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GUIDE FOR THE ORIENTATION MODULE ON THE ROLE OF PAGCOR

IN THE PHILIPPINE GAMING INDUSTRY AND GEL

This presentation primarily aims to orient you on the role of PAGCOR in the gaming
SLIDE 1 industry and the importance of the Gaming Employment License in the gaming
workforce.
At the end of the session, you will be able to
1. Gain knowledge on the gaming sector and its evolution as a holistic and
world-class entertainment provider;
SLIDE 2
2. Understand PAGCOR’s role as a regulator of all gaming establishments
nationwide to include licensed casinos, poker clubs, slot machine arcades, e-
games, among others;
3. Appreciate the casino industry’s advocacy in the areas of corporate social
responsibility, problem gambling and responsible gaming; and
SLIDE 3
4. Increase awareness on the rationale, requirements and processes of the
Gaming Employment License (GEL)
SLIDE 4 Let us begin with the topic on Basic Understanding of the Gaming Industry.
SLIDE 5 We often hear from the daily news about gambling dens being raided by authorities.
Oftentimes, we read about it from the daily tabloids and broadsheets. But have you
SLIDE 6 ever asked yourselves upon hearing these news, “Why do authorities raid these
gambling dens? Why is gambling prohibited in the Philippines?
We know that these activities are not allowed. But not most of us know why these are
illegal. Some says it is because it is taboo in our culture, because of our religion or it
SLIDE 7
is simply not allowed by law. But when asked what particular law or laws pertain to
gambling prohibition in the Philippines, only few can provide the answers.
SLIDE 8 “Why is gambling prohibited in the Philippines?”
The reason why gambling is prohibited or illegal is because of Philippine Congress.
Congress has passed various laws related to gambling including the Articles 195-199
of the Revised Penal Code which pertains to the forms of gambling and betting.
SLIDE 9 Presidential Decree 483 related to Game Fixing; Presidential Decree 510 related to
Slot Machines. But the most significant law that was passed by Congress related to
gambling is Presidential Decree 1602 which prescribed stiffer penalties on illegal
gambling.
Under P.D. 1602, the games of blackjack, poker, baccarat, high and low, slot
SLIDE 10 machines, roulette and pinball are illegal. But what is common among these games?
These are all casino games.
SLIDE 11 Since the LAW prohibits gambling….
…. only the LAW can make exceptions to the prohibition. Therefore, the Philippine
Congress passed Presidential Decree 1869 commonly known as the PAGCOR
SLIDE 12 CHARTER. This law aims to centralize and integrate the right and authority to
operate and conduct games of chance into one corporate entity. And that corporate
entity is PAGCOR.
However, in 2007, the PAGCOR Charter was amended through Republic Act No.
9487. The Corporation is hereby granted another period of twenty-five (25) years to
SLIDE 13 exercise the rights, privileges and authority to operate and license casinos. But before
we discuss PAGCOR and its powers, let us first have the definition of terms that we
will encounter during this orientation.
Let us now have some Q and A’s.
1. What industry are you getting into? Well, it is the gaming industry, right?
SLIDE 14
2. How do we call the people who work in the gaming industry? Gaming
employees, right?
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Then why not gambling industry? Why not gambling employees? How are these two
words related?
SLIDE 15
Let’s take a look at how gambling and gaming are defined.
Wikipedia defines gambling as the wagering of money or something of material value
(referred to as "the stakes") on an event with an uncertain outcome with the primary
SLIDE 16
intent of winning additional money and/or material goods. Typically, the outcome of
the wager is evident within a short period.
On the other hand, USlegal.com defined gambling as accepting, recording, or
SLIDE 17 registering bets, or carrying on a policy game or any other lottery, or playing any
game of chance, for money or other thing of value.
How about gaming? How is gaming defined?

As explained by Wikipedia, the term gaming in the context of gambling typically


refers to instances in which the activity has been specifically permitted by law. The
two words are not mutually exclusive; i.e., a “gaming” company offers (legal)
SLIDE 18 “gambling” activities to the public and may be regulated by one of many gaming
control boards or government entity, for example, PAGCOR. However, this
distinction is not universally observed in the English-speaking world. For instance, in
the UK, the regulator of gambling activities is called the Gambling Commission (not
the Gaming Commission). Also, the word gaming is frequently used to describe
activities that do not involve wagering or betting.

