Permit to Possess Gaming Equipment in the Philippines: PAGCOR Application Steps

A Permit to Possess (PTP) is a certificate issued by PAGCOR to a Data/Content Streaming Provider operating a studio gaming set-up. It allows the provider to import, store, transfer, ship out, and operate gaming equipment and paraphernalia inside its gaming studio, solely for video streaming live gaming action tied to electronic games at gaming sites. The PTP is site specific and issued per venue. To obtain one, the applicant downloads the application form from PAGCOR's regulatory website, completes it with the documentary requirements, submits everything to the Gaming Licensing and Development Department (GLDD) for evaluation, pays the PhP1,000,000 fee per studio, and waits for Board approval and issuance.

Who needs a Permit to Possess and what it covers

The PTP is issued to providers of a studio gaming set-up — the Data/Content Streaming Provider. The permit covers importing, storing, transferring or moving, shipping out, and operating gaming equipment and gaming paraphernalia in the gaming studio. The permitted purpose is narrow: video streaming footages of live gaming action in conjunction with the operation of electronic games at gaming sites.

Two cost points are built into the permit itself. Taxes and duties on the importation of any gaming equipment or paraphernalia brought into the country are for the provider's sole account. Separately, any unexplained loss, unauthorized transfer, or sale of the gaming equipment or paraphernalia is fined PhP1 Million.

Step-by-step PAGCOR application procedure

1. Get the form. Download the "Application for Permit to Possess Gaming Equipment and Gaming Paraphernalia" from the Electronic Gaming & Poker page of PAGCOR's regulatory website.

2. Accomplish the form and complete the documentary requirements. These include the duly accomplished application form; a Specimen Signature Card of the applicant's authorized representative; a Certificate of Enrolment issued by GLDD; a copy of the SEC Registration Certificate including the Articles of Incorporation; the latest General Information Sheet duly received by the SEC; Personal Disclosure Statements of all key officers of the applicant-corporation; a photocopy of the Mayor's Permit, Business Permit, or municipal license; proof of accreditation from an electronic gaming system and games Service Provider or licensed Operator, as applicable; and a detailed location sketch of the company office, factory, and/or warehouse.

3. Submit to GLDD. All PTP applications are submitted to GLDD for evaluation. If information or documentary requirements are incomplete, the application is returned.

4. Pay the fee. Applicants are assessed a PTP fee of PhP1,000,000 per studio, covering regular inspection and monitoring of the gaming studio that houses the equipment and paraphernalia. If the documentary requirements are complete, GLDD advises the applicant to pay.

5. Await Board approval. GLDD recommends approval to the Board of Directors once the applicant submits complete documentary requirements and pays the applicable fees. GLDD then informs the applicant of the approval.

6. Receive the permit. The PTP, duly signed by the President and Chief Operating Officer, is issued to the Data/Content Streaming Provider.

One design requirement applies along the way: table layouts must show the logo, name, and/or brand name of the concerned electronic gaming system Service Provider with which the Data/Content Streaming Provider has an existing service agreement.

Ongoing conditions and equipment rules

Accredited providers must allow PAGCOR's monitoring and enforcement personnel to inspect the premises, machines, and equipment used in operations at any time upon request. All hardware equipment to be used is subject to GLDD's evaluation and approval, and the provider may not install, modify, decommission, remove, or destroy any such equipment without written approval from GLDD.

The PTP cannot be transferred by sale, inheritance or succession, gift, or otherwise to any corporation without the prior consent of the Board, and only under additional conditions for the transfer and only if the transferee meets the requirements.

Renewal, site changes, and replacement fees

The PTP must be renewed yearly, and the provider must comply with the renewal requirements at least one month prior to expiration, for a similar fee of PhP1 Million.

For an additional or transferred operating site, the one-time application and processing fee is PhP100,000 if the site is in a building other than the existing site, and PhP75,000 per floor if the site is in a building with an existing operating site.

A replacement fee of PhP75,000 applies for requests to reprint PTP certificates, as long as the request for correction or change in details is through no fault of PAGCOR.

Suspension and cancellation of the PTP

During the pendency of an investigation, the Board may suspend the PTP upon receipt of a complaint or information from the monitoring task force. The grounds include: the provider is not, or is no longer, in the Board's opinion a suitable corporation to be accredited; conviction of an offense violating Philippine anti-gambling laws; conviction of any serious offense under any other law; violation of a condition attached to the accreditation; bankruptcy or rehabilitation; obtaining accreditation through a materially false or misleading representation or some other improper way; and where suspension is required to ensure the public interest is not adversely and materially affected, or the integrity of gaming is not jeopardized.

If the provider is found guilty of any of these violations, the result is cancellation of its PTP.

Frequently asked questions

How much is the PAGCOR Permit to Possess fee? It is PhP1,000,000 per studio, covering regular inspection and monitoring of the gaming studio. Renewal carries a similar fee of PhP1 Million.

How long is the PTP valid, and when do I renew? The PTP is renewed yearly. Renewal requirements must be complied with at least a month prior to expiration.

Can I transfer my Permit to Possess to another corporation? Not without the prior consent of the Board, and only under additional conditions for the transfer and only if the transferee meets the requirements.

Practical takeaways

• The PTP is site specific and issued on a per venue basis — a new studio generally means a new application.
• Incomplete information or documents will cause the application to be returned, so assemble the full checklist before filing.
• Budget for the PhP1,000,000 per-studio fee, plus taxes and duties on imported equipment, which are for the provider's sole account.
• Renew yearly and file requirements at least one month before expiry to avoid a lapse.
• Any unexplained loss, unauthorized transfer, or sale of gaming equipment or paraphernalia carries a PhP1 Million fine.

Primary sources

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

Application Procedures for Permit To Possess Gaming Equipment & Gaming Paraphernalia for Data/Content Streaming Provider of Electronic Gaming SitesOpen 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.