Gaming Site Regulatory Manual ver. 3.0 ( Bingo Games)

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 PHILIPPINE AMUSEMENT AND GAMING CORPORATION GAMING SITE REGULATORY MANUAL (BINGO Games) Version 3.0 March 2017 Compiled by: GAMING LICENSING AND DEVELOPMENT DEPARTMENT Template Forms Prepared by: GAMING LICENSING AND DEVELOPMENT DEPARTMENT 1

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 This page is intentionally left blank 2

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 FOREWORD PAGCOR’s regulatory role is essential to the vision of the country taking a place among the world’s top gaming jurisdictions. In principle, PAGCOR aims to:  Ensure a level playing field among industry proponents;  Maintain an orderly and predictable regulatory environment;  Enforce license terms and conditions;  Promote fairness and integrity in the conduct of games;  Provide an underlying platform for responsible gambling;  Disallow access to gaming venues by minors and financially vulnerable persons; and  Prevent licensed gaming venues from being used for illegal activities. Regulations and standards must be formulated in order to meet these objectives. This Gaming Site Regulatory Manual (Bingo Games) shall form part of the Gaming License (GL) issued by PAGCOR to a qualified Operator which shall govern the establishment and operation of a gaming site. 3

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 TABLE OF CONTENTS Foreword Regulation 1 - Definition of Terms Definition of terms ................................................................................................................. 11 Regulation 2 – Operator Qualifications Section 1. Who may apply as an Operator? ………………………………………………….. 19 Section 2. New Applicant ………………………………………………………………………. 19 Section 3. Existing Operator ……………………………………………………………………. 19 Section 4. Foreign nationals ……………………………………………………………………. 19 Section 5. Change in composition of Board members ………………………………………. 20 Section 6. Applicant documentary requirements ……………………………………………. 20 Section 7. Annual submission of documents …………………………………………………. 22 Regulation 3–Site Location Requirements Section 1. Local Government Unit (LGU) requirements …………………………………… 24 Section 2. Site location distance requirements ………………………………………………. 25 Section 3. Site location area requirements …………………………………………………… 26 Section 4. Other site location requirements …………………………………………………… 27 Section 5. Measurement of distance ………………………………………………………….. 28 Regulation 4– Fees and Other Monetary Requirements Section 1. Types of fees ……………………………………………………………………….. 29 Section 2. Table of fees …………………………………………………………………………. 29 Section 3. Payment of fees ……………………………………………………………………… 30 Section 4. Performance Cash Deposit ………………………………………………………… 30 Regulation 5 – The Application Section 1. Application Form Part I ....................................................................................... 32 Section 2. Application Form Part II ...................................................................................... 33 4

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 3. Where to secure application forms ……………………………………………….. 34 Section 4. Where to submit the application forms ………………………………………….. 34 Section 5. Payment of applicable fees ………………………………………………………… 34 Section 6. Site inspection ……………………………………………………………………… 35 Section 7. Proposed floor plan and site set-up concept renderings ………………………. 35 Section 8. Site recommendation and approval ………………………………………………. 35 Section 9. Change in Operator of a gaming site …………………………………………….. 36 Regulation 6 – The License Section 1. Gaming License (GL) ……………………………………………………………. 38 Section 2. Renewal of License ……………………………………………………………… 39 Section 3. Amendment of License due to change in location of gaming site …………. 41 Section 4. Voluntary pre-termination of License due to change in Operator ………….. 42 Regulation 7 – The Gaming Site Section 1. Gaming site area …………………………………………………………………… 43 Section 2. Designation of gaming areas ……………………………………………………… 44 Section 3. Gaming area to be unobstructed ………………………………………………… 44 Section 4. Setting up of a gaming site ………………………………………………………… 44 Section 5. Installation of gaming terminals/machines and/or equipment ......................... 44 Section 6. Interior gaming site specifications ................................................................... 45 Section 7. Exterior gaming site specifications ................................................................. 46 Section 8. Other requirements for gaming site.................................................................... 47 Section 9. Gaming site manning ............................................................................................ 47 Section 10. Payment of monetary requirement and submission of Business Permit ........... 47 Section 11. Other pre-operational activities .......................................................................... 48 Section 12. Commencement of gaming site operations ........................................................ 48 Section 13. Addition, conversion or removal of game offering in an existing gaming site ... 48 Section 14. Gaming terminal/Bingo seating capacity expansion or reduction in an existing gaming site ........................................................................................................... 51 Regulation 8 – Electronic and Traditional Bingo Systems, and Bingo Games 5

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 1. Electronic bingo system ……………………………………….………........…… 52 Section 2. Electronic bingo system requirements ……………………………………….... 53 Section 3. Evaluation and approval of electronic bingo system and bingo games ……… 54 Section 4. Electronic bingo system version upgrade …………………………………….. .. 55 Section 5. Emergency software patch due to software bug ………………………………… 56 Section 6. Return to Player (RTP) Percentage ad game parameters ……………………... 56 Section 7 Traditional bingo system, equipment and paraphernalia ……………………….. 57 Section 8. Modification of electronic and traditional bingo system and games …………….62 Section 9. Regular preventive maintenance …………………………………………………..62 Section 10. Final tax on player’s jackpot winnings from bingo games ……………………… 62 Regulation 9 – Electronic Gaming Terminal Section 1. Electronic bingo terminal ………………………………………………………….. 63 Section 2. Electronic bingo machine ……………………………….………………………….. 63 Section 3. Implementation of electronic bingo machines …………………………………... 64 Section 4. Modification of electronic bingo machines ……………………………………….. 64 Regulation 10 – Gaming Equipment and Paraphernalia A. List of gaming equipment and paraphernalia for gaming sites B. Standards and guidelines for traditional bingo equipment and paraphernalia Section 1. Bingo cards .................................................................................................... 66 Section 2. Bingo tickets .................................................................................................. 74 Section 3. Guidelines for bingo system, equipment and other bingo paraphernalia ....... 76 Section 4. Instant Game tickets ...................................................................................... 77 Section 5. Bingo game variants ...................................................................................... 79 Regulation 11 – Security and Surveillance Section 1. Minimum security requirements ..................................................................... 81 Section 2. Minimum requirements for surveillance system ............................................. 81 Section 3. Minimum requirements for surveillance coverage .......................................... 82 Section 4. Minimum requirements for surveillance records ............................................. 83 Section 5. Procedural guidelines on archiving and retrieval of footage ............................ 83 6

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Regulation 12 – Procurement of Gaming Equipment and Paraphernalia Section 1. General guidelines .......................................................................................... 84 Section 2. Foreign procurement ..................................................................................... 84 Section 3. Inspection and inventory ……………..…………………………………..……….. 86 Regulation 13 – Accreditation of Suppliers of Gaming Equipment and Paraphernalia Section 1. Accreditation of Suppliers …………………………………………………………. 87 Section 2. Accreditation standards ……………………………………………………………. 87 Regulation 14 – Movement of Gaming Equipment and Paraphernalia Section 1. General guidelines …………………………………………………….………… 89 Section 2. Pull-out and transfer of gaming equipment/paraphernalia …………………… 89 Section 3. Pullout of gaming equipment from a gaming site or Operator’s authorized storage area for ship out ………………………………………………………… 91 Regulation 15 – Disposal of Gaming Equipment and Paraphernalia Section 1. Disposal of gaming equipment and paraphernalia ……………………………. 93 Section 2. Destruction of gaming equipment and paraphernalia ………………………. 94 Regulation 16 – Gaming Site Operational Rules and Guidelines Section 1. The Gaming Site Operational Rules and Guidelines (GSORG) …………….. 95 Section 2. Gaming site operations to be consistent with GSORG ………………………. 96 Regulation 17 – Player Registration and Membership Section 1. General guidelines ………………………………………………………………. 98 Section 2. Player registration minimum requirements …………………………………….. 98 Section 3. Player registration system ………………………………………………………. 99 Section 4. Player membership reports ……………………………………………………… 100 Regulation 18 – Conduct of Gaming A. General Provisions Section 1. Operating hours ………………………………………………………………….. 101 7

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 1. Conduct of games ………………………………………………………………. 102 B. Traditional Bingo PART I. On-Site Bingo Section 1. Guidelines and gaming rules ……………………………………………………. 105 Section 2. Bingo games and bingo programs …..……………………………………………107 Section 3. Categories of traditional bingo games ……………………………………………109 Section 4. Types of bingo games ……………………………………………………………. 109 Section 5. Guidelines and gaming rules for other bingo games ………………………….. 111 Section 6. Game designs ……………………………………………………………………… 113 Section 7. Prizes ………………………………………………………………………………. 114 Section 8. Cancellation of bingo games …………………………………………………….. 116 Section 9. Disputed bingo games ……………………………………………………………. 118 Section 10. Activities conducted as part of bingo games …………………………………… 119 Section 11. General Traditional Bingo House Rules ………………………………………… 121 Section 12. Gross receipts from sale of bingo tickets and bingo cards …………………... 124 PART II. Bingo Games via Closed Circuit Television (CCTV) and Computer Links Section 1. Gaming parameters for bingo games via Closed Circuit Television (CCTV) and computer links ……………………………………………………………….. 128 Section 2. Guidelines in case of technical failure in the bingo link system …………….. 130 Section 3. Ticket allocation and sales ………………………………………………………. 131 C. Electronic Bingo Section 1. Guidelines and gaming rules …………………………………………………… 131 Section 2. Prizes ……………………………………………………………………………… 132 D. General House Rules Section 1. General House Rules for gaming sites ……………………………………….. 133 Regulation 19 – Marketing and Promotions Section 1. Marketing activities and/or promotions ……………………………………….. 136 Section 2. Promotional coupons …………………………………………………………….. 137 Section 3. Gaming points/Total credits redeemable for coupons ………………………. 138 8

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 4. Photo/Video coverage of an event inside the gaming site premises ………. 138 Regulation 20 – Banned Personalities Section 1. Personalities not allowed to enter and play in the gaming areas ................... 140 Section 2. Banning order issued by an Operator …………………………………………… 143 Section 3. Removal of banned personalities from gaming site premises ………………… 143 Regulation 21 – Determination of Gross Sales and Gross Gaming Revenues from Gaming Sites Section 1. Definition of Gross Sales .................................................................................. 144 Section 2. Determination of Gross Sales from traditional bingo games ............................ 144 Section 3. Definition of Gross Gaming Revenue ……………………………………………..145 Section 4. Determination of Gross Gaming Revenue from electronic bingo games ……...146 Regulation 22 – Financial Reporting and Remittance Guidelines Section 1. Computation of PAGCOR Share ........................................................................ 148 Section 2. Remittance to PAGCOR ………………………………………………………….. 148 Section 3. Operator’s computation of PAGCOR Share …………………………………….. 150 Section 4. Proof of remittance to PAGCOR ………………………………………………….. 150 Section 5. Operator’s documentation and reporting requirements ……………………….. 150 Regulation 23 – Patron Disputes Section 1. Issuance of notification ....................................................................................... 152 Section 2. Resolution of system-related disputes .............................................................. 152 Section 3. Report on dispute resolution ……………………………….……………………. 153 Regulation 24 – List of Offenses and Corresponding Demerits and Penalties Section 1. General guidelines ............................................................................................. 154 Section 2. Table of offenses ................................................................................................ 154 Section 3. Assessment of demerits .................................................................................... 157 9

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Regulation 25– Temporary Suspension and Closure of Gaming Site Section 1. Temporary suspension of operations initiated by the Operator ......................... 159 Section 2. Suspension of operations initiated by Local Government Units or due to force majeure ............................................................................................................... 160 Section 3. Voluntary closure of gaming site ………………………………………………… 160 Section 4. Post-operational activities ………………………………………………………….161 Regulation 26 – Responsible Gaming Regulation 27 – Gaming Employment License Regulation 28 – PAGCOR Monitoring Team Section 1. Designated PAGCOR Monitoring Team ............................................................ 165 Section 2. Main functions of the PAGCOR Monitoring Team ............................................. 165 Section 3. Records to be made available to the PAGCOR Monitoring Team …………….165 Section 4. Access to gaming site premises …………………………………………………. 166 Appendices Annex A List of Independent Gaming Laboratories duly recognized by PAGCOR ..…... 168 Annex B List of Forms ................................................................................................... 169 Annex C List of Sample Reports ................................................................................... 171 10

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1 Regulation DEFINITION OF TERMS ‘‘aisle’’ means a corridor, passage or other pedestrian thoroughfare within the gaming site premises. ‘‘ancillary area’’ means any of the following areas within the gaming site premises: (a) aisles; (b) back-of-house facilities; (c) any reception or information counter; (d) any area designated for the serving or consumption of food and beverages; (e) any area designated for aesthetic or decorative displays; (h) staircases, staircase landings and escalators; (i) toilets; and, (j) such other area not intended to be used for the conduct or playing of games as PAGCOR may allow on the application of the Operator. ‘‘approved game’’ means a game approved by PAGCOR for play in a gaming site. “back-of-house facility” includes a facility commonly known as a cage or cashier’s booth, and such other facility ancillary to the conduct of games as PAGCOR may specify. “ball bracket” means the minimum and the maximum range of ball limits required to hit a certain jackpot prize in a game. “ball limit” means the level at which the count on the number of balls is fixed. “ball progression” means the ball limit or bracket of a particular game that increases by a ball or number of balls, depending on the approved game mechanics. Ball progression stops and will be reset to its prescribed starting ball bracket once the jackpot prize is hit within the required ball limit or bracket. “betting credits” is the equivalent unit displayed on the electronic bingo terminal or electronic bingo machine that corresponds to the player’s cumulative amount of money which is available for play or encashment. 11

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “bill drop” pertains to the amount of money inserted into the bill validators for play. “bingo” is a game of chance played with randomly drawn numbers which players match against numbers on cards with differently numbered squares. The game is won when a predetermined pattern is completed. “bingo area” means the area within the gaming site where tables are located and traditional bingo games are played. “bingo caller” means the person in charge of announcing and explaining the bingo games, general bingo rules and house rules and then calling out the drawn balls until the game is won. “bingo card” means a paper card or sheet or an electronically generated card used in playing bingo games including bingo related games. Traditional bingo cards are typically bearing letters – B, I, N, G and O appearing in this order and pre-printed numbers ranging from “1” to “75”, with a free space at the center, grouped in the following manner: B I N G O 1 to 15 16 to 30 31 to 45 46 to 60 61 to 75 “bingo day” means a series of bingo sessions conducted in a day. It starts on the first game of the first session and ends on the last game of the last session. “bingo game pattern” means a predetermined arrangement or figure to be formed on a bingo card which serves as a guide for players to win in a bingo game. It varies from simple patterns to complicated ones such as moving pattern (one way to four ways), multiple patterns (more than one pattern) to play or continuous pattern (from simple to coverall or blackout). “bingo link game” means a bingo game which is conducted at a host site participated in by players in other officially designated remote sites linked together via the bingo link system. “bingo link system” means the system used to link various gaming sites via interactive Closed Circuit Television and Computer Link using Wide Area Network, video conferencing and audio/video equipment. “bingo program” means an outline of bingo games/sessions conceptualized in the conduct of bingo games on a daily basis containing the information on the schedule and number of games/sessions, game pattern and prize on each game, price of bingo cards and ball limit or bracket (if any) to hit a jackpot prize. “bingo-related games” are games that are offered within the premises of the gaming site that complement the traditional bingo operation such as instant game cards (scratch cards, pull tabs) and other games similar to bingo. 12

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “bingo session” means a series of bingo games consisting of not less than three (3) games to be conducted successively over a reasonable period of time which may have intermission between games. “bingo station” means a gaming site comprised of electronic bingo terminals area, bingo area and ancillary areas. “bingo ticket” means a pre-numbered ticket printed in a prescribed format used to redeem package of cards during special bingo events or special games. It is an instrument for the Operator to conduct pre-selling of bingo cards intended for a particular bingo event. It certifies that a player has already purchased his/her cards on the day of purchase of the ticket. “bonus prize” means the prize offered in a game over and above the prize indicated in the bingo program or announced to the playing public. ‘‘cage’’ means an area within any gaming site premises at which cash are deposited, and financial transactions and the paperwork necessary to support the playing of games in the gaming site are carried out. It is also called a cashier’s booth. ‘‘cash’’ means currency notes and coins which are legal tender and circulate as money in the Philippines. ‘‘cash in’’ means a transaction involving the receipt of cash paid by a player to an Operator, and includes: (a) a deposit of cash to be credited into the player’s account or terminal account with the Operator; (b) cash inserted into an electronic gaming terminal, i.e. gaming machine. (c) cash received by the Operator in exchange for bingo tickets, bingo cards or bingo-related game cards; and, ‘‘cash out’’ means a transaction involving the payout of cash by an Operator to a player, and includes: (a) cash paid upon a withdrawal made from the player’s account or terminal account with the Operator; (b) cash paid by the Operator to redeem tickets issued by an electronic gaming terminal for the corresponding residual credit collected; (c) cash paid by the Operator as payment of cash winnings derived from a jackpot obtained on an electric gaming terminal; (d) cash paid by the Operator to redeem winning bingo cards or bingo-related game cards; and, ‘‘cash transaction report’’ pertains to a report of a significant cash transaction. 13

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “cluster” means a group of gaming sites linked together in the conduct of bingo games via Bingo Link System. “contract” includes any kind of agreement or arrangement. ‘‘coupon’’ means a form distributed that is redeemable for items of value used to wager on an approved game. “disaster recovery plan” means written procedures, including assigned roles and responsibilities, designed to restore all or part of a gaming site’s system capabilities in the event that the system is rendered unusable by a disaster. ‘‘dispute’’ refers to a dispute between an Operator and a player of the gaming site as to alleged winnings, alleged losses or the manner in which a game is conducted. "drop" means the total amount of money removed from the bill validator acceptor. “electronic bingo area” means the gaming area within the gaming site where electronic bingo machines are installed for the conduct and operation of electronic bingo games. “electronic bingo card” means the electronically generated bingo card or bingo-styled card that is used in the conduct of the electronic bingo games. “electronic bingo game” or “ebingo game” is a game of chance played using electronic gaming systems with bingo or bingo-styled cards and numbers randomly generated by a Random Number Generator (RNG) and displayed on an electronic screen. It is played through a player terminal, typically an electronic bingo machine. When a player completes any predetermined pattern or combination, the player wins the corresponding prize displayed in the pay table or the jackpot prize. “electronic gaming system” means a computer system comprising of a combination of a central server, player terminal (i.e. electronic bingo machine) and all interface elements that function collectively for the purpose of electronically simulating the operations of live bingo game or games using bingo-styled cards including but not limited to the automated collection of bets and payout winnings. “electronic in/ticket in/voucher in” shows the amount of money deposited through an electronic system or through use of ticket or voucher, which is converted to credits for play in electronic gaming terminal. “electronic out/ticket out/voucher out” shows the amounts won by the player at the end of the game that were paid through an electronic system, or by a ticket printer or by a voucher. “entire link” means a group of clusters. 14

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “fees” means the fees payable to PAGCOR pursuant to the License. ‘‘gaming area’’ means any area within the g aming site premises other than an ancillary area. ‘‘gaming day/trading day’’ means a 24-hour period which constitutes a normal business day of a gaming site, being the same period by which the gaming site keeps its books and records for business, accounting and tax purposes. It is Operator-dependent but is generally from 6:00 a.m. of the current day until 6:00 a.m. of the following day. “Gaming License” means the License, referred to as the document granting the Operator the privilege to establish, install, maintain and operate a gaming facility or gaming terminal/s (referred herein as “gaming site”) as approved by PAGCOR. This document contains the terms and conditions and other PAGCOR regulations related to the operation of the gaming site. “game offering” is the suite of games offered through the electronic bingo machines or the traditional bingo game and its related games. “gaming paraphernalia” means apparatus, furnishing or accessories used in or necessary in the conduct of gaming operations. “gaming site” means a duly authorized establishment or facility that offers to the public the appropriate access to the PAGCOR-approved gaming activities, i.e. electronic gaming and/or bingo gaming. “Gaming Site Operational Rules and Guidelines” means the gaming site house rules and operating guidelines, mechanics of games and income determination procedures to be formulated by the Operator (as the same may be amended or supplemented from time to time in consultation with PAGCOR). ‘‘gaming site premises’’ means gaming site to be operated by the Operator under the license which all gaming activities shall take place. Gaming site premises shall be made up of gaming areas and ancillary areas. “GLDD” refers to the Gaming Licensing and Development Department of PAGCOR. "gross gaming revenue (GGR)” means gross collection less payouts. “gross collection” in electronic bingo operation means the total cash collected from the electronic bingo machines or the amount reflected in the system-generated report, whichever is higher. “guaranteed prize” means the prize indicated in the bingo program or announced to the playing public at the start of a game that the Operator commits to award to winners. It can be a “must go” (no ball limit condition) or jackpot prizes (subject to ball limit or bracket or no ball limit) or progressive jackpot prize. 15

