PAGCOR Requirements for Destruction and Decommissioning of Gaming Equipment

Filing a request to destroy gaming equipment in the Philippines depends on which PAGCOR office regulates you. A GLDD-enrolled supplier submits the Destruction of Gaming Equipment and/or Paraphernalia Request and Approval Form (SRM Form No. 840) to the Gaming Licensing and Development Department at least seven (7) business days before the intended destruction, and may destroy only EGMs and components, electronic bingo machines and components, traditional bingo equipment and paraphernalia, slot machines, and electronic table games. An Offshore Gaming Licensing Department (OGLD) licensee notifies OGLD at least three (3) working days before destruction using OGLD Form No. 1066. No destruction proceeds without PAGCOR approval and, where required, written clearance from the Department of Finance or the Special Economic Zone Authority.

Who may destroy gaming equipment, and what may be destroyed

Under the Regulatory Framework for the Destruction of Gaming Equipment and Gaming Paraphernalia for GLDD-Enrolled Suppliers, a supplier may permanently dispose of its gaming equipment and paraphernalia through destruction only if it has rights over those items. If it does not, the supplier must instead ship the items out under Regulation 6 of the SRM (Rev. 2, effective November 3, 2022).

The framework limits destruction to five categories:

• Electronic Gaming Machines (EGM) and/or components
• Electronic Bingo Machines and/or components
• Traditional Bingo equipment and/or paraphernalia
• Slot Machines
• Electronic Table Games

Step-by-step: requesting approval as a GLDD-enrolled supplier

1. File SRM Form No. 840 at least seven (7) business days before the intended destruction. Submit the accomplished form by email to gldd_suppliers@pagcor.ph, or in hard copy to the GLDD office at the 12th Floor, iMET BPO Tower, CBP-1A Metropolitan Park, Roxas Blvd., Pasay City.
2. Attach the shipment documents. For suppliers whose importation availed of PAGCOR's customs and duties tax exemption: the PAGCOR-approved Shipment Clearance Request and Approval Form; the previously issued Tax Exemption Indorsement from the Department of Finance with supporting documents; the Bureau of Internal Revenue Customs Declaration; Assessment Notice; Commercial Invoice; Packing List and Bill of Lading or Airway Bill; permits or clearances required by other government agencies; and other items GLDD may require.
3. For import permits filed with a Special Economic Zone Authority, attach instead the PAGCOR-approved shipment clearance and approval form, Certificate of Scrap Buyer's Registration, Commercial Invoice or Tax Invoice, Packing List and Bill of Lading or Airway Bill, and other agency permits. A written approval from the Special Economic Zone Authority must also be submitted. Suppliers who did not avail of PAGCOR's customs and duties tax exemption and operate outside a special economic zone no longer need this approval.
4. Wait for clearance. GLDD verifies the form against CMED's inspection and inventory report. Where PAGCOR availed of the tax exemption, PAGCOR applies to the DOF, and destruction may not proceed until PAGCOR obtains the DOF's written approval. GLDD then notifies the supplier to proceed.
5. Destroy under PAGCOR supervision. A PAGCOR Team from GLDD and CMED, plus representatives of other government agencies as necessary, must be present.
6. Complete SRM Form No. 742 (Certificate of Destruction of Gaming Equipment and/or Paraphernalia), signed by the supplier's authorized representative and noted by the PAGCOR Team as witnesses. CMED then furnishes GLDD the certificate, images of other destroyed items, the post-activity report, and legible images or photocopies of serial and information plates of destroyed EGMs and eBingo machines.

Destruction of traditional bingo cards

Cancelled traditional bingo cards must be stored in a dedicated and secure card disposal room to await destruction, and the request must state the card production number and card/ticket serial number. Cards must be completely destroyed by shredding, grinding, or incineration subject to environmental standards. The same PAGCOR supervision and SRM Form No. 742 certification apply.

Decommissioning rules for OGLD licensees

Internet Gaming Licensees, Gaming Content Providers, and Remote Play Licensees may dispose of or decommission gaming equipment through ship-out, transfer to another PAGCOR-licensed operator, destruction, or donation to PAGCOR. For operational gaming sites, notify OGLD at least three (3) working days before destruction using OGLD Form No. 1066, stating the date and location of destruction, the number and description of items, the denomination and amount of chips and plaques, and the method of destruction. For cancelled or revoked licenses, destruction may proceed without the notification form, but the licensee must submit a notarized undertaking that the items are completely destroyed and rendered unusable, plus a closing inventory list. Where a license is cancelled, disposal must be completed within ninety (90) calendar days from the notice of cancellation; items still found in the licensee's possession afterward may expose it to criminal liability under Philippine law.

Approved modes of destruction vary by item. Playing cards, chips and plaques, and multi-deck continuous shufflers may be ground, shredded, or incinerated subject to environmental standards; EGMs, bill validators, data servers, and lottery machines may be crushed or disassembled; and all other gaming equipment requires separate approval of the mode of destruction.

Frequently asked questions

How many days before destruction must a supplier file SRM Form No. 840? At least seven (7) business days before the intended date of destruction. Requests with incomplete information or attachments are not processed.

Can gaming equipment be destroyed without PAGCOR approval? No. Destruction must be carried out with PAGCOR Team representatives from GLDD and CMED present, and where the DOF or a Special Economic Zone Authority issued the import approval, their written clearance must first be obtained.

What form certifies that gaming equipment was destroyed? SRM Form No. 742, the Certificate of Destruction of Gaming Equipment and/or Paraphernalia, accomplished by the supplier's authorized representative and noted by PAGCOR witnesses.

Practical takeaways

• Confirm which PAGCOR office regulates you: GLDD-enrolled suppliers use SRM Form No. 840 with a seven-business-day lead time; OGLD licensees use OGLD Form No. 1066 with a three-working-day notice.
• Destroy only the categories the framework allows, and only if the supplier holds rights over the equipment.
• Prepare the correct document set for your importation route — PAGCOR tax exemption, Special Economic Zone Authority import permit, or neither.
• Never proceed without PAGCOR approval and, where applicable, DOF or SEZA written clearance.
• Complete SRM Form No. 742 after destruction and keep copies for CMED, GLDD, and the Bureau of Customs when required.

Primary sources

The rules discussed above are drawn from the following PAGCOR issuances, embedded here in full for your reference.

Regulatory Framework for the destruction of gaming equipment and gaming paraphernaliaOpen in Law LibraryDownload PDF

Guidelines for the Disposal/Decommissioning of Gaming Equipment and Other Gaming ParaphernaliaOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.