MARCH 11, 2012 DATE

NR # 2675
REF. NO.

House passes bill amending PAGCOR charter

The House of Representatives has approved on third and final reading a bill reverting to Congress the authority of granting legislative franchise to operators of games of chance, games of cards and game of numbers. House Bill 5682, authored by Reps. Pedro Romualdo (Lone District, Camiguin), Marcelino Teodoro (1st District, Marikina City), Giorgidi Aggabao (4th District, Isabela), Arturo Robes (Lone District, San Jose Del Monte City) and Jeci Lapus (3rd District, Tarlac), prohibits the Philippine Amusement and Gaming Corporation (PAGCOR) from issuing casino gaming and other similar licenses to operate without legislative franchises. Republic Act 9487 of 2007 has extended PAGCORS franchise for another 25 years and granted authority to operate and license gambling casinos, gaming clubs, and other similar recreation or amusement places and gaming pools which consequently, delegated more power compared to its original mandate that of operating and maintain casinos. Since then, PAGCOR has issued a number of licenses to various companies to operate casinos and gaming clubs in different parts of the country. The grant of the delegated authority in licensing, the mandates of Congress in terms of franchising relatively diminished, Romualdo said. A consequence also is the extension of the franchise of PAGCOR to its affiliates and licensees. PAGCOR has encroached with Congressional mandates as provided by the 1987 Constitution, Romualdo added. According to Romualdo, the measure seeks to rectify the situation and shall revoke the authority of PAGCOR to license casino and gaming club operators. Romualdo said the measure shall give back to Congress its supervisory oversight with PAGCOR by mandating contracts entered by PAGCOR, in whatever form, will be subject to the approval of the legislative body. The measure shall also grant PAGCOR the authority to maintain, operate and regulate the operation of gambling casinos, gaming clubs, Internet, online gaming and other similar gambling enterprises, Romualdo said. But, PAGCOR shall requires the licensee to secure from Congress a legislative franchise to operate gambling casinos, gaming clubs and other similar gambling enterprise prior to issuance of a PAGCOR license to operate, Romualdo said. Likewise, PAGCOR shall inform Congress of any modification on ownership and capitalization and structure of its affiliate entities, Romualdo added. The measure mandates licensees to obtain legislative franchise within three years from the effectivity of the proposed Act; non-compliance shall be subject to cancellation of license issued by PAGCOR. (30) jsc