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “host site” means the main gaming site where the core bingo activity-but not limited to the conduct of ball drawing-is being held that is simultaneously transmitted to the other linked remote sites within the cluster. “jackpot prize” means the top prize won in an electronic game. It may be a fixed amount or a progressive jackpot. It is won when a designated pattern is completed within a certain ball bracket and the bet placed on the winning electronic bingo card is equivalent to the maximum credits. “license” means the Gaming License (GL) issued by PAGCOR in favor of the Operator to set-up and to operate a gaming site , as the same maybe amended, supplemented or modified from time to time in accordance with the terms of the License and the Gaming Site Regulatory Manual. ‘‘modification’’, in relation to any gaming machine or approved gaming equipment, means any change: (a) affecting the display or operation of the gaming terminal or approved gaming equipment; or (b) capable of affecting the outcome of the game played on that gaming terminal or with that approved gaming equipment. “operating time” means the time frame within which an Operator is authorized to conduct electronic bingo games. It refers to the period between opening and closing of the gaming site. “Operator” refers to individual, corporation or other private entity authorized by PAGCOR through issuance of a License to set-up and to operate a gaming site. The Operator is the one who establishes the gaming site and oversees/manages the daily operations of its gaming site, in accordance with PAGCOR policies and guidelines. “PAGCOR” means the Philippine Amusement and Gaming Corporation or its successor entity, whereby “successor entity” means any successor or assignee to or replacement of PAGCOR in its capacity as a Person entitled to regulate and license all gaming establishments in the territorial jurisdiction of the Republic of the Philippines. “PAGCOR Monitoring Team” or PMT refers to a group comprised of PAGCOR representatives assigned at the different licensed gaming sites and whose main task is to check the Operator’s compliance with PAGCOR’s rules and regulations. The PMT may also be tasked to enforce said PAGCOR’s rules and regulations when the need arises. “payout” means the total of all sums paid out as winnings to gaming site players. “pay table” means the approved schedule of prizes appearing in the electronic terminal screen to be won in the electronic game. When a prize is won, the player’s account or terminal account is automatically credited. 16

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 “Performance Cash Deposit” means the monetary requirement/ deposit paid by the Operator in advance as PAGCOR’s measure of security against the Operator’s non-compliance with its financial obligations relative to gaming site operation and penalties which may be imposed by PAGCOR. “person” includes the State and its political subdivisions, other public entities, corporations, partnerships, associations, other juridical entities, individuals or groups of individuals. ‘‘player’’ means any person who: (a) opens a player account or assigned a terminal account , i.e. bingo machine, with an Operator; or, (b) is involved in a cash transaction with an Operator within its gaming site premises, whether or not that person participates in gaming in the gaming site. “permutation” means the configuration or ordered arrangement of bingo numbers in a bingo card which is unique from one card to another in one production series, or from one production series to another under the same product line. “person” includes the State and its political subdivisions, other public entities, corporations, partnerships, associations, other juridical entities, individuals or groups of individuals. “price of card” means cost of a card offered in a bingo game. “prize” means cash offered or striven for in bingo games. “prize fund” means the fund to be used for the payment of winnings or prizes won in the bingo games. The prize fund shall be provided by the Operator sufficient enough to cover the estimated total prizes for the day. Prize fund amount shall be at least two hundred fifty thousand pesos (PhP250,000.00) to cover large prizes. “progressive jackpot prize” means the jackpot prize that increases by an amount each time the game is played without a winner. It is comprised of the seed amount (initial jackpot prize amount) and the accumulated increment. An increment is in the form of a specific amount or value equivalent to a certain percentage of bet or specific type of bet placed for the game or any of the linked games for a specified period of time of interval or a specified condition/s is/are met or until the progressive game is won. “reckoning period” means the one (1) month period of operation of the gaming site, within which the aggregate PAGCOR Share shall be reckoned. ‘‘recognized testing laboratory’’ means a testing laboratory acceptable to PAGCOR for the purposes of testing gaming equipment against the technical standards. 17

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 ‘‘resident’’ means a citizen of the Philippines or a permanent resident of the Philippines. ‘‘Return To Player percentage’’ or ‘‘RTP%’’ means the theoretical return to a player of the value of all prizes awarded by a game (including any external prize) as a percentage of all bets made on that game over a large volume of game play. “remote site” means a gaming site belonging to a cluster that is a recipient of the transmitted bingo games via Bingo Link System from the host site. “SEC” refers to the Securities and Exchange Commission. “server” is a system comprised of software and suitable computer hardware that responds to requests across a computer network to provide, or help to provide, a network service. “surveillance” means the capability to observe and record activities being conducted in a gaming site. “surveillance system” means a system of video cameras, monitors, recorders, witches, selectors and other ancillary equipment used for gaming site surveillance. ‘‘technical standards’’, in relation to any gaming system, electronic machine or other gaming equipment of a particular class or description, means any technical standards issued by PAGCOR applicable to gaming system, electronic machines or gaming equipment of that class or description, updated from time to time or, if a modification to the technical standards has been allowed by PAGCOR, such technical standards as modified. “traditional bingo” is a bingo game played involving physical (paper) and/or virtual (electronic) cards or tickets which are typically purchased before the bingo session or game starts. The prizes are awarded on the basis of designated numbers on a bingo card or ticket which conform to the numbers drawn at random using a bingo equipment or ball draw device in order to form a winning game pattern. The game is won when a predetermined game pattern is covered on a bingo card or ticket. ‘traditional bingo equipment” means any and all devices and paraphernalia used to facilitate the conduct and operation of a bingo game. It includes, but is not limited to bingo system, video verification equipment, public address system, tables and chairs, ball rack, weighing scale, bingo balls, markers and others. “ticket” or electronic bingo receipt means the ticket printed by the electronic bingo machine for encashment of residual credits collected or for insertion into electronic bingo machine to play. ‘‘video recording’’ means any disc, magnetic tape or solid state recording device containing information by the use of which one or more series of visual images may be produced electronically and shown as a moving picture. 18

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2 Regulation OPERATOR QUALIFICATIONS Section 1. Who may apply as an Operator? (a) Only corporations duly registered with the SEC may apply as Operator of a gaming site, referred herein as Applicant. (b) Existing Operators operating under a Sole Proprietorship/Partnership will be given a period of six (6) months from the issuance of this Gaming Site Regulatory Manual to register an entity with the SEC, provided that such Sole Proprietor/Partner(s) should own at least two-thirds (2/3) of the outstanding capital stock in the case of a corporation, provided further, that all requirements for Applicant-Corporations shall be complied with. (c) The Applicant must pass PAGCOR’s standard probity check for Operator suitability and comply with the submission of documentary requirements. Section 2. New Applicant New Applicant refers to a corporation which intends to apply as Operator of a gaming site for the first time. Section 3. Existing Operator An existing Operator refers to a corporation which is already duly licensed by PAGCOR to operate a regulated gaming site or those which are sole proprietorships/partnerships already duly licensed by PAGCOR to operate a regulated gaming site but which are required to register as corporations with the SEC within six (6) months, as provided under Section 1 (b). Section 4. Foreign nationals (a) A corporation with foreign nationals as shareholders may apply as 19

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Operator of a gaming site, provided foreign ownership complies with the Regular Foreign Negative List B of the Foreign Investments Acts of 1991 B69 (R.A. No. 7042, as amended by R.A. No. 8179). Section 5. Change in composition of Board members (a) Any change in ownership of the corporation shall be reported to the GLDD upon occurrence of said change, provided, however, that for new Operators, the sale or transfer of any share or shares in the corporation shall not be allowed within a period of two (2) years from the commencement of the operation of the gaming site, unless with prior written approval from the GLDD and for serious and justifiable cause. (b) Any change in, or addition to, its Board of Directors (BOD) shall be reported to the GLDD within five (5) days from the occurrence of said change. (c) For documentary requirements to be submitted by the new partner or member of the BOD, refer to NEW BOD MEMBER column of the table in Section 6 below. Section 6. Applicant documentary requirements The following are the documentary requirements to be submitted by an applicant or existing Operator relative to its application for a license. Any misrepresentation or false information in the documentary requirements will result in the outright denial of the application. In case the license has been granted and the misrepresentation or false information is discovered, the license shall be revoked outright. NEW SITE NEW ANNUAL / DOCUMENTARY REQUIREMENTS RENEWAL BOD FIRST TIME EXISTING MEMBER APPLICANT OPERATOR I. FOR CORPORATIONS A Company profile ---- ---- ---- B SEC Registration ---- ---- ---- 20

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Latest General Information Sheet (GIS) duly stamped received by SEC If a stockholder is also a corporation, a copy of the latest GIS of said corporation should likewise be C __ submitted Articles of Incorporation, By-Laws duly stamped received by SEC: ---- ---- ---- Articles of Incorporation must show that gaming is one of its primary purpose of business; if secondary purpose, a copy of the Board’s Ratificatory Vote on the same should be submitted Foreign ownership, if any, must comply with the D Regular Foreign Negative List B of the Foreign Investment Acts of 1991 B69 (R.A. No. 7042, as amended by R.A. No. 8179) If a stockholder is also a corporation, a copy of the SEC Registration, Articles of Incorporation Authorized Capital Stock of at least FIVE MILLION PESOS (PhP 5,000,000.00), with paid- up capital of at least THREE MILLION PESOS (PhP3,000,000.00) Original bank certification [must have a minimum of E THREE MILLION PESOS (PhP 3,000,000.00) per ---- ---- game offering under the Applicant company’s name] Copy of ITR of the company (duly stamped by the F BIR) for the previous year – for existing incorporated ---- corporations Written disclosure of the description of any of the following events that occurred during the past five (5) years up to the latest date that are material to an evaluation of the ability or integrity of any director of shareholder of the Applicant: 1. Any bankruptcy petition filed by or against any business of which such person was a director or shareholder either at the time of the bankruptcy or within two years prior to that time; 2. Any conviction by final judgment, including the nature of the offense, in a criminal proceeding, domestic or foreign, or being G subject to a pending criminal proceeding, domestic or foreign, excluding traffic violations and other minor offenses; 3. Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, domestic or foreign, permanently or temporarily enjoining, barring, suspending, or otherwise limiting his involvement in any type of business of gaming activities; and 4. Being found by a domestic or foreign court of competent jurisdiction (in a civil action), 21

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 PAGCOR, or a domestic regulatory organization to have violated gaming law or regulation, and the judgment has not been reversed, suspended, or vacated. Written disclosure of relatives in PAGCOR or other H government agencies up to the 4 th civil degree of consanguinity or affinity Sworn undertaking that Applicant will abide by existing labor laws, including regularizing all I contractual employees working for more than six (6) months and the payment of minimum wages and the benefits mandated under labor laws Sworn certification that the gaming site has complied J with the required Performance Cash Deposit and Initial Betting Fund II. FOR EACH MEMBER OF THE BOARD OF DIRECTORS Duly accomplished and notarized Personal Disclosure Statement (PDS) with the following enclosures*: 1. For Filipino Citizens and Foreign Residents: Copy K of ITR (duly stamped by BIR) for the previous ---- ---- year 2. For Non-Resident Foreigners: Copy of valid passport L Electronic submission of PDS ---- ---- ---- * 1) For first time Applicants and new members of the BOD, duly accomplished Personal Disclosure Statement (PDS) to be sent together with enclosures in a sealed brown envelope marked “CONFIDENTIAL – PDS” addressed to: Senior Manager, RGU Gaming Licensing and Development Department 3rd Floor PAGCOR House 1330 Roxas Boulevard, Ermita, Manila 2) For the annual electronic submission, the Operator shall accomplish its PDS online through the PAGCOR Responsible Gaming website. Deadline for online filing shall be May 31st of each year. Refer to PDS Application Guide of the Responsible Gaming Code of Practice. The Operator shall retain copy of the ITR filed with the BIR, Certificate of Non-filing of Annual ITR (if applicable) or valid passport for safe keeping, which may be requested by GLDD at anytime. Section 7. Annual submission of documents (a) The Operator shall submit to GLDD the following documents on or before May 31st of each year: 1. Business Permit for the current year – nature of business must pertain to Gaming and Amusement 22

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. Updated General Information Sheet (GIS) duly received by SEC; if a stockholder is also a corporation, a copy of the latest GIS of said corporation should likewise be submitted 3. Company Income Tax Return (ITR) duly filed with the Bureau of Internal Revenue (BIR) 4. PDS which shall be accomplished and filed online; refer to Section 6 above for instructions. 5. Department of Labor and Employment Clearance (no unsettled or unsatisfied order on worker monetary benefits) from the Regional Office having jurisdiction over the Operator (b) Late submission and non-submission of documents 1. Failure to submit the above documents, or other documents as may be prescribed by PAGCOR in the future, after the lapse of sixty (60)- day grace period shall result in the imposition of penalty and demerits, as prescribed in Regulation 24. 2. Failure to submit the valid Business Permit shall be ground for revocation of the License. 3. Failure to submit altogether the above documents upon expiration of the current License shall mean the non-renewal of the License of the gaming site. (c) In connection with the annual submission of Business Permit as required in Item 1 under subsection (a) of this Section (Section 7 under Regulation 2), if the submitted Business Permit has quarterly validity, it shall be the Operator’s responsibility to secure and submit the updated Business Permit as soon as available. (d) The Operator or member of the Board of Directors who did not file the ITR in accordance with the provisions of NIRC of 1997 and its amendments Title II Chapter IX, Sec. 51.A.2 (Individuals not required to file an ITR) shall file in its records a fully accomplished and notarized Certificate of Non-filing of Annual Income Tax Return (GS Form No. 33) together with other documents to support its claim in its electronic filing of the PDS. 23

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3 Regulation SITE LOCATION REQUIREMENTS The gaming site being applied herein refers to gaming establishments other than PAGCOR-operated gaming sites and licensed casinos. The gaming site must satisfy site location requirements prescribed herein: Section 1. Local Government Unit (LGU) requirements (a) A Letter of No Objection (LONO) from the City/ Municipal Council, i.e. Council Resolution or Ordinance, stating its no objection to the establishment and operation of a gaming site situated within its locality, must be secured. (b) If the submitted LONO is dated prior to the date of site application, the Applicant must submit a certification from the office of City/Municipal Council duly signed by its authorized signatory confirming the continuing validity of the LONO. (c) Document/s issued by the Local Government Unit (LGU) as required in Item (a) above shall be duly certified by the authorized signatories of the Office of the City or Municipal Council. (d) Submission of LGU document/s as defined in Item (a) is not yet a requirement in site location screening, i.e. Part I of the Application Form (GS Form No. 1A). Refer to Section 1 under Regulation 5. (e) Submission of required LGU documents is not a guarantee of approval of the application. (f) The LONO requirement shall not be applicable if the proposed gaming site is located in the same street address of an existing gaming site, provided said existing gaming site has a valid Business Permit from the LGU and currently operated by the Applicant. 24

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (g) The Applicant must ensure that the proposed gaming site is compliant with the LGU requirements and regulations on the establishment and conduct of gaming operations. Section 2. Site location distance requirements The gaming site must comply with the following distance requirements: (a) Not less than three hundred (300) meters from schools, places of worship, cockpits, horse-racing outlets, public markets, informal settlers, and resettlement areas, defined as follows: 1. Schools are educational institutions duly registered with the Department of Education (DepEd) and Commission on Higher Education (CHED). 2. Places of worship shall refer to stand-alone places of worship or churches. 3. Cockpits shall refer to an enclosed establishment where cockfighting is conducted pursuant to applicable laws and regulations. 4. Horse-racing outlets shall refer to race tracks constructed or conducting horse races with betting either on the results of the races or other forms of gaming derived therefrom, and either directly or by means of any mechanical, electrical, and/or computerized totalizator 1 pursuant to applicable laws and regulations. 5. Public Markets shall refer to a market place dedicated to the service of the general public and is operated under government control and supervision as a public utility, whether it be owned by the government or any instrumentality thereof or by any private individual. 6. Informal settlers shall refer to communities of individuals who own and occupy houses, structures, constructions and other encroachments on lands without the express consent of the landowner and who have no sufficient income for legitimate housing. 7. Resettlement Areas shall refer to areas identified by the national agency or by the local government unit with respect to areas within its jurisdiction, which shall be used for the relocation of the underprivileged and homeless. (b) Gaming sites must be one (1) kilometer radial distance apart from each other except when the gaming sites are located in a highly urbanized city 1 Section 1, Republic Act No. 7978. 25

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 or municipality as categorized by the Department of Interior and Local Government (DILG) where the distance requirement shall be five hundred (500) meters. (c) The three hundred (300)-meter distance restriction as provided under Section 2 (a) above and the one (1) kilometer or five (500) hundred meter radial distance requirement under Section 2 (b) above shall not apply to malls or arcades and three (3)-star hotels and resorts accredited by the Department of Tourism authorized by PAGCOR and by the local government unit concerned. (d) The radial distance requirement to the proposed gaming site will be waived if the proposed gaming site is located in the same street address of an existing gaming site, provided, said existing gaming site has a valid Business Permit from the LGU, provided, further, that a gaming site shall not host the same gaming activity. (e) The site location distances as required under this Section must be duly certified by a licensed geodetic engineer, subject to the exceptions provided under Section 2 (c) above where the certification by the licensed geodetic engineer will not be required. (f) There shall be a maximum number of gaming sites depending on their respective game offering (electronic bingo, traditional bingo, or mixed) to be determined by the GLDD per local government unit. (g) The updated radial distance restriction shall be posted at the Electronic Gaming and Poker page in PAGCOR website’s Regulatory link. Section 3. Site location area requirements (a) Gaming sites may be located within the following areas or establishments: 1. Malls or Arcades i. These are large retail complex containing a variety of stores and often restaurants and other business/commercial establishments housed in a series of connected or adjacent buildings or in a single large building; and commercial buildings where majority of the located establishments provide retail sales, leisure and entertainment to customers. ii. Gaming site must be enclosed and within the mall’s general premises to be classified under this category. This may include non-connected annexes that have similar leisure and entertainment establishments as that of the mall (restaurants, etc). Typically, annex area will belong to the same complex or share the same parking area of the mall. Buildings that are not in the mall premises may be classified otherwise. 26

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 iii. Only one (1) gaming site can be located in one mall or arcade. 2. Privately-owned casinos 3. Commercial Buildings i. Address classified by LGU Zoning Body as a commercial building. ii. The Commercial Building should not be located beside or across schools, places of worship, cockpits, horse-racing outlets, public markets, informal settlers, and resettlement areas. iii. Buildings must either have a supplied generator or allow the gaming site to have its own generator. iv. Gaming site must be enclosed and within the commercial building to be classified under this category. v. Only one (1) gaming site can be located in a Commercial Building. 4. Hotels / Resorts i. Gaming sites can only be located inside the building or within the same complex/premises of three (3)-star hotels and resorts accredited by the Department of Tourism authorized by PAGCOR and by the local government unit concerned. ii. Proposed site must be located in an identified commercial space of the hotel/resort (as opposed to guest rooms). (b) No stand-alone gaming site shall be allowed. Stand-alone gaming site refers to gaming site located in a solitary building or establishment, and is not part of any commercial complex or compound. Section 4. Other site location requirements (a) Location Map of the proposed gaming site (indicate distance of proposed site from schools, places of worship, cockpits, horse-racing outlets, public markets, informal settlers, resettlement areas, and PAGCOR authorized gaming sites). It is an attachment to Part I of Application Form (GS Form No. 1A) as defined in Section 1 under Regulation 5. (b) Authorization for Site Inspection as necessary 27

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (c) No contractual agreement for the proposed gaming site shall be executed and renovation shall not commence without PAGCOR’s written approval of the establishment of the gaming site. PAGCOR will not be held liable for any damages and rental / construction expenses that the Operator may incur relative thereto. (d) If there is an LGU resolution on specific guidelines on the establishment of a gaming site, such guidelines must be complied with. The Applicant’s compliance with said guidelines does not dispense with its fulfilment of PAGCOR’s requirements stated herein. (e) Copies of the following permits of the location (malls, arcades, hotels, resorts, privately-owned casinos, and Commercial Buildings of the proposed gaming site: 1. Business permit; 2. Occupancy permit; 3. Locational clearance; 4. Fire Safety Inspection Certificate; and 5. Certification from a duly licensed geodetic engineer confirming that the location is compliant with the distance requirements imposed under this Gaming Site Regulatory Manual, except when the gaming site is located in malls or arcades and three (3)-star hotels and resorts accredited by the Department of Tourism authorized by PAGCOR and by the local government unit concerned. Section 5. Measurement of distance (a) Distance from proposed gaming site to schools, places of worship, cockpits, horse-racing outlets, public markets, informal settlers, and resettlement areas will be measured using radial or point to point straight distance from property line to property line. (b) Distance from proposed gaming site to another gaming site will be measured using radial or point to point straight distance from property line to property line except if the gaming site is in a mall or arcade or in a hotel/resort, in such case, its exact location is used as reference point. (c) In measuring distance, applicant must use either Google Maps or WikiMapia. 28

