Regulatory Framework For Electronic Billiards (E-Billiards)

PAGCOR

E-Games Licensing Department I-Gaming Licensing and Regulation Group

REGULATORY FRAMEWORK

FOR ELECTRONIC BILLIARDS

(E-BILLIARDS)

Rev. No: 1 Effectivity: 1 5 NOV 2023

i.e. change of logo. All provisions. *Revision pertains only to the form, terms and conditions, table of penaltiesunder the Regulatory the Board on February 02, 2023, shall remain in force and effect. offenses, as wellas applicable Framework for Electronic Billiards (E-Billiards) which was approved by

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and as casual leisure activity across different social strata in the Philippines. Billiards has been part of the Filipino lifestyle, both as a recognized international sp

is not only justified but imperative. regulatory jurisdiction of PAGCOR -- and in line with its mandate to increase revenue and earnings for the National Government -- to regulate the betting/wagering on live billiard games, matches, events, competitions, and/or activities held in the Philippines Billiards as a sport and with sports betting as among the gaming activities within thel

PAGCOR-accredited Sports Betting System Service Provider; and therefore, shall be governed by the provisions of this framework. For treatment purposes, E-Billiards, as described herein, shall be considered a distinct and independent game offering from that of the sports betting content of a

for E-Billiards. By virtue of the foregoing, the following are laid down as the Regulatory Framework

GENERAL PROVISIONS

E E-Billiards/E-Billiard Operations is defined as the wagering/betting through an

facility, on live local billiards games, matches, events, competitions, and/or format, discipline, and/or form of cue sports. electronic wagering platform, onsite and/or offsite via an online/remote betting activities in the Philippines streamed or broadcasted real-time from a registered billiard hall. Under this framework, billiards shall refer to all generally accepted style,

2 Billiard Hall refers to the location where actual billiard games between GAB-

(LGU) concerned and the same must be duly registered with PAGCOR prior to the live streaming and broadcasting of feeds to the E-Billiard betting platform are taken. A billiard hall must have a business permit by the local government unit licensed billiard players are held. It is only from these locations where content for operations.

conducted in the list of LGU-authorized billiard halis registered with and accredited by PAGCOR for E-Billiard operations shall be allowed as contents for betting for the platform. Only billiard tournaments, games, matches, events, competitions, and/or activities

3. Billiard Player -- is a common term referring to pool player or pool athlete and is professionals provided that both must secure a Gaming and Amusement Board differentiated from an E-Billiards bettor/player. For purposes of this framework, Billiard Players involved in the conduct of E-Billiards may either be amateurs or (GAB) License.

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4 Billiard Tournaments and/or Matches - to be precise, PAGCOR shall not

offered as contents for betting in an E-Billiard Platform. conduct, promote, regulate nor officiate, in any manner whatsoever, the billiard tournaments, games, matches, events, competitions, and/or activities that are

for betting in an E-Billiard Platform. The Billiard League must be accredited by PAGCOR in order to provide said contents to the E-Billiard Operator. promoters, referee, and tournament directors --by a Billiard League recognized by the Games and Amusement Board (GAB), or the Billiards and Snooker Congress of the Philippines (BSCP), or the Philippine Sports Commission (PSC), as contents Nevertheless, as a matter of policy, PAGCOR, under this framework, shall only allow those billiard tournaments, games, matches, events, competitions, and/or activities conducted, promoted, regulated, officiated, and/or licensed -- including its

5 E-Billiard Operator (EBO) refers to the entity that develops and maintains an E- entities for the latter's applicable utilization, as may be allowed by PAGCOR. Billiards betting platform or system (E-Billiard platform) duly licensed by PAGCOR to operate the same and/or authorized to offer the same to other individuals or