Therefore, based on the definitions of gambling and gaming and on the laws that we
have here in the Philippines, gambling and gaming may be used interchangeably.
Gambling can be legal or illegal based on existing laws. Gaming on the other hand is
used for marketing purposes. In whatever ways these words are defined and
SLIDE 19
differentiated, what is important is how we use them in the Philippine set-up. In order
to make it more acceptable to the Philippine culture, which one is much preferred for
use? Gaming, right?! And in line with our efforts to professionalize the business as
well as its workforce, we are called gaming employees.

What is a gaming establishment?


As defined by 'Lectric Law Library's Lexicon,
GAMBLING/GAMING ESTABLISHMENT refers to any common establishment
SLIDE 20
operated for the purpose of gaming or gambling, including accepting, recording, or
registering bets, or carrying on a policy game or any other lottery, or playing any
game of chance, for money or other thing of value.
SLIDE 21 In our local set-up, it includes licensed casinos, slot machine arcades,
SLIDE 22 poker clubs,
e-games café and internet sports betting stations.

SLIDE 23 We normally call these gaming establishments as casinos and gambling venues. But
similarly, as we prefer using gaming rather than gambling, you will commonly hear
gaming establishments instead of casinos in our discussions.
As we move on, do you have any idea when and where gaming activities started?
Well, let’s have a brief look at the history of gaming starting from the
SLIDE 24 1. Early Period
2. Las Vegas Era
3. Macau era
SLIDE 25 Let us now proceed with the history of the Philippine gaming industry.

