Philippines Presidential Decree 1067-a
Presidential Decree 1067-a (PD 1067-a) is the Philippine law that created the Philippine Amusement and Gaming Corporation (PAGCOR) and defined its powers and functions. It was passed into law in 1977 and with its passing made PAGCOR the government agency in charge of regulating the gambling industry in the Philippines. The government agency was empowered to generate sources of revenue to fund infrastructure, provide aid during times of natural disasters, expand tourism throughout the country, and to eradicate illegal gambling activities. PAGCOR’s reign was extended in 2007 by the Republic Act 9487, the government agency was given another 25 years to control the gambling industry and provide funds for the Philippine government.
PAGCOR’s Corporate Powers
Since the Philippine Amusement and Gaming Corporation (PAGCOR) is a corporation they are giving certain powers to enforce their rules and regulations. By PD 1067-a PAGCOR can prescribe its own by-laws. These Philippine gambling laws are to be used to enforce regulations of the gaming industry and ensure the integrity of the corporation. They can also incorporate a corporate seal, use contracts, and sue or be sued. Since they are technically a government agency, the incorporation protects the centralized government from being sued based on operations of PAGCOR giving this status. They can also use their funds to invest in activities related to its principal operations. The agency could invest in applications that they as see beneficial to their industry.
PAGCOR’s Board Of Directors
PD 1067-a outlines how PAGCOR will be comprised and how operations will be set into action by the Board of Directors. It states that the Board will be made up of 5 ex-officio members, the chairman of the National Development Corporation, Secretary of Public Works, Secretary of the Department of Social Welfare, and 2 members appointed by the President of the Philippines. The chairman of the National Development Corporation will act as chairman of the Board of Directors. Some of the functions that the Board will address are:
- Allocate and distribute earnings to finance infrastructure.
- Designate a bank to act as a depository bank for the corporation.
- Approve budget for the fiscal year.
- Submit infrastructure and socio-civic projects financed by PAGCOR.
- Appoint an auditor for the corporation.
Gambling Regulations And Jurisdictions
PAGCOR is under direct orders from the Office of the President. PD 1067-a defines PAGCOR’s responsibilities as to maintain clubs, casinos, agencies or subsidiaries within the Philippines and to recognize or abolish any entity they deem proper. Since 1974, some things have changed, and even though PAGCOR is still the main gambling regulators in the country there are other gambling regulators now. The First Cagayan Resort and Leisure Corporation (FCRLC) is the gambling regulator for the Cagayan Valley and Freeport. The FCRLC is given the task to produce revenue and to promote tourism in the Cagayan Valley, much like PAGCOR is for the rest of the Philippines. PAGCOR still controls all the major metropolitan areas and about 90% of the Philippine jurisdictions.
PD 1067-a also lays out how the capital stock of the PAGCOR corporation can be sold or transferred. It is based on a 1 million share system and states that the corporation must hold 600k at $5 a share. The remaining 400k shares can be subscribed by individuals or entities upon approval of the President and the Board of Directors. The voting power for government stock is at the discretion of the President while the voting power pertaining to the individual shares will be a matter voted on by the Board of Directors.
Types Of Legal Gambling Under PAGCOR’s Jurisdiction
PAGCOR controls all casino gambling operations, but they also control legal domestic sports betting operations. There is one legal domestic sportsbooks in the Philippines: MegaSportsWorld, or MSW. MegaSportsWorld has over 100 locations spread throughout the islands and offers odds and lines on local PH favorites and popular international fare. Our guide to Philippine legal online sports betting sites can be used to find the best online sportsbooks legal for Filipinos. There are also other types of legal gambling across the Philippines that are not under PAGCOR rule, including:
PD 1067-a mandates the task of promoting tourism to the PAGCOR corporation. PAGCOR uses the gaming industry to promote tourism to the country by offering different kinds of legal gambling activities, many gambling establishments and tourist areas like what you would find in Las Vegas. One of the main attractions that PAGCOR has produced is Entertainment City (E-City). E-City is an 8km block of casinos and resorts located together to create the ultimate gambling experience in the heart of Manila City. E-City is the tourist destination for the Philippines, it is located next to the international airport with easy access to Metropolitan Manila and features the best entertainment options available while in the islands.