0 Billiard League (BL) refers to the entitylorganization with a roster of billiard

Billiard League must have the following qualifications: players who are accredited by the Games and Amusements Board (GAB). The

a.Must be in existence for at least two (2) years; b. C Must be recognized in any manner whatsoever by the Games and Amusement Must have at least one (1) professional billiard player in its roster. A professional Board (GAB), or the Billiards and Snooker Congress of the Philippines (BSCP). or the Philippine Sports Commission (PSC):

d. Must have actively and regularly conducted various matches and tournaments billiard player is one who earns a living by competing in billiards matches and tournaments, or regularly receives payment for performance at local or international billiard events;

e. Must have conducted at least two (2) exhibition/invitational matches for top throughout its years of existence; and

global ranking foreign billiard players by the World Pool Association. 7. E-Billiard League (EBL) refers to the PAGCOR accredited Billiard League authorized to provide real time streaming of billiard games from PAGCOR registered billiard halls to E-Billiard Platforms. 8.Billiard Hall Operator(BHO) refers to the corporation duly authorized by PAGCOR operate a Billiard Hall for purposes of E-Billiard operations. through the issuance of a Certificate of Registration (CoR) to establish and to

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9. Off-Hall Betting Station Operator (OBSO) refers to corporation duly authorized and to operate an E-billiard Off-hall Betting Station. by PAGCOR through the issuance of a Certificate of Registration (CoR) to establish

10. Off-Hall Betting Station (OBS) means a duly authorized establishment or facility that has access to licensed E-Billiard platforms for purposes of registering or processing membership applications and the accepting of bets from the registered players.

11. E-Billiard betting platform or system (E-Billiard platform) refers to the electronic through the internet from a registered Billiard Hall through the use of a dedicated wagering platform/system developed for purposes of betting on live streamed feeds from live billiards games, matches, events, competitions, and/or activities onsite betting terminal or through a remote device.

approval by PAGCOR. Each additional URL shall be subject to an Application Fee of PhP250,000.00. betting facility for the E-Billiard platform. A website may use multiple Uniform Resource Locators (URL), provided that there must be prior disclosure to and A website and/or mobile/desktop application may be used as an online/remote

12.E-Billiard Brand refers to the mark, tradename, logo, name, label, word, system of an E-Billiard Operator. and/or other denomination that identifies the E-Billiard service, operations, and/or

13. E-Billiard Table refers to the Billiard Table being utilized for E-Billiard operations. 14. PAGCOR shall license E-Billiard Operators and approve their correspondingE- Billiard platform and brand.

15. Only a PAGCOR-licensed E-Billiard Operator with its approved E-Billiard Platform and brand shall be authorized to offer, activate, deploy, and/or operate E-Billiards. 16. PAGCOR shall accredit Billiard Leagues and approve their live streaming systems. 17. Only accredited Billiard Leagues shall be authorized to provide the live feeds to E- Billiard Operators for E-Billiard Operations. The feeds shall strictly be utilized for E-Billiard Operations only.

II. LICENSING OF E-BILLIARD OPERATORS

1. The Applicant must submit a Letter of Intent (LOI) addressed to the Chairman and CEO of PAGCOR.

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2. Only corporations duly registered with the Securities and Exchange Commission (SEC) may apply as an E-Billiard Operator, referred herein as the Applicant.

3. The Applicant must pass PAGCOR's standard probity check for gaming operator suitability and comply with all documentary and system requirements.

4. The E-Games/E-Bingo Licensing Department (EGLD) shall process all applications for licensing as an E-Billiard Operator.

5. The Applicant shall submit a duly filled-out E-Billiard Operator Registration Form requirements: Application for License (EB Form No.1) together with the following

a) Company-related requirements: I. I. Copy of Registration Certificate from Securities and Exchange Detailed location sketch of the company office; Company profile;

Iv. Articles of Incorporation and By-laws duly filed and approved by the authorized capital stock and 25 Million Pesos paid-up capital; Commission (SEC) with reguired capitalization of 100 Million Pesos

Vi. V Latest General Information Sheet (GIS) duly filed with SEC; Duly accomplished and notarized Personal Disclosure Statement (PDS) SEC;

vii.Photocopy of the following documents: with the following enclosures: Mayor'sPermit/BusinessPermit/MunicipalLicenseforthe BIR Registration Certificate For Filipino Citizens and Foreign Residents, copy of ITR (duly filed For Non-Resident Foreigners, copy of valid passport with the BIR) for the previous year relevant gaming activities from the location of the company office; and

b)E-Billiard system and business-related requirements: IN. V I Ie E-Billiard Platform Documentations, e.g., onsite betting terminal manual List of all participating local government unit (LGU)-authorized billiard Mayor's Permit/Business Permit/Municipal License of the billiard hall/s Resolution Of No Objection (RONO), in any form, interposing no website and/or desktop or mobile application documents indicating, among others, the main functions, web design and contents, accounting documents and other relevant details. Detailed location sketch of the base of operations. halls; where the E-Billiard feeds will be coming from;