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Here in the Philippines, the emergence of casinos in the Philippines dates back as
early as 1938. The first gaming casino in the country was established by two
SLIDE 26 American businessmen-sportsmen, Ted Lewin and Paul MacDonald. After World
War II Lewin and MacDonald employed Carlos Magdaluyo who became one of the
pioneers and pillar of PAGCOR.
Filipinos were also responsible in teaching the Macau tycoons Teddy Yip and Stanley
Ho of the intricacies of Casino Operations. Mid 60’s and early 70’s there were 22
SLIDE 27 casinos along Dewey Boulevard owned and operated by Filipinos. Roxas Boulevard
casino operations ended and their operators detained at the start of the Martial Law
regime.
SLIDE 28 In 1972, Dewey Boulevard casino operations ended and the operators were detained.
The initial gaming operations were conducted aboard an FS type vessel named M/S
SLIDE 29
Philippine Tourist that opened to the public on December 31, 1975.
Noted problems prompted the casino shutdown in October 1976 wherein change in
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administration and procedures were prioritized before reopening.
PAGCOR was created in 1977. A government corporation that was to regulate ten
SLIDE 31 gaming casinos in the pre-EDSA era. PAGCOR had only 4 employees and contracted
the services of the Philippine Casino Operators Corporation (PCOC).
Under PCOC, casino operations were contracted to 18 gaming managers from Macau
SLIDE 32
headed by Paulo Ho.
With no gaming resources, PCOC turned around and contracted the Manila Bay
Enterprises, Inc. to provide the personnel and equipment. PCOC again contracted the
Provident International Resource Corporation (PIRC) to provide the gaming
SLIDE 33
premises. Some 200 National Intelligence Service Administration (NISA) and
Presidential Security Group (PSG) personnel were assigned as security staff at the
various branches of the casinos.
In 1978, a bigger ship, named M/S First Sky arrived and the M/V Philippine Tourist,
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re-baptized as Philippine Tourist II, was moved to Cebu.
SLIDE 35 In 1979, M/S Philippine Tourist II was destroyed by fire.
The incident prompted PCOC to transfer the casino to the Philippine Village Hotel in
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Pasay City.
In October 1984, the Philippine casino transferred to its new building solely designed
SLIDE 37 as a casino infront of Manila Internation Airport. There were 142 gaming tables and
hundreds of slot machines in the gaming area.
When the new government took over in 1986, President Aquino took over to manage
PAGCOR and appointed a new set of board. President Corazon C. Aquino issued
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Executive Order 260 on July 25, 1987 amending the provisions of Presidential Decree
1869.
Thus, New PAGCOR was born.The Philippine Amusement and Gaming Corporation
(PAGCOR) is a
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 100 percent government-owned and controlled corporation that runs under the
direct supervision of the Office of the President.
SLIDE 40 Under its Charter, PAGCOR was given a three-pronged mandate.
First mandate is to regulate, operate, authorize and license games of chance, games of
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cards and games of numbers, particularly casino gaming in the Philippines;
2. Generate revenues for the Philippine Government’s socio-civic and national
SLIDE 42
development programs;
SLIDE 43 3. Help promote the Philippine tourism industry.
In June 2007, Republic Act No. 9487 was passed by the Philippine Congress, which
SLIDE 44 had the following provisions:
 extending the corporate life of the state-run gaming firm by 25 years
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PAGCOR can enter into agreements, including joint venture, with any person, firm,
SLIDE 45
association or corporation.
Requirement to obtain consent of the local government authority that has territorial
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jurisdiction over the area chosen as site for any of PAGCOR’s operations.
SLIDE 47 Exclusion of jai alai from PAGCOR operations; and
Delimitation of regulatory authority and power over gaming activities covered by
SLIDE 48
other existing franchises, regulatory bodies or special laws.
PAGCOR earnings are distributed as follows:
 5 percent of winnings goes to the BIR (franchise tax)
 50 percent of the 95 percent balance goes to the National Treasury (National
Government’s mandated income share)
 5 percent of what remains goes to the Philippine Sports Commission (sports
development programs)
 1 percent of the net income goes to the Board of Claims, an agency under the
Department of Justice, which compensates victims of wrongful detention and
prosecution;
SLIDE 49  Cities hosting PAGCOR casinos are given fixed amount for their respective
community development projects;
 PAGCOR has also been tapped to provide funds for the implementation of
vital laws such as the Early Childhood Care and Development program which
basically promotes pre-school education and the Sports Incentives and
Benefits Act which provides monetary rewards to athletes who win in
international sports competitions.
 PAGCOR’s Operating Expenses
 The remaining balance of PAGCOR’s income is remitted to the Social Fund
to sustain the priority projects of the Office of the President.
And in order to further boost its revenue potential, PAGCOR has put up the
SLIDE 50
Entertainment City Project.
Its proponents include Bloomberry Resorts and Hotels, Inc. with the Solaire Manila
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project to be fully completed by 2014,
SLIDE 52 SM Consortium with the Belle Grande Project to be completed by 2014,
Tiger Resort Leisure and Entertainment Inc. with Manila Bay Resorts Project to be
SLIDE 53
completed by the end of 2016 and
Travellers International Hotel Group, Inc. with the Resorts World Bayshore to be
SLIDE 54
fully completed by the 4th quarter of 2016.
Under its new management, PAGCOR is undertaking more relevant and high impact
SLIDE 55
CSR projects.
Apart from its mandated contributions to government, one of the biggest projects of
SLIDE 56 PAGCOR is the construction of 1,000 classrooms nationwide through the “Matuwid
na Daan sa Silid-Aralan Project” in partnership with the Department of Education.
Dubbed as P-noy Bayanihan project, PAGCOR entered into a partnership
coordination with the Department of Education (DepEd), Technical Education and
Skills Development Authority (TESDA) and Department of Environment and Natural
Resources (DENR) to manufacture school desks out of confiscated logs. Thousands
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of school desks were distributed to various public schools in Metro Manila, Agusan
del Norte, Agusan del Sur and CARAGA. PAGCOR also donated some 600 units of
two and three-seater school desks made from old slot machine stands to various
public elementary schools in Cavite and Taguig City.
PAGCOR also supports the Kapit-Bisig Para sa Ilog Pasig (KBPIP) in collaboration
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with ABS-CBN Foundation which aims for the rehabilitation of Pasig River.
SLIDE 59 PAGCOR has also initiated the holding of an annual Christmas gift-giving tradition