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 4 Regulation FEES AND OTHER MONETARY REQUIREMENTS Applicable fees shall be paid by the Applicant/ Operator relative to the application for setting up the gaming site and/or renewal of License. Fees, payable to PAGCOR, are non-refundable. Section 1. Types of fees (a) Application Fee – shall be paid upon advice of GLDD, i.e. if duly accomplished Application Form Part II (GS Form No. 1B) and submitted LGU documents are found in order. (b) Inspection Fee - shall be for site inspection of proposed gaming site to verify compliance to distance and area requirements. This shall be paid upon advice of GLDD, i.e. if duly accomplished Application Form Part II (GS Form No. 1B) and submitted LGU documents are found in order. (c) Processing Fee - shall be paid upon completion of all application requirements and satisfactory site inspection, before a recommendation is prepared and submitted to the PAGCOR Board of Directors for approval. This shall apply also to the renewal of License. (d) Monitoring Fee – shall be paid upon approval of the application by the PAGCOR Board of Directors or whenever an Operator applies for renewal of license. Section 2. Table of fees RENEWAL TYPE OF FEE AMOUNT NEW SITE OF LICENSE 29

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 APPLICATION PhP5,000.00 INSPECTION PhP40,000.00 ----- PROCESSING PhP50,000.00 MONITORING PhP35,000.00 Section 3. Payment of fees (a) The Applicant may proceed to PAGCOR Finance and Treasury Department (FTD) for payment of fees or may deposit to PAGCOR OPEX bank account. (b) The Applicant shall use the Payment Processing Request Form (GS Form No. 2) when transmitting payments for the applicable fees. (c) The Applicant shall provide the payment information details. (d) The Applicant shall submit the fully accomplished request form to FTD together with supporting payment documents and furnish a copy to GLDD duly received by FTD. (e) The Applicant shall submit a copy of Original Receipt, upon its issuance by FTD, to GLDD for the corresponding payment made in Item (d) above. Section 4. Performance Cash Deposit (a) The Operator will be required to post the following Performance Cash Deposit for each game offering: PERFORMANCE CASH GAME OFFERING WHERE TO POST DEPOSIT Electronic Bingo PhP 1,500,000.00 PAGCOR - FTD Traditional Bingo PhP 1,000,000.00 PAGCOR - FTD (b) The following shall apply to posting of the Performance Cash Deposit as prescribed in subsection (a) above: 1. For new gaming sites, posting shall be done prior to commencement of operation of the gaming site but not later than six (6) months after receipt of notice of approval; or, 2. For additional game offering, posting shall be done prior to commencement of operation of the additional game offering. 30

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. For a change in Operator of an existing gaming site, posting by the new Operator shall be done within fifteen (15) days from receipt of notice of approval prior to its assumption of management of the gaming site. (c) The Operator shall always maintain the Performance Cash Deposit with PAGCOR. Should any deductions be made from this Performance Cash Deposit to settle the obligations of the Operator with PAGCOR, e.g., penalties for offenses committed, the Operator shall restore the deposit at its original level within fifteen (15) calendar days from deduction. (d) Failure to restore the Performance Cash Deposit, as prescribed in subsection (c) above, shall cause the imposition of sanction, i.e. demerit of ten (10) points for every month of non-compliance. Failure to restore the Performance Cash Deposit at the amount prescribed for more than a total of six (6) months shall be ground for revocation of license. (e) Restoration of the Performance Cash Deposit, as prescribed in subsection (c) above, shall be required for the renewal of License. (f) The Performance Cash Deposit, as prescribed in subsection (a) above, may be increased or decreased as deemed necessary by PAGCOR. (g) Upon cessation of a game offering, i.e. traditional bingo or electronic bingo, the Operator shall undertake the post-operational activities pertaining to such game offering as prescribed in Section 4 under Regulation 25. The Operator shall subsequently submit the following for refund of its corresponding Performance Cash Deposit (net of any outstanding obligations to PAGCOR): 1. Letter of request for refund of Performance Cash Deposit; and, 2. Original copy of Performance Cash Deposit official receipt. (h) Upon closure of a gaming site, Performance Cash Deposit shall be refunded subject to the guidelines prescribed in Section 4 under Regulation 25 and submission of documents required in subsection (g) above. 31

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 5 Regulation THE APPLICATION The Application Kit contains the application procedures for setting up of a gaming site. It consists of two (2) parts as indicated in Part I and Part II of the Application Form (GS Form Nos. 1A and 1B). Handling and processing of applications are carried out by GLDD. Section 1. Application Form Part I Part I of the Application Form (GS Form No. 1A) involves evaluation of site location in accordance with Sections 2 and 3 under Regulation 3. (a) The Applicant is required to provide information and fully accomplish the Application Form Part I (GS Form No. 1A) and attach the location map (showing distance) of the proposed gaming site. (b) If the proposed gaming site is acceptable in terms of the site location requirements as prescribed in Sections 2 and 3 under Regulation 3, the Applicant shall be advised to proceed to Application Form Part II (GS Form No. 1B). For the guidelines on multiple applications where the proposed sites are within the radial distance restriction from each other, refer to Item (c) under Section 2 below. (c) Application will be returned if : 1. Incomplete; or 2. The proposed gaming site is not compliant with the requirements prescribed under Regulation 3. (d) Processing of Application Form Part I shall be subject to availability of slot as determined by the annual quota on applications. Once the annual quota has been reached, Application Forms Part I shall be queued. Notice on re-opening of Application Form Part I processing shall be posted at the Electronic Gaming and Poker page in PAGCOR website’s 32

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Regulatory link. (e) Evaluation of Application Form Part I (GS Form No. 1A) shall be within five (5) working days from its submission. (f) Application Form Part I found to be acceptable, as stated in subsection (b) of Section 1 above, shall be valid within six (6) months from the date of GLDD advice, subject to Applicant’s compliance with the submission of complete LGU and other documentary requirements. Section 2. Application Form Part II Part II of the Application Form (GS Form No. 1B) will be given to Applicants who have successfully complied with Part I. (a) The Applicant is required to provide information and fully accomplish the Part II of the Application Form (GS Form No. 1B) and attach the Letter of No Objection (LONO) from the concerned Local Government Unit (LGU), i.e., City/Municipal Council resolution. (b) First (1st) applicant in an area shall be given thirty (30) days to submit the required documents, as prescribed in Item (a) above. (c) For multiple applications where the proposed gaming sites are within the radial distance restriction from each other, the following shall apply: 1. The second (2nd) and succeeding applicants with proposed sites found compliant with distance restriction guidelines shall be advised of the current ineligibility of their applications until the thirty (30)-day period given to the first (1st) Applicant as prescribed in Item (b) above has lapsed. 2. Failure to comply within thirty (30) days by the first (1 st) Applicant shall mean eligibility of other applications. GLDD shall advise other qualified Applicants to proceed to Application Form Part II. The ‘first to complete requirements, first to be recommended’ policy shall apply based on the date of the LGU document to be submitted by the Applicants. (d) Application will be returned if : 1. incomplete or incorrect LGU documents, or 2. in the case of multiple applications, when the “first to complete requirements, first to be recommended” policy has been met by another applicant. 33

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (e) Acceptability of the proposed gaming site and submission of LGU documents are not a guarantee of the approval of the application. The grant of the license of a proposed gaming site is subject to the approval of the PAGCOR Board. (f) The Applicant shall submit the Applicant’s documentary requirements as prescribed in Section 6 under Regulation 2. (g) Additional documentary requirements may be required for submission as deemed necessary. Section 3. Where to secure application forms a) Application Form Part I can only be obtained by downloading from the Electronic Gaming page at the link: www.pagcor.ph/regulatory/. b) Application Form Part II will be emailed by GLDD to qualified Applicant’s official email address together with the evaluation results of its Application Form Part I. Section 4. Where to submit the application forms The Applicant/Operator shall email all duly accomplished Application forms and its attachments to gldd.rgulicensing@pagcor.ph. Section 5. Payment of applicable fees (a) Payment of Application Fee and Inspection Fee, as prescribed in Regulation 4, shall be made upon acceptance by GLDD of the Application Form Part II and required LGU documents. (b) Upon completion of Sections 6 and 7 below, payment of Processing Fee shall be made. (c) Payment of Monitoring Fee shall be made upon approval of the application by the PAGCOR Board of Directors and prior to commencement of operations of the gaming site. (d) Payment of the applicable Fees is NOT an assurance of approval of the gaming site. 34

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 6. Site inspection (a) When to Schedule Site Inspection This shall be done upon submission and compliance with the following: 1. Duly accomplished Application Part II and the LONO with payment of applicable Fees; and, 2. All documentary requirements as prescribed in Regulation 2 Section 6 are found in order. (b) Prescribed Period of Inspection 1. Date of inspection shall be no later than two (2) weeks from completion of (a). 2. Applicant will be advised through its official email address of the date of inspection. (c) Who will inspect? PAGCOR authorized team will inspect the proposed gaming site. Section 7. Proposed floor plan and site set-up concept renderings (a) Upon satisfactory inspection of the gaming site, the Applicant shall be advised to submit the proposed gaming site layout plan and site set-up concept renderings. Refer to Regulation 7 for regulations on gaming site and its prescribed site specifications. Section 8. Site recommendation and approval (a) The necessary recommendation to the PAGCOR Board of Directors on the gaming site approval shall then be submitted based on the following conditions: 1. Submission of requirements under Section 7 2. Payment of Processing Fee. (b) Site Approval 1. Upon approval of the Board of Directors, GLDD shall issue a notice of approval to the Applicant. 2. GLDD shall issue to the Applicant the Gaming License (GL) duly signed by the PAGCOR President and Chief Operating Officer. 35

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 9. Change in Operator of a Gaming Site (a) An Applicant may apply as new Operator of an existing PAGCOR- authorized gaming site, as follows: 1. Application of new Operator shall be treated as new site application, where application procedures and requirements prescribed in this Regulation 5 shall apply, except for Section 1 and Section 6 above. 2. Site location requirements as prescribed in Section 2, Section 3, subsection (a) and subsection (b) of Section 4, and Section 5 under Regulation 3 shall not apply. 3. Conduct of site inspection and payment of inspection fee shall not be required. 4. The Applicant shall not be required to secure and submit the LONO (City/Municipal Council Resolution) under its name, if the current Operator has already submitted such LONO. However, if the current License was issued based on the duly received application with the Council and letter of consent from the Mayor as previously allowed prior to the amendment of this Gaming Site Regulatory Manual, submission of LONO from the Council under the Applicant’s name shall still be required. (b) GLDD shall submit to the Board the necessary recommendation on site application with new Operator together with the revocation of previous Operator’s License. (c) Upon approval of the Board, the following shall apply: 1. GLDD shall issue a notice of approval to the new Operator and the copy of the License under its name. 2. The new Operator shall post the Performance Cash deposit, as prescribed in Section 4 under Regulation 4, within fifteen (15) days from receipt of notice of approval. 3. GLDD shall thereafter issue the original copy of the License. 4. The new Operator may only assume management of the gaming site upon posting of the required Performance Cash Deposit prescribed in Item 2 above. 5. The previous Operator shall be informed of the revocation of its License effective upon new Operator’s assumption of management of the gaming site, as prescribed in Item 2 above. 36

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 6. The Performance Cash Deposit (net of any outstanding monetary obligations to PAGCOR) and the Initial Betting Credit Fund of the previous Operator shall be refunded in accordance with the guidelines prescribed in Section 4 under Regulation 25. 7. The new Operator shall secure the Business Permit under its name and submit the amended Business Permit in compliance to annual submission of documents as prescribed in Section 7 under Regulation 2. 37

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 6 Regulation THE LICENSE The Gaming License (GL) is the license issued by PAGCOR in favor of the Operator to set-up and to operate a gaming site hosting a gaming activity, i.e. electronic games or bingo games. Section 1. Gaming License (GL) Gaming License shall be referred herein as “License”. (a) It is the document granting the Operator the privilege to establish, install, maintain and operate a gaming site, as approved by PAGCOR. The specific type of gaming activity operations is indicated in the License. (b) It contains the terms and conditions that governs, together with the Gaming Site Regulatory Manuals, the setting-up and operation of the gaming site in accordance with the PAGCOR Charter. (c) New or amended regulatory policies disseminated through PAGCOR’s official communication in any of the following electronic channels shall form part of the terms of the License: 1. Operator’s official e-mail address; 2. PAGCOR Regulatory website; and 3. GLDD-moderated Yahoo groups such as “gldd_ebingo”, “gldd_egames” and “responsiblegaming”. (d) The License validity shall be for a period of one (1) year for new gaming site. Renewal license validity is two (2) years. (e) It is non-assignable and non-transferable. (f) The License of new gaming site shall be released to the Operator only upon its posting of the Performance Cash Deposit. (g) The License is a permit or privilege and is not a contract between PAGCOR and the Applicant, hence, the License may be amended, 38

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 supplemented, and revoked in accordance with the provisions of these Rules and other pertinent laws and regulations. The License is not a property or a property right of the Applicant, nor does it create a vested right. (h) This Gaming Site Regulatory Manual (Electronic Games) shall form part of the License issued by PAGCOR to a qualified Operator which shall govern the establishment and operation of a gaming site. Section 2. Renewal of License The operation of a gaming site without a License is strictly prohibited. The Operator must signify its intent to renew its existing License. (a) Renewal application and requirements Renewal of License of the gaming site shall be subject to the following guidelines: 1. The Operator shall submit by the first (1st) week of the month preceding the renewal month a duly accomplished Request for Renewal of Gaming License Form (GS Form No. 3) where the following shall be provided:  Operator’s name;  Gaming site address and License validity; and,  List of other Gaming sites operated by Operator, if any. 2. The Operator must be compliant with its undertakings relative to the operations of the gaming site. Demerits, if any, should not exceed forty (40) points and penalties on assessed demerits should be paid, in accordance with Section 3 of Regulation 24. Existing Operators whose gaming sites are non-compliant because of the effectivity of this Gaming Site Regulatory Manual, as amended, will be allowed to operate until the expiration of their license, provided that, upon expiration of their license, they are required to comply with this Gaming Site Regulatory Manual, as amended, including the new site location and area requirements, before their license will be allowed to be renewed. 3. The Operator must have no arrears. 4. The Operator must be compliant with the new Site Location Distance Requirements and Site Location Area Requirements under Regulation 3. 39

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 5. The Performance Cash Deposit for each game offering must be compliant with the increased rates. 6. The Operator shall pay all applicable fees pursuant to Regulation 4 by the first (1st) week of the month preceding the renewal month. 7. Annual Documents  The Operator has complied with the submission of documents as prescribed in Section 7 under Regulation 2 for the schedule of submission of annual documents.  In the case of gaming sites with License expiration date prior to May 31st, the Operators are required to submit a copy of their application for the renewal of Business Permit by the first (1 st) week of the month preceding the renewal month. It is understood however that the copy of the Business Permit must still be submitted as prescribed in Section 7 under Regulation 2.  Failure to submit the above documents by May 31 st shall cause the imposition of penalty as outlined under Regulation 24 and shall be ground for revocation of the License as prescribed in subsection (b) under Section 7 of Regulation 2. 7. For gaming sites which were approved based on submission of a letter of consent from the Mayor with received application for no objection by the City/Municipal Council, the Council Resolution or Ordinance stating its no objection must also be submitted. (b) Renewal of License 1. Should the Operator be found compliant with subsection (a) above, the Board recommendation for the approval of the renewal of License of the concerned gaming site/s shall then be processed. 2. The Operator shall be advised of the Board’s action. Should the application for renewal be approved, notice of approval and the Gaming License shall be issued in favor of the Operator, otherwise, the appropriate communication shall be sent. 3. In case of non-compliance with the new Site Location Distance Requirements and Site Location Area Requirements under Regulation 3, the license shall not be renewed. The Operator must relocate and comply with the new Site Location Distance Requirements before the license will be renewed. (c) Non-renewal of License 1. Should the Operator fail to abide by these License renewal guidelines, resulting in the imposition of penalties and demerits, and/or the non- 40

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 renewal of License upon expiration of the current License, operations of the concerned gaming site shall be suspended. The Operator shall then be given thirty (30) days from License expiration date to secure the License renewal otherwise the gaming site shall be permanently closed. 2. Should a gaming site fail to commence its commercial operation within the License validity period, then its License shall not be renewed. (d) Renewal Fees paid after the License expiration date shall be charged a penalty of ten percent (10%) for every month of delay or a fraction thereof. Section 3. Amendment of License due to change in location of gaming site An Operator may request for a change in location of a gaming site if its existing License is of good standing. (a) The Operator shall submit to GLDD a duly accomplished Request for Amendment to Gaming license Form (GS Form No. 38). An amendment to the existing License with the new address shall be undertaken subject to the following: 1. The Operator is the same individual or business entity; 2. The new location is within the same city or municipality; 3. The new location is compliant to the distance restriction guidelines to schools, places of worship, cockpits, horse-racing outlets, public markets, informal settlers, resettlement areas, and other gaming establishments as prescribed in Section 2 under Regulation 3 of this regulatory manual; 4. The LONO issued by the LGU for the existing site address, if any, remains relevant to the new site address. If the existing gaming site has no LONO, the Operator shall still secure the corresponding LONO for the proposed new location of gaming site; and 5. Conduct of site inspection and payment of Inspection Fee of forty thousand pesos (PhP40,000.00) shall still be required. (b) The validity of the amended License shall be the unexpired term of the original License. (c) Upon receipt of notice of approval from GLDD, the Operator may proceed with the setting up of the gaming site at the new site as prescribed in Section 4 under Regulation 7. (d) The Operator shall secure an amended Business Permit to correspond with the new address of the gaming site. 41

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 4. Voluntary Pre-termination of License due to change in Operator If the gaming site shall have a new management or change in Operator, the existing Operator shall pre-terminate its License where the following shall apply: (a) The existing Operator shall submit to GLDD a duly accomplished Voluntary Pre-termination of Gaming License Notification Form (GS Form No. 31) where the following shall be provided/attached: 1. Operator’s name; 2. Gaming site location; 3. Gaming License details including its validity; 4. Reason/s for pre-termination of License; 5. Signatures of the majority stockholders, if Operator is a corporation or partnership, signifying their concurrence to the license pre-termination; or, Board resolution stating that the corporation is pre-terminating its License; and 6. Copy of latest GIS duly received by SEC. (b) GLDD shall proceed with the submission of recommendation to the Board, as prescribed in Item (b) of Section 9 under Regulation 5. (c) Revocation of the License shall be effective upon assumption of management of gaming site by the new Operator. 42

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 7 Regulation THE GAMING SITE Section 1. Gaming site area (a) The gaming site area shall be comprised of areas occupied by electronic bingo terminals and/or bingo tables for traditional bingo games, including provisions for the cage/s or cashier’s booth/s, offices, utilities, storage area/ room, lounge, among others, which are necessary to the operation of the gaming site. (b) The size of the gaming site area is determined using the following formula: Gaming Site Area = Electronic Bingo Terminals Area + Traditional Bingo Area Where: Electronic Bingo Terminals (EBT) Area = EBT footprint x quantity of EBTs; and, Traditional Bingo Area = traditional bingo footprint x number of seated players. Note: 1. EBT footprint is equivalent to 4 square meters. 2. Traditional bingo footprint is equivalent to 1.5 square meters (i.e. 1 meter by 1.5 meter). 3. All footprints shall be inclusive of aisles which shall be at least one (1) meter back to back between chairs. 4. If ratio of area per table/terminal/player is less than the corresponding footprint, the gaming site area set-up shall be allowed, provided it complies with the isle spacing requirements. 5. Minimum number of terminals for EBT area is seventy (70) for National Capital Region (NCR) and fifty (50) for non-NCR. 6. Number of seated players for bingo area shall be at least one hundred fifty (150). (c) Gaming site may be comprised of one (1) area or both areas, as described in subsection (b) above. 43

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 2. Designation of gaming areas (a) The Operator shall designate a gaming area within the gaming site where the following will be operated: 1. Electronic Bingo Terminals; and 2. Bingo Tables. (b) No games shall be conducted or played in any ancillary area of the gaming site. Section 3. Gaming area to be unobstructed For the gaming area designated in Section 2 above, there shall at all times be a clear and unobstructed line of sight of any part within the gaming area from: (a) a person standing in any other part of that gaming area; and, (b) any electronic or other monitoring surveillance equipment. Section 4. Setting up of a gaming site (a) The Operator shall notify GLDD within forty five (45) days from receipt of notice of approval of the start of its construction of the gaming site using the Gaming Site Establishment Compliance Notification Form (GS Form No. 32). (b) Failure to start construction within the above forty five (45)-day period is a ground for the revocation of the License. (c) The Operator shall ensure that the gaming site is constructed in conformity with the gaming site specification guidelines as enumerated under this Regulation. Section 5. Installation of gaming terminals/machines and/or equipment (a) The Operator may use electronic bingo machines as electronic bingo terminals. Refer to Regulation 9 for definition of electronic bingo machine. The Operator shall procure electronic bingo machines and/or pertinent gaming equipment from its accredited Suppliers only. Refer to Regulations 12 and 13 for guidelines on procurement of electronic bingo machines, gaming equipment and paraphernalia. 44