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objection to the conduct of E-Billiard operations in said billiard halls and the taking and broadcasting of feeds therefrom;

c)Payment of the non-refundable Application Fee as follows:

License Application First Issuance -- valid for 3 years Renewal for 2 years PhP 2,500,000.00 PhP 5,000,000.00 Application Fee

6. The Application shall only be recommended to the Board of Directors for approval upon compliance with the following:

a) Submission of the complete documentary requirements;

b)Payment of the non-refundable PhP5 Million Application Fee;

C Satisfactory results of ocular inspection to verify the legitimacy of operations of the Applicant-Operator's facility and complete testing of the E-Billiard EGLD,CMED-IG,ITD,and IAD;and platform by the PAGCOR Inspection Team composed of representatives from

d)Compliance with the prescribed probity requirements.

I COMMENCEMENT OF OPERATIONS

1. Once the application is Board-approved, the applicant shall now be regarded as a License Certificate duly signed by the President and Chief Operating Officer of PAGCOR. licensed E-Billiard Operator whereby it shall be issued a corresponding Gaming

2. The PAGCOR Inspection Team shall then conduct a final inspection of the Platform is required to be integrated with PAGCOR's third party audit platform. actual testing of the E-Billiard platform, from player registration up to income reporting, to determine the full compliance of its system with the regulations and its capability and readiness to fulfill the prescribed scope of service. The E-Billiard Operator's office/s and all its related facilities, whether owned or outsourced, and

3. Only upon consolidated satisfactory results of the inspection and testing shall the E-Billiard betting system/platform with PAGCOR's third-party audit platform, shall EGLD issue a Notice to Commence E-Billiard Operations. E-Billiard Operator be informed and instructed to post the required PhP10Million Performance Cash Deposit (PCD). Thereafter, and only upon full integration of the

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4. E-Billiard Operations shall strictly be conducted for five (5) days per week only from time frame shall be allowed to finish. A Special Permit shall be applied for in conducting E-Billiard Operations exceeding the five (5) day limit at a fee of PhP 200,000.00 per day. Special Permits shall only be granted by the EGLD for just cause and at a maximum limit of four (4) days per month. 10:00 AM until 3:00 AM of the following day. Matches which have started within said

5. The E-Billiard Operator shall strictly ensure that bets emanating from outside for E-Billiard Operations within Philippine Territory shall strictly be sourced only live from the submitted list of local Billiard Halls duly authorized by the LGUs and registered with PAGCOR. Likewise, the E-Billiard Philippine Territory shall not be allowed and that streaming feeds for E-Billiards Operator shallensure that said feeds shall not be utilized for any other purpose than

6. The E-Billiard Operator must submit the following requirements within three (3) months after the commencement of live commercial operations:

a Certification from an independent gaming laboratory certifying that the betting system of the Licensed Operator's E-Billiard platform was extensively tested and has been found compliant with the following standards: ji. Game is fair, secure and able to be audited and operated correctly. i.-All data are captured, accounted and reported by the system; and

b Certification from an independent gaming laboratory attesting to Internet Protocol (IP) blocking of all other IP addresses excluding Philippine IP addresses designated by the licensed operator.

Failure to submit the above shall result in the immediate suspension of E-Billiard Operations.

IV.E-BILLIARD PLATFORM REQUIREMENTS AND STANDARDS

1. The Applicant's gaming protocols must comply with the minimum requirements and standards provided set forth hereunder

2.The E-Billiard platform shall not accept bets emanating outside the Philippines and shall not be accessible in any way whatsoever outside the Philippines. For this purpose, a 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 shall be submitted.

