Regulatory Framework for the destruction of gaming equipment and gaming paraphernalia

PAGCOR

Licensing &Regulatory Group Gaming Licensing & Development Department

REGULATORY FRAMEWORK

FORTHE DESTRUCTION OF

GAMING EQUIPMENT AND

GAMING PARAPHERNALIA

FOR GLDD-ENROLLED

SUPPLIERS

Rev. No.: 0 Effectivity

PAGCOR EXECUTIVE SUMMARY GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING & DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. SEP 8 7 2023 Page 1 of 8 O0M 0

Operative gaming manuals of the Gaming Licensing and Development Department (GLDD) are the Casino Regulatory Manuals (CRM) for licensed casinos and the provisions of the SRM may likewise apply to the importation or local purchase of gaming equipment and paraphernalia of PAGCOR authorized gaming venues handled by other Suppliers Regulatory Manual(SRM) for enrolled suppliers of gaming equipment and paraphernalia.These manuals govern the conduct of gaming operations of all PAGCOR departments. PAGCOR licensees and the conduct of business of GLDD-enrolled suppliers.The

framework that preserves the integrity and propels the development of the gaming industry, which led to the creation of the SRM. By virtue of the SRM, regulations and Part of the regulatory mandate of PAGCOR is to attain and enforce a regulatory standard procedures are being implemented for the enrollment/registration of suppliers of gaming equipment and gaming paraphernalia that conduct business in the Philippines. The SRM allows the supplier to import, ship out, demonstrate, However, there have been no provisions in the SRM concerning the destruction of gaming equipment and gaming paraphernalia by the concerned suppliers. transfer/move, and keep inventory of the gaming equipment and paraphernalia.

gaming equipment and paraphernalia from importation to disposal, including destruction, the following is the Regulatory Framework for the Destruction of Gaming Hence, in order to address this issue and to provide a complete tracking procedure for Equipment and Gaming Paraphernalia for GLDD-Enrolled Suppliers.

PAGCOR GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING &DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 2 of 8 0

TABLE OF CONTENTS

GENERALPROVISION 3

IMPORTATION AVAILED OF PAGCOR'S CUSTOMS AND DUTIES REQUEST FOR APPROVAL OF SUPPLIERS WHOSE 3

REQUEST FORAPPROVAL OF SUPPLIERS WHOSE IMPORTATION OF GAMING EQUIPMENTANDIOR GAMING PARAPHERNALIA ARE COVERED BY AN IMPORT PERMIT AND DUTIES TAX EXEMTION FILED WITH THE SPECIAL ECONOMIC ZONE AUTHORITY,AND THOSE SUPPLIERS WHO DID NOT AVAIL PF PAGCOR'S CUSTOM 5

REQUEST FOR APPROVAL OF SUPPLIERS FOR DESTRUCTION OF TRADITIONAL BINGO GAMING EQUIPMENT ANDIOR GAMING PARAPHERNALIA 6

DESTRUCTION OF GAMING EQUIPMENT ANDIOR GAMING PARAPHERNALIA 7

GC0 GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING &DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 3 of 8 0

SECTION 1. GENERAL PROVISIONS

a November 3, 2022. The Supplier may permanently dispose of its gaming equipment and/or gaming paraphernalia through destruction, provided that it has rights over the gaming procedures in this Regulation. Otherwise, the Supplier shall ship out the gaming equipment and/or gaming paraphernalia in accordance with the guidelines and procedure under Regulation 6 of the SRM Rev. 2 with effectivity date of equipment and/or gaming paraphernalia, subject to the guidelines and

b at least seven (7) business days prior to the intended date of destruction. The Supplier shall reguest approval from GLDD of the intended destruction of gaming equipment and/or gaming paraphernalia using the SRM Form No. 840

C Under the provision of these guidelines, the suppliers are allowed to destroy only the following:

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

SECTION 2. IMPORTATION AVAILED OF PAGCOR'S CUSTOMS REQUEST FOR APPROVAL OF SUPPLIERS WHOSE AND DUTIES TAX EXEMPTION

a The Supplier shall submit the duly-accomplished SRM Form No. 840 through email, at gldd_suppliers@pagcor.ph: accompanied by copies of the following shipment documents covering the gaming equipment and gaming paraphernalia to be permanently disposed of

