Revised Regulatory Framework for the Remote Gaming Platform

PAGCOR

i-Gaming Licensing and Reguiation Group E-Games Licensing Department

REVISED REGULATORY

FRAMEWORK FOR THE

REMOTE GAMING PLATFORM

Rev. No: 3 Effectivity:1 5 Nov 2023

conditions, table of offenses, as weli as *Revision pertains only to the form, i.e. change of logo. All provisions, terms and applicable penalties under the Revised

Gaming Platform which was approved by the Board on May 11, 2023, shall remain in force and effect. Regulatory Framework for the Remote

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the case may be, considering the novelty of these gaming platforms and the rapid changes in technology. review and to changes, revisions, modifications, or amendments from time to time, as Foreword: This regulatory framework shall cover all online gaming and/or wagering platforms or channels for domestic remote gaming operations; subject to continuous

INTRODUCTION

With the advancement of technology, particularly with the internet, various and

whole. numerous transactions have evolved accordingly, including that of gaming as a

mortar model of operations, i.e. players come and visit PAGCOR-licensed gaming altered in some way. Therefrom, technology has substantially evolved along with the preference and attitude of the patrons -- having emphasis now on convenience Originally, domestic offsite gaming operations adopt a land-based or brick-and sites to play or bet. However, with the advancements in technology, particularly the internet, these gaming segments have been significantly affected or even and availability on-demand.

that propels the development of the Philippine gaming and amusement industry. of the same, the regulatory guidelines for the activation of the online gaming Hence,with the aim to realize the objectives of PAGCOR to create an environment and to establish and enforce a regulatory framework that preserves the integrity platform is hereby laid down, as follows:

GENERAL PROVISIONS

A. Only PAGCOR contracted and/or accredited Service Providers (Service Providers) are allowed to develop and maintain an online remote gaming or betting platform on behalf of its partner licensed Operators.

B. The Remote gaming platform shall only be an adjunct facility or service providedby ServiceProviders toitsland-basedgamingsite independently. operators/licensees. The Remote gaming platform may not be offered

C. Only one (1) remote gaming platform shall be allowed for each Service Provider, where a website and/or mobileldesktop application may be used. A to and approval by PAGCOR website may use multiple URLs, provided that there must be prior disclosure

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D. The remote gaming platform shall not accept bets emanating outside the Philippines. Philippines and shall not be accessible in any way whatsoever outside the

E. The remote gaming platform must have a prior written approval from PAGCOR

before its implementation.

F. Only games and/or markets/sports with prior written approval from PAGCOR are allowed to be deployed in the remote gaming platform as game contents

G. Definition of terms:

1 Remote gaming platform (RGP)-refers to the online channel developed

network and terminals at the land-based gaming operations and play,or (ii the sports event contents and bet on the available markets as offered in to allow the players to remotely access, through the internet, (i) the electronic bingo and casino games deployed in the electronic gaming

Iand-based sports betting operations. The RGP may utilize a website or a mobile or desktop application.

2. Service brand -- refers to the mark, tradename, logo, name, label, word, and/or other denomination that identifies the service, and/or gaming system approved by PAGCOR.

I. REMOTE GAMING PLATFORM REQUIREMENTS AND

STANDARDS

A. The Proponent Service Provider shall submit to the E-Games/E-Bingo

Licensing Department (EGLD) all relevant documentation pertaining to the proposed remote gaming platform. These shall include the following, as the minimum:

1 Duly filled-out New System, Game and/or Machine Request and Approval

Form (GS Form No. 9), if applicable;

2. Notarized written disclosure from the proponent identifying its designated remote gaming platform and certifying that the same shall be the only one

operating as such;

3. Complete platform documentations, i.e. website and/or desktop or mobile application documents indicating, among others, the main functions, web design and contents, account funding and withdrawal protocols progressive jackpot features, if any, accounting and reporting processes and other salient details;

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4.Certification from an independent gaming laboratory certifying that the

remote gaming platform was extensively tested and has been found compliant with the following standards:

a. All data are captured, accounted and reported by the system; and b. Game is fair, secure and able to be audited and operated correctly Note: The above certification is reguired to be submitted within three (3) months from commencement of live commercial operations of the RGP. An application for the above certification may be submitted initially.

