REGULATORY FRAMEWORK FOR E-SABONG OFF-COCKPIT BETTING STATION

(OCBS)

Increasing foot traffic in casinos and our various gaming stations has proven itself to be
a very effective marketing tool in bolstering our revenue-generating capacity. Establishing
activities other than what is currently offered thereat, encourages people to visit and
explore our gaming sites, thereby creating potential clients.

Also, as we are seeing lesser capacities being allowed in our stations, not only because
of the pandemic, but also because of a portion of our clients now opting to play using their
mobile devices via our online games, more and more spaces are now being freed up at
the stations. Allowing these spaces to be used by other gaming operators will provide our
site operators additional income stream to augment their income and help them recover
faster from the economic hardships they encountered during the pandemic.

Filipinos are generally conservative when it comes to their business dealings. This is more
evident on how they perceive the safety of using mobile and cashless means in their day-
to-day transactions. Connectivity is also a major concern. The “trust issues” and the
reliability of the internet services add to the discomfort of gaming patrons with digital
transactions. They prefer to play inside a gaming facility where they can easily cash-in,
bet and withdraw their money. This gives the assurance that they can engage physically
with in-house representatives to address their concerns promptly.

In view of the foregoing, the following are laid down as the Regulatory Framework for E-
Sabong Off-Cockpit Betting Stations (OCBS).

I. DEFINITIONS

a. Off-Cockpit Betting Station

Off-Cockpit Betting Station (OCBS) refers to a physical site where a player

may register, view live stream of cockfights, wager, and conduct other
activities related to E-Sabong, as may be allowed. This may either be
located within an existing licensed Casino, Integrated Resort, E-Bingo and
E-Games facilities or a new gaming site specifically established for this
purpose.

In cases where a new gaming site will be established, it shall be subject to

the existing regulations on gaming site locations of E-Bingo and E-Games
Stations.
REGULATORY FRAMEWORK FOR E-SABONG OFF-COCKPIT BETTING STATION (OCBS)
Page 2

b. Off-Cockpit Betting Station Host

Off-Cockpit Betting Station Host refers to one who shall set-up an Off
Cockpit Betting Station in an existing licensed Casino, Integrated Resort, E-
Bingo or E-Games facilities or a new gaming site specifically established for
this purpose. The Host, may either be the E-Sabong licensed operator, or
a third party who shall source live stream of cockfights from a licensed E-
Sabong operator.

II. ACCREDITATION FOR E-SABONG OFF-COCKPIT BETTING STATION

i. The OCBS Host (Applicant) must seek accreditation for each proposed site
to be established from the E-Sabong Licensing Department (ESLD).
ii. The Applicant must submit a copy of a duly notarized Memorandum of
Agreement (MOA) or Lease Contract with the company/entity owning the
Casino, E-Games, E-Bingo Gaming Site or private space indicating the use
of the said facility as an OCBS.
iii. The Applicant must submit a City/Municipal Resolution, i.e. RONO, or Letter
of No Objection (LONO) particularly issued for the conduct of E-Sabong
gaming activities for each proposed OCBS.
iv. Proposed OCBS not located within an existing licensed casino, integrated
resort, E-Bingo and E-Games facilities must comply with the regulations on
location and physical building/site requirements of PAGCOR for E-Bingo
and E-Games stations.
v. The Applicant must comply with all the necessary documentary and
financial requirements before PAGCOR may issue an accreditation for each
proposed OCBS.

III. NON-FINANCIAL REQUIREMENTS

1. Letter of Intent addressed to the Chairman and Chief Executive Officer,

PAGCOR.
2. Duly accomplished application/accreditation/registration form (ESLD Form
171) and other applicable ESLD Forms.
3. Letter of No Objection (LONO) from the LGU allowing the conduct of E-Sabong
gaming activities in the proposed OCBS.
4. Copy of the Memorandum of Agreement or Lease Contract between the OCBS
Host and the company/entity owning the proposed gaming site.
5. If a third-party, a Memorandum of Agreement (MOA) with a licensed E-Sabong
Operator from where the live stream of cockfights shall be sourced.
6. If a third-party, proof of its registration with the Anti-Money Laundering Council
(AMLC).
REGULATORY FRAMEWORK FOR E-SABONG OFF-COCKPIT BETTING STATION (OCBS)
Page 3

IV. FINANCIAL REQUIREMENTS

a. Accreditation & Regulatory Fees

Amount
E-Bingo/E-
Integrated Casino
Accreditation Fee* Games and
Resorts Filipino
(Including Processing, New Sites
Inspection, Monitoring
and Accreditation Php Php Php
Certificate Fees) 1,000,000.00 500,000.00 100,000.00
*Per E-Sabong Betting Station

Regulatory Fee**
25% of the commission/rake earned by the
** Applicable only to Betting OCBS
Stations not owned by a
licenced E-Sabong Operator