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for the marginalized sectors. Dubbed the “Pamaskong Handog ng PAGCOR”, the
project brings cheer to beneficiaries of charitable organizations nationwide and
fulfills their Christmas wish list. PAGCOR has served thousands of beneficiaries
from various charitable institutions catering to the needs of the abandoned,
handicapped, orphaned, mentally challenged and other less privileged members of the
society.
More than 19,000 individuals from the less privileged communities in Metro Manila,
Bulacan, Davao, Bicol Region, Pampanga and Tagaytay got access to free healthcare
SLIDE 60 services through the medical and the medical missions conducted by PAGCOR.
PAGCOR also conducted relief and rescue operations from victims of natural
disasters in Metro Manila, Cagayan de Oro, Iligan and other parts of the country.
PAGCOR addressed the nutritional needs of underweight children from community-
based day care centers and public elementary schools where Casino Filipino branches
SLIDE 61
operate. A significant number of children benefitted from the project. They were able
to reach ideal weight after four months of feeding sessions.
PAGCOR strengthened its commitment to grassroots sports by turning over a P20
million financial aid to the Philippine Football Federation’s “Kasibulan: 2012
Grassroots Development Program”. The funding will help popularize football
nationwide, discover and develop potential young football players to be known as the
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“Batang Azkals” through a seven-year grassroots development program. This is not
the first time that PAGCOR funded a project related to the promotion of the game of
football. In 2011, the agency allocated a P2 million financial assistance to Team
Azkals relative to the team’s participation in several competitions.
SLIDE 63 Another CSR Project of PAGCOR is Responsible Gaming.
SLIDE 64 Gaming is comparable to leisure activities such as watching movies….
SLIDE 65 …..attending athletic events,
SLIDE 66 …..eating out,
SLIDE 67 ….going to bars for gimmicks.
These things are done recreationally without adverse consequences. However, for
SLIDE 68 some, gaming is no longer done for entertainment, becoming something they need to
do rather than something they want to do.
A group of expert writers and psychologists specializing on various social, emotional,
physical and psychological issues related to gambling, defined responsible gaming as
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policies and practices designed to prevent and reduce potential harms associated with
gambling.
According to the Guide to Responsible Gaming produced by the American Gaming
Association (AGA), there are four characteristics of responsible gaming.
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1. Responsible gamers/gamblers understand that gaming by its nature entails risk and
that the odds of winning are with the house.
SLIDE 71 2. Responsible gaming is done socially, with family, friends or colleagues.
3. Responsible gaming is done for limited amounts of time, both in frequency and
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duration.
SLIDE 73 4. Responsible gaming always had predetermined acceptable limits for losses.
And if gaming is not controlled, various consequences may happen to anyone,
SLIDE 74 socially, financially, emotionally and physically. These consequences may cost a
person his/her family, work, sanity, relationships and worst life.
On the part of the licensed gaming establishments and PAGCOR as well, these are
just a few of the programs being practised in relation to responsible gaming:
SLIDE 75 1. Exclusion Program which can be in a form of self-banning and/or upon
request by kin/relatives.
2. No minors and person below 21 years of age are admitted to the gaming
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establishments.

Each of the gaming establishments has its own sets of responsible gaming programs.
In other places, most of the gaming establishments implement more aggressive
programs such as payment of entry levy for local residents in Singapore. In the US
and Macau, they have created a Council for Responsible Gaming to provide support
for problem gamblers. A 24/7 hotline is made available to anyone in need of help
because of their gaming problems.
As mandated by law, PAGCOR has various regulatory powers. Let us take a look at
SLIDE 76
the commonly regulated aspects of the gaming industry.
 The number of gaming establishments in a given jurisdiction;
 Where they may be located;
SLIDE 77  Who may and may not operate them;
 Who may and may not play at them;
 What other entertainment may be offered;
 The age at which people may play;
 The kind of gaming products that may be offered;
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 The hours that the gaming establishments may operate;
 The security and surveillance they may provide;
 How they may and may not market themselves and their products;
SLIDE 79  The procedures they must follow to prevent money laundering;
 The forms of consumer protection that must be availabl;
 What steps they take to discourage people from becoming problem gamblers
and what help is available for those who develop the problems.
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 Presence of training facilities, qualifications of trainers, curriculum content
and trainee skills development.
And one of the gaming aspects regulated by PAGCOR is who may and may not
participate in the gaming industry. This is monitored by PAGCOR through the
implementation of the Gaming Employment License or commonly known to us as the
SLIDE 81 GEL.
How many here is new in the gaming industry? How many here have already joined
the gaming workforce years back? Most of you probably are asking, “Why GEL?
This is just an additional expense on our part! What benefits do we get from this?
Well, before we answer that, let us first have a review of what we’ve had earlier about
PAGCOR. So far we have established the following:
1. That gaming operations are prohibited in the Philippines.
2. The only exception is that Gaming Operations can only be done with the
SLIDE 82
authority from the Government.
3. The Government gives authorization through PAGCOR.
4. And by law, PAGCOR regulates and gives permission to participate in the
gaming industry.
But is it legal for PAGCOR to implement licensing system to gaming employees?