5. Certification from an independent gaming laboratory attesting to internet

protocol(IP) blocking applied to the platform for all other IP addresses excluding Philippine IP addresses. Note: The above certification is reguired to be submitted within three (3) months from

the proponent attesting to the above including the application therefor may be submitted initially. commencement of live commercial operations of the RGP. A Certification under Oath of

B. The proposed remote gaming platform must comply with minimum operational standards set forth hereunder:

1. Player Account Registration- only registered players of PAGCOR

service. As such, the following shall be implemented: licensed gaming sites are allowed to avail of the remote gaming piatform

may either personally register onsite or through remotelonline registration. Registration of Players shall be in accordance with the procedures and requirements of PAGCOR.For purposes thereof, new players

Remote Registration is the conduct of player registration through the aid of available remotelonline facilities without the player personally requirements: presenting himself at the gaming site, subject to the following

2 The gaming platform must be able to collect and keep the

following mandatory information of all its players: Full Name Place of Birth Current Address Permanent Address Nationality Nature of Work Date of Birth Contact Information

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Source of income One (1) valid government-issued Identification(ID) Card

b Only persons twenty-one (21) years of age and above and not

among the banned personalities as provided under the Memorandum Circular No.6. series of 2016, of The Office Of The President, shall strictly be allowed to register and avail of the services of a remote gaming platform. For this purpose, the remote gaming platform shall have a functionality where

following: prospective players shall be asked to declare and confirm the

That he/she is at least 21 years old and above; and

the Philippine National Police. connected directly with the operation of the Government or any of its agencies, member of the Armed Forces of the Philippines,including the Army, Navy, Air Force, or That he/she is not a government official or employee

C The gaming platform is reguired to conduct Know Your Customer

KYC and identification verification process shall be required to (KYC) process for all players, both existing and new players.The be conducted for each of the plaver prior to his first withdrawal conduct of KYC process shall be a continuous reguirement.A full

his/her registration or sign-up, whichever comes first. or cash-out transaction request or within seven (7) days from

the information and ID provided where video calling is utilized or where the player shall be asked to submit a front-facing picture alternative PAGCOR shall allow the use of various identity Every gaming platform must strictly implement a verification process in order to verify the identity of the player and validate of himself/herself together with the ID submitted. However, as

liveness detection technologies. verificationtechnology solutionse.g.automaticbiometric identification, ID scanning and validation technologies, and

d PAGCOR's National Database of Restricted Persons (NDRP)

shall be used by the Service Provider as well as its Operators as a tool from where persons listed therein shallnot be registered

thereat suspended or cancelled. or when applicable, shall have the accounts of those present

of the gaming platform during registration. A player's violation of Each player must be asked to read and accept the Terms of Use

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funds thereof, as the case may be. Forfeited funds shall be part any provisions of the Terms of Use shall be a ground for the suspension or cancellation of his/her account and forfeiture of of the Gross Gaming Revenue (GGR)

1 In instances where Remote Registration is initiated via the

gaming platform and without assistance of any Operator, the designated gaming site. The system shall instead provide the system shall not in any way determine for the player his/her

indicated address from which he/she shall select from. player a list of the five (5) nearest/closest gaming sites to his/her

T Oniy one (1) remote gaming platform account shall be allowed per

player per remote gaming platform.

ii member. All transactions pertaining to said player's remote gaming platform account shall be attributed to its designated gaming site A player's remote gaming account shall be designated / tagged to the gaming site where he/she is registered or will be registered as a

2. Account Funding and Withdrawal

Account funding to and withdrawal from remote gaming accounts shall redound to the player's designated gaming site (i.e. where the player is registered with),regardless of the channel or method used

Onsite and/or onlinelelectronic funding and withdrawal channels are allowed.

I For onlinelelectronic funding and withdrawal of funds from remote

counter and online banking, payment/e-Wallet systems and through gaming accounts, only AMLC-compliant channels, such as over-the-

other legitimate money transfer services shall be utilized.Only those

or registered with the Banko Sentral Ng Pilipinas, shall be considered legitimate and shall be utilized under these guidelines payment systems or money transfer services accredited, approved

electronic or online payment services/ platforms (OPS) or vice-versa Integrated payment gateway shall be allowed for the remote gaming platform.ServiceProviders mayintegrate their respective PAGCOR-approved remote gaming platforms to BSP-registered subject to the following guidelines:

Payment gateway solutions or money transfer services shall only be used exclusively for purposes of account funding and

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withdrawal and shall not perform plaver registration functions

payment gateway provider, (Operator of Payment System Correspondingly, the player registration procedures, as provided in this framework, cannot be performed by any (OPS), or other money transfer services.

However, a link feature may be implemented where a registration portal of the remote gaming platform to undergo the player registration procedure therein. prospective player will be redirected to the existing player

Service Providers may maintain one (1) general account for the entire remote gaming platform in every payment system/Ops to ease the processing of accounting

this purpose, the Service Providers shall be under the funding and withdrawal reguests from the players. For

obligation to manage the cash transaction on behalf of the player's designated-Operator. All transactions of a player in the integrated payment gateway shall remain to be attributed to its designated gaming site and the Operators shall be granted unhindered access to the players transactions.