) ( (() ( () (i) (vii) PAGCOR-approved Shipment Clearance Request and Approval Form Previously-issued Tax Exemption Indorsement from the Department of Finance (DOF) along with the supporting documents (e.g. importation bill of lading/airway bill and import commercial invoice); Bureau of internai Revenue - Customs Declaration; Assessment Notice; Commercial Invoice; Packing List and Bill of Lading or Airway Bill; Permit/clearance that other concerned government agencies may require; Other items or information that GLDD may require.

records and documents in accordance with Section 1003 of the Custom The Supplier has the responsibility of maintaining and safekeeping all importation

GC GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING & DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 4 of 8 0

Modernization and Tariff Act as implemented by Sections 4.2, 4.4, and 4.5.3 of Customs Administrative Order No.01-2019 issued by the Bureau of Customs

b records of Compliance Monitoring Enforcement Department's (CMED inspection and inventory report on the shipment of the gaming equipment and GLDD shall verify the information contained in the SRM Form No. 840 against gaming paraphernalia.

C PAGCOR shall submit an application with the DOF for the destruction of the gaming equipment and/or paraphernalia.

) Destruction of the gaming equipment and/or paraphernalia shall not be carried out unless PAGCOR has obtained a written approval from DOF.

e) GLDD shall notify the Supplier to proceed with the destruction of the gaming equipment and/or paraphernalia as soon as the written clearance from DOF is obtained.

The destruction of gaming equipment and/or gaming paraphernalia shall be and CMED along with representative from other government agencies as deemed necessary. carried out with the presence of PAGCOR Team representative/s from GLDD

g) After destruction of the gaming equipment and/or paraphernalia, a Certificate of stating among others, the details of the destruction of gaming equipment and/or representative and noted by PAGCOR Team representative/s as witnesses. Destruction of Gaming Equipment and/or Paraphernalia SRM Form No. 742 paraphernalia shall be duly accomplished by the Supplier's authorized

h) Copies of the following shall be provided to GLDD by CMED:

() () () EGMs and/or eBingo machines Legible image/photocopy of Serial and Information Plates of destroyed Post activity report of the destruction Certificate of Destruction of Gaming Equipment and/or Paraphernalia Images of other destroyed items

AGCOR GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING & DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 5 of 8 0

SECTION 3. REQUEST FOR APPROVAL OF SUPPLIERS WHOSE GAMING PARAPHERNALIA ARE COVERED BY AN ZONE AUTHORITY AND THOSE SUPPLIERS WHO DID IMPORTATION OF GAMING EQUIPMENT IMPORT PERMIT FILED WITH THE SPECIAL ECONOMIC NOT AVAIL OF PAGCOR'S CUSTOMS AND DUTIES TAX EXEMPTION ANDIOR

a The Supplier shall submit the duly-accomplished SRM Form No. 840 together with the copies of the following shipment documents covering the gaming eguipment and/or paraphernalia to be permanently disposed of through email, at gldd_suppliers@pagcor.ph:

(v) () (() () ( ( PAGCOR-approved shipment clearance and approval form; Certificate of Scrap Buyer's Registration; Commercial Invoice/Tax Invoice; Permit/ciearance that other concerned government agencies may require; Other items or information that GLDD may require Packing List and Bill of Lading or Airway Bill.

b) records of CMED's inspection and inventory report on the shipment of the GLDD shall verify the information contained in the SRM Form No. 840 against gaming equipment and gaming paraphernalia.

C GLDD shall process the proposed destruction of gaming equipment and gaming

Economic Zone Authority (SEZA) for the destruction of gaming equipment and gaming paraphernalia. CMED shall be provided with the approval as issued by SEZA, if any paraphernalia subject to the Supplier obtaining the prior approval of the Special

For Suppliers who did not avail of the PAGCOR's Customs and Duties Tax exemption but operates outside the Special Economic Zone, the approval is no longer reguired.

It shall be the Supplier's responsibility to seek the prior written approval of the

Destruction shall not be carried out unless the Supplier submits a written SEZA for the destruction of gaming equipment and gaming paraphernalia. approval from these authorities to GLDD.

e The destruction of gaming equipment and/or gaming paraphernalia shall be and CMED along with representatives from other government agencies as carried out with the presence of PAGCOR Team representative/s from GLDD deemed necessary.

