e e**icient
o+eration o* .a,2lin. casinos5 +ro&ided, t'at t'e ser&ice *ees o* suc' ,ana.e,ent andFor
o+erator co,+anies )'ose ser&ices ,ay 2e retained 2y t'e $or+oration s'all not in t'e
a..re.ate e4ceed ten /191 +ercent o* t'e .ross inco,e5
%. Purc'ase *orei.n e4c'an.e t'at ,ay 2e reDuired *or t'e i,+ortation o* eDui+,ent,
*acilities and ot'er .a,2lin. +ara+'ernalia indis+ensa2ly needed or use*ul to insure t'e
success*ul o+eration o* .a,2lin. casinos5
3. AcDuire t'e ri.'t o* )ay or access to or t'ru +u2lic land, +u2lic )aters or 'ar2ors,
includin. t'e 8anila #ay Area5 suc' ri.'t s'all include 2ut not 2e li,ited to t'e ri.'t to
lease andFor +urc'ase +u2lic lands, .o&ern,ent reclai,ed lands, as )ell as lands o*
+ri&ate o)ners'i+ or t'ose leased *ro, t'e -o&ern,ent. >'is ri.'t s'all carry )it' it t'e
+ri&ile.e o* t'e $or+oration to utili3e +iers, Duays, 2oat landin.s, and suc' ot'er +ertinent
and related *acilities )it'in t'ese s+eci*ied areas *or use as landin., anc'orin. or 2ert'in.
sites in connection )it' its aut'ori3ed casino o+erations5
<. #uild or construct structures, 2uildin.s cast)ays, +iers, dec;s, as )ell as any ot'er *or,
o* landin. and 2oardin. *acilities *or its *loatin. casinos5
7. >o do and +er*or, suc' ot'er acts directly related to t'e e**icient and success*ul
o+eration and conduct o* .a,es o* c'ance in accordance )it' e4istin. la)s and decrees.
S&'()*+ 12. S+ecial $ondition o* (ranc'ise. @AB A*ter deductin. *i&e /791 +ercent as (ranc'ise
>a4, t'e (i*ty /791 +ercent s'are o* t'e -o&ern,ent in t'e a..re.ate .ross earnin.s o* t'e
$or+oration *ro, t'is (ranc'ise s'all 2e i,,ediately set aside and allocated to *und t'e
*ollo)in. in*rastructure and socio"ci&il +ro6ects )it'in t'e 8etro+olitan 8anila Area=
a. (lood $ontrol
2. Se)era.e and Se)a.e
c. Nutritional $ontrol
d. Po+ulation $ontrol
e. >ulun.an n. #ayan $enters
*. #eauti*ication
.. Gilusan. Ga2u'ayan at Gaunlaran /GGG1 +ro6ects5 +ro&ided, t'at s'ould t'e a..re.ate
.ross earnin. 2e less t'an P17,,., t'e a,ount to 2e allocated to *und t'e a2o&e"
,entioned +ro6ect s'all 2e eDui&alent to si4ty /691 +ercent o* t'e a..re.ate .ross
earnin..
?n addition to t'e +riority in*rastructure and socio"ci&ic +ro6ects )it' t'e 8etro+olitan 8anila
s+eci*ically enu,erated a2o&e, t'e s'are o* t'e -o&ern,ent in t'e a..re.ate .ross earnin.s
deri&ed 2y t'e $or+orate *ro, t'is (ranc'ise ,ay also 2e a++ro+riated and allocated to *und and
*inance in*rastructure andFor socio"ci&ic +ro6ects t'rou.'out t'e P'ili++ines as ,ay 2e directed
and aut'ori3ed 2y t'e 0**ice o* t'e President o* t'e P'ili++ines.
S&'()*+ 13. E4e,+tions. @AB
1. $usto,s duties, ta4es and ot'er i,+osts on i,+ortations. @AB All i,+ortations o*
eDui+,ent, &e'icles, auto,o2iles, 2oats, s'i+s, 2ar.es, aircra*t and suc' ot'er .a,2lin.
+ara+'ernalia, includin. accessories or related *acilities, *or t'e sole and e4clusi&e use o*
t'e casinos, t'e +ro+er and e**icient ,ana.e,ent and ad,inistration t'ereo*, and suc'
ot'er clu2s, recreation or a,use,ent +laces to 2e esta2lis'ed under and 2y &irtue o* t'is
(ranc'ise s'all 2e e4e,+t *ro, t'e +ay,ent o* all ;inds o* custo,s duties, ta4es and
ot'er i,+osts, includin. all ;inds o* *ees, le&ies, or c'ar.es o* any ;ind or nature,
)'et'er National or Eocal.