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) The Operator shall install the electronic bingo machines and/or pertinent gaming equipment in accordance with guidelines enumerated under this Regulation 7 and Regulations 8, 9, 10 and 14. Section 6. Interior gaming site specifications (a) The number of electronic bingo terminals and bingo tables shall be determined by the size of gaming site area as computed in Item (b) under Section 1 above. (b) Gaming site must have provisions for the following: 1. Cage or Cashier’s booth for each of the area, i.e. Electronic Bingo Terminals Area, Bingo Area, as applicable; 2. Counter type with glass enclosure; 3. Cash drawer with vault and cash box; 4. Cards stockroom for bingo tickets, cards and paraphernalia; 5. Package Cashier’s Booth where players can buy package cards; 6. Command Station, a booth/table where card sellers obtain bingo cards; and 7. Working office space for PAGCOR Representative(s); (c) Ceiling height of the gaming site must comply with the requirement set by the LGU where the gaming site is located, if any. (d) Separate restrooms for male and female patrons are recommended. (e) The Operator may utilize lively color combinations to lighten up the gaming site. (f) The interior of the gaming site may have a “traditional bingo” as its general design theme. 1. The “bingo hall look” can be achieved by utilizing illustrations of bingo paraphernalia, bingo symbols, characters, patterns (e.g. bingo cards, bingo balls, bingo daubers, bingo ball drawing machines, bingo flashboards, etc.). 2. Walls – preferably with treatments such as wallpaper or laminates bearing the bingo designs. (g) Recommended flooring is ceramic tiles or carpet tiles. (h) Sufficient lighting is required preferably indirect lighting through the use of ceiling treatment such as cove lighting, drop lights and pin lights. (i) The gaming site shall have a sufficient air-conditioning and ventilation. 45

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 7. Exterior gaming site specifications (a) The Operator may use any signage design indicating the word “bingo”, “electronic bingo” or “eBingo”. The PAGCOR logo is not permitted on the signage. 1. Horizontal Signage – maximum height of 0.75 meters by maximum width of 1.5 meters 2. Vertical Signage – maximum width of 0.75 meters by maximum height of 1.5 meters 3. Continuous signages are not allowed. 4. Artwork to be used in the signages must not include characters or symbols related to gaming, e.g. bingo balls, playing cards, casino, etc. 5. Exterior signage includes all signages posted at the gaming site’s façade, glass window panes and exterior walls. Signage posted inside the gaming site but visible from the outside shall also be considered as exterior signage. 6. Only one (1) signage per gaming site shall be allowed. 7. If the dimension of signage frame or structure is beyond the prescribed exterior signage specifications, the portion in excess shall be in white or black background only and shall have no backlight. (b) Entrance / Facade Specifications i. PAGCOR logo sticker to be posted at the entrance door of the gaming site. ii. No marketing collaterals, game screen shots and gaming- related artworks shall be posted at the gaming site’s façade, glass window panes and exterior walls. iii. Gaming site regulations to be posted at the facade (e.g., “For 21 years old and above only) iv. Prohibition notice v. Responsible Gaming posters vi. Wall facades and canopy or awnings should be well maintained, devoid of stains, watermarks or unsightly damage. (c) For gaming site with multiple gaming activities, the Operator shall follow the prescribed ratios in Item (a) above for Signage dimensions. The Signage may contain one (1) or more designs for each gaming activity or the Operator’s own brand name. 46

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 8. Other requirements for gaming site (a) Office equipment 1. Working table and chair/s for PAGCOR representatives or PMT 2. Personal Computer with printer and internet connection 3. Telephone line / Facsimile machine 4. Uninterruptible Power Supply 5. Stand-by Generator – a mall/establishment generator shall be acceptable; otherwise, the Operator shall procure its own generator within six (6) months after commencement of gaming site operation. 6. Ultraviolet Money Detector (b) The following regulations/signages must be prominently displayed at strategic places inside the gaming site, as applicable: 1. Prohibition Notice at 16.5 inches by 11.7 inches or A3 paper size. Refer to Item (f) under Section 1 of Regulation 20 for the sample of notice. 2. General House Rules. Refer to Item C under Regulation 18 for details. 3. PAGCOR logo sticker (at Cashier’s booth) 4. Redemption Procedures/Notice on Validity of Tickets 5. Responsible Gaming posters. Section 9. Gaming site manning The Operator shall provide gaming site personnel who must pass the qualifications listed below: (a) Gaming site personnel shall be of legal age, twenty one (21) years old and above. (b) Gaming site personnel must secure a Gaming Employment License (GEL) from PAGCOR. Section 10. Payment of monetary requirement and submission of Business Permit (a) The Operator shall pay the Performance Cash Deposit to PAGCOR-FTD, as prescribed in Section 4 under Regulation 4, prior to commencement of operations but not later than six (6) months after receipt of notice of approval. (b) Gaming License shall be released to the Operator upon payment of the Performance Cash Deposit and submission of copy of duly accomplished 47

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Payment Processing Request Form (GS Form No. 2) together with the proof of payment as attachment. (c) The Operator shall submit to GLDD a copy of the Business Permit issued by the LGU prior to commencement of operations. Section 11. Other pre-operational activities (a) The Operator shall conduct testing on electronic gaming system/s, network connectivity and electronic bingo terminals installed at the gaming site. (b) The Operator shall ensure the readiness of the gaming site for its operation in accordance with the requirements prescribed in this Gaming Site Regulatory Manual. (c) PAGCOR authorized team will conduct final inspection of the gaming site prior to its gaming operation. (d) The Operator shall submit to GLDD the duly signed Acknowledgement Receipt of the Gaming License prior to the commencement of gaming site operation. Section 12. Commencement of gaming site operations (a) The Operator shall notify GLDD and CMED of the commencement of the gaming site at least fifteen (15) days prior to its target opening date using Notification of Target Opening Date (GS Form No. 5). (b) PAGCOR logo sticker shall be issued after posting of the Performance Cash Deposit and it should be posted at main entrance door and the Cashier’s booth. (c) The Operator shall notify GLDD via email to gldd.rgulicensing@pagcor.ph of the actual opening of the gaming site. Section 13. Addition, conversion or removal of game offering in an existing gaming site (a) Operators who wish to add or remove a game offering in their current gaming sites may request any one of the following: 48

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1. Addition of new game offering. It refers to introduction at the gaming site of new game offering, e.g. deployment of electronic bingo games at a gaming site currently offering traditional bingo games. 2. Conversion of game offering. It refers to the removal of a game offering from the gaming site and replacing it with a new game offering, i.e. traditional bingo for conversion to electronic, or vice versa. 3. Removal of game offering. It refers to cessation of operations of a current game offering. (b) Introduction of new game offering, i.e. electronic bingo or traditional bingo, at the gaming site must comply with the radial distance restriction from another gaming site with the same game offering. (c) The following shall apply to the introduction of new game offering at the gaming site, whether through addition or conversion of game offering: 1. New game offering may only be deployed at the existing gaming site or in the same building where the existing gaming site is located. 2. If introduction of new game offering requires suspension of operation of the gaming site, the Operator shall submit to GLDD the duly accomplished Temporary Suspension of Operations Form (GS Form No. 6) for approval. Refer to Regulation 25 for procedures and guidelines on temporary closure of gaming site. 3. If suspension affects some gaming terminals only at any given time, schedule of terminal suspension in the affected areas shall be included in the project timetable for submission. 4. Posting of the equivalent Performance Cash Deposit as prescribed in Section 4 under Regulation 4 for the new game offering is required prior to commencement of operations. 5. Business Permit of existing gaming site should cover the new game offering. Otherwise, it has to be amended prior to its commencement of operation. (d) The Operator shall follow the procedures listed below relative to any of the requests described in Item a.1 (addition) and a.2 (conversion) above. 1. The Operator submits to GLDD a duly accomplished Game Offering Request and Approval Form (GS Form No. 7), with the following attachments, as applicable: i. Existing gaming site layout ii. Proposed gaming site layout iii. Proposed revisions to CCTV placements, if any iv. Project timetable 49

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. The Operator shall undertake in the abovementioned form that its proposed introduction of new game or conversion of game offering will comply with the applicable guidelines under this Regulation 7. 3. Upon approval of the request, the Operator shall carry out its request, based on its submitted gaming site layout. Installation or removal of electronic bingo terminals or bingo system and other gaming equipment shall be in accordance with the guidelines under Regulation 14. 4. Operator shall post the required Performance Cash Deposit for the new game offering prior to its commencement of operation and submit to GLDD a copy of the amended Business Permit as prescribed in Item No. 5 under subsection (c) above. 5. The Operator shall conduct a pre-operational testing on newly installed electronic gaming system/s, network connectivity, electronic bingo machines and other gaming equipment, and shall ensure their readiness prior to gaming operation. 6. The Operator shall notify GLDD via email to gldd.rgulicensing@pagcor.ph of the commencement of the new game offering. (e) The Operator shall follow the procedures listed below relative to any of the requests described in Item a.3 (removal of game offering) above. 1. The Operator submits to GLDD a duly accomplished Game Offering Request and Approval Form (GS Form No. 7) informing PAGCOR of the cessation of a game offering and its implementation date. 2. Upon acknowledgment by GLDD of the form, the Operator may proceed with removal of game offering. Signage, electronic bingo machines, gaming equipment and marketing collaterals associated with the removed game offering must be removed. Removal of electronic bingo machines and equipment shall be in accordance with the guidelines under Regulation 14. 3. Any outstanding monetary obligations to PAGCOR of the Operator incurred from operating the removed game offering shall be deducted from the Operator’s Performance Cash Deposit. Refund of the Cash Deposit, for the ceased game offering shall be in accordance with the guidelines in Item (b) of Section 4 under Regulation 4. 50

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 14. Gaming terminal/ Bingo seating capacity expansion or reduction in an existing gaming site (a) The Operator may add or remove gaming terminals, i.e. electronic bingo terminals, or traditional bingo seating capacity, in their current gaming sites. The Operator shall follow procedures and guidelines under Regulations 12 and 14 regarding procurement and movement of gaming equipment. (b) The Operator shall follow the procedures listed below relative to any of the requests described in Item (a) above. 1. The Operator submits to GLDD a duly accomplished Gaming Terminal Expansion/Reduction Notification Form (GS Form No. 8), with the following attachments, as applicable: i. Existing gaming site layout ii. Proposed gaming site layout iii. Proposed revisions to CCTV placements, if any 2. Should the expansion/reduction of electronic bingo terminals or bingo seats require temporary closure of the gaming site the Operator shall submit to GLDD the duly accomplished Temporary Suspension of Operations Form (GS Form No. 6) for approval. Refer to Regulation 25 for procedures and guidelines on temporary closure of gaming site. 3. If suspension affects some electronic bingo terminals only at any given time, a project timetable shall be submitted to GLDD signifying the schedule of terminal suspension in the affected areas. 4. Upon acknowledgment of the request by GLDD, the Operator shall carry out its request, based on its submitted gaming site layout. Installation or removal of electronic bingo terminals or bingo system and other gaming equipment shall be in accordance with the guidelines under Regulation 14. 5. The Operator shall conduct a pre-operational testing on newly installed electronic bingo terminals and shall ensure their readiness prior to gaming operation. 6. The Operator shall notify GLDD via email to gldd.rgulicensing@pagcor.ph of the commencement of the newly installed electronic bingo terminals at least one (1) business day prior to commencement. 51

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 8 Regulation ELECTRONIC AND TRADITIONAL BINGO SYSTEMS, AND BINGO GAMES The evaluation of the electronic bingo system, traditional bingo system, electronic bingo games and other bingo equipment/devices serves to ensure that the operation of a gaming site offering electronic bingo games and/or traditional bingo is and remains free from criminal influence or exploitation and that electronic and/or traditional bingo in a gaming site is conducted honestly. Hence, all electronic bingo systems and terminals, and/or traditional bingo system and other bingo equipment/devices shall be designed and manufactured to allow operations of a gaming site to be conducted in a manner that is honest, secure, auditable and reliable. Section 1. Electronic bingo system (a) An electronic bingo system is a combination of a central server, terminals and all interface elements that function collectively linking the terminals with the server to perform gaming functions. This is referred to as Client- Server System (CSS)1 which can be defined as either: 1. Server Based Game System (SBGS) 1 is a combination of a central server and terminals where the entire or integral portion of game content resides on the server. A terminal will not be capable of functioning when disconnected from the system. 2. Server Supported Game System (SSGS)1 is a combination of a central server and terminals which together allows the transfer of the entire control program and game content to terminals. In SSGS, game outcome is determined by the terminals and not by the system itself. A terminal is capable of functioning if disconnected from the system. (b) The electronic bingo system shall have at least one (1) progressive jackpot system where all or clusters of games are linked to have a common jackpot. _________________________________ 1 Derived from Section 1.5 Defining Client-Server Systems of GLI-21 Client-Server Systems Version 2.2 52

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 2. Electronic bingo system requirements (a) The Operator shall determine the electronic bingo system along with its bingo game contents that shall be used at the gaming site. (b) The Operator shall submit the certification/s issued by a reputable and independent gaming laboratory stating that the electronic bingo system, its game content/s and the Random Number Generator (RNG), intended for use in the electronic bingo system and/or for each electronic bingo game, have passed the technical standards prescribed in other gaming jurisdictions. As of the date of these regulations, the names of independent gaming laboratories duly recognized by PAGCOR for electronic gaming are listed in Annex A. (c) The electronic bingo system along with its bingo game contents shall be credible and reliable with regards to determination of gross gaming revenue (GGR) as well as game integrity, where the following shall be present: 1. All data are captured, accounted and reported by the system; and, 2. Games are fair, secure and able to be audited and operated correctly. 3. The RTP percentage of each bingo game is within the prescribed RTP percentage range. (d) The electronic bingo system and bingo games including the progressive link, and bonus features, among others shall be approved by PAGCOR prior to implementation/ deployment at gaming sites. (e) The electronic bingo system shall be capable of recovering from an outage or loss of connection and shall utilize, at a minimum, the following: 1. Data redundancy of 99.99% up time 2. Backup capability (f) The Operator shall ensure that data can be recovered after a disaster and has a disaster recovery plan. (g) The electronic bingo system software shall not permit data to be altered unless the software provides a record of the modification. The record shall include, at a minimum: 1. The authorized user who made the adjustment; 2. The date of adjustment: 3. The reason and description of adjustment; and, 4. The result of adjustment. (h) The electronic bingo system, games and related equipment fixtures and paraphernalia to be used in the conduct and operation of electronic bingo games including technical support and information to the Operator shall be provided only by Operator accredited suppliers/ manufacturers. 53

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 3. Evaluation and approval of electronic bingo system and bingo games (a) All electronic bingo system and bingo games shall be approved by PAGCOR prior to implementation. The Operator shall request approval from PAGCOR to deploy electronic bingo system and bingo games at gaming site by using the New System, Game and/or Machine Request and Approval Form (GS Form No. 9). The Operator shall provide/attach the following information/documents to the form: 1. For electronic bingo system: i. Name, version number or code; ii. System documentations such as manuals, technical specifications, diagrams, system process flows, etc.; iii. Accounting documents such as description of the accounting process and sample system-generated reports; iv. Certification from gaming laboratory indicating that the RNG that shall be utilised in the system is compliant to the standards prescribed in subsection (b) under Section 2 above. v. Certification from gaming laboratory signifying that the electronic bingo system is tested and found compliant to the technical requirements prescribed in subsection (c) under Section 2 above. vi. Other concerns that need to be included. 2. For electronic bingo game software: i. Name, theme (if any), version number or code; ii. Game documentations such as manuals, game rules and mechanics, pay table, bonus features, special prizes, return-to- player (RTP) percentage, progressive jackpot, if any. iii. Proposed game parameters such as bet denominations, minimum and maximum bet, progressive increment percentages, RTP settings (if applicable), capping on payout (if any), etc.; iv. A certification from gaming laboratory indicating that the RNG for the game is compliant to the standards prescribed in subsection (b) under Section 2 above. v. Certification from gaming laboratory indicating that each game is tested and found compliant with subsection (c) under Section 2 above. RTP percentage of each game must fall within the range eighty eight per cent (88%) to ninety three percent (93%). vi. Other concerns that need to be included. 3. For traditional bingo system: i. Name, model, version number or code; ii. Documentations such as manuals, technical specification, description of the bingo system including the details and 54

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 specifications of the bingo machine or console, along with its components, and flashboards, etc.; iii. Certification from the Supplier or system provider signifying that it has tested the traditional bingo system and has been found compliant with subsection (c) under Section 2 above. The Operator may opt to submit a certification from a gaming laboratory if the Supplier or system provider fails to submit the preceding prescribed certification. iv. Other concerns that need to be included. 4. For traditional bingo game (may be a bingo game variant, instant game or bingo related game which is not based on the standard 75- ball bingo): i. Name, theme, if any; ii. Documentations on description of each game including its game rules and mechanics, prize payout structure, ticket or card design, bonus features, special prizes and progressive jackpot, if any, master list of outcomes or electronic verifier, if any; iii. Proposed game parameters which include, among others, price of ticket or card and progressive increment percentage, if any. iv. Certification from the Supplier or game developer signifying that it has tested the traditional bingo game and has been found compliant with subsection (c) under Section 2 above. The Operator may opt to submit a certification from a gaming laboratory if the Supplier or system provider fails to submit the preceding prescribed certification. v. Other concerns that need to be included. (b) The Operator shall provide a test environment where it shall conduct an extensive testing on the electronic bingo system. GLDD representative/s shall observe the conduct of such testing. A certification duly signed by the Operator and Supplier or system provider shall be submitted signifying that test results in the test environment are compliant with subsection (c) under Section 2 above. (c) Any deviation from the submitted certifications above may result to suspension of electronic bingo system and/or deactivation of bingo game/s from the electronic bingo operation. Any loss incurred due to such remiss shall be solely shouldered by the Operator. Section 4. Electronic bingo system version upgrade (a) The Operator may conduct a version upgrade of the electronic bingo system by requesting approval from GLDD using the Gaming System, Game and/or Machine Request and Approval Form (GS Form No. 9). The Operator shall comply with the procedures and guidelines, including submission of documentary requirements, as prescribed in Section 3 above. As additional attachment, the Operator shall submit a report/ write- 55

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 up on the overview of the version upgrade including the features and functionalities of the new version. (b) Any deviation from the submitted certifications above may result to suspension of the upgraded bingo system from the electronic bingo operation. Any loss incurred due to such remiss shall be solely shouldered by the Operator. Section 5. Emergency software patch due to software bug (a) Given a situation that the electronic bingo system failed under critical system failure and required an emergency software patch to put the system back online, the Operator shall notify the PAGCOR Representatives immediately. (b) The Operator shall submit reports to GLDD and CMED outlining the incident and the rectification steps taken. (c) The Operator shall conduct testing of the modified or “patched” system to establish its compliance with the requirements set in subsection (c) under Section 2 above. Any loss that may be incurred due to non-compliance of the “patched” system shall be solely shouldered by the Operator. Section 6. Return to Player (RTP) percentage and game parameters (a) The RTP percentage of an electronic bingo game deployed in gaming site shall be from eighty eight percent (88%) to ninety three percent (93%). (b) The RTP percentage of electronic bingo game shall be determined by the Operator within the range as described in Item (a) above. (c) The Operator shall submit to GLDD the list of electronic bingo games, parameter settings, RTP percentage of each game and progressive system prior to commercial operations, as prescribed in Section 3 above. (d) The Operator shall not make any change to the parameter settings of any electronic bingo game (i.e. bet denomination, minimum or maximum bet, number of playable cards, number of bet credits allowed, progressive system groupings, or any other settings which shall not affect the RTP percentage of the game) unless CMED is notified at least one (1) business day prior to implementation by using the Game Conversion / Change in Parameter Settings Notification Form (GS Form No. 10). For any change in parameter settings that shall alter the RTP percentage of the game, the Operator shall request approval from GLDD to implement such change/s using the New System, Game and/or Machine Request and Approval Form (GS Form No. 9). 56

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 7. Traditional bingo system, equipment and paraphernalia (a) The Operators are required to acquire a bingo system and other equipment and paraphernalia to carry out the conduct of traditional bingo games and ensure their integrity and fairness. 1. BINGO SYSTEM – means an electronic system powered by computer software capable of programming an entire bingo operation consisting of the standard bingo equipment housed in or connected to a bingo console for an integrated and easy management and operation. A bingo system is composed of the following equipment: (i) Bingo Machine or Console – It houses the following: a) Electronic Verifier – A device powered by computer software used to verify or validate a winning bingo card through a computerized data bank that stores all cards and all patterns that can be used in bingo games. b) Ball Blower – A device used to mix the seventy five (75) bingo balls contained in the ball chamber either by air pressure or mechanical means giving each ball an equal opportunity to be drawn. The blower randomly draws the balls one at a time at a predetermined interval and devoid of interruption. This device should have the following features: 1) It should allow the players’ full view of the mixing action of the balls; and, 2) The device cannot be interrupted nor manipulated to change the random placement of the balls at the exit receptacle of the ball compartment, except when the device is shut-off. c) Automatic Timer or Pacer – A small electrical or electronic device which features a small light flashing or sound at a predetermined frequency to set the timing in drawing the balls. d) Ball Camera – An optical device mounted on the console used to capture the ball drawn onto the TV monitors for players’ viewing. e) Operator’s Monitor – A TV monitor mounted on the console that displays all pertinent game information for the machine operator’s complete control of information onto all TV monitors installed inside the bingo hall. 57

