PAGCOR Licence for Foreign Operators: Application Guide for Gaming Venues

A foreign-owned corporation may apply for a PAGCOR gaming licence, but only through a corporation duly registered with the Securities and Exchange Commission (SEC), and only if its foreign shareholding complies with the Regular Foreign Negative List B of the Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179). The application is filed with the E-Games Licensing Department (EGLD) using the Application Form for the Establishment of Gaming Venue (EG Form No. 1). PAGCOR issues a separate licence for each game offering, and approval rests with the PAGCOR Board of Directors.

Who may apply as an operator

Under the PAGCOR Regulatory Framework for the Issuance of Gaming License for the Establishment of Gaming Venues (Rev. No. 1, effective 22 November 2023), only corporations duly registered with the SEC may apply as an operator. A corporation with foreign nationals as shareholders must comply with the latest Regular Foreign Negative List B of the Foreign Investments Act of 1991.

The applicant must pass PAGCOR's suitability requirements and submit the prescribed documentary requirements. A first-time applicant is a corporation applying to operate a gaming venue for the first time; an existing operator is one already licensed by PAGCOR.

Documentary requirements for a foreign applicant

The Articles of Incorporation must show that gaming is one of the corporation's primary or secondary purposes, and the corporation must have an authorized capital stock of at least Php5,000,000.00 with paid-up capital of at least Php3,000,000.00.

The application must include the latest General Information Sheet filed with the SEC, the Articles of Incorporation and By-Laws, BIR registration, and income tax returns. A notarized written disclosure is required covering matters material to evaluating the ability or integrity of any director and officer — including bankruptcy petitions, criminal convictions by final judgment, pending criminal proceedings, and findings of gaming law violations. A notarized disclosure of relatives in PAGCOR or other regulatory agencies up to the fourth civil degree of consanguinity or affinity is likewise required.

Directors and officers submit a notarized Personal Disclosure Statement. For non-resident foreigners, a copy of a valid passport is required; for Filipino citizens and foreign residents, a copy of the income tax return filed with the BIR for the previous year.

Any misrepresentation or false information in the submitted documents results in outright denial of the application. If discovered after the licence is granted, the licence is revoked outright, and the applicant or operator may be blacklisted from filing any application with EGLD.

Site location rules

The proposed gaming venue must be at least 200 meters from schools and places of worship, and at least 300 meters from other gaming venues, measured using the nearest access roads. The applicant may use either Google Maps or WikiMapia for measurement.

The distance restrictions do not apply if the proposed venue is located within a mall, a DOT-accredited hotel or resort, a PAGCOR-operated or regulated casino, a cockpit arena, or a horse-racing track. Gaming venues may be located within malls, PAGCOR-operated or regulated casinos, cockpit arenas, horse-racing tracks, DOT-accredited hotels or resorts, and commercial buildings.

No contract for the proposed venue may be executed and no renovation may commence without PAGCOR's written approval of the establishment of the gaming venue.

The application process, step by step

1. Download EG Form No. 1 from the Electronic Gaming page at www.pagcor.ph/regulatory.
2. Email the scanned accomplished form and attachments to eGaming [email protected]. Hard copies must be available to EGLD upon request.
3. Attach the location map showing distances from schools, places of worship, and PAGCOR-EGLD licensed gaming venues; the lease offer or transfer certificate of title; and the board resolution or secretary's certificate designating an authorized representative.
4. Once the documents are found to be in order, EGLD advises the applicant to pay the partial or initial application fee of Php50,000.00 within seven business days upon receipt of notice.
5. The PAGCOR Verification Team conducts an ocular site inspection to verify compliance with site location distance and area requirements.
6. If the site is acceptable, the applicant has 30 days from receipt of notice to submit the proposed venue layout plan and site set-up concept renderings, the valid business permit under the applicant's name, the full documentary requirements, and payment of the application fee net of the initial amount paid.
7. The recommendation for approval is submitted to the PAGCOR Board of Directors once the site requirements, layout plans, complete documents, and applicable fees are in order.
8. Upon board approval, EGLD issues a notice of approval to the applicant's official email and prepares the Gaming Licence for the signature of the PAGCOR Chairman and Chief Executive Officer. The original licence is released once the Performance Cash Deposit is posted and the prescribed release documents are submitted.

An applicant may request an extension using the Request for Extension of Application Form (EG Form No. 4) with the corresponding extension fee. Failure to comply within the 30-day grace period means the slot is opened to other applicants.

Frequently asked questions

Can a foreigner own a PAGCOR-licensed gaming venue in the Philippines? Only a corporation registered with the SEC may hold a gaming licence, and a corporation with foreign shareholders must comply with the Regular Foreign Negative List B of the Foreign Investments Act of 1991.

How much is the PAGCOR application fee for a gaming venue? The initial or partial application fee is Php50,000.00, payable within seven business days upon receipt of EGLD's notice. The balance of the application fee is paid upon compliance with the post-inspection requirements.

How long does a PAGCOR gaming licence take to process? The framework does not fix a total processing period. Timelines turn on when complete documents are submitted, when the PAGCOR Verification Team conducts its inspection, and when the PAGCOR Board of Directors acts on the recommendation.

Practical takeaways

• Incorporate with the SEC first. Only SEC-registered corporations may apply, and gaming must appear as a primary or secondary purpose in the Articles of Incorporation.
• Check foreign ownership limits early. Foreign shareholding must comply with the Regular Foreign Negative List B of the Foreign Investments Act of 1991.
• Meet the capital thresholds. At least Php5,000,000.00 authorized capital stock and Php3,000,000.00 paid-up capital.
• Survey the site before signing anything. The 200-meter and 300-meter distance rules apply, and no lease or renovation may proceed without PAGCOR's written approval.
• Disclose fully. Misrepresentation leads to outright denial, revocation, and blacklisting.

Primary sources

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

PAGCOR Technical Standards for EGMs v1.0Open in Law LibraryDownload PDF

Regulatory Framework for the Issuance of Gaming License for the Establishment of Gaming VenuesOpen 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.