Hessels andFor accessory *erry 2oats i,+orted or to 2e i,+orted 2y any cor+oration
'a&in. e4istin. contractual arran.e,ents )it' t'e $or+oration, *or t'e sole and e4clusi&e
use o* t'e casino or to 2e used to ser&ice t'e o+erations and reDuire,ents o* t'e casino,
s'all li;e)ise 2e totally e4e,+t *ro, t'e +ay,ent o* all custo,s duties, ta4es and ot'er
i,+osts, includin. all ;inds o* *ees, le&ies, assess,ents or c'ar.es o* any ;ind or nature,
)'et'er National or Eocal.
%. ?nco,e and ot'er ta4es. @AB
a. (ranc'ise Holder= No ta4 o* any ;ind or *or,, inco,e or ot'er)ise, as )ell as
*ees, c'ar.es or le&ies o* )'ate&er nature, )'et'er National or Eocal, s'all 2e
assessed and collected under t'is (ranc'ise *ro, t'e $or+oration5 nor s'all any
*or, o* ta4 or c'ar.e attac' in any )ay to t'e earnin.s o* t'e $or+oration, e4ce+t
a (ranc'ise >a4 o* *i&e /791 +ercent o* t'e .ross re&enue or earnin.s deri&ed 2y
t'e $or+oration *ro, its o+eration under t'is (ranc'ise. Suc' ta4 s'all 2e due and
+aya2le Duarterly to t'e National -o&ern,ent and s'all 2e in lieu o* all ;inds o*
ta4es, le&ies, *ees or assess,ents o* any ;ind, nature or descri+tion, le&ied,
esta2lis'ed or collected 2y any ,unici+al, +ro&incial, or national .o&ern,ent
aut'ority.
2. 0t'ers= >'e e4e,+tions 'erein .ranted *or earnin.s deri&ed *ro, t'e o+erations
conducted under t'e *ranc'ise s+eci*ically *ro, t'e +ay,ent o* any ta4, inco,e
or ot'er)ise, as )ell as any *or, o* c'ar.es, *ees or le&ies, s'all inure to t'e
2ene*it o* and e4tend to cor+oration/s1, association/s1, a.ency/ies1, or
indi&idual/s1 )it' )'o, t'e $or+oration or o+erator 'as any contractual
relations'i+ in connection )it' t'e o+erations o* t'e casino/s1 aut'ori3ed to 2e
conducted under t'is (ranc'ise and to t'ose recei&in. co,+ensation or ot'er
re,uneration *ro, t'e $or+oration or o+erator as a result o* essential *acilities
*urnis'ed andFor tec'nical ser&ices rendered to t'e $or+oration or o+erator.
>'e *ee or re,uneration o* *orei.n entertainers contracted 2y t'e $or+oration or
o+erator in +ursuance o* t'is +ro&ision s'all 2e *ree o* any ta4.
3. Di&idend ?nco,es. @AB Not)it'standin. any +ro&ision o* la) to t'e contrary, in t'e e&ent
t'e $or+oration s'ould declare a cas' di&idend, t'at +ortion o* t'e di&idend inco,e
corres+ondin. to t'e +artici+ation o* t'e +ri&ate sector s'all, as an incenti&e to t'e
2ene*iciaries, 2e su26ect only to a *inal inco,e ta4 rate o* ten /191 +ercent in lieu o* t'e
re.ular inco,e ta4 rates. >'e di&idend inco,e s'all not in suc' case 2e considered as
+art o* 2ene*iciaries: ta4a2le inco,e5 +ro&ided, 'o)e&er, t'at suc' di&idend inco,e s'all
2e totally e4e,+ted *ro, inco,e or ot'er *or,s o* ta4es i* in&ested )it'in si4 /61 ,ont's
*ro, t'e date t'e di&idend inco,e is recei&ed, in t'e *ollo)in.=
a. o+eration o* t'e casino/s1 or in&est,ents in any a**iliate acti&ity t'at )ill
ulti,ately redound to t'e 2ene*it o* t'e $or+oration or any ot'er cor+oration )it'
)'o, t'e $or+oration 'as any e4istin. arran.e,ents in connection )it' or
related to t'e o+erations o* t'e casino/s15
2. -o&ern,ent 2onds, securities, treasury notes, or de2entures5 or
c. #0? @AB re.istered or e4+ort"oriented cor+oration/s1.