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 f) Machine Ball Rack – A receptacle that holds the seventy five (75) bingo balls before start of a game and each ball after it is being drawn and called by the bingo caller. g) Masterboard – A keyboard type of device wherein the machine operator encodes the drawn and called bingo balls which is then transmitted to the flashboard system. (ii) Flashboard – An electronic device connected to the bingo machine or console showing the graphic presentation of the game information such as numbers drawn and called with the last number called flashing, bingo pattern in play, ball counter and prize. 2. Other Equipment and Paraphernalia (i) Bingo Balls – White or colored Ping-Pong balls marked with letters – B, I, N, G and O and numbers 1 to 75 used in the draw in the conduct of bingo games. Each ball is distinguished as follows: MARKINGS UNIVERSAL REMARKS LETTERS NUMBERS COLORS B 1 TO 15 BLUE Each ball under each letter may be assigned I 16 TO 30 RED one color in whole or half N 31 TO 45 WHITE ball only and distinguished by the color G 46 TO 60 GREEN of the line corresponds to O 61 TO 75 YELLOW the universal color for each letter. Another type of bingo balls used in the draw is the multi-sided one that displays the letter and number in all sides of the ball or in all directions and marked up one color for the letter and number, and the line encircling the letter and the number. This is usually used in a “hands-free” bingo machine for the ball camera to capture in all angles the letter and the number during draw. (ii) Public Address System – An audio system with amplification and speakers appropriate to the size and acoustics of the bingo hall to be utilized for purposes of game integrity and an opportunity for audience participation during the conduct of bingo games. (iii) Document Video Camera – An optical device used to show to the players and concerned parties the possible winning card under verification onto the TV monitors. 58

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (iv) Monitors – TV sets installed in the bingo hall to show the images picked up by the document video camera and the ball camera for viewing and verification of the playing public. (v) Game Board – An electrical or manual representation of a bingo card which is used to show to bingo players the winning game pattern and numbers drawn and called. (vi) Tambiolo – A manual ball drawing device to be used in case of bingo machine breakdown or power failure. (vii) Video Cassette Recorder (VCR) – Audio/video equipment used to record the conduct of bingo games. This is also used to play video presentation for playing public’s consumption like showing/announcing of General Bingo Rules and Bingo House Rules and other marketing events. (viii) Tables and Chairs – Tables and chairs are used by the players to play traditional bingo games. Each table can accommodate two (2) players sitting opposite each other and a maximum of twenty (20) players. (ix) Weighing Scale – An electronic device used to accurately determine the weight of each bingo ball to ensure that its weight is within the tolerable range level to give an equal opportunity for each ball to be drawn. For this purpose, it is imperative to compute the average weight for all the balls in a set. (x) Ball Storage Rack (Transparent Type) – A depository where a complete set of bingo balls are placed after a day’s use or weighing for safekeeping and storage. This helps in checking the completeness of the numbered (1 to 75) balls before and after its use. Replacement of bingo balls on a regular basis and by set only must be implemented. (xi) Whistle – A wind instrument used by the venue personnel to call the attention of the bingo caller to stop calling the next ball whenever player shouts or yells “BINGO”. (xii) Dropbox – A transparent plastic or acrylic box used to contain original copies of carbonized duplicated bingo cards. This is secured by a lock (the key to which is under the custody of the Operations Officer) and is placed right in front of the stage for playing public’s view. (xiii) Bingo Dauber – Tube containing colored ink used to mark/daub clearly and permanently the numbers in the bingo card corresponding to the number being drawn and called during bingo games to form the winning pattern. 59

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (xiv) Bin Card – It is a control log used to record the movements (receipts, issuances and returns/conversion and balances on stock) of each type of bingo card in the inventory. This form is used to countercheck the actual inventory of bingo cards on hand in the cards storeroom. (xv) Vest or shirt (with the Operator’s trade name on it) – A uniform issued by the Operator to the gaming site sellers to identify them as the authorized sellers of the bingo area of the gaming site. 3. Electronic Bingo Card Daubers – These are electronic equipment or appliances used by players to identify bingo cards that contain numbers input by a player. These devices shall meet the following required features: (i) It electronically stores pre-printed electronic bingo cards purchased by a player; (ii) It provides a means for player to input numbers drawn and called by the bingo caller; (iii) It compares and daubs electronically the numbers drawn and called input by the player to electronic bingo cards previously stored in electronic data base; (iv) It identifies to the player those stored cards that contain the numbers input by the player; and (v) It gives signal or warning sound to the player that a certain card wins in a game for the player to yell “BINGO”. (b) Bingo system and equipment shall be evaluated and approved by PAGCOR prior to implementation. 1. The Operator shall request approval from PAGCOR to deploy bingo system at gaming site by using the New System, Game and/or Machine Request and Approval Form (GS Form No. 9). The Operator shall provide or attach, as applicable, the following information and/or documents to the form: (i) Bingo system name, i.e. model name, number or code; (ii) Description of the bingo system including the details and specifications of the bingo machine or console, along with its components, and the flashboards; and, (iii) Other concerns that need to be included. 60

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. All bingo equipment and paraphernalia prescribed and those to be prescribed in the future must be inspected and tested by the Operator and witnessed by CMED prior to commissioning in the bingo operation. (c) Electronic bingo card dauber may be used in traditional bingo operations. 1. The player must perform the following functions to use the electronic bingo card dauber in bingo games: (i) Input each number called by the bingo caller into the memory of the dauber unit by the use of a separate input function for each number. Automatic or global marking of numbers is prohibited. (ii) Notify the bingo caller when a winning game pattern or “bingo” occurs by means that do not utilize the dauber unit or associated system; and (iii) Identify the winning card and display the card to the bingo caller or machine operator for verification. 2. Electronic bingo daubers must meet the following standards: (i) Be manufactured by licensed manufacturers; (ii) Be sold, leased and serviced by an Operator-accredited suppliers; and (iii) Be not be capable of accessing the electronic computer system in any manner that would allow modification of the program which operates and controls the dauber units or the cards stored in the electronic data base. (d) Traditional bingo games may be conducted via closed circuit television (CCTV) and computer links, commonly known as Bingo Link. The Operator shall notify CMED of the Bingo Link installation at the cluster sites at least one (1) business day prior to implementation by using the Bingo Program/Card/Link Notification Form (GS Form No. 26). The following is a list of additional equipment for the conduct and operation of Bingo Link: 1. Video-conferencing equipment – it establishes video linkage of the other remote sites to the host site, where the core activity of drawing is held. 2. Audio/video equipment – it establishes the audio linkage of other remote sites to the host site. 61

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. Main Control Center – it serves as the technical control site for the entire link system. The MCC provides the grouping of clusters, facilitates inclusion of new linked sites, monitors the progress of games for synchronization and faster response if link system fails. Section 8. Modification of electronic and traditional bingo system and games (a) No person shall modify, or permit any modification of any electronic and/or traditional bingo system, interface elements, equipment or games unless approved by PAGCOR. (b) The Operator shall obtain approval from GLDD on any change to the electronic and/or traditional bingo system, interface elements, equipment or games previously approved by PAGCOR. Section 9. Regular preventive maintenance (a) The Operator may conduct preventive maintenance of the gaming system, game software or gaming terminal/ machine at the gaming site, provided it shall not in any way affect the approved game RTP percentage, randomness of RNG and determination and reporting of gross gaming revenue. (b) Minor updates or revisions in the installed gaming system, game/s or gaming machine/s may be implemented by the Operator as part of the preventive maintenance. (c) The Operator shall prepare and maintain report/s outlining the conduct of preventive maintenance as described in subsections (a) and (b) above. This includes recording of the latest meter readings (if any), description and reason for the update/revision, manner of implementation and shall be made available to CMED or GLDD at any time for inspection or review. Section 10. Final Tax on player’s jackpot winnings from bingo games (a) The Operator shall withhold the final tax on player’s jackpot winnings from electronic and traditional bingo exceeding ten thousand pesos (PhP10,000.00). (b) The Operator shall remit the final income taxes withheld on player’s jackpot winnings in accordance with existing revenue regulations. (c) The Operator shall report to CMED all taxes withheld on players’ jackpot winnings and proof of payment thereof within fifteen (15) days from payment or deadline of payment, whichever comes first. 62

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 9 Regulation ELECTRONIC GAMING TERMINAL An electronic gaming terminal of cabinet-type hosting electronic bingo game/s shall be referred to herein as electronic bingo terminal. All electronic bingo terminals shall be designed and manufactured to allow operations of a gaming site, to be conducted in a manner that is honest, secure, auditable and reliable. Section 1. Electronic bingo terminal (a) The gaming terminal referred to as Electronic Bingo Terminal (EBT) can be a cabinet-type terminal [i.e. video lottery terminal (VLT)] or any other device/equipment which shall function as gaming terminal. (b) Each electronic bingo terminal whether hosting a single or multiple electronic bingo games shall be reckoned as one (1) EBT. (c) An electronic bingo terminal shall not be allowed to function by itself whenever disconnected from the electronic bingo system. (d) An electronic bingo terminal of cabinet type such as VLT shall be referred to herein as electronic bingo machine. Section 2. Electronic bingo machine (a) The Operator shall request approval from GLDD to deploy electronic bingo machines at gaming site by using the New System, Game and/or Machine Request and Approval Form (GS Form No. 9). The Operator shall provide or attach, as applicable, the following information or documents to the form: 1. Model name, version number or code; 2. Description of the electronic bingo machine which includes cabinet specifications and details of its hardware components; 3. Certification/s issued by a reputable and independent gaming laboratory stating that the electronic bingo machine including its bill 63

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 validator and other hardware components have passed the technical standards prescribed in other gaming jurisdictions or it has found to be compliant with Chapter 3 of GLI-11 v2.0 Standards for Gaming Devices in Casinos; 4. Other concerns that need to be included. Section 3. Implementation of electronic bingo machines (a) All undertakings involving installation, modification, inspection of meters, collection of bills/notes and tickets, and game conversions shall be carried by the Operator. (b) The electronic bingo machine may have provision of acceptance of wagers through a bill/note acceptor (Bill-in and Ticket-in) which prevents the acceptance of fraudulent Philippine currency bills/notes and tickets (receipts). It shall have a provision of issuance of ticket (receipt) for encashment at the cashier’s booth. Provision for ticket to be used for play at electronic bingo machine is allowed. (c) The Operator shall commit to pay for any fake peso bill/note accepted and confirmed shortage due to error of the bill acceptor of the electronic bingo machine. (d) Installation and operation of non-approved games at electronic bingo machines may cause the revocation of the License. Section 4. Modification of electronic bingo machines (a) The Operator shall ensure that no person shall modify any electronic bingo machine approved by PAGCOR, unless GLDD has been properly notified of the intended modification. (b) For game conversion, the Operator shall submit to GLDD a duly accomplished Game Conversion/Change in Parameter Settings Notification Form (GS Form No. 10) at least one (1) business day prior to game conversion. (c) Unauthorized modifications of electronic bingo machine/s shall grant PAGCOR the right to revoke the License and to prohibit the Operator to conduct and operate the electronic bingo machines. 64

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 10 Regulation GAMING EQUIPMENT AND PARAPHERNALIA A. List of gaming equipment and paraphernalia for gaming sites (a) Bingo System: 1. Bingo machine or console and its components; and, 2. Flashboard. (b) Other bingo equipment and paraphernalia: 1. Bingo cards and tickets; 2. Bingo balls; 3. Audio system; 4. Video camera; 5. Monitors; 6. Game Board; 7. Electronic weighing scale; 8. Ball Storage Rack; 9. Dropbox; 10. Bingo dauber; 11. Bin card; (c) Electronic bingo card dauber; (d) Electronic bingo terminal or machine: 1. Assembly parts, peripherals and accessories; 2. Ticket printer; 3. Speakers with controllers and software; 4. Signage and accessories; and, 5. Uninterrupted Power Supply (UPS); (e) Progressive jackpot systems; (f) Security locks and safety equipment; (g) Transmitters/ Receivers and hubs: power systems, line cards and cables; (h) Game conversion kits; 65

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (i) Electronic bingo management systems 1. Hardware; 2. Software; and, 3. Consumables; (j) Instant game tickets/cards and paraphernalia; and (k) Consumable supplies which are used in the conduct of bingo. The above lists may be amended based on an annual review to be conducted by PAGCOR in consultation with the Operators. B. Standards and guidelines for traditional bingo equipment and paraphernalia Section 1. Bingo cards (a) Standards for bingo cards The Operators shall utilize the approved bingo paper cards and electronic bingo cards in the conduct and operation of bingo games. The following are the standards for bingo cards: 1. A bingo sheet may contain one or more cards or faces depending on the cut in a mastersheet of pre-printed paper cards. The permutation in one card is done in such a way as to avoid duplicate card. (i) Face – An individual bingo card. (ii) Duplicate Card – Duplicate cards have three (3) things in common: a) Same card serial number, b) Same production serial number and c) Identical permutation. (iii) Mastersheet – An “uncut” sheet containing many bingo cards printed by the manufacturer such as 24on, 30on and 36on. The most common mastersheet is the 36on (36 cards on one sheet). (iv) Number “ON” – The number of cards (faces) on one sheet. For example, “6-ON” means six (6) cards in a sheet of cards. The number “ON” cannot exceed the number of cards on a mastersheet. (v) Cut – The layout or orientation of cards on a sheet. There are three (3) major types of “cuts” – 66

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 a) Vertical – more cards down on one side of the sheet than across the top. b) Horizontal – more cards across the top than down on one side of the sheet. c) Square – same number of cards across the top of the sheet and down on one side of the sheet. 2. Each card (face) has identifications which are basic elements of a card. (i) Card Serial Number – The identification number assigned by the manufacturer. This is located at the free space in the center of the card and usually at the bottom of the card. The printing of the second card serial number (at the bottom of the card) is to discourage alterations of the card serial number at the free space. It identifies the uniqueness/identity of the permutation of a particular card in a series. (ii) Production Serial Number – The number printed at the top of the card. This number is used by the manufacturer to identify which printing run or production the cards belong to. The number of cards (faces) printed bearing the same production number depends on the series being printed. 3. Bingo cards must have a distinct and separate color and design which belong to one series or set of cards. (i) Series - A specific group of unduplicated cards (faces) with consecutive card serial number assigned by the card manufacturer (i.e. 1 to 9,000 series, 9,001 to 18,000). (ii) Colors – An assortment of thirty-one (31) colors are available to choose from. However, shades of mixed colors that are almost identical to the other are discouraged to be used in the same package of cards to avoid playing the wrong card. Examples: - Orange and Peach, Violet and Orchid etc. of identical shades (iii) Paper Design – There are two major design groups in bingo paper: a) Border Design – card has neutral background, with a color forming a border around the numbers on the card. It also includes stripes. 67

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 b) Solid Design – card has the color background. It is also called as “screens” and “tints”. (iv) Preprint Paper – Bingo cards with a design or pattern printed on it where players bingo on the said design or pattern. 4. Bingo cards may come in single card or collated into package of cards. (i) Single card – A 1-on card. (ii) Multi-faceted card – Bingo card in sets of two or more faces depending on the cut in a thirty six-face flat sheet of pre- printed bingo cards. (iii) Loose cards – Single or multifaceted card but which are sold separately but played simultaneously with the corresponding package cards in regular games in a bingo session or played independently for a special or separate game. (iv) Package of Cards – A group of two or more bingo cards, usually of different colors, padded into a package of cards intended for a bingo session for sale to the playing public. Generally, the different colored sheets are used to play different bingo games. (v) Collate – The process of assembling bingo sheets from one or more sets of cards of different colors into a package of cards. (vi) Color Rotation – A term used to specify the color sequence of the sheets in a collation. For example, an Operator may order a “3-Up” collation and specifies the following colors in a package of cards – a) First sheet – Blue b) Second sheet – Red c) Third sheet – Yellow (vii) Number “UP” – It designates the number of bingo sheets desired to be collated in a package of cards. For example, if an Operator wants ten (10) sheets in a package of card, it is called a “10-UP”. (viii) Lot – It refers to a group of cards from same product line having uniform colors and designs imprinted with same production number. (ix) Product Line – A specific type of cards identified by features or characteristics that are unique for a particular product when compared to other cards. 68

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Examples: a) Champion of Bingo King b) Unimax of Arrow International c) A-Line of American Games 5. Bingo cards when printed by the manufacturer follow certain standards in the imprinting of card serial numbering system depending on the product line and cut of the bingo cards. (i) Skip – The standard spread or difference in the card serial number between cards on a sheet, or the first card of the top sheet and the first card of the last sheet in a package of cards depending on the base used. (ii) Base – The standard skip used in the collation of cards or sheets into package of cards. 6. Types of Bingo Cards Used. The following are the types of bingo cards: (i) Disposable (Throwaway) Bingo Cards – These are bingo paper cards that are one-time used in the bingo games and marked permanently by daubers, pens or crayons and thrown away every after each game except in continuous games where the same card is used for games using continuous patterns. This card is used in the conduct of traditional bingo games. (ii) Carbonized Duplicated Cards – A pre-numbered two-part carbonized or duplicated cards where letters – B, I, N, G and O and all numbers 1 to 75 are printed on its face grouped as follows: LETTER ALL NUMBERS FROM B 1 TO 15 I 16 TO 30 N 31 TO 45 G 46 TO 60 O 60 TO 75 These cards are used for special games only with the following requirements: a) Players are allowed to select and encircle their chosen numbers as required in the mechanics and rules of the game. 69

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 b) They shall mark their numbers in a distinct, clear and legible manner on the original copy (on top of the duplicate) prior to separation of the duplicate from the original copy. c) No alterations are allowed. The “fill-in-the-blanks” type of duplicated cards is not allowed for use in the conduct of traditional bingo games. (iii) Break-open Cards – A bingo card concealed by being sealed in a manner that prevents revealing any part of the card or face. This type of card is generally used in Quickshot games. a) As a requirement, the sheets must be constructed in a manner that all numbers on each card or face cannot be determined from the outside of the sheet even using high intensity lamp or other means. b) Player shall break-open the card and daub the numbers on the card against the pre-drawn balls to form a predetermined pattern that are posted on a game display board for this purpose. c) Drawing of balls for the game may use the balls drawn for any game for the day or a special draw to be conducted for this purpose. . (iv) Write-in Cards – A bingo card with blank faces in which a player writes any series of numbers of his choice from 1 to 75 under column headings – B, I, N, G and O. This type of bingo card is not authorized to be used in the Operator’s bingo area. (v) Electronic Bingo Cards – Electronic bingo cards or electronically generated bingo cards are software-generated random cards containing the same features as the disposable bingo cards but are stored in the computer data bases and displayed in the screen of electronic devices connected to the computer system. However, permutation depends on the manufacturer’s specifications. These cards are used in electronic bingo units or devices and online computerized bingo system. (vi) Push-outs – Bingo cards printed on heavy paper stock or lightweight card stock containing a half-circle die cut in the center of each number permitting the player to “mark” the card by pushing-out and folding down the half-circle flap of 70

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 paper or card. This type of bingo card is not authorized to be used in the Operator’s bingo area. (b) Guidelines for bingo cards 1. The Operator must use only approved bingo cards in the conduct of bingo games. Important considerations in the approval of the use of certain bingo cards are as follows: (i) Bingo paper cards are manufactured in a controlled environment using processes and procedures that ensure the integrity of the product and facilitate regulatory compliance with the requirements. (ii) Bingo paper cards must establish an audit trail system that requires: a) Each set of cards manufactured as a specific product line, using the same color and border, or solid design is assigned a unique production serial number which is imprinted by the manufacturer on each card or set of cards for the whole printing run or production. b) Each card or face must be identified by a card serial number imprinted on the face of the card. c) Each card within a set must be consecutively numbered. 2. All bingo cards must have a security measure required by PAGCOR such as in form of PAGCOR logo watermark imprinted on each card. 3. Delivery of Bingo Cards. All bingo cards purchased with otherwise obtained from the Operator’s warehouse/gaming sites or other Operators must be accounted when delivered and received at the gaming site. (i) Delivery of bingo cards shall be directly received from the Supplier or the Operator’s central office (in the case of the Operators with centralized warehousing operations) by the gaming site Card Custodian who is held responsible and accountable for them. CMED representative/s shall conduct inspection and verification of the said delivered bingo cards based on the Supplier’s delivery receipts/invoice. (ii) All purchases invoices or photocopy thereof for disposable bingo cards received must be maintained in the gaming site premises. (iii) The following information must be recorded for disposable cards, sheets of cards or package of cards. 71