N. Funding, withdrawals,and/ortransfersfromandtoa

payment/banking solution account other than a player's registered accounts shall be strictly prohibited and shall be penalized accordingly.

V Fund sharing or pasaload between players shall be strictly

prohibited.

Vi. processing player's funding and withdrawal requests. PAGCOR shall not be liable for any costs that may be incurred in

3. Account Log-in Verification Process - the remote gaming platform shall have the capability to ensure that only the registered player is using his/her

account. Accordingly, any one or more of the following functionalities for account verification must be implemented:

Video calling prior to log-in; Biometrics verification such as v Facial verification Iris scanning Fingerprint scanning

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time-PIN (OTP) to the registered contact number of the player which OTP verification where the system sends a randomly generated one- must be accurately entered by the player to allow access to the platform. Security Question where only the registered player knows the correct answer.

4. Minimum Initial Deposit - All newly-registered players of the RGP shall be

reguired to post an initial deposit in the amount of One Thousand Pesos (PhP1,000.00). Subseguent deposits or top-ups must be at least Five Hundred Pesos(PhP500.00)

5. Operator Player Management Portal-all Service Providers shall be reguired to

front-end and back-end dashboards, with the following minimum functionalities: provide a player management portal module for each of its partner-Operators, with

Player registration portal to allow Operators to directly process and approve player registrations; I. Player management to allow Operators to monitor and control, in certain cases. the activities of its players; I. Fund management to seamlessly process and approve deposit or top-up and

withdrawal or cash-out transaction requests of players; and

v its online operations through its remote gaming platform channel. the Operator's work and efforts in operating a particular game offering including Operations management to monitor and assess the performance and results of

6.Responsible Gaming

Upon logging-in, the remote gaming platform must show a short infographics or video clip which shall discuss the responsible gaming reminders of PAGCOR including the prohibition to play in open and public places.

prior to implementation in the platform. (TOU) of the service before landing him/her to the gaming or betting interface In every log-in,the RGP must ask players to read and accept the Terms of Use lobby.The copy of the latest TOU of the platform must be submitted to EGLD

shall be part of the Gross Gaming Revenue (GGR). A player's violation of any provisions of the TOU shall be a ground for the cancellation or suspension of his/her remote gaming platform account and/or the forfeiture of funds thereof, as the case may be. Forfeited funds

7. Reporting and Monitoring

The remote gaming platform shall be integrated with PAGCOR's third party audit platform;

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All transactions pertaining to a player's remote gaming platform account shall be attributed to the player's designated gaming site (i.e. where the player is registered

IV. MISCELLANEOUS PROVISIONS

A Any deviation from any of the submitted certifications above, and any

of the conditions set in this regulatory guidelines, any other relevant misrepresentation, breach and/or circumvention, directly or indirectly, of any communication or memorandum issued by PAGCOR relative herewith and/or any law, local or national, of the Philippines shall be ground for the suspension of the remote gaming platform;and any loss incurred due to such remiss shall be solely shouldered by the concerned Service Provider.

B. The PAGCOR Evaluation Team composed of representatives from

E-Games/E-Bingo Licensing Department (EGLD), Compliance Monitoring

platform andwalkthrough of its process from player registration up to report and Enforcement Department (CMED) and Information Technology Department (ITD) shall conduct an actual testing of the remote gaming

prescribed technical capabilities and operational standards and the Service generation in order to determine the compliance of platform with the

shall EGLD issue a Notice to Commence remote gaming platform operations, as applicable. Provider's capability and readiness to fulfill its intended scope of service Oniy upon consolidated satisfactory results of the testing and walkthrough

C. All Service Providers that maintain and operate PAGCOR-approved remote

to be allowed to continue the operations and services of its approved remote gaming platform. gaming platform must comply with the PhP50Million cash bond requirement

D AIl Operators and Service Providers of PAGCOR-approved RGP shall

comply with the rules and regulations of the Anti-Money Laundering Council (AMLC) as clarified, implemented, and supervised by the PAGCOR Anti- Money Laundering Supervision and Enforcement Department(PASED)

E Marketing projects to be deployed through the RGP may be applied for by

Promoting Remote Gaming Platform and Services. For this purpose, the the Service Providers on behalf of its independent gaming site operators subject to the guidelines of the PAGCOR Regulatory Framework for Marketing and/or concerned Service Provider shall duly accomplish the Marketing and/or Promotion Request and Approval Form (GS Form No. 28) for its operators.

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Violation on any of the provisions in this framework shall be subject to the penalties and fines as provided for in the PAGCOR Table of Penalties for the Remote Gaming Platform.

G. The above provisions are subject to continuous review; hence, changes

revisions, modifications, or amendments will be effected from time to time, as the case may be.

H.E Finally, this regulatory framework shall repeal previous issuances and/or any

of the independent provisions of which are inconsistent with the same.

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