4. Itili3ation o* (orei.n $urrencies. @AB >'e $or+oration s'all 'a&e t'e ri.'t and aut'ority,
solely and e4clusi&ely in connection )it' t'e o+erations o* t'e casino/s1, to +urc'ase,
recei&e, e4c'an.e and dis2urse *orei.n e4c'an.e, su26ect to t'e *ollo)in. ter,s and
conditions=
a. A s+eci*ic area in t'e casino/s1 or .a,in. +it s'all 2e +ut u+ solely e4clusi&ely *or
+layers and +atrons utili3in. *orei.n currencies5
2. >'e $or+oration s'all a++oint and desi.nate a duly accredited co,,ercial 2an;
a.ent o* t'e $entral #an;, to 'andle, ad,inistrati&e and ,ana.e t'e use o*
*orei.n currencies in t'e casino/s15
c. >'e $or+oration s'all +ro&ide an o**ice at casino/s1 e4clusi&ely *or t'e e,+loyees
o* t'e desi.nated 2an;, a.ent o* t'e $entral #an;, )'ere t'e $or+oration s'all
,aintain a dollar account )'ic' )ill 2e utili3ed e4clusi&ely *or t'e a2o&e +ur+ose
and t'e casino dollar treasury e,+loyees5
d. 0nly +ersons )it' *orei.n +ass+orts or certi*icates o* identity /*or Hon. Gon.
+atron only1 duly issued 2y t'e .o&ern,ent or country o* t'eir residence )ill 2e
allo)ed to +lay in t'e *orei.n e4c'an.e .a,in. +it5
e. 0nly *orei.n e4c'an.e +rescri2e to *or, +art o* t'e P'ili++ine ?nternational
Reser&e and t'e *ollo)in. *orei.n e4c'an.e currencies= Australian Dollar,
Sin.a+ore Dollar, Hon. Gon. Dollar, s'all 2e used in t'is .a,in. +it5
*. >'e dis2urse,ent, ad,inistration, ,ana.e,ent and recordin. o* *orei.n
e4c'an.e currencies used in t'e casino/s1 s'all 2e carried out in accordance )it'
e4istin. *orei.n e4c'an.e re.ulations5 and +eriodical re+orts o* t'e transactions in
suc' *orei.n e4c'an.e currencies 2y t'e $or+oration s'all 2e duly recorded and
re+orted to t'e $entral #an; t'ru t'e desi.nated A.ent #an;5 and
.. >'e $or+oration s'all issue t'e necessary rules and re.ulations *or t'e .uidance
and in*or,ation o* +layers Duali*ied to +artici+ate in t'e *orei.n e4c'an.e .a,in.
+it, in order to ,a;e certain t'at t'e ter,s and conditions as a2o&e set *ort' are
strictly co,+lied )it'.
S&'()*+ 1,. 0t'er $onditions. @AB
1. Place. @AB >'e $or+oration s'all conduct t'e .a,2lin. acti&ities or .a,es o* c'ance on
land or )ater )it'in t'e territorial 6urisdiction o* t'e Re+u2lic o* t'e P'ili++ines. W'en
conducted on )ater, t'e $or+oration s'all 'a&e t'e ri.'t to doc; t'e *loatin. casino/s1 in
any +art o* t'e P'ili++ines )'ere &esselsF2oats are aut'ori3ed to doc; under t'e $usto,s
and 8ariti,e Ea)s.
2. >i,e. @AB -a,2lin. acti&ities ,ay 2e 'eld and conducted at anyti,e o* t'e day or ni.'t5
+ro&ided, 'o)e&er, t'at in t'e +laces )'ere cur*e) 'ours are o2ser&e, all +layers and
+ersonnel o* t'e .a,2lin. casinos s'all re,ain )it'in t'e +re,ises o* t'e casinos
3. Persons allo)ed to +lay. @AB
a. >ourist andFor *orei.ners )'o are not residents o* t'e P'ili++ines5
b. Residents )it' a .ross inco,e *or t'e +re&ious year o* at least P7,., )'ic'
*act s'all 2e certi*ied to 2y t'e #ureau o* ?nternal Re&enue5 and
c. >'e nu,2er o* .uests o* t'e a2o&e",entioned Duali*ied +ersons s'all 2e li,ited to
t)o /%1 only5 +ro&ided, t'at t'e said .uests are at least %1 years o* a.e5
<. Persons not allo)ed to +lay. @AB
a. -o&ern,ent o**icials connected directly )it' t'e o+eration o* t'e -o&ern,ent or
any o* its a.encies5
2. 8e,2ers o* t'e Ar,ed (orces o* t'e P'ili++ines, includin. t'e Ar,y, Na&y, Air
(orce or $onsta2ulary5 and
c. Persons under %1 years o* a.e or students o* any sc'ool, colle.e or uni&ersity in
t'e P'ili++ines.
(ro, t'ese are e4ce+ted t'e +ersonnel e,+loyed 2y t'e casinos, s+ecial .uests, or
t'ose )'o at t'e discretion o* t'e 8ana.e,ent ,ay 2e allo)ed to stay in t'e
+re,ises.