3. The proposed E-Billiard system or service must comply with the following standards, as required with the other remote gaming piatforms approved by

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PAGCOR:

a) Player Account Registration - only registered players of PAGCOR registered betting stations are allowed to avail of the remote gaming platform service. As such, the following shall be implemented:

i. Only one (1) remote gaming platform account shall be allowed per player per E-Billiard remote gaming platform.

ii. Registration of Players shall be in accordance with the reguirements of thereof, new players may either personally register at PAGcOR- registered Off-Hall Betting Stations or through Remote Registration. the latest Gaming Site Regulatory Manual (GSRM).For purposes

himself at the Off-Hall Betting Station, subject to the following of available remote resources without the player personally presenting Remote Registration is the conduct of player registration through the aid requirements: The gaming platform is required to conduct Know Your Customer The gaming platform must have the following mandatory fields conduct of KYC process is a continuous requirement. during registration of players: (KYC)process for all players,both existing and new players.The V Full Name V Date of Birth

V Source of Income v Contact Number v Current Address v Valid Government-issued Identification Card

1i Only persons twenty-one (21) years of age and above and persons not

allowed to register and avail of the services of an E-Billiard gaming platform. For this purpose, the Applicant shall establish mechanisms to ensure the above. Further, prospective players shall be asked to declare the following prior to access to the platform: among the banned personalities as provided under the Memorandum Circular No. 6, series of 2016, of The Office Of The President, shall be - That he/she is at least 21 years old and above; and That he/she is not a government official or empioyee connected member of the Armed Forces of the Philippines, including the Army. Navy, Air Force, or the Philippine National Police. directly with the operation of the Government or any of its agencies,

iv.Every gaming platform must strictly have a verification process in order

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to verify the identity of the player and the information provided where during the video call submitted information and IDs of the player prior to confirmation of his/her account. A file photo of the player or a screenshot must be taken video calling is utilized to verify and confirm the identity and the

V PAGCOR's National Database of Restricted Persons (NDRP) shallbe used by the Applicant/E-Billiard Operator as well as its partner Off-Hall thereat suspended. Betting Stations as a tool from where persons listed therein shall not be registered or when applicable, shall have the accounts of those present

V Each player must be asked to read and accept the Terms of Use of the cancellation or suspension of his/her account. gaming platform prior to access into the platform, and a player's violation of any provisions of the Terms of Use shall be a ground for the

b Account Funding and Withdrawal

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

Player identity verification must be conducted prior to account funding and withdrawal.

Iii. For online/electronic funding and withdrawal of funds from remote services accredited, approved, or registered with the Banko Sentral Ng counter and online banking, and through other legitimate money transfer services shall be utilized. Only those payment systems or money transfer shall be utilized under these guidelines. gaming accounts, only AMLC-compliant channels, such as over-the- Pilipinas, unless excluded herein, shall be considered legitimate and

functions. Correspondingly, the player registration procedures, as provided in this framework, cannot be performed by any payment A built-in payment gateway feature shall be allowed for the remote funding and withdrawal and shall not perform playerregistration gateway provider or other money transfer services. gaming platform, provided that Payment Gateway Solutions or money transfer services shall only be used exclusively for purposes of account

iv. Funding, withdrawals, and/or transfers from and to a payment/banking solution account other than a player's registered accounts is strictly prohibited and shall be penalized accordingly.

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V Fund sharing or pasaload between players is likewise strictly prohibited

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

c) Account Log-in and Identity 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 verification must be implemented:

ia Video calling prior to log-in;

Biometrics verification such as Facial verification

1i. OTP verification where the system sends a randomly-generated one- - Iris scanning e Fingerprint scanning

be accurately entered by the player to allow access to the platform time-PIN (OTP) to the registered contact number of the player which must

d) Minimum Deposit and Bet -- Players shall be allowed only to deposit in the amount of One Thousand Pesos (P1,000.00) as minimum for every funding request and minimum bet shall be Two Hundred Pesos (P200.00).

e) Customer Care Center -- The E-Billiard piatform must incorporate a Customer Service system where all concerns of the players are lodged and are promptly addressed.

f VPN Blocking -- The E-Billiard platform must implement a Virtual Private Network

(VPN) Blocking System to ensure computer security and internet censorship

g) 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.

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

A player's violation of any provisions of the TOU shall be a ground for

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the cancellation or suspension of his/her remote gaming platform account.

h) Reporting and Monitoring -- The remote gaming platform shall be integrated with PAGCOR's third party audit platform.