SLIDE 83 Under PAGCOR Charter (P.D. 1869), businesses primarily engaged in gambling
operations be affiliated with PAGCOR, and become subject to its regulatory powers
with respect to operation, capitalization and organizational structure.
PRESIDENTIAL DECREE NO. 1869
Section 11. Scope of Franchise.
To do and perform such other acts directly related to the efficient and successful
SLIDE 84
operation and conduct of games of chance.

Therefore, it is part of the mandate of PAGCOR to ensure the integrity of the gaming
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workforce.

For all casinos in the Philippines, it is clear that they are under the watch of
PAGCOR. But what does this mean for the employees in the gaming industry? This
means that working in the gaming industry is a Privilege primarily because it is
prohibited. And to be able to participate in the industry, we should adhere to the
entity regulating the gaming industry, which is PAGCOR.
Is it clear to you the concept of PRIVILEGE? Do you know its difference from
SLIDE 85
RIGHTS?
To illustrate clearly the meaning of a PRIVILEGE, here is an analogy. A privilege is
likened to a gift. Nobody is obliged to give someone a gift. And when giving a gift,
SLIDE 86 we get to choose the recipient as well as the gift that we would want to give. And in
some instances, when we feel that the recipient does not anymore deserve the gift, we
can take it away from him/her.
Similarly, since working in the gaming industry is a PRIVILEGE, PAGCOR as a
regulator could:
SLIDE 87 1. choose participants in the industry
2. choose privilege granted
3. can take away the privilege
SLIDE 88 Let’s now go to the details of Gaming Employment License (GEL).
What is a Gaming Employment License (GEL)?
A Gaming Employment License (GEL) is a written document issued by PAGCOR
granting a person the privilege to be employed as a gaming employee within the
SLIDE 89
Philippine jurisdiction.

Licensure may be revoked by PAGCOR for violations.


Who are the persons considered as GAMING EMPLOYEES?
 Any person, at least 21 years of age;
SLIDE 90  currently working or considered for employment in a specific capacity
by any gaming establishment in the Philippines;
 MUST secure a gaming employment license.
Who are eligible to apply for a license?
Eligible applicants of licensees;
Current PAGCOR employees;
SLIDE 91
Current employees of licensees;
Foreign nationals;
Resigned/retired Gaming Employees (provided they left with a clean record).
These are the GEL Classifications:

Local Managerial - Class A


Local Supervisory - Class B
Local Rank and File - Class C
Support Personnel - Class D
Foreign Managerial - Class E
SLIDE 92
Foreign Non-Managerial - Class F
Managerial (BEGS)* - Class G
Supervisory (BEGS)* - Class H
Rank and File (BEGS)* - Class I
On-the-Job Trainee - Class J

* BEGS stands for Bingo /E-games/Internet Sports Betting Station


SLIDE 93 Why GEL?
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 Ensures capacity and integrity of employees who will be working in
gaming establishments.
 Currently being used in Nevada, New Jersey, Mississippi, California,
Australia, and other major gaming jurisdictions.
 For global competitiveness
Why is GEL important?
Why do you think gaming patrons come to gaming establishments to bet their money
and play? Do you think they will come to play in any of the gaming establishments if
they have doubts on the way casino games are dealt? If they don’t have TRUST on
the people dealing the games?
SLIDE 94 Just like in the banking system, people entrust their hard-earned money to banks for
savings and/or investments because they trust the institution. This is the very same
“currency” used in every gaming establishment in the world.

GEL elicits TRUST from the public knowing that its holder has something to lose and
that he/she has gone through the regulator’s screening.

