Summary of Amendments to GSRMs Electronic and Bingo Games version 2.0.

PHILIPPINE AMUSEMENT AND GAMING CORPORATION A Sure Bet for Progress in Gaming, Entertainment and Nation Building SUMMARY OF AMENDMENTS TO: 1. Gaming Site Regulatory Manual (Bingo Games) version 2.0; and 2. Gaming Site Regulatory Manual (Electronic Games) version 2.0. 1. Regulation 2 (Operator Qualifications) of GSRMs a) Section 5–(a). The Operator’s reporting of its new BOD member to PAGCOR shall have a thirty (30)-day period instead of the current upon occurrence of the change. b) Section 7-(b)-1. The sixty (60)-day grace period prior to imposition of the current prescribed administrative sanctions shall be indicated in the guidelines on late submission or non-submission of annual documents. 2. Regulation 3 (Site Location Requirements) of GSRMs a) Section 3-(b). The policy on not allowing a stand-alone gaming site shall be specifically defined in the GSRMs. 3. Regulation 5 (The Application) of GSRMs a) Section 1-(f). The six (6)-month validity period of Application Form Part I shall be subject to Applicant’s compliance with the submission of complete LGU and other documentary requirements. b) Section 9-(c), Items 2 and 4. Posting by the new Operator of Performance Cash Deposit within fifteen (15) days from receipt of notice of approval prior to its assumption of management of the gaming site shall be included. 4. Regulation 6 (The License) of GSRMs a) Section 1–(c). Regulatory policies (new or amended) disseminated through electronic channels such as Yahoo groups, official email addresses or PAGCOR regulatory website, shall form part of the terms of License. b) Section 2-(a)-6. In the renewal guidelines, non-submission of the required annual documents shall be a ground for revocation of the License. c) Section 3-(a)-4. In the LONO requirement for change in location of a gaming site, if the existing gaming site has no LONO, the Operator shall still secure the corresponding LONO for the proposed new site. d) Section 4-(a) and (c). The five (5)-business day submission requirement for the Voluntary Pre-termination of Gaming License Notification Form (GS Form No. 31) shall be deleted. Revocation of the License shall be effective upon assumption of management of gaming site by the new Operator. 5. Regulation 17 (Player Registration and Membership), Section 3- (c) and (d) of GSRMs. Posting of appropriate signage of mandatory membership requirement at the entrance of the gaming site shall be included. Membership cards shall be issued immediately upon registration, in lieu of the twenty four (24)-hour cooling period requirement which shall be removed. 6. Regulation 18 (Conduct of Gaming), Section 3-(r) for Electronic Games. Minimum buy-in of five hundred pesos (PhP500.00) upon registration with succeeding re-load at a minimum of one hundred pesos (PhP100.00) shall be allowed in gaming sites for electronic games.

7. Regulation 19 (Marketing and Promotions), Section 4 of GSRMs. Guidelines on request and conduct of photo/video coverage within the gaming site shall be included to address the Operator’s numerous requests. Reference to Responsible Gaming (RG) Code of Practice and RG circulars on use of photo or footage as advertising material shall likewise be included. 8. Regulation 22 (Financial Reporting and Remittance Guidelines), Section 2 a) Subsection (f) for Bingo Games. The “pro-rated on a daily basis” condition shall be added to the application of twelve percent (12%) interest per annum on failure to remit the amount due to PAGCOR on time. b) Subsection (g) for Bingo Games. The five (5)-day grace period prior to imposition of the current prescribed administrative sanctions shall be indicated in the remittance guidelines. c) Subsection (d) for Electronic Games and Subsection (i) for Bingo Games. Payment of income tax shall be specified in lieu of the Operator’s “tax obligations”. The 5% Franchise Tax shall not apply to Operator’s income from gaming operations. 9. Regulation 29 (Betting Exchange) for Electronic Games. A new Regulation 29 shall be included to govern the setting up and operation of betting exchange, i.e. Xchangebet, within a gaming site or sports bar. Access to terminals in sports bars shall be in accordance with Regulation 17 (Player Registration and Membership) and Regulation 20 (Banned Personalities). Effectivity shall be June 18, 2016. Page | 2