PAGCOR GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING &DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 6 of 8 0

paraphernalia shall be duly accomplished by the Supplier's authorized After destruction of the gaming equipment and/or paraphernalia, a Certificate of Destruction of Gaming Equipment and/or Paraphernalia SRM FORM No.742 stating among others, the details of the destruction of gaming equipment and/or representative and noted by PAGCOR Team representative/s as witnesses.

g) Copies of the following shall be provided to GLDD by CMED:

() () () ii Legible image/photocopy of Serial and information Plates of destroyed EGMs and/or eBingo machines Certificate of Destruction of Gaming Equipment and/or Paraphernalia Images of other destroyed items Post activity report of the destruction

SECTION 4. REQUEST FOR APPROVAL OF SUPPLIERS FOR

DESTRUCTION OF TRADITIONAL BINGO GAMING EQUIPMENT ANDIOR GAMING PARAPHERNALIA

a The Supplier shall submit the duly-accomplished SRM Form No. 840 together with the copies of the corresponding shipment documents covering the gaming equipment and/or paraphernalia to be permanently disposed of through email, at gldd suppliers@pagcor.ph:

applicable: For cancelled traditional bingo cards, the following details are required as

operations shall be stored inside a dedicated and secure card disposal room to await destruction b Bingo cards deemed by the Supplier as unsuitable for further use in gaming ( Card production number Card/Ticket serial number

(c) Bingo cards for destruction shall be completely destroyed by either of the following manner:

() (i) () Shredding incineration, but subject to environmental standards Grinding

The destruction of gaming equipment and/or gaming paraphernalia shall be carried out with the presence of PAGCOR Team representative/s from GLDD and CMED along with representative from other government agencies as deemed necessary.

GAMING PARAPHERNALIA FOR GLDD-ENROLLED DESTRUCTION OF GAMING EQUIPMENT AND REGULATORY FRAMEWORK FOR THE GAMING LICENSING &DEVELOPMENT DEPARTMENT SUPPLIERS Effectivity Page No. Rev. No. Page 8 of 8 0

g) After destruction of the gaming equipment and/or paraphernalia, a Certificate of Destruction of Gaming Equipment and/or Paraphernalia SRM FORM No. 742 stating among others, the details of the destruction of gaming eguipment and/or paraphernalia shall be duly accomplished by the Supplier's authorized representative and noted by PAGCOR Team representativels as witnesses.

h) Copies of the following shall be provided to GLDD by CMED:

( ( (ii) () Certificate of Destruction of Gaming Equipment and/or Paraphernalia Legible imagelphotocopy of Serial and information Plates of destroyed EGMs and/or eBingo machines Images of other destroyed items Post activity report of the destruction

PAGCOR CERTIFICATE OF DESTRUCTION OF GAMING MACHINES (FOR SUPPLIER USEONLY) Form No. Page No. Effectivity Revision No. GLDD-742 Page 1 of 2 0

process, copies of which shall also be provided to CMED and GLDD, when requested. shall be furnished by the Supplier to each of the following: (a)Compliance Monitoring and Enforcemenmt Department (CMED); (b) Gaming The Supplier shall accomplish this form following the conduct of permanent destruction of gaming machines. Once completed, a copy of this form Licensing and Development Department (GLDD); and (c Bureau of Customs (BOC). The Supplier shall provide BOC photos of the destriction Date of Destruction: Name of Supplier: Warehouse Address: Location of Destruction ApproVed per GLDD Reference No. Date:

SECTION A: LIST OF DESTROYED GAMING MACHINES To be filled up by the Supplier

A. DETAILS OF GAMING MACHINES (EGM and/or EBM) Please be informed of the destruction of the following gaming machines: ITEM NO 1 MANUFACTURER GAME THEME EGM/EGM SERIAL NO.If available) MANUFACTURING PLATE NO. QUANTITY INVENTORY TAG PAGCOR NO.

2 3 4 5 6

10 8 6 [This covers ten (10) gaming machines only. Use additional form for another set of EGMs/EBMs] Attachment: Duly accomplished Form No. Request and Approval Form and Inventory checklist of EGMs and EBMs for destruction. Destruction of Gaming Equipment and/or Paraphernalia

We affirm and certify that the abovementioned gaming machines are permanently destroyed and are incapable of being used. Once these items are found to be used illegally, the Supplier shall be held liable to PAGCOR.