SLIDE 95 GEL makes it easy to exclude unwanted elements from the industry.
The GEL establishes the legal bind between the licensees’ employees and PAGCOR
SLIDE 96
as the regulator. Legal bind enables us to exercise CONTROL and DISCIPLINE.
Let us now move on to the WHEN of GEL.
When do you need the GEL and when does it expire?
A gaming employee must have a GEL from his/her first day of work in any of the
gaming establishments.
SLIDE 97
Licenses are valid for 3 years and shall expire on the applicant’s birth date on the 3rd
year with the exception for Support and BEGS* personnel applications, which expire
within one year.
Licenses may be renewed 30 days prior to date of expiration.
And WHERE can one apply for GEL and HOW?

A gaming employee may apply at PAGCOR by getting Forms from PAGCOR


SLIDE 98 HOUSE or the Internet. Application Form will be given by PAGCOR HRDD or can
be downloaded from PAGCOR’s website. The applicant MUST bring with him/her
the endorsement coming from his/her employer for the application to be received and
processed.
The documentary requirements include:
- Birth Certificate (NSO Certified);
- NBI Clearance;
- Certified true copy of transcript of school records;
- “Fit to work” clearance from a licensed medical practitioner; and
SLIDE 99
- Negative Drug Test Clearance;

After submitting all these requirements, can PAGCOR still ask for additional
documents? Yes, because PAGCOR reserves the right to request for additional
documents to support your application for GEL.
Additional documentary requirement for managerial employees include the Income
SLIDE 100
Tax Return (ITR) Form 1701 or 2316.
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For foreign nationals, documentary requirements include:
SLIDE 101 1. a Valid PASSPORT from country of origin
2. valid EMPLOYMENT PERMIT;
3. Valid WORKING VISA
4. “Fit to work” clearance from a licensed medical practitioner;
SLIDE 102
5. Negative Drug Test Clearance ; and
6. Other documents that PAGCOR may deem appropriate.
Here is the flow chart on how to apply for GEL.
First, a gaming employee must know his/her classification, class A to J. After
submitting all the requirements according to classification and after PAGCOR has
checked the completeness of the documents, a Temporary Gaming Employment
License valid for 90 days will be issued. If incomplete, the submitted documents will
be returned back to the employee for completion.

SLIDE 103 PAGCOR will then evaluate and render a decision within 90 days. If extension period
is needed by PAGCOR for the processing of GEL, the temporary GEL will be
extended for another 90 days.

After the evaluation period, PAGCOR will now approve the application, issues the
regular GEL and revokes the temporary GEL.
On the other hand, if PAGCOR denies the application, the applicant files a written
request for reconsideration within 30 days.
But what are the grounds for the Denial/Revocation of GEL?
1. The documents or information provided is fictitious, false or misleading.
SLIDE 104 2. The employee has been dismissed for just causes under the law.
3. Employee is convicted of any crime which is inimical or detrimental to the
integrity of gaming.
1. Tested positive for any dangerous drugs.
SLIDE 105
2. Being identified as a member or associate of organized crime.
SLIDE 106 Why is GEL important?
SLIDE 107 1. GEL professionalizes the gaming industry just like any other professions.
2. GEL being a government-issued ID, can serve as a Valid Identification. It may
SLIDE 108 be used in various transactions just like our SSS ID, voter’s ID, driver’s
license and the like.
3. Since employment history is documented, it is easier to show experience and
SLIDE 109
expertise.
4. It can also be used as credentials both here and abroad. Being a GEL holder
SLIDE 110
would mean being able to pass through PAGCOR’s screening.
Restriction to GEL holders:
SLIDE 111 1. Violations of the Company Operating Rules and Guidelines (ORG) may lead
to GEL revocation.
As a recap,
1. participating in the Gaming Industry is a PRIVILEGE.
2. Government grants privilege to work thru PAGCOR.
SLIDE 112
3. PAGCOR regulates the privilege thru the issuance and renewal of the license.
4. The Gaming Employment License (GEL) encourages trust in the industry and
gives credibility to all gaming employees.
THANK YOU!
SLIDE 113
CONGRATULATIONS and WELCOME TO THE WORLD OF GAMING!

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