V. FINANCIAL CONSIDERATIONS AND OBLIGATIONS

1.The E-Billiard system may implement pool betting or pari-mutuel and/or bookmaking in determining the payout or dividend rate for each of the bet options. Provided, that should the system implement a. pari-mutuel system the Commission Rate shall not exceed 15.00% of the Gross/Total Bets.

in case of bookmaking format however, the E-Billiard Platform shall be evaluated and certified by an independent gaming laboratory based on the requirements of an applicable event wagering standard.

2. The E-Billiard Operator, by virtue of the license granted herein, shall be imposed a PAGCOR Share (PS) of thirty percent (30.00%) of the Gross Gaming Revenue (GGR).

A Minimum Guaranteed Fee may be imposed upon further study by the EGLD based on the performance of the first approved EBO during its first six (6) months of operations.

The E-Billiard Operator shall also shoulder the audit fee of ten percent (10.00%) of the Ps by virtue of its integration into the audit platform.

3. Bets from cancelled games or match, due to any reason, shall not be accounted and included for purposes of determining the GGR and PAGCOR Share.

However, the E-Billiard Operator shall be liable to a Cancellation Fee of PhP50,000.00 per game. For clarity, per game is every rack played between players.

4. Schedule of remittance of PAGCOR share/MGF, including the Cancellation Fee for the current month, shall be on the 10th of the following month. Any delay shall Table of Offenses and Corresponding Penalties For E-Billiard Operations herein subject the E-Billiard Operator to corresponding penalties in accordance with the attached as Annex B.

5. All costs incurred for the conduct of E-Billiard operations whether essential and/or incidental shall be shouldered by the E-Billiard Operator.

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6. All claims by any contractee of the E-Billiard Operator or by any third-party shall be shouldered by the Operator and the latter shall hold PAGCOR free from all claims and obligations.

V. ACCREDITATION OF E-BILLIARD LEAGUES

1. Only live streaming feeds sourced from local Billiard Halls duly authorized by the with PAGCOR shall be utilized for E-Billiard Operations. LGUs with issued business permit for the specific game/activity and duly registered

2. Only E-Billiard Leagues are allowed to harvest live streaming feeds from PAGCOR registered Billiard Halls for purposes of E-Billiard Operations. The E-Billiard League may establish its own Billiard Hall and have the same registered with PAGCOR or Billiard streaming operations. may contract independent PAGCOR registered Billiard Halls for purposes of E-

3. The E-Billiard Leagues shall ensure that the live streamed E-Billiard content shall only be utilized for E-Billiard Operations by its contracted E-Billiard Operators. Penalties for E-Billiard Operations. Violations hereof shall be subject to the Table of Offenses and Corresponding

4. E-Billiard Operators shall only acquire their feeds from E-Billiard Leagues

5. The EGLD shall process all applications for accreditation of E-Billiard Leagues. Application shall be returned if information and/or documentary requirements are incomplete.

6. The E-Billiard League Applicant shall comply with the following guidelines on the live streaming of data / content to E-Billiard Platform:

a) Live streaming must have IP blocking on all Philippine IP addresses except the Billiard Platform. IP addresses designated by the E-Billiard Operator for its corresponding E

b) Live streaming of billiard games/matches from duly registered Billiard Halls shall be streamed only to approved E-Billiard platforms of PAGCOR-licensed E- Billiard Operators.

7. Hereunder are the procedures for processing of application for accreditation of E- Billiard Leagues:

a. Applicants shall submit a duly filled-out E-Billiard League Accreditation Form

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(EB Form No. 6) together with the following requirements: H I. Latest General Information Sheet (GIS) duly filed with SEC with required Company profile; Detailed location sketch of the company office:

n Articles of Incorporation, By-laws duly received by SEC capitalization of 50 Million Pesos authorized capital stock and 12.5 Million Pesos paid-up capital;

V Mayor's Permit/Business Permit/Municipal License for the relevant

Vii. Vi. BIR Registration Certificate Duly accomplished and notarized Personal Disclosure Statement (PDS) gaming activities from the location of the company office

with the following enclosures: For Filipino Citizens and Foreign Residents, copy of ITR (duly filed For Non-Resident Foreigners, copy of valid passport with the BIR) for the previous year

b) Applicants shall secure a duly executed service agreement with PAGCOR licensed E-Billiard Operator and Billiard Halls, as applicable.

