PAGCOR Gaming Site Regulatory Manual: Bingo and Electronic Games Compliance

The Gaming Site Regulatory Manual (GSRM) is PAGCOR's rulebook for establishing and operating a gaming site offering bingo and electronic games. Version 3.0, issued March 2017, forms part of the Gaming License (GL) that PAGCOR issues to a qualified Operator. It covers who may apply, where a site may be located, fees and deposits, the application process, site and system standards, security and surveillance, player registration, conduct of gaming, financial reporting, offenses and penalties, and closure. Compliance is not optional: the manual governs the establishment and operation of the gaming site, and PAGCOR enforces license terms and conditions.

What the GSRM is and who it binds

PAGCOR's stated regulatory aims include ensuring a level playing field among industry proponents, maintaining an orderly and predictable regulatory environment, enforcing license terms and conditions, promoting fairness and integrity in the conduct of games, providing a platform for responsible gambling, disallowing access by minors and financially vulnerable persons, and preventing licensed gaming venues from being used for illegal activities.

The GSRM is issued in separate versions for Electronic Games and Bingo Games, both at Version 3.0 dated March 2017. A PAGCOR memorandum dated April 24, 2017 advised all gaming site operators (bingo games), service providers (electronic games), gaming site operators (electronic games), and gaming site operators (poker games) that the revised manuals incorporate approved amendments and are downloadable from the Regulatory page of the PAGCOR website.

An Operator is an individual, corporation, or other private entity authorized by PAGCOR through a License to set up and operate a gaming site. The Operator establishes the site and oversees its daily operations in accordance with PAGCOR policies and guidelines.

The Gaming License and the application process

The Gaming License is the document granting the Operator the privilege to establish, install, maintain, and operate a gaming facility or gaming terminals as approved by PAGCOR. It contains the terms and conditions and other PAGCOR regulations related to operating the gaming site.

The application is structured in two parts. Application Form Part I and Application Form Part II are secured and submitted as provided in Regulation 5 of the GSRM, with applicable fees paid, a site inspection conducted, and proposed floor plans and site set-up concept renderings submitted. Site recommendation and approval follow. The manual also addresses a change in Operator of a gaming site.

Applicants must satisfy Regulation 2 on Operator qualifications, which covers who may apply, new applicants, existing operators, foreign nationals, changes in the composition of board members, applicant documentary requirements, and annual submission of documents.

Site location and gaming site requirements

Regulation 3 sets site location rules, including Local Government Unit (LGU) requirements, site location distance requirements, site location area requirements, other site location requirements, and how distance is measured.

Regulation 7 governs the gaming site itself: the gaming site area, designation of gaming areas, the requirement that the gaming area be unobstructed, setting up of the site, installation of gaming terminals, machines, and equipment, interior and exterior specifications, other requirements, manning, payment of monetary requirements and submission of a Business Permit, other pre-operational activities, commencement of operations, and rules on adding, converting, or removing a game offering or expanding or reducing gaming terminals.

A gaming site is a duly authorized establishment or facility offering the public access to PAGCOR-approved gaming activities — electronic gaming and/or bingo gaming. Its premises consist of gaming areas and ancillary areas such as aisles, back-of-house facilities, reception counters, food and beverage areas, decorative displays, staircases, toilets, and similar areas not intended for the conduct or playing of games.

Electronic gaming systems and bingo systems

Regulation 8 covers the electronic gaming system and electronic games, including system requirements, evaluation and approval of systems and games, version upgrades, emergency software patches for software bugs, Return to Player (RTP) percentage and game parameters, modifications, regular preventive maintenance, and betting limits.

For bingo, Regulation 8 covers the electronic and traditional bingo systems and bingo games: the electronic bingo system and its requirements, evaluation and approval of the system and games, version upgrades, emergency software patches, RTP percentage and game parameters, traditional bingo system, equipment and paraphernalia, modifications, preventive maintenance, and the final tax on a player's jackpot winnings from bingo games.

An electronic gaming system is a computer system combining a central server, player terminals, and interface elements that function collectively to electronically simulate live casino games, including automated collection of bets and payout of winnings. In bingo, it simulates live bingo using bingo-styled cards. RTP% means the theoretical return to a player of the value of all prizes awarded by a game as a percentage of all bets made over a large volume of game play.

Security, surveillance, and conduct of gaming

Regulation 11 requires minimum security requirements, a minimum surveillance system, minimum surveillance coverage, minimum surveillance records, and procedural guidelines on archiving and retrieval of footage.

Regulation 17 covers player registration and membership, including minimum registration requirements, the player registration system, and player membership reports. Regulation 18 governs the conduct of gaming: operating hours; for bingo, guidelines and gaming rules, bingo games and programs, categories and types of bingo games, game designs, prizes, cancellation of bingo games, disputed bingo games, and general house rules; and for electronic bingo, its own guidelines, gaming rules, and prizes.

Regulation 20 lists banned personalities — persons not allowed to enter and play in gaming areas — and covers banning orders issued by an Operator and removal of banned personalities from the premises.

Financial reporting, disputes, and penalties

Regulation 21 defines and determines Gross Gaming Revenue. For electronic games, GGR means Gross Bets less total Payout; gross bets means the total amount of bets placed for all electronic games, and payout means the total winnings paid to a winning player inclusive of the original amount wagered. For bingo, gross gaming revenue means gross collection less payouts, and gross collection in electronic bingo means the total cash collected from the electronic bingo machines or the amount reflected in the system-generated report, whichever is higher.

Regulation 22 sets financial reporting and remittance guidelines, including computation of the Operator Share or PAGCOR Share, payment or remittance, documentation and reporting requirements, and remittance of Gross Hold. Gross hold is total cash deposits less total cash redemptions or encashments.

Regulation 23 covers patron disputes — issuance of notification, evaluation and action taken, resolution of system-related disputes, and a report on dispute resolution. Regulation 24 lists offenses with corresponding demerits and penalties, and how demerits are assessed. Regulation 25 governs temporary suspension and closure, whether initiated by the Operator, by LGUs, or due to force majeure, voluntary closure, and post-operational activities.

Frequently asked questions

What is the PAGCOR Gaming Site Regulatory Manual? It is the manual, issued in separate Electronic Games and Bingo Games versions, that forms part of the Gaming License and governs the establishment and operation of a gaming site.

Who needs a Gaming License to operate a gaming site? Any individual, corporation, or other private entity that PAGCOR authorizes to set up and operate a gaming site offering approved electronic gaming and/or bingo gaming.

What happens if an Operator violates the GSRM? Regulation 24 lists offenses with corresponding demerits and penalties, which PAGCOR assesses against the Operator.

Practical takeaways

• The GSRM Version 3.0 (March 2017) forms part of the Gaming License and binds the Operator.
• Separate manuals apply to Electronic Games and Bingo Games; both are at Version 3.0.
• Compliance spans application, site location, systems, security, player registration, gaming conduct, reporting, and closure.
• GGR is computed differently for electronic games (Gross Bets less Payout) and bingo (gross collection less payouts).
• Offenses carry demerits and penalties under Regulation 24.

Primary sources

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

Gaming Site Regulatory Manual ver. 3.0 ( Electronic Games)Open in Law LibraryDownload PDF

Gaming Site Regulatory Manual ver. 3.0 ( Bingo Games)Open in Law LibraryDownload PDF

Revised Gaming Site Regulatory ManualsOpen 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.