5. 0+eration o* related ser&ices. @AB >'e $or+oration is aut'ori3ed to o+erate suc'
necessary and related ser&ices, s'o)s and entertain,ent. Any inco,e t'at ,ay 2e
reali3ed *ro, t'ese related ser&ices s'all not 2e included as +art o* t'e inco,e o* t'e
$or+oration *or t'e +ur+ose o* a++lyin. t'e *ranc'ise ta4, 2ut t'e sa,e s'all 2e
considered as a se+arate inco,e o* t'e $or+oration and s'all 2e su26ect to inco,e ta4.
TITLE V #$% GOVERNMENT ADIT
S&'()*+ 1-. Auditor. @AB >'e $o,,ission o* Audit or any .o&ern,ent a.ency t'at t'e 0**ice o*
t'e President ,ay desi.nate s'all a++oint a re+resentati&e )'o s'all 2e t'e Auditor o* t'e
$or+oration and suc' +ersonnel as ,ay 2e necessary to assist said re+resentati&e in t'e
+er*or,ance o* 'is duties. >'e salaries o* t'e Auditor or re+resentati&e and 'is sta** s'all 2e
*i4ed 2y t'e $'air,an o* t'e $o,,ission on Audit or desi.nated .o&ern,ent a.ency, )it' t'e
ad&ice o* t'e #oard, and said salaries and ot'er e4+enses s'all 2e +aid 2y t'e $or+oration. >'e
*unds o* t'e $or+oration to 2e co&ered 2y t'e audit s'all 2e li,ited to t'e 79 *ranc'ise ta4 and
t'e 79 o* t'e .ross earnin.s +ertainin. to t'e -o&ern,ent as its s'are.
TITLE VI #$% E.EMPTION FROM CIVIL SERVICE LAW
S&'()*+ 16. E4e,+tion. @AB All +osition in t'e $or+oration, )'et'er tec'nical, ad,inistrati&e,
+ro*essional, or ,ana.erial are e4e,+t *ro, t'e +ro&isions o* t'e $i&il Ser&ice Ea), rules and
re.ulations, and s'all 2e .o&erned only 2y t'e +ersonnel ,ana.e,ent +olicies set 2y t'e #oard
o* Directors. All e,+loyees o* t'e casinos and related ser&ices s'all 2e classi*ied as
C$on*identialB a++ointee.
TITLE VII #$% TRANSITOR/ PROVISIONS
S&'()*+ 17. >ransitory Pro&isions. @AB >'e +ro+erties, ,onies, assets, ri.'ts, c'oses in action,
o2li.ations, lia2ilities, records and contracts o* t'e P'ili++ine A,use,ent and -a,in.
$or+oration /PA-$0R1 under Presidential Decree Nos. 16!"A, 16!"#, 16!"$, 1399 and
163% s'all continue to 2e &ested in and assu,ed 2y t'e $or+oration, +ursuant to t'is Decree.
Ei;e)ise, all +ersonnel o* PA-$0R under t'e a2o&e",entioned Decree s'all 2e a2sor2ed 2y t'e
$or+oration under t'is Decree and s'all re,ain in t'eir res+ecti&e +ositions )it'out de,otion in
ran; or reduction in salary= +ro&ided, t'at e,+loyees )'o s'all 2e se+arated *ro, t'e
$or+oration s'all 2e .i&en at least one ,ont' .ratuity *or e&ery *ull year o* ser&ice, a *raction o*
o&er si4 ,ont's 2ein. considered a *ull year, 2ut in no case ,ore t'an t)enty"*our ,ont's
salary, in addition to all 2ene*its to )'ic' t'ey ,ay 2e entitled under e4istin. la)s, rules and
re.ulations.
TITLE VIII #$% REPEALING, SEPARABILIT/ AND EFFECTIVIT/ CLASES
S&'()*+ 18. Re+ealin. $lause. @AB All la)s, decrees, e4ecuti&e, orders, ad,inistrati&e orders,
rules or re.ulations, inconsistent 'ere)it' are 'ere2y re+ealed, a,ended or ,odi*ied
accordin.ly.
S&'()*+ 19. Se+ara2ility $lause. @AB >'e +ro&isions o* t'is Decree are 'ere2y declared to 2e
se+ara2le, and in t'e e&ent any one or ,ore o* suc' +ro&isions are 'eld unconstitutional, t'e
&alidity o* t'e ot'er +ro&isions s'all not 2e a**ected.
S&'()*+ 20. E**ecti&ity. @AB >'is Decree s'all ta;e e**ect i,,ediately.
Done in t'e $ity o* 8anila, t'is 11t' day o* July, in t'e year o* 0ur Eord, nineteen 'undred and
ei.'ty"t'ree.