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 a) Identification and inspection stamp number b) Serial number or if package, serial number of the top page c) Number of cards in the series d) Type of card or package of cards e) Purchase invoice number and date 4. Inventory of Bingo Cards. All bingo cards delivered to and received at the gaming site shall conform to the following: (i) Custody and proper storage/safekeeping of bingo cards shall be the responsibility and accountability of the gaming site Card Custodian who is accountable to the gaming site Treasury Head or to the Head of Operators’ warehouse operations at their central office (for Operators with centralized warehousing system). As such, all bingo cards shall be secured in a cards storeroom exclusively for storage of bingo cards. (ii) These cards can only be withdrawn by the gaming site Card Custodian for a specific game and/or daily allocation as required. All cards withdrawn for allocation must be witnessed by and presented to the CMED representative, if available, for checking and verification prior to its use. (iii) Movements of bingo cards such as receipts, issuances for allocation, returns of unused/unsold cards and conversions shall be recorded in a bin card maintained for the purpose. All movements are subject to checking and verification by CMED representative/s. All supporting records shall be made available for verification by CMED representative/s. (iv) The Operator shall be responsible in maintaining the integrity of the inventory cards. Thus, the Operator shall be required to submit a monthly inventory report to CMED subject to verification by its representative/s. 5. The Operator shall not duplicate or make copies of bingo cards. Bingo paper sheets may be cut into separate cards of smaller number “ON”s or for conversion to another type of bingo cards, as applicable. The Operator shall notify CMED of the card conversion at least one (1) business day prior to implementation by using the Bingo Program/Card/Link Notification Form (GS Form No. 26). 6. All bingo cards must be color-coded and have a distinct and a separate card serial numbers for each and every game with specified production serial number on all cards in play per bingo session relative to the type of card being used. Any single card to 72

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 be used as extra card must have the same color but different card serial number and production serial number. 7. Sale of Bingo Cards. The following are the guidelines governing the sale of bingo cards: (i) The Operator shall be responsible for the sale of cards either as single card or package of cards and other similar paraphernalia and shall maintain a record thereof. (ii) The Operators and their gaming site staff are not allowed to sell bingo cards outside of the bingo hall. (iii) Each set of cards or package of cards shall be sold intact as a single unit with a single price. (iv) All sales of bingo cards must be on a cash basis and take place during or immediately before the bingo session or game for which the bingo cards are being sold and paid before the start of the game. These cards shall be used during the game or session for which the cards are purchased. The Operator shall not allow player to carry over purchased but unused bingo cards to a subsequent bingo session or day. (v) The Operator shall not offer free or discounted bingo cards. (vi) The Operator shall not reserve bingo cards for any person. (vii) Sale of additional cards on the floor shall be allowed. However, any bingo card that is being selected, purchased or exchanged during a game that is in progress shall not be used in that game. (viii) Bingo cards shall not be sold after the first ball is drawn for the game in which the card is going to be used. (ix) The Operator shall not offer for sale any bingo cards that were sold at the previous bingo game, session or day. (x) Any single or extra/loose bingo cards that have not been sold shall be turned in and not be made available for sale upon the start of the game in which said cards will be used. (xi) The Operator who sells package cards after the first game in a bingo session has begun shall deface those cards for the game which have been played or one in play prior to the sale of these package cards. 73

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (xii) Sale of bingo cards shall be properly accounted for and gross receipts therefore shall be subject to the imposition of PAGCOR Share and submission of the required reports. (xiii) All records and evidences of sale of cards shall be made available to PAGCOR Representative/s at anytime, during reasonable hours of the day for regular and random inspection. 8. The Operator shall be responsible in maintaining the integrity of the inventory of cards. Section 2. Bingo tickets (a) Standards for bingo tickets 1. All tickets to be used in special bingo events must be printed in accordance with the approved format, size and type of paper material to be used for uniformity purposes. 2. All tickets must be pre-numbered with continuous serial numbers and without duplication of serial numbers in the printed tickets. 3. All tickets must be procured from GLDD-enrolled and Operator- accredited Supplier. As such, the Operator must secure a certification from printer/supplier stating the exact quantity of tickets printed and the corresponding serial numbers in continuous series without duplication and further certify for control purposes that no other tickets of this kind shall be reproduced for another party. 4. In the case of linked bingo games, all tickets shall be color-coded and have a separate assigned ticket serial numbers for each color for each linked venue for easy allocation and proper accounting purposes. (b) Guidelines for bingo tickets 1. All bingo areas must use the prescribed ticket format to be offered for sale to the playing public for purposes of security, control and uniformity. 2. Delivery of Bingo Tickets. (i) All bingo tickets purchased or otherwise obtained from the Operator’s warehouse (those with centralized warehousing operation) must be accounted when delivered to and received at the gaming site. 74

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (ii) Delivery of bingo tickets shall be directly received from the Supplier or the Operator’s central office (in the case of the Operators with centralized warehousing operation) by the gaming site Card Custodian who is held accountable and responsible for them. CMED representative/s shall conduct inspection and verification of the said delivered bingo tickets based on the Supplier’s delivery receipts/invoice. (iii) All purchases invoices or photocopy thereof for bingo tickets ordered, and received must be maintained in the gaming site premises. (iv) The following information relative to the bingo tickets must be recorded: a) Identification and inspection stamp number b) Ticket serial numbers c) Quantity of tickets d) Type and purpose of tickets e) Purchase invoice number and date 3. Inventory of Bingo Tickets. All bingo tickets delivered and received at the gaming site shall conform to the following: (i) Custody and proper storage/safekeeping of bingo tickets shall be the responsibility and accountability of the gaming site Card Custodian who is responsible and accountable to the gaming site Treasury Head or to the Head of the Operators’ warehouse operation at their central office (for the Operators with centralized warehousing system). (ii) As such, bingo tickets shall be stored inside the secured cards storeroom together with the bingo cards. All bingo tickets must be submitted to the CMED representative for security marking prior to their issuance for sale to the playing public. (iii) All movements of bingo tickets, after receipt from printer/supplier such as allocation and returns of unused or unsold tickets shall be recorded in the bin card maintained for this purpose. All movements are subject to checking and verification by CMED representative/s. All supporting records shall be made available for verification by CMED representative/s (iv) For unsold returned tickets, only a minimum of fifty (50) tickets with continuous series is accepted for return to storeroom for reuse. However, reuse of returned tickets is not allowed in linked games. 75

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (v) All bingo tickets, upon allocation shall be dated for a specific bingo event or special game (if tickets have generic information, color and design, and intended for continuous issuance). (vi) The Operator shall be responsible in maintaining the integrity of the inventory of tickets. 4. Sale of Bingo Tickets (i) Only PAGCOR-approved tickets shall be allowed for sale. (ii) The Operator shall be responsible for the sale of tickets to players inside or outside the bingo area to qualify these players to participate during regularly conducted special bingo events. However, no forced selling in whatever form or scheme shall be allowed. (iii) Each bingo ticket sold entitles the holder to claim the corresponding bingo cards to play bingo games. (iv) Bingo tickets shall not be sold sixty (60) days in advance prior to the scheduled bingo event. (v) The Operator shall not offer free or discounted bingo tickets. (vi) The Operator shall not offer for sale any bingo tickets that were sold at the previous bingo event. (vii) Any bingo tickets that have not been sold shall be turned in before the bingo event starts. Otherwise, these shall be considered sold for accounting purposes. (viii) Sale of bingo tickets shall be properly accounted for and gross receipts shall be subject to PAGCOR Share and submission of the required reports. (ix) All records and supporting evidences of sale of tickets shall be made available to PAGCOR Representative at any time during bingo day for regular and random inspection. Section 3. Guidelines for bingo system, equipment and other bingo paraphernalia (a) All bingo area must use the prescribed bingo system, other equipment and paraphernalia required in the proper conduct and operation of bingo games. 76

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) Manual devices such as “shakers”, “hourglass” and other similar types of number generators or devices shall not be allowed for use in the conduct and operation of bingo games. (c) The bingo system and paraphernalia should only be sourced from GLDD- enrolled and Operator-accredited Supplier(s). The purchase should be accompanied by manufacturer’s warranty certificate to ensure of its after- sales services. (d) Electronic bingo card dauber may be used by players to play traditional bingo games subject to following guidelines: 1. Each player using an electronic card dauber is limited to playing a maximum of one hundred fifty (150) cards during any game. 2. The Operator shall not reserve electronic card daubers for any player. 3. If the Operator charges the players a fee for use of the electronic card daubers, such fees must be a flat fee as rental and shall not be based on the number or peso value of cards purchased. 4. Each player utilizing electronic card dauber must have the cards (as printed) in his/her possession. 5. If electronic daubers are leased to the Operators, lease cannot be based on the amount of bingo card sales or rental income derived from such devices. 6. Use of electronic daubers is prohibited when an Operator utilizes any marketing scheme for cards that results in a decrease in the per unit price of each card as the number of cards purchased increases. Provided that a single discount level is authorized for each type of card sold if: (i) The Operator has a minimum purchase agreement. (ii) Discount applies to all cards purchased. (iii) “All you can play” scheme is prohibited. Section 4. Instant game tickets (a) Standards for instant game tickets 1. Ticket must have a distinct background color, border or bar design and artwork which must be common to one particular set (i.e. deal) of tickets. 2. Tickets must be serialized. A unique serial number must be printed on each ticket belonging to one particular set of tickets. 77

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. The following shall be clearly printed on the tickets: (i) Payout table showing the winning combinations and the corresponding prizes; (ii) Ticket price; (iii) Serial number; (iv) Instructions on play and/or redemption of winnings tickets; (v) “Notice: Sale of this ticket outside PAGCOR-authorized gaming establishment is prohibited”; (vi) Operator’s logo, if any; (vii) PAGCOR’s logo, under the phrase “Regulated by:” (b) Guidelines for instant game tickets 1. Description of Instant Games: (i) Pull Tab or Break-open Game is an instant ticket game played by matching symbols to win a prize. The game consists of a fixed number of tickets with pre-determined payout, number of winners and total amount of prizes. To play, the perforated windows on the back of the pull tab ticket is opened and the symbols inside the ticket are matched to the winning combinations on the front of the ticket. (ii) Scratch Card Game is an instant ticket game using a small card or ticket where one or more areas contain concealed information which can be revealed by scratching off an opaque covering. The scratchable area needs to be scratched to see whether a prize has been won—the card is printed either to be a winner or not—or to reveal the secret code. 2. The allowed ticket price range for Instant Games shall be from twenty pesos (PhP20.00) to one hundred pesos (PhP100.00). 3. The total amount of prizes that should be won by Players shall be equivalent to a minimum of sixty percent (60%) of gross ticket sales. (c) Instant Game evaluation and approval 1. The Operator shall submit for evaluation to GLDD the working papers for each instant game which includes, among others, the following: (i) Game description; (ii) Prize pay-out structure; (iii) Ticket designs; (iv) Quantity of ticket per deal, etc.; and 78

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (v) Certification issued by a reputable manufacturer/ developer attesting the correctness of the pre-determined payout and the existence of security features in the printed instant game tickets. 2. Only PAGCOR-approved instant games shall be allowed for distribution and sale at the gaming site. 3. GLDD shall advise the Operator of approval of the instant game and shall provide CMED with a copy of letter of approval for its reference. Section 5. Bingo game variants (a) Standards and guidelines for bingo game variants 1. Description of Bingo game variant Bingo game variants are bingo games where conduct of which is similar to that of traditional bingo game. Conduct of bingo game variant may involve the use of bingo tickets, cards, system, equipment and paraphernalia. It may be played alternately as special game with the regular bingo game. 2. The standards and guidelines for the following shall apply, as the case may be, to the conduct of bingo game variants: (i) Bingo cards; (ii) Bingo tickets; and (iii) Bingo system, equipment and paraphernalia. (b) Bingo game variant evaluation and approval 1. The Operator shall submit for evaluation to GLDD the game mechanics for each bingo game variants which includes, among others, the following: (i) Game description and game rules; (ii) Bingo card designs; (iii) Master list of outcomes or an electronic verifier with a certification issued by a reputable independent gaming laboratory or bingo manufacturer attesting the efficiency of the verifier, completeness of possible outcomes in its database and correctness of the permutations of numbers printed on the bingo cards; (iv) Winning bingo patterns, if any. 2. Only PAGCOR-approved bingo game variants shall be allowed for play at the bingo area of gaming sites. 79

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. GLDD shall advise the Operator of approval of the bingo game variant and shall provide CMED with a copy of letter of approval for its reference. 80

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 11 Regulation SECURITY AND SURVEILLANCE Section 1. Minimum security requirements (a) The gaming site must have at least one (1) security guard on duty on 12- hour shift. (b) The gaming site shall adhere to the fire and safety standards set forth by the Local Government Unit (LGU) and/or Bureau of Fire Protection that has jurisdiction on the gaming site’s location. This includes the following but not limited to: 1. Fire suppression and extinguishing devices; 2. Fire exits emergency directional signage and indicators; and, 3. Emergency lighting and its placement. Section 2. Minimum requirements for surveillance system (a) PAGCOR has mandated for all gaming sites to have a CCTV System, where: 1. It will serve as a deterrent for anomalous activities in the site. 2. This is done for proactive security monitoring which will be standardized across all sites. (b) At least four (4) CCTV cameras shall be allocated within gaming site premises. (c) Additional number of CCTV cameras may be required depending on the approved gaming site layout to ensure there are no blind spots. (d) CCTV cameras must be operational 24 hours a day, 7 days a week, regardless of gaming site operating hours. 81

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (e) Gaming sites must post a signage informing customers that the gaming site is being monitored by CCTVs. Section 3. Minimum requirements for surveillance coverage (a) The gaming area shall be monitored by camera(s) to provide, as much as possible, coverage of: 1. all players and employees at the gaming area; 2. a facial view of all gaming players with sufficient clarity to allow identification of the player; 3. a view of bill validators with sufficient clarity to determine the bill value and the amount of credits obtained; and, 4. the face of the electronic gaming terminal, with sufficient clarity to identify the payout line(s) and observe the game results of the terminals. (b) The surveillance system shall possess the capability to monitor and record a general overview of the activities occurring in the gaming area. (c) The surveillance system shall possess the capability to monitor and record a general overview of activities occurring in each cage/cashier’s booth area, with sufficient clarity to identify employees within the cage/cashier’s booth and players and employees at the counter areas. (d) Storage areas for sensitive electronic gaming equipment and gaming paraphernalia shall be fitted with cameras. (e) Each entrance and exit point to the gaming site premises shall be fitted with cameras in order to record persons entering and leaving the gaming site premises. (f) Cameras shall be installed throughout general public areas to enable monitoring and tracking of patrons and staff. (g) All delivery and transfer routes for cash, electronic gaming equipment and gaming paraphernalia shall be fitted cameras to monitor deliveries and transfers. (h) The surveillance system shall be capable of providing a reasonably clear coverage of all of the following: 1. Activity by players and employees that may constitute cheating or stealing. 2. Failure of employees to follow proper procedures and internal controls. 3. Treatment of disorderly persons. 4. Treatment of persons whose names appear in the Exclusions List. 5. Arrests and evictions. 6. Treatment of ill or injured patrons. 82

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 4. Minimum requirements for surveillance records (a) All video recordings of coverage shall be retained for a minimum of thirty (30) days. (b) The video recording of a recorded event may be provided by the Operator to a requesting party upon its own discretion. (c) Operators shall have the capability to produce a still copy or photograph of the images depicted on a video recording. This may be accomplished using a video printer, still camera or other available means. Section 5. Procedural guidelines on archiving and retrieval of footage (a) Retrieval and archiving of footage may be conducted upon the knowledge of an untoward incident that occurred within the gaming area to aid in fact finding and criminal investigation. Examples of incidents would be: 1. Alleged theft by a player to another player 2. Robbery and hold-up 3. Investigation and identification of suspected individuals performing acts of deception such as but not limited to money-switching, swindling, mulcting to gaming site personnel and players 4. Allowing entry of minors 5. Forced entry with robbery during the gaming site’s non-operational hours 6. Altercation between gaming site personnel and players, players other players, gaming site personnel or players (b) All requests for retrieval shall be handled for appropriate action by the Operator. (c) The Operator shall be responsible for retrieval, archiving or release to a requesting party of the video footages. 83

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 12 Regulation PROCUREMENT OF GAMING EQUIPMENT AND PARAPHERNALIA Section 1. General guidelines (a) Procurement of gaming equipment and/or paraphernalia to be installed/ utilized at the gaming site can only be made by an Operator, or its Supplier who has a Permit to Possess gaming equipment. (b) The Operator shall procure gaming equipment and/or paraphernalia only from its accredited Supplier. The Supplier must be accredited by the Operator under the PAGCOR-approved accreditation standards and guidelines. Please refer to Regulation 13 for accreditation standards and refer to Regulation 10 for the list of gaming equipment and paraphernalia for purposes of these guidelines, from which the following gaming equipment and paraphernalia shall require GLDD’s approval: 1. Bingo system; 2. Electronic bingo card dauber; 3. Electronic bingo management system and its components; 4. Electronic bingo machine or terminal and its components; 5. Device containing electronic bingo game software; 6. Progressive jackpot system; 7. Bingo-related game tickets/cards; and 8. Other electronic bingo equipment and paraphernalia as may be required by PAGCOR. (c) Procurement of gaming equipment and/or paraphernalia by an Operator- accredited Supplier shall be subject to the procedures/requirements prescribed in the Suppliers Regulatory Manual. Section 2. Foreign procurement (a) The Operator may import gaming equipment and/or paraphernalia for use at gaming site as may be permitted by law and subject to legal and customs requirements for this purpose. 84

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) Clearance to import from PAGCOR should first be obtained by the Operator prior to actual shipment of gaming equipment and/or paraphernalia. The Operator shall submit the following to GLDD in order to obtain clearance to import: 1. Duly accomplished Shipment Clearance Request and Approval Form (GS Form No. 11). The following fields shall be completely filled up by the Operator: i. Type of item to be imported. ii. Description of item to be imported. The item shall be described in detail. iii. Purpose/ Use of item. iv. Gaming Site Location. This pertains to the gaming site address. v. Name and address of Supplier. The name of the Supplier shall bear the name and address indicated in the letterhead of the Commercial Invoice or Pro-forma Invoice. vi. Supplier’s GLDD Enrolment Number. These shall pertain to the Supplier’s enrolment number as indicated in the Certificate of Registration of Suppliers issued by GLDD to Suppliers upon registration. Please refer to Supplier’s Regulatory Manual for enrolment procedures and requirements. vii. Shipment Point of Origin. This pertains to the country or state (if from United States of America) where the shipment shall originate. viii. Name of Broker. This shall refer to the broker who is duly designated by the Operator who shall be responsible, claiming the items at the port, and delivery of items to the Operator. ix. Terms and Conditions. This refers to the terms and conditions that the Operator shall abide by. x. The Operator shall certify that the information contained in the request form are true, correct, complete and consistent with the Commercial Invoice or Pro-forma Invoice. The Operator agrees to abide by the terms and conditions (see Item ix above). xi. Each request shall bear the name of the Operator, date of request and the name, position title signature of the authorized signatory of the Operator. 2. Copy of Commercial Invoice or Pro-forma Invoice in Supplier’s letterhead containing the following: a) Supplier’s name and address; b) The words “Commercial Invoice” or “Pro-forma Invoice”; c) Invoice number; d) Date of invoice; e) Billed to/sold to; f) Consignee; g) Quantity of each line item to be imported; h) Description of each line item to be imported. i) Unit price of each line item to be imported; j) Total price amount of each line item to be imported; k) Grand total amount of all items to be imported; l) Shipment’s country of origin; 85

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 m) Mode of shipment; and n) Printed name and signature of the Supplier’s authorized representative. Only Commercial Invoice or Pro-forma Invoice shall be valid attachments to the Shipment Clearance Request and Approval Form (GS Form No. 11). (c) Each Shipment Clearance Request and Approval Form (GS Form No.11) shall cover one (1) commercial/pro-forma invoice. (d) Once the shipment request is approved, the Operator shall ensure that all items shipped shall be strictly within the quantities and description as approved by GLDD per Commercial Invoice or Pro-forma Invoice. Section 3. Inspection and inventory (a) CMED representatives shall conduct an inspection/inventory of the shipment, in the case of imported gaming equipment and paraphernalia before it is turned over to the Operator. (b) The Operator shall be responsible for coordinating with the CMED for the conduct of inspection and inventory of the bingo equipment and paraphernalia upon their delivery to a designated storage area or gaming site premises. The Operator shall notify CMED at least ten (10) days prior to the estimated arrival of the shipment. (c) On gaming equipment and paraphernalia at gaming site: 1. A PAGCOR inventory tag containing an inventory serial number shall be affixed by CMED on bingo system, electronic bingo card dauber, electronic bingo management system, the electronic bingo machines or terminals and other electronic bingo equipment. 2. No later than the tenth (10th) of the following month, the Operator shall furnish CMED with a monthly inventory of the gaming equipment and paraphernalia showing the following information: a) Inventory serial number as indicated in the PAGCOR inventory tag; b) Location of each item; and c) Total quantity. . 3. The Operator shall conduct a physical inventory of the gaming equipment and paraphernalia on an annual basis. The Operator shall furnish CMED with the results of the physical inventory. The Operator shall reconcile inventory maintained by the Operator with the physical count. The Operator shall report any discrepancies between the inventory records and the physical inventory to CMED. 86