c) Applicants shall secure a Resolution Of No Objection (RONO), in any form, interposing no objection to the harvesting of feeds for E-Billiard operations from concerned Billiard Halls

d) Payment of the non-refundable Accreditation Fee, using the GS Form No. 2 of the GSRM, as follows:

Renewal for 2 years Certificate of Accreditation First Issuance --valid for 3 years PhP 1,250,000.00 PhP 2,500,000.00 Application Fee

e) PAGCOR Authorized Team shall conduct ocular site inspection of the Applicant's and readiness of the billiard hall set-up to fulfill datalcontent streaming services. office/s or facility, the internet connectivity, among others to determine capability

f) Applications shall only be recommended to the Board of Directors for approval upon compliance with the following: iv. Compliance with the prescribed probity requirements. ili. Satisfactory results of ocular inspection of the Applicant's office/facility and ii. Payment of applicable fees; i. Submission of the complete documentary requirements; the billiard halls live streaming set-up; and

g) Upon approval, EGLD shall notify the applicant on the approval of its application and shall issue a corresponding Certificate of Accreditation duly signed by the

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PAGCOR President and Chief Operating Officer.

h) The Billiard League shall be instructed to post the required PCD amounting to Php 5,000,000.00. Thereafter, EGLD shall issue a Notice to Commence E-Billiard Streaming Operations.

Vi REGISTRATION AND OPERATIONS OF BILLIARD HALLS AND

OFF-HALL BETTING STATIONS

1. Billiard Halls to be utilized for E-Billiard Operations, i.e., from where live streamed feeds are taken from, shall be registered with PAGCOR under the rules hereunder. Likewise, Off-Hall Betting Stations where bets for E-Billiard Operations are placed/taken shall likewise be registered under this Section.

2. On-site Betting may only be conducted at registered Off-Hall Betting Stations. For the registered Off-Hall Betting Stations separate from the Billiard Halls in order to protect the integrity of the game. this purpose, the E-Billiard Operator shall establish betting terminals or kiosks in

The E-Billiard Operator shall ensure that the E-Billiard tables are secured from any session. and all external influences that may impact on the integrity of each E-Billiard

3. For purposes of registering Billiard Halls and Off-Hall Betting Stations with PAGCOR, the following requirements must be fully complied with:

a) Only corporations duly registered with the Securities and Exchange hall betting station, referred herein as the Applicant. Commission (SEC) may register its billiard halls or may establish its own off-

b) The Applicant must pass PAGCOR's standard probity check for gaming operator suitability and comply with all requirements provided herein.

c)If the Applicant is an entity aside from the E-Billiard Operator, the former must

secure a favorable endorsement from a licensed E-Billiard Operator.

d) The Applicant may apply for registration for a Billiards Hall or an Off-Hal Betting Station. The same may apply for a hybrid registration for Billiard Hall and/or through the Off-Hall Betting Stations. with an Off-Hall Betting Station. For clarity, no bets shall be accepted whatsoever within the premises of the Billiard Halls which must be distinct and separated from the Off-Hall Betting Stations. Bets shall only be accepted online

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e The Applicant shall submit a duly filled-out Billiards Halls and Off-Hall Betting Station Registration Form (EB Form No. 2) together with the following requirements: Company-related requirements: 2. Copy of Registration Certificate from Securities and Exchange 1. Company profile; 3. Articles of Incorporation and By-laws duly filed and approved by Commission (SEC) with required capitalization of 5 Million Pesos authorized capital stock and 3 Million Pesos paid-up capital; the SEC:

5.Mayor's Permit/Business 4. Latest General Information Sheet (GIS) duly filed with SEC; Permit/Municipal License forthe

6. BIR Registration Certificate; and 7. Written Disclosures and Sworn Undertakings as prescribed in to be registered with PAGCOR. In the case of Off-Hall Betting Stations, the Mayor's/Business Permit of the spacelunit to be Section 6 Regulation 2 of the GSRM. relevant gaming activities from the location of the Billiards Hall leased shall suffice;

N Resolution Of No Objection (RONO), in any form, interposing no objection to the conduct of E-Billiard operations in said billiard halls

and the taking and broadcasting of feeds therefrom.