Destruction performed by: Witnessed by: Supplier's Authorized Representatives: PAGCOR Team Representatives:

Printed Name and Signature, Designation Printed Name and Signature, Designation

Printed Name and Signature, Designation Printed Name and Signature, Designation

PAGCOR PARAPHERNALIA AND/OR COMPONENT CERTIFICATE OF DESTRUCTION OF TRADITIONAL BINGO EQUIPMENT, (FOR SUPPLIER USE ONLY) PARTS Page No. Revision No. Form No. Effectivity Page 1 of 1 GLDD - 839 0

photos of the destruction process. The Supplier shall accomplish this form following the conduct of permanent destruction of of traditional bingo equipment , paraphemalia and/or component parts.. Once completed, a copy of this fom shall be furnished by the Supplier to each of the following:(a Compliance Monitoring and Enforcemenmt Department (CMED) and (b) Gaming Licensing and Development Department (GLDD). The Supplier shall provide CMED and GLDD Date of Destruction: Name of Supplier: Warehouse Address: Location of Destruction Approved per GLDD Reference No.: Date:

SECTION A: LIST OF DESTROYED TRADITIONAL BINGO EQUIPMENT,PARAPHERNALIA AND COMPONENT PARTS (To be filled up by the Supplier)

A. DETAILS OF TRADITIONAL BINGO EQUIPMENT, PARAPHERNALIA AND COMPONENT PARTS Please be informed of the destruction of the following traditional bingo equipment, paraphernalia and component parts:

ITEM NO. Y MANUFACTURER DESCRIPTION Quantity Cardficket serie no Production REMARKS no

5 6 2 3 4

(This covers ten (10Traditional Bingo Equipment and/or Paraphernalia only.Use additional form for another sel of Traditional Bingo tem/s and or Equipment 10 9 8

Attachment: Request and Approval Form, and Inventory Checklist of EGMs and EBMs for destruction. Duly accomplished Form No. Destruction of Gaming Equipment and/or Paraphernalia

PARTS DESTRUCTION REPORT SECTION B:TRADITIONAL BINGO EQUIPMENT,PARAPHERNALIA AND COMPONENT

We affirm and certify that the abovementioned Traditional Bingo Equipment, Paraphernalia and Component Parts Supplier shall be held liable to PAGCOR. are permanently destroyed and are incapable of being used. Once these items are found to be used illegally, the

Supplier's Authorized Representatives: Destruction performed by PAGCOR Team Representatives: Witnessed by:

Printed Name and Signature, Designation Printed Name and Signature, Designation

Printed Name and Signature, Designation Printed Name and Signature, Designation

GCO CERTIFICATE OF DESTRUCTION OF GAMING MACHINES (FOR SUPPLIER USE ONLY) Page No. Form No. Revision No. Effectivity Page 2 of 2 GLDD - 742 0

SECTION B:ELECTRONIC GAMING MACHINES DESTRUCTION REPORT

We hereby certify that the destruction of the aforementioned gaming machines were done in accordance with the guidelines prescribed in Regulatory Framewaork for Destruction of Gaming Equipment and Gaming Paraphernalia (Regulation) on (DATE) at (VENUE)

By:

2 Bureau of Customs (BOC) Representatives 3 1 Name: Name: Name: Designation: Designation: Name: Designation: Designation: Signature: Signature: Signature: Signature:

DESTRUCTION OF GAMING EQUIPMENT AND/OR PARAPHERNALIA REQUEST Page No. Form No. GLDD - 840 Page 1 of 2

PAGCOR (FOR SUPPLIERS ONLY) AND APPROVAL FORM Effectivity Revision No. 0

[Use this form to request approval from PAGCOR regarding destruction of gaming equipment and/or gaming paraphernalia for with incomplete information and/or attachment shall not be processed. GLDD-enrolled suppliers only. Please accomplish this form by providing correct and complete information. The Supplier shall submit this form to GLDD at least seven (7) business days prior to intended date of implementation. All requests for approva

AND/OR PARAPHERNALIA WHICH HAVE BEEN DESTROYED. Warehouse Address: PLEASE NOTE THAT PAGCOR RESERVES THE RIGHT TO CONDUCT POST-AUDIT ON THE GAMING EQUIPMENT Supplier : Date of Implementation: Location of Destruction GLDD Reference No. Date:

Electronic Gaming Machines and/or Component Parts Slot Machines Electronic Bingo Machines and/or Component Parts ] Traditionai Bingo Equipment and/or Paraphernalia