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 13 Regulation ACCREDITATION OF SUPPLIERS OF GAMING EQUIPMENT AND PARAPHERNALIA Section 1. Accreditation of Suppliers (a) The Operator shall procure gaming equipment and other gaming paraphernalia only from a GLDD-enrolled and Operator-accredited Supplier. (b) A Supplier must enrol first with PAGCOR before doing business with an Operator. Enrolment procedures are prescribed in Suppliers Regulatory Manual. Visit the Suppliers page at the link: www.pagcor.ph/regulatory/ for the list of GLDD-enrolled Suppliers. (c) The Operator shall be responsible for the accreditation of its Suppliers subject to the minimum requirements as prescribed in Section 2 below. (d) The Operator may procure from a Supplier who is currently accredited by another Operator. Section 2. Accreditation standards (a) The Operators shall handle all matters pertaining to Supplier’s accreditation subject to the following minimum requirements: . FOR LOCAL SUPPLIERS 1. Application for Accreditation Form; 2. Certificate of Enrolment issued by GLDD; 3. Company profile including the following: a) Updated list of directors; and, b) List of clients. 4. List of products/items being offered including brochures and catalogues, if any; 5. Detailed location sketch of company office, factory and/or warehouse; 6. Copy of Registration Certificate from: 87

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 a) Securities and Exchange Commission including Articles of Incorporation/ Co-Partnership and By-Laws or b) Department of Trade and Industry; 7. Photocopy of the following documents: a) Mayor’s Permit/ Business Permit/municipal license; b) BIR Registration Certificate; c) Certificate of Dealership/ Exclusive; d) Current licenses required by law (applicable to the line of business); 8. Certified True Copy of Income Tax Return for the previous or its preceding year and its corresponding audited Financial Statements, duly filed with the BIR including photocopy of ITR and AFS filed two (2) years prior to year of application. FOR FOREIGN SUPPLIERS 1. Application for Accreditation Form; 2. Certification of Enrolment issued by GLDD; 3. Incorporation papers or business registration (for sole proprietorship and partnership); 4. Company profile (in English) including the following: a) Updated list of directors; and b) List of clients. 5. List of products/items being offered including brochures and catalogues, if any; and 6. Audited Financial Statements for the last two (2) years. Appropriate equivalent documents to substitute the documentary requirements stated in item 6 (see documentary requirements for Local Suppliers) issued by the foreign firm’s country of origin provided that the documents are in “English”. (b) The Operator shall conduct a probity check to ensure that each Supplier: 1. is of good repute and is not banned from plying its trade in other gaming jurisdictions; 2. is not insolvent, did not file for bankruptcy or is not under rehabilitation; 3. has the capability to supply electronic gaming equipment and paraphernalia that are in accordance with PAGCOR’s prescribed standards; and 4. has an established track record of compliance with the legal and regulatory requirements applicable to it in relation to its business as a supplier of electronic gaming equipment and paraphernalia whether in the Philippines or in other gaming jurisdictions. 88

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 14 Regulation MOVEMENT OF GAMING EQUIPMENT AND PARAPHERNALIA The Operator may transfer gaming equipment and/or paraphernalia from the authorized storage area to the gaming site, or vice versa, or cause the transfer of gaming equipment and/or paraphernalia to another gaming site, or ship-out gaming equipment and/or paraphernalia out of the country. A Supplier with a Permit to Posses gaming equipment and/or paraphernalia may also transfer gaming equipment and/or paraphernalia from the authorized storage area to gaming site, or vice versa. However, processing of requests for movement of gaming equipment and/or paraphernalia by a Supplier shall be covered by separate procedures/guidelines prescribed in the Suppliers Regulatory Manual. Section 1. General guidelines (a) Any movement of gaming equipment and/or paraphernalia requires the prior notification to or approval from GLDD or CMED, where applicable. (b) The Operator shall notify GLDD and CMED in writing of its authorized storage area with the following information: 1. Name of building, if applicable; 2. Address; 3. Sketch or visuals on location with vicinity map; and 4. Name of designated custodian/s. (c) If the Operator maintains an online inventory system, the Operator shall provide the duly designated representative/s of CMED with viewing access to the system. Section 2. Pullout and transfer of gaming equipment/paraphernalia (a) Transfer of gaming equipment and/or paraphernalia from one location to another shall require prior notification by the Operator to PAGCOR. 89

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) Gaming equipment and/or paraphernalia may be returned by an Operator to Supplier’s authorized storage area in the Philippines, or vice versa, provided that the Supplier has a valid Permit to Possess gaming equipment and paraphernalia. (c) The Operator shall submit a duly accomplished Transfer of Gaming Equipment Notification Form (GS Form No. 13) to CMED at least one (1) business day prior to the scheduled transfer. The Transfer of Gaming Equipment Notification Form shall contain the following information: 1. Reference serial number, which shall be provided by CMED to the Operator upon acknowledgement of receipt of the submission; 2. Name of Operator; 3. Gaming Site location; 4. Type of game offering; 5. Type of gaming equipment to be transferred; 6. List of gaming equipment to be transferred with the following details: a) Manufacturer of the gaming equipment to be transferred; b) Description of gaming equipment; c) PAGCOR inventory tag number of the gaming equipment; d) Electronic bingo machine serial number; e) Electronic bingo machine game name; and f) Quantity of gaming equipment to be transferred. 7. Expected date of transfer; 8. Reason for transfer; 9. Point of origin; 10. Point of destination; and 11. Operator’s undertaking that it shall coordinate with the CMED for the conduct of inspection and inventory of the gaming equipment. (d) The Operator shall maintain a log of all gaming equipment and paraphernalia transferred from its authorized storage area to the gaming site, or vice versa. The log shall contain the following information: a. Manufacturer of the gaming equipment to be transferred; b. Type of gaming equipment to be transferred; c. Description of gaming equipment; d. PAGCOR inventory tag number of the gaming equipment; e. Reference serial number of covering Transfer of Gaming Equipment Notification Form; f. Actual date of transfer of gaming equipment; g. Electronic bingo machine serial number; h. Electronic bingo machine game name; and i. Quantity of gaming equipment to be transferred. (e) CMED shall conduct the inspection and inventory of the transferred gaming equipment/paraphernalia. 90

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (f) On or before January 10 of the succeeding year, the Operator shall submit an Annual Inventory Report of all gaming equipment and paraphernalia stored in the Operator’s authorized storage area and deployed at the gaming sites or pulled out from the gaming sites and stored in the Operator’s authorized storage area. The annual inventory report shall contain the information mentioned in Item (d) above. (g) Log reports of all gaming equipment/ paraphernalia transferred to/from the gaming site shall be made available to CMED at any time for review, reference or any other purpose as deemed necessary by CMED. Section 3. Pull-out of gaming equipment from a gaming site or Operator’s authorized storage area for ship out (a) Gaming equipment and/or paraphernalia may be shipped by an Operator out of the Philippine territory. (b) Ship-out of gaming equipment and/or paraphernalia shall require the prior approval of GLDD. The Operator shall submit the following to GLDD at least fourteen (14) business days prior to the scheduled ship-out: 1. Duly accomplished Ship-Out Clearance Request and Approval Form (GS Form No. 15). The Approval Form shall contain the following information: a) Name of Operator; b) Gaming Site location; c) Type of gaming equipment to be shipped out; d) List of gaming equipment to be shipped out with the following details: i. Manufacturer of the gaming equipment; ii. Description of gaming equipment; iii. PAGCOR inventory tag number of the gaming equipment; iv. Electronic bingo machine serial number; v. Electronic bingo machine game name; and vi. Quantity of gaming equipment to be shipped-out. The Operator may attach additional sheet containing the list of gaming equipment. e) Pull-out location i.e. gaming site or Operator’s authorized storage area; f) Expected date of pull-out and ship-out from the Operator; g) Reason for pull-out and ship-out; h) Mode of ship-out (i.e. by air or by sea); i) Port of exit; j) Name of recipient; k) Exact address of recipient; l) Country of destination; 91

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 m) Reference importation Commercial Invoice/ Pro-forma Invoice number; n) Name and contact number of designated customs broker; and o) Operator’s undertaking that it shall coordinate with the CMED for the conduct of inspection and inventory prior to the pull-out and ship-out of the bingo equipment. 2. Copy of reference importation Commercial Invoice or Pro-forma Invoice on bingo equipment and/or paraphernalia to be shipped out. (c) The Operator shall designate only one (1) broker who shall be responsible for securing the permit to ship-out (as authorized by PAGCOR) from the Department of Finance or the Special Economic Zone Authority whichever is applicable, and actual transporting of gaming equipment and/or paraphernalia to the port. (d) The Ship-out Clearance Request and Approval Form shall be signed by the Operator’s authorized signatory. (e) A reference serial number of the Ship-out Clearance Request and Approval Form shall be provided by GLDD upon approval of the request. GLDD shall furnish CMED with a copy of the duly approved Form. (f) GLDD may reject the Ship-out Clearance Request and Approval Form if the information contained in the Approval Form is incomplete or incorrect or if the reference Commercial Invoice or Pro-forma Invoice is not attached. (g) For Operators whose importations are covered by an Import Permit filed with a Special Economic Zone Authority, it shall be the responsibility of the Operator to seek approval on the proposed ship-out. (h) CMED shall conduct an inspection and inventory of the gaming equipment/paraphernalia prior to the scheduled pull-out and ship-out. The Operator shall coordinate with the CMED at least five (5) days prior to the scheduled pull-out of the gaming equipment/paraphernalia. (i) The Operator shall comply with the inspection and inventory guidelines as prescribed in subsections (e), (f) and (g) under Section 2. 92

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 15 Regulation DISPOSAL OF GAMING EQUIPMENT AND PARAPHERNALIA Section 1. Disposal of gaming equipment and paraphernalia (a) The Operator may dispose of its gaming equipment or paraphernalia due to closure of the gaming site, cessation of game offering or if the gaming equipment/paraphernalia is/are discontinued or worn out. Disposal may be carried out through any of the following subject to the guidelines and procedures under Regulation 14 for Item nos. 1, 2 and 3 below; and Section 2 of this regulation for Item no. 4: 1. Ship out of Philippine territory all of its imported electronic bingo machines or terminals, gaming equipment and/or paraphernalia; 2. The Operator may transfer its electronic bingo machines or terminals, gaming equipment and/or paraphernalia to another PAGCOR- licensed gaming site Operator. 3. The Operator may return the electronic bingo machines or terminals, gaming equipment and/or paraphernalia to its Supplier who holds a Permit to Possess (gaming equipment) from PAGCOR. 4. The Operator may destroy its electronic bingo machines or terminals, gaming equipment and/or paraphernalia as prescribed in Section 2 below. (b) For gaming site with revoked License, the Operator shall dispose of its gaming equipment or paraphernalia pursuant to Presidential Decree No. 519 and Letter of Instruction No. 1176 within ninety (90) calendar days from the date of notice of License revocation. The Operator shall comply with the post-operational activities as prescribed in Section 4 under Regulation 25. (c) For ceased game offering, guidelines and procedures in subsection (b) above shall apply to the corresponding gaming equipment and paraphernalia. 93

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (d) Should gaming equipment and/or paraphernalia, whether declared destroyed, sold, shipped out or otherwise, be still found under the Operator’s possession after the ninety (90)-day disposal period, the Operator may be held criminally liable under Philippine laws. Section 2. Destruction of gaming equipment and paraphernalia (a) For operational gaming sites, the Operator shall notify GLDD and CMED at least one (1) business day prior to its scheduled destruction of gaming equipment or paraphernalia using the Destruction of Gaming Equipment/ Paraphernalia Notification Form (GS Form No. 22) duly accomplished by the Operator’s authorized signatory which shall include, in addition to such other items or information as PAGCOR may require: 1. date and the location at which the destruction will be performed; 2. number of gaming equipment or paraphernalia to be destroyed; 3. description of the gaming equipment or paraphernalia to be destroyed, which shall include the name of Supplier or manufacturer and the following for cancelled bingo cards of tickets, as applicable: (i) Card/Ticket serial numbers; (ii) Card production numbers. (b) For gaming sites with revoked License or ceased game offering, the Operator may proceed with destruction of gaming equipment or paraphernalia without need to submit the destruction notification form as prescribed in subsection (a) above, subject to the following: 1. Receipt of notice of approval on License revocation or cessation of game offering; and, 2. Compliance with the submission of closing inventory list of gaming equipment and paraphernalia pertinent to the ceased game offering as prescribed in Item 1 of subsection (a) under Section 4 of Regulation 25. (c) The destruction of gaming equipment or paraphernalia shall be carried out by the Operator. The Operator shall ensure that the gaming equipment or paraphernalia are completely destroyed and rendered unusable for gaming operations. (d) After destruction, the Operator shall accomplish and sign a Certificate of Gaming Equipment/ Paraphernalia Destruction Form (GS Form No. 23). (e) The Operator shall submit to GLDD and CMED a copy of duly accomplished and notarized certificate as prescribed in subsection (c) above. 94

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 16 Regulation GAMING SITE OPERATIONAL RULES AND GUIDELINES Section 1. The Gaming Site Operational Rules and Guidelines (GSORG) (a) The Operator shall formulate, and finalize its Gaming Site Operational Rules and Guidelines (GSORG) that will govern the day-to-day gaming operations of the Operator in accordance with the regulations of this regulatory manual. (b) The GSORG shall contain, among others, the following: 1. Gaming site organizational structure which includes the organizational chart, duties and responsibilities of each position, and sections and departments; 2. Operational guidelines and procedures containing the detailed and narrative description of policies, rules and guidelines on the following, among others: (i) Gaming equipment inventories; (ii) Opening and closing of the gaming site; (iii) Shift changes at gaming areas; (iv) Types of game offerings; (v) Game rules and mechanics; (vi) Information on linked progressive jackpots (if applicable); (vii) Transporting of bill stackers to and from electronic gaming/bingo machines; (viii) Hand-paid jackpots; (ix) Acceptance, accounting for, and redemption of player’s coupon redemption and other complimentary distribution programs; (x) Cash transactions reporting; and (xi) Financial and gaming data back-up and record retention. 3. Customer support containing the policies, rules and guidelines on the following: (i) Customer support facilities (ii) Dispute resolution guidelines on customer complaints 95

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 4. Minimum internal control standards with respect to, but not limited to, the following: (i) Cashier’s booth  Customer deposits and withdrawals  Promotional payouts  Accounting/Audit standards (ii) Electronic gaming terminals/equipment  Equipment standards  Jackpot payouts, handpays  Accounting/Audit standards  Record retention (c) The GSORG shall be made available to GLDD or CMED at any time upon request. (b) The following shall be mandatory provisions in the GSORG: 1. Dress Code for Men: Slippers, shorts, sandos/jerseys and tattered clothes are not allowed to be worn by customers, employees of the Operator and personnel of the gaming site. Everyone within the gaming site is expected to dress modestly and appropriately. 2. Dress Code for Women: Slippers, skimpy outfits, and tattered clothes are not allowed to be worn by customers, employees of the Operator, and personnel of the gaming site. Everyone within the gaming site is expected to dress modestly and appropriately. 3. All employees, staffs, securities and agents of the Operator shall always wear their uniforms and identification cards on their upper left chests during working hours or if they are within the premises of the gaming site. 4. Limit to Playing Time: No customer is allowed to play and remain in the gaming site for more than six (6) hours. 5. No Operator shall operate for twenty four (24 hours). An Operator may only operate for a maximum of fifteen (15) hours within a day or within a 24-hour period. 6. The provisions on individuals prohibited from entering and playing in any gaming site shall be strictly enforced. Section 2. Gaming site operations to be consistent with GSORG (a) The Operator shall operate the gaming site including all other support facilities in a manner consistent with its License and the GSORG. 96

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) PAGCOR may conduct a walkthrough review of the Operator’s internal control based on the submitted GSORG. Any findings resulting from such review shall be communicated to the Operator for appropriate disposition. 97

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 17 Regulation PLAYER REGISTRATION AND MEMBERSHIP Section 1. General guidelines The Operator shall not allow entry and play from the following at any gaming site: (a) Public officials, which includes elective and appointive officials and employees, permanent or temporary, whether in the career or non-career service, whether or not they receive compensation, regardless of amount; (b) Members of the Armed Forces of the Philippines, including the Army, Navy, Air Force or Philippine National Police (c) Persons under 21 years of age or students of any school, college or university in the Philippines (d) PAGCOR officials and employees (e) Gaming site Operators and employees (f) Unregistered players (for electronic bingo area) (g) Banned individuals (h) Spouse, common-law partner, children, parents of officials and persons mentioned in items (a), (b), and (d) above Section 2. Player registration minimum requirements The Operator shall provide a player registration application procedures to be followed by prospective Players (for electronic bingo only) which shall include the following minimum requirements: (a) Prospective Player must show two (2) valid government-issued Identification (ID) card, containing a photograph, name and date of birth which may be any of the following IDs: 1. Passport including those issued by foreign government; 2. Driver’s License; 3. Professional Regulations Commission (PRC) ID; 4. Postal ID; 5. Voter’s ID; 6. Barangay Certification (with photo); 98

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 7. Tax Identification (TIN); 8. Social Security System (SSS) Card; 9. Senior Citizen Card; 10. Alien Certificate of Registration/ Immigrant Certificate of Registration; 11. Unified Multi-purpose ID (UMID); and 12. Any other valid government-issued ID which may be allowed in the future. (b) Prospective Player must be twenty one (21) years of age at application. (c) Prospective Player shall be asked to provide the following personal information that shall be logged by the Player or by the Cashier/authorized staff, whichever is applicable, into the Player membership system: 1. Complete name, as it appears in the ID presented; 2. Date of birth, as it appears in the ID presented; 3. Gender; 4. Civil Status; 5. Nationality; 6. Type of ID and number; 7. Latest photo; and 8. Any other information such as address, contact information, among others, may be required by the Operator as the case may be. Section 3. Player registration system Operator shall utilize a Player registration system/solution which has the following functionalities on Player management: (a) The Player information and picture are stored in a database. (b) System is capable of identifying banned Players to prohibit him/her from registration and access to play, in accordance with the guidelines prescribed in the National Database of Restricted Persons (NDRP) manual. (c) The Operator shall post at the entrance of its gaming site an appropriate signage of the mandatory membership requirement for gaming sites. An example is “This Gaming Establishment is for Registered Members Only. To register, please inquire inside at the Cashier’s Booth”. (d) Membership cards, either temporary or permanent, shall be issued immediately upon registration of the Player. (e) Access to terminals, i.e. electronic bingo machines, of registered Players should be system-based. (f) Player registration system must be in place before the gaming site is allowed to commence operations. 99

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 4. Player membership reports Player membership report for a given month shall be submitted to PAGCOR within ten (10) days following the close of the month. 100

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 18 Regulation CONDUCT OF GAMING A. GENERAL PROVISIONS Section 1. Operating hours (a) No Operator may operate its gaming site for twenty-four (24) hours. An Operator may only operate for a maximum of fifteen (15) hours within a day or within a 24-hour period. An Operator may operate its gaming site seven (7) days a week, three hundred sixty-five (365) days a year, subject to the following:  To close on Good Friday at 12:00 noon  To resume on Black Saturday at 12:00 noon (b) The Operator shall shoulder and pay the remuneration of the PAGCOR Monitoring Team who will be on duty from 12 midnight to 11:59 p.m. of December 24, December 25, December 31 and January 1, which shall be billed by CMED based on PAGCOR’s existing guidelines. (c) The Operator shall inform GLDD and CMED of its operating hours; provided it may only operate for a maximum of fifteen (15) hours within a day or within a 24- hour period. An Operator may change the operating hours of its gaming site, provided it shall notify GLDD and CMED of the change in operating hours at least one (1) day prior to its implementation date using the Change in Gaming Site Operating Hours Notification Form (GS Form No. 24). (d) An Operator may elect to make adjustment/s to or suspend its gaming site operation on holidays, other than those described in subsection (a) above; e.g. Maundy Thursday, All Saints’ Day, All Souls’ Day, Christmas Day, etc., subject to the following: 1. For adjustment/s in operating hours, the Operator shall notify CMED at least one (1) business day prior to implementation by using the 101

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Change in Gaming Site Operating Hours Notification Form (GS Form No. 24). 2. For temporary suspension of operation on such holidays, the Operator shall notify CMED using the Temporary Suspension of Operations Form (GS Form No. 6) as prescribed in Section 1 under Regulation 25. Section 2. Conduct of games (a) Payment of winnings in full 1. An Operator shall pay every player who wins a wager on any game played on an electronic bingo machine within its gaming site premises his winnings in full without deduction of any commission or fee, unless otherwise provided in the rules of the game. 2. Operator’s non-payment of winnings or unauthorized deductions from winnings or redeemed balances of the player shall be imposed a penalty and demerit as prescribed under Regulation 24. (b) Refund of wagers and recovery of winnings when game is declared void. 1. An Operator shall declare a game void if there is any malfunction or fault in, or interruption in the operation of, any part of any electronic gaming machine or electronic gaming equipment that affects the outcome of that game. 2. Without prejudice to Item (1), an Operator may declare a game void if: (i) there is a force majeure event that disrupts that game; (ii) the Operator knows or reasonably suspects that a player is committing or has committed an offence in such a manner as may affect the outcome of that game; or (iii) the approved game rules of the game provide for other circumstances under which the game may be declared void and the declaration is done under those circumstances. 3. If a game being played on an electronic gaming terminal is declared void under Items (1) or (2), the Operator shall: (i) clearly notify every player playing that game that the game has been declared void; and, (ii) refund all wagers made on that game. 102