suffice. As in the case of Off-Hall Betting Stations wherein registration of players and accepting of bets from the registered players are allowed and no taking and broadcasting of feeds of the actual billiard games, a Letter of No Objection (LONO) interposing no objection for the operations of the same issued by the Office of the Mayor of the concerned LGU shall

H Other documentary requirements:

-Photos of the proposed billiard hall or off-hall betting station D Detailed location sketch of the billiard hall or off-hall betting station

-Site layout plan and site set-up concept renderings as applicable;

IN Payment of the non-refundable Application Fee, using the GS Form No. 2 of the GSRM, as follows:

Renewal for 2 years Certificate of Registration First Issuance -- valid for 3 years Application Fee PhP 500,000.00 PhP 250,000.00

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The same shall be subject to the same regulatory fees as a gaming site under the GSRM,as determined applicable by the EGLD

f The site area and site distance requirements under the GSRM shall apply,

attached herein as Annex A.

instances and other processes not covered. The said manual shall be supplemental to this regulatory framework for

same shall not be subject to the distance reguirements of the GSRM as in the televised sporting events are shown continuously. In addition, Off-Hall Betting Stations may be located in a Sports Bars and the case of malls or arcades. A Sport Bar refers to a place of entertainment where

g) Upon compliance with the submission of complete documentary reguirements PAGCOR Authorized Team. and payment of application fee, a site inspection shall be conducted by the

h) The Application shall only be recommended to the Board of Directors for approval upon compliance with the following: iii. Satisfactory results of ocular inspection whether the proposed site is ii. Payment of the non-refundable PhP500,000.00 Application Fee; i. Submission of the complete documentary requirements; compliant with the site location and distance reguirements

Upon approval, EGLD shall issue notice of approval to the Applicant along with the Certificate of Registration (CoR) duly signed by the PAGCOR President and Chief Operating Officer.

Upon securing the CoR, the registered Off-Hall Betting Station shall establish its site subject to the following guidelines: i Must have a minimum floor space of at least six (6) square meters

T At least one (1) betting terminal must be installed Betting Stations must have provisions for the following: 2. Television screens for the streaming of billiard games from the E- 4. Cash Drawer with vault or cash box 1. Cage, Cashier's booth or Counter type with glass enclosure, as 3. External Signage applicable billiard platform horizontal signage must not exceed 0.75 meters by maximum vertical signage must not exceed 0.75 meters by maximum width of 1.5 meters height of 1.5 meters

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PAGCOR E-Games Licensing Department Effectivity 1 5 NOV 2023

N The following regulations/signages/posters must beprominently displayed: 1.Prohibition Notice -- refer to Regulation 20 Section 1(f) of the 6. CCTV System must be operational 24/7 regardless of betting 5. Personal Computer 7. Secured Internet connection 8. Telephone line / Mobile phones 9. UV Money Detector 10. Sufficient lighting 2 11. Sufficient air-conditioning and ventilation 3 4. stations' operating hours, all video recordings of coverage shall be retained for a minimum of 30 days PAGCOR logo stickers (at the entrance door and at the Cashier's Redemption procedures booth, as applicable) GSRM General House Rules

Vi. Personnel must be of legal age and must secure a Gaming Employment Provision of a Players Registration and Membership System in License (GEL) from GLDD-PAGCOR. 5. Responsible Gaming posters

Vi. Vi. Must have at least one (1) security guard on duty Other pre-operational documentary reguirements: accordance with the GSRM 1.Certification of an executed Contract of Lease, or equivalent 2 document certifying right to/ownership of space Copy of Business permit issued by the LGU

3 Duly accomplished EB Form No. 5 - Notification of Target

Opening Date -- which must not be later than six (6) months from issuance date of the CoR

k.) For the registered Billiard Halls, the following requirements must be complied with: I Must have at least one (1) billiard table CCTV System must be operational 24/7 regardless of betting stations

Vi. V. I N. V Sufficient air-conditioning and ventilation Site personnel shall be of legal age and must secure a Gaming operating hours, all video recordings of coverage shall be retained for a Secured Internet connection Telephone line / Mobile phones Sufficient lighting minimum of 30 days

Viii. Must have at least one (1) security guard on duty Employment License (GEL) from GLDD-PAGCOR

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X Certification of an executed Contract of Lease, or equivalent document

X certifying right tolownership of space Duly accomplished EB Form No.5 - Notification of Target Opening Date

The Billiard Hall/Off-Hall Betting Stations shall be issued a notice to commence operations upon full and favorable compliance of I. Submission of the complete documentary reguirements; Posting of Php1,000,000.00 PCD to PAGCOR; Satisfactory results of final inspection on the compliance with the above

Iv Fully integrated of the commissioned E-Billiard betting system/platform requirements and actual testing of player's registration and membership system by the PAGCOR Inspection Team; and

with the third-party audit platform of PAGCOR.