Electronic Table Games LSECTION AYPERMANENT DESTRUCTION OF GAMING EQUIPMEINT ANDIORPARAPHERNALIAYTO BEHLIEDUP

A. DETAILS OF GAMING MACHINES (EGM and/or EBM) Please be informed of the destruction of the following gaming machines: item NO 1 Manufacturer Game Theme EGM/EBM Serial No. Manufacturing Plate No. Date Manufactured Inventory Tag No. PAGCOR

2 3

(Note: Please use additional sheet/s if the space provided above is not sufficient.) Reason for destruction

B. DETAILS OF TRADITIONAL BINGO EQUIPMENT AND/OR PARAPHERNALIA Please be informed of the destruction of the following Traditional Bingo Eguipment and/or Paraphernalia

Item No. Manufacturer Model/Code) Description Quantity Remarks no./Production no (Card/Ticket series

(Note: Please use additional sheet/s if the space provided above is not sufficient) Reason for destruction::

ACCOMPANYING DOCUMENTS Copies of the following shipment documents covering the Gaming Machines to be destroyed should be submitted to GLDD along with this request for approval form.

A For supplier whose importation availed of PAGCOR's Customs and Duties Tax Exemptions:

2. Previously issued Tax Exemption Indorsement from the Department of Finance (DOF) along with the supporting documents (e.g. importation ill of 1.PAGCOR approved Shipment Clearance and Approval Form lading / airway bill and import commercial invoice)

DESTRUCTION OF GAMING EQUIPMENT Page No. Page 2 of 2

ANDIOR PARAPHERNALIA REQUEST Form No. GLDD - 840

PAGCOR (FOR SUPPLIERSONLY) AND APPROVAL FORM Effectivity Revision No. 0

3.Bureau of Internal Revenue - Customs Declaration 7.Permit/Clearance that other concerned government agencies may require 4.Assessment Notice 5.Commercial Invoice 6.Packing List and Bill of Lading or Airway Bill 8.Other items or information that GLDD may require B. For supplier whose importations are covered by an Import Permit filed with a Special Economic Zone Authority and Duties and Taxes are for the account of the Supplier including Traditional Bingo.

3 2. 6. 4 W PAGCOR approved shipment clearance and approval form Certificate of Scrap Buyer's Registration Permit Clearance that other concerned government agencies may require Commercial Invoice/Tax Invoice packing List and Bill of Lading or Airway Bill Commercial Invoice Other items or information that GLDD may require

We confirm and undertake to do the following: In addition to the above documents, the Supplier shall submit a written approval from the Special Economic Zone Authority that issued the Import Permit for the Gaming Equipment allowing for the destruction of the concerned gaming machines.

Department, and the Bureau of Customs (when necessary). For Enrolled Supplier whose importation availed o f PAGCOR's e u sto ms a n d d uti es_ ta exe m p ti o ns, Disposal shall not be carried out unless PAGCOR has obtained a written approval from the DOF. The abovementioned undertaking shall be carried out in close coordination with the Compliance Monitoring and Enforcement

Printed Name : Position Title : Signature : Date: SECTION B:SUBMISSIONINSTRUCTIONS Once Section A is completed, please submit this form to GLDD along with the necessary attachments. Hard copies may be submitted directly to the GLDD office or scanned copies of the documents may be emailed using the e-mail address indicated below: Gaming Licensing and Development Department Philippine Amusement and Gaming Corporation 12th Floor,iMET BPO Tower,CBP-1A Metropolitan Park,Roxas Bivd.,Pasay City Tel. No.(02)755-3199/755-3299/755-3899/755-3999 E-mail addresses: gldd_suppliers@pagcor.ph Note: Please accomplish the Certificate of Destruction of Gaming Equipment and/or Paraphernalia SECTIONC ACTION TAKEN TO BEFILLED UP BY GLDD

A RETURNED DUE TO THE FOLLOWING REASONS:

0 Incomplete information and/or supporting documents Incorrect information vis-a-vis supporting documents B RECEIVED FOR PROCESSING with assigned Reference No

By: Printed Name: Signature:

Position Title Date: C.RECOMMENDATION FOR APPROVAL By: Printed Name: Signature:

Position Title: Date:

Verified by: Approved by:

Senior Manager, CLRD-GLDD Assistant Vice President, GLDD