4. For other registration-related applications, the following application forms shall be accomplished and shall be submitted to EGLD along with the documentary requirements and the payment of applicable fees, for processing:

a) CoR Renewal EB Form No.3

b)CoR Amendment EB Form No. 4

c)CoR Cancellation/Termination EB Form No.6

For the specific applications above, the guidelines, requirements, fees and procedures under the GSRM shall apply as deemed applicable by the EGLD.

5. Other operational-related requests, the specific guidelines, and procedures under the GSRM shall apply, as deemed applicable by the EGLD.

6. Any violations with the rules and guidelines of the Billiards Hall / Off-Hall Betting Station operators shall subject the same to the Table of Offenses and Corresponding Penalties For E-Billiard Operations herein attached as Annex B.

VIII. MISCELLANEOUS PROVISIONS

1. Operations shall be monitored by CMED for i-Gaming, as well as operations at the for I-Gaming, together with PAGCOR's third-party audit platform, must continuously monitor and ensure that the E-Billiard platform captures all data, and properly accounts and reports the same. For this purpose, the CMED-IG shall create its source, i.e., at the registered Billiard Halls and Off-Hall Betting Stations.The CMED own Implementing Rules and Guidelines for the proper monitoring of E-Billiards.

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2. The E-Billiard Operator shall design and implement a registration process for its

agents, coordinators, or promoters, if any, to ensure the identity, probity, as well as the responsibility and accountability of the latter. Agents shall secure Gaming Employment License (GEL).

3. The E-Billiard Operator shall maintain in its records the files, the application and

contracts, including the copies of IDs of its active agents, coordinators, or promoters for PAGCOR's use upon demand.

4. The E-Billiard Operator shall submit to EGLD the updated list of all its currently

accredited agents, coordinators, or promoters with their complete names, addresses and assigned GEL in CSV or Excel format.

5. The E-Billiard Operator shall subsequently submit a list of newly accredited agents

with their complete names, addresses and assigned GEL in csV or Excel format weekly.

6. All acts including violations with rules and guidelines by the agents, coordinators,

promoters, etc. shall be attributed to the principal E-Billiard Operator and both parties may be jointly and severally liable under existing guidelines. For this purpose, the E-Billiard Operator shall be subject to the Table of Offenses and Corresponding Penalties For E-Billiard Operations herein attached as Annex B.

7. The E-Billiard Operator shall comply with all Anti-Money Laundering and Covered Persons under RA 9160, as amended, and its Casino Implementing Rules Countering the Financing of Terrorism (AML/CFT) Laws, and Rules and Regulations issued and shall be issued by the Anti-Money Laundering Council (AMLC), PAGCOR, and other relevant government agencies, including but not limited to, Republic Act No. (RA) 10927, an Act Designating Casinos as and Regulations; AML/CFT Guidelines for Casinos; and Customer Due Diligence Guidelines for Land-based Casinos.

8. In the event that E-Billiard Operations is declared suspended or unauthorized by

the President of the Republic of the Philippines or by any competent authority, such

upon the licenses and certificates issued herein. Accordingly, the licensees and bearers of certificates shall hold PAGCOR free from all claims, obligations, and shall automatically and without any further act from PAGCOR have the same effect

accountabilities arising from the above declaration. It is hereby emphasized that a license or certificate herein issued is a mere privilege which does not vest absolute rights in the holder and may be withdrawn at any time.

9. Any misrepresentation, breach and/or circumvention, directly or indirectly, of any

of the conditions set in this regulatory framework for E-Billiards, any other relevant communication or memorandum issued by PAGcOR, and/or any law, local or

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national, of the Philippines shall be sufficient ground for the immediate blacklisting penalties, and revocation of the operator's license. of the erring E-Billiard operator and shall be cause for the imposition of suspension,

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