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 4. Where a game is declared void under Items (1) or (2) (except on the ground of a force majeure event under Item (2)(i), the Operator may, in addition, recover the winnings of any or all players from that game, if: (i) there is clear information provided to the players of the game or displayed prominently in the gaming site concerning the circumstances under which, and the means by which, winnings will be recovered when the game is declared void; and (ii) the recovery of winnings is done in accordance with the information in sub-item (i). 5. In Item (2)(i), ‘‘force majeure event’’ includes — (i) fire or flood; (ii) an act of God; (iii) an act of war; (iv) strikes, lock-outs or stoppages or restraints of labour; (v) riots or civil commotions; or (vi) any other event beyond the control of the Operator that makes the continuation of the game impossible. To constitute force majeure, all of the following elements must occur: (i) the cause of the unforeseen and unexpected occurrence must be independent of the will of the Operator; (ii) it must be impossible to foresee the event that constitutes caso fortuito or, if it can be foreseen, it must be impossible to avoid; (iii) the occurrence must be such as to render impossible for the game to be carried out in a normal manner; and (iv) the Operator must be free from any participation in the aggravation of the injury or loss. (c) Players to be notified of closure of electronic bingo machine 1. Subject to Item (3), an Operator shall ensure that reasonable notice is given to players before the closure of any electronic bingo machine/terminal. 103

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. Without limiting the generality of paragraph (1), a reasonable notice of impending closure of a gaming machine may be displayed on the screen of the electronic bingo machine for a reasonable period of time before the closure of the electronic bingo machine. 3. An Operator may close an electronic bingo machine without notice where it has reasonable cause to believe that such closure is necessary: (i) in the interest of public or private safety; (ii) to ensure that gaming is conducted honestly; or (iii) to maintain, repair or otherwise deal immediately with any electronic gaming equipment or electronic bingo machine to ensure game security and integrity. 4. In this regulation, ‘‘closure’’, in relation to an electronic bingo machine, does not include a momentary stoppage of play from which the play can be resumed at the stage it was stopped. (d) The Operator shall ensure that reasonable notice is given to players on the termination of an electronic bingo game including its progressive system feature and the corresponding treatment of the accumulated increment for the progressive jackpot meter. (e) Gaming by intoxicated persons prohibited An Operator shall not permit a person who is in a state of intoxication to participate in any gaming activity within its gaming site premises. A ‘‘state of intoxication’’ means a state wherein a person’s speech, balance, co- ordination or behaviour is noticeably affected and there are reasonable grounds for believing this state to be induced by alcohol, narcotics or any intoxicating substance. (f) Duties of licensed gaming employees in relation to conduct of gaming on gaming site premises A licensed gaming employee shall not: 1. advise a player on how to play a game, except to explain the rules of the game or to ensure the player’s compliance with the relevant approved game rules; 2. by himself or in conjunction with any other person, corruptly solicit or receive, or agree to receive, any tip, gratuity, consideration or other benefit for himself or for any other person as an inducement to or a reward for improperly influencing the outcome of a game; and, 104

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. permit a player to participate in any gaming activity if the player is in a state of intoxication. B. TRADITIONAL BINGO PART I ON-SITE BINGO Section 1. Guidelines and gaming rules The following guidelines and rules shall govern the conduct of bingo games: (a) Bingo game shall be played by drawing bingo balls from a pool of seventy- five (75) balls through an electronic ball blower and using bingo cards to form a predetermined pattern in order to win a prize. (b) The Operator shall be responsible for the integrity of the bingo games as well as the training of gaming site personnel, who will be staffing the games. 1. No gaming site personnel shall communicate or have direct contact during the conduct of bingo games with the employee’s immediate family members (e.g. spouse, children, parents and siblings) and friends who participate as players. 2. The Operator or its employees shall not engage in any act, practice or course of operation that manipulates the outcome of any bingo game. (c) Bingo balls (in a set) to be used for sessions of the day shall be weighed to ensure that each bingo ball is given an equal opportunity to be drawn, i.e. its weight is within the tolerable range level of + or – 0.2 gram of the average weight of the balls. For this purpose, it is imperative to compute the average weight for all the balls in a set. (d) The Operator shall notify PAGCOR of its internal control measures to ensure the integrity of the Bingo operations. Any modifications in the internal control measures shall likewise be notified by the Operator to PAGCOR. (e) No live coverage, either by radio or television network in the conduct of bingo games shall be allowed. (f) The Operators shall not be allowed to solicit, accept or receive OFF-SITE BETTING or remote betting for traditional bingo games. (g) Only valid bingo cards shall be in play during conduct of the bingo games. (h) No two (2) sets of bingo cards shall be allowed to be sold for use of the same game if the cards have the same production serial numbers and 105

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 card serial numbers. Should there be any; Operator commits to award the same prize resulting to double payment. (i) Neither the Operator nor the players are allowed to separate/split the bingo cards in a multifaceted cards or package of card. Split cards are not entitled to be verified, thus, are not entitled to win in the game. (j) A player must be present and playing at the bingo hall during a game to be entitled to win and claim the corresponding prize. (k) The Operator shall require a game pattern to be covered or marked by a dauber or pen and completed in order to win in a bingo game which bingo pattern must be clearly described in the bingo program and verbally explained or announced to the players immediately before the start of the game. (l) Winner shall be determined when a game pattern designated for a particular game is covered or the predetermined required numbers by the first player on a valid bingo card and is properly verified by the authorized gaming site personnel. (m) It is the responsibility of the player to notify the gaming site staff of his/her “BINGO”. Failure on his/her part forfeits his/her right to win and the game shall continue until a valid winner is declared. (n) Bingo game shall start when the first bingo ball is drawn and called and end when a player declares “BINGO” and his/her winning bingo card is verified to be a valid winner. To establish the ownership of the said card, the player shall affix his/her signature over printed name at the back of the card upon its submission for verification. (o) When a player declares “BINGO”, the Operator shall undertake steps to close the game under the following requirements: 1. The game must be stopped before calling the next ball. 2. The probable winning card must be submitted for validation/ verification. 3. The probable winning card must have the last number called. 4. The probable winning card must be a valid card (falling within the approved allocated cards for the game). 5. The game shall then be closed when the said card is declared winner. (p) In the event that the probable winning bingo card is declared not valid, the next ball out of the bingo machine’s exit receptacle shall be the next ball called. In the case of a continuation game, the said ball shall be used as the first ball drawn for the next game or pattern to be played. 106

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (q) The Operator shall commit to adhere/abide in the implementation of the General Bingo Rules and General House Rules for the orderly conduct of bingo games. (r) For the conduct and operation of the bingo games via Closed Circuit Television (CCTV) and Computer Links commonly known as Bingo Link within the linked gaming sites, refer to Part II under A. Traditional Bingo below. Section 2. Bingo games and bingo programs (a) The Operator may introduce any new game that falls within the current policy definition of a bingo game, provided that GLDD approves the new bingo game prior to implementation. (b) New bingo game/scheme, i.e. bingo game variants, bingo related games, instant games, must be submitted to GLDD for approval thirty (30) days prior to the date of implementation using the New System, Game and/or Machine Request and Approval Form (GS Form No. 9). (c) The Operator shall formulate its bingo program that shall be played at its gaming site. The Operator shall use the Bingo Program/Card/Link Notification Form (GS Form No. 26) to notify CMED at least one (1) business day prior to implementation of new bingo program or its component, i.e. regular and/or special bingo game/s using the standard seventy five (75)-ball bingo. Bingo programs shall be consistent with the guidelines in prizes as prescribed in Section 7 under Regulation 18. (d) New daily bingo program wherein changes such as but not limited to the price of cards, prize, game pattern, ball bracket and the like must be notified to CMED at least one (1) business day prior to implementation using the Bingo Program/Card/Link Notification Form (GS Form No. 26). (e) The Operator may change a bingo program with another bingo program by notifying CMED at least one (1) business day prior to implementation using the Bingo Program/Card/Link Notification Form (GS Form No. 26). (f) All bingo programs shall contain the essential elements and subject to the following: 1. The Operator shall disclose in a bingo program all information to all persons contemplating to participate in the bingo games, including the price of cards and prizes for distribution before start of bingo session. Notification must be made prior to requiring players to make payment for the opportunity to participate in the game. 107

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. Bingo programs for each bingo day or bingo session must always be made available to all players prior to the start of the bingo operations for the day and include at a minimum the following information: a) A written description of each bingo game to be offered, including illustration of each winning game pattern and the order that games will be played. b) The prizes to be offered, including jackpot and consolation prizes, any factors used or conditions set in determining the manner of winning the prize such as but not limited to ball bracket and prize leveling for each game. c) Description of the bingo cards to be used including: i. Color and design ii. Number of faces on each sheet iii. Number and type of sheets in a package of card d) Price of cards or package of cards for each game or session. e) Duration of the program. (g) The Operator may make changes to approved program provided that – 1. The Operator is committed to abide and pursue the amendments as initiated and announced. 2. No amended bingo program shall be approved for implementation until the jackpot prize in a current regular bingo game or special game with high ball level is won. High ball level refers to the number of balls at which the probability of winning or chances the prize will be won is great. 3. The progressive jackpot prize with fixed ball bracket of a particular game is maintained. (h) The Operator, when mounting bonanzas and other bingo special events for traditional bingo, may formulate and establish prize payout schemes and other pertinent arrangements, game rules and mechanics, and operating systems and procedures provided that the terms are not inconsistent with the herein guidelines. 108

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 3. Categories of traditional bingo games (a) Regular Bingo Games - The games in the bingo program using regular game package with a specific number of cards corresponding to the number of games in the particular session. Regular bingo games have a separate and distinct payout scheme. (b) Special Bingo Game - Games that are introduced in between games or sessions which the players have the option to participate in. The cards are sold separately and are not included in the package of cards offered for the day or special bingo event. Players pay extra to play such games. (c) Hidden Face Bingo Games (Quickshot) - Games played using hidden face bingo cards that allow a player to form a pre-determined pattern from pre- drawn number combinations. (d) Instant Games. Games offered within the premises of gaming site and played using paper-based cards or tickets to win a pre-determined payout. These include instant game cards/tickets such as scratch cards, pull tabs, among others. Section 4. Types of bingo games (a) Bingo Game with Odd/Even Scheme. A special bingo game with separate card sales generally played to a full card pattern in which players pre-daub either the odd or even numbers in the bingo card prior to the game being played. The first ball drawn determines the numbers to be covered. (b) Bingo Games with Multiple Prize Schemes. Bingo games where players have the opportunity to win one of the various, alternative prize levels are allowed provided the Operator must describe in its bingo program any bingo games, the various alternative prize levels including the factors to be used in determining the prize level to be won and the value of the prize levels. (c) Continuation Bingo Games. Continuation bingo games are allowed where multiple game patterns may be played on one bingo card/face. Each pattern shall be considered single game even though the bingo balls are not returned to the ball chamber, after a winner has been declared. The drawing of balls continues until the last game in the series of games. (d) Player Selection Bingo Games. Player selection games may be offered by Operator in which players are allowed to select their own numbers, if the following conditions are met: 1. The cards used to conduct the games must have controls that provide an audit trail adequate to determine all winning combinations are valid. A two-part disposable (carbonized duplicated) cards may be used if the following conditions are met: 109

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 a) The cards are printed on two-part, self-duplicating paper that provides for an original and a duplicate copies; b) The disposable card method of receipting for gross receipts from bingo operations is used; c) Players shall mark their numbers on each card in a distinct, clear, and legible manner prior to separation of the duplicate and original copies. No alterations are allowed before or after the separation of the duplicate and original cards. The marking shall not in any manner prevent reading of bingo numbers or any data imprinted on the card or obscure the determination of their encircled chosen numbers. Operator may exchange the card with an entry added, deleted or changed prior to or after separation for a new card provided errors are discovered prior to the start of the game or before the separation of the duplicate and original cards, or the original copy is dropped into the wrong dropbox. In this case, the duplicate copy shall be marked “VOID” and the card number of the replacement card must be indicated to effect cancellation of the replaced card if original copy has been dropped, or marked “VOID” on the original and duplicate copies when discovered before separation. In all cases, player shall initial the cards; d) All original cards shall be placed in the designated transparent dropbox/es that shall be physically locked and controlled to assure that no cards are placed into the dropbox at the start of the game (that is after the first bingo ball is drawn and called). If more than one (1) dropbox is utilized for this purpose, a number to each box. Players must indicate the dropbox number in both the original and duplicate cards prior to dropping of the original copy. e) Players shall retain and play the duplicate copy. f) To declare a winning card, a player’s selected numbers must have all been drawn and its card must be declared “BINGO” on the last ball called. Otherwise, the “Sleeper Rule” shall apply. A winning card is where the entries in the duplicate copy must exactly match with those of the original copy in its entirety. g) In addition to the requirements, a winning card shall be verified by the winner’s signature at the back of the card. 2. All winning cards, original and the duplicate copies shall be retained by the Operator as part of its daily bingo records upon payment of prize. 3. Incomplete cards, cards with alteration, and cards for which all required imprinted data is not displayed and legible shall not be paid as winners. Incomplete, altered and unreadable cards are the player’s responsibility and refunds shall not be allowed. 110

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 4. Replaced card duplicate copy shall be attached to the replacement card and maintained as part of the daily bingo records. 5. Bingo Games with Progressive Scheme. Progressive bingo games are allowed. A progressive bingo game is one in which the established prize levels and/or ball limit may be increased from one bingo day to another if no player completes the required game pattern within the specified number of ball limit or bracket. 6. Wild Number Bingo Game. A special bingo game played in which the last digit of the first ball drawn becomes the wild number so that all balls having an ending with the last digit shall be covered. 7. Promotional Bingo Game (PBG-Action Bingo/Winner-Take-All Concept). A promotional gimmick or bingo game played with joining fee in order to win a pot money in a particular game/session with PBG. It can be conducted or played locally (in the bingo venue) and/or linked (participated in by more than one bingo venue/site). All joining fees are accumulated to pot money. However, the Operator shall deduct fifteen percent (15%) PAGCOR Share from the joining fees. The Operator shall notify PAGCOR of the intended conduct of promotional bingo game using the Marketing and/or Promotion Form (GS Form No. 28). Section 5. Guidelines and gaming rules for other bingo games (a) On Hidden Face Bingo Games (Quickshot), 1. All games must be completed during a single bingo day and only involved cards that are sold during that day. 2. Players that have paid to participate in the game need not be present when the numbers are drawn/selected. 3. Drawing of balls shall be done before the first session in the presence of the players in the bingo hall. 4. Record of balls/numbers drawn and called shall be duly signed by the Operator’s staff and a player selected by the gaming site management as witnesses to the draw. 5. Operator must provide a separate gameboard visible to all players for displaying the numbers drawn and called. 6. Winning patterns shall also be displayed close to the gameboard (containing the drawn numbers) as guide to winning the game. 111

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 7. The requirements of what constitutes a completed game must be documented and clearly posted for players’ review. As such, the drawn numbers must be displayed constantly until the game is completed at the closing of the particular bingo day. (b) On Bingo Game Variants, 1. Guidelines and gaming rules as prescribed in Sections 1 and 2 above shall apply to the conduct of Bingo game variant. 2. Bingo game variant may be categorized under special bingo game. Please refer to Item (b) under Section 3 above. (c) The following rules and guidelines shall apply to the offering of Instant Games (paper-based cards or tickets) within the premises of gaming site: 1. Types of Instant Games and Game Rules a) Pull Tab or Break-open Game is an instant ticket game played by matching symbols to win a prize. The game consists of a fixed number of tickets with pre-determined payout, number of winners and total amount of prizes. To play, the perforated windows on the back of the pull tab ticket is opened and the symbols inside the ticket are matched to the winning combinations on the front of the ticket. b) Scratch Card Game is an instant ticket game using a small card or ticket where one or more areas contain concealed information which can be revealed by scratching off an opaque covering. The scratchable area needs to be scratched to see whether a prize has been won—the card is printed either to be a winner or not—or to reveal the secret code. 2. Selling and Playing of Instant Game Tickets a) Selling and playing of instant game tickets shall be confined within the gaming site. b) The Operator shall post notices at strategic places within the gaming site on prohibitions on the following: i. Selling instant game ticket/s outside the gaming site; and, ii. Bringing out of purchased instant game ticket/s. c) The Operator shall not allow the Seller to bring instant game tickets outside the gaming site. Before the Seller can go out of the gaming site, all instant game tickets shall be accounted and surrendered to the Command Station. 112

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 d) CMED representative/s shall monitor the Operator’s strict compliance to the guidelines on selling and playing of instant game tickets above. e) The Operator shall make a daily inventory of all instant game tickets that shall be taken in and out of the card stockroom. f) The Operator shall prepare and submit to CMED a monthly report on the total sales and the amount of prizes paid to the winning players. Section 6. Game designs Types of bingo patterns are: (a) Fixed Bingo Patterns – Patterns that are stationary and game is won one- way. Examples: - Any straight line – vertical, horizontal or diagonal (single or double) - Block of 9, postage stamp (cluster or double cluster) (b) Moving Bingo Patterns – A moving pattern is one pattern but displayed in more ways than one. A particular card or face of a multifaceted card with a winning pattern shall be declared valid even if same winning pattern has been formed in one or other way(s) before the last ball was called. Examples: - Crazy patterns – T, arrow - Postage Stamp – 2 ways (c) Continuous Patterns – Patterns that are played from one game to another in a session starting from one simple pattern and progressing to a complicated one and ending with a coverall pattern with an individual prize payout. Example: - Start: Four Corners, then: Large Frame, Finish: Coverall (d) Multiple Patterns – Different patterns are to be formed in any single game. Each pattern has its own corresponding prize. For a game with multiple patterns, the consolation prize for each pattern formed must be awarded to the winner, whether won separately or simultaneously with another pattern. Thus, a bingo card earlier awarded with a consolation prize in a particular game still eligible to win another consolation prize or jackpot prize in that same game. The total guaranteed prize payout declared for a 113

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 game with multiple patterns must be awarded to the winner(s) in full, as in any other regular game. However, in the case of a jackpot, the full amount of the jackpot prize must be awarded to the winner, thereby nullifying his right to the consolation prize for that particular game. Section 7. Prizes (a) Guidelines for Prizes 1. Operator shall allocate for prizes to be awarded to winner(s) in each bingo game in any bingo session. The prizes shall be at least thirty percent (30%) of the projected, reasonable and acceptable gross receipts from sale of package cards and extra cards. 2. Before start of any scheduled bingo game, the Operator must announce to the playing public the specific prize(s) to be awarded in full to winner for each game. The Operator commits to award the prizes as announced/indicated in the bingo program. In case of multiple winners, the prize shall be shared equally. 3. Prizes for bingo games shall be made available for release or payment to the winner(s) upon claim after each bingo game or bingo session but within the bingo day’s operating time. For this purpose, the Operator shall put up a prize fund. 4. All prizes won in the bingo games must be claimed by the winners within the month. Unclaimed prizes at the end of the month shall be forfeited. These shall be set aside to form a common prize fund to be given later as additional prizes for special game(s) or as bonus prize in any regular or special game to be awarded within the year; otherwise, the amount shall be forfeited in favor of PAGCOR to be utilized as source of funds for responsible gaming programs. For this purpose, the Operator shall account for all prizes to determine those prizes that remain unclaimed, if any, as of the end of the month, using the Monthly Sales Report for Traditional Bingo. 5. Any single prize of more than Ten Thousand Pesos (PhP10,000.00) when awarded to a winner is tax-paid. In effect, all prizes are net of the applicable taxes. Total gross amount of the prize as computed includes the applicable taxes. Operator, as the withholding agent shall file the appropriate tax return and remit the total prize taxes for the period covered. 6. The aggregate value of all prize payouts awarded to winners and those forfeited, and the applicable tax imposed on these prizes must be at least thirty percent (30%) of the total gross receipts from sale of bingo cards/tickets for the month. If the average actual payout percentage falls below the required, the difference in amount shall be set aside to form a common prize fund to be given later as additional prizes for 114

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 special game(s) or as bonus prize in any regular or special game to be awarded within the year; otherwise, the amount shall be forfeited in favor of PAGCOR to be utilized as source of funds for responsible gaming programs. For this purpose, the Operator shall account for all prize payouts to determine the required amount to maintain the 30% payout, if any, as of the end of the month, using the Monthly Sales Report for Traditional Bingo. 7. Prizes in multi-level payout scheme may be adopted in bingo games using multiple types of cards priced at different amounts provided all information and game mechanics of the scheme necessary for the players’ understanding shall be made available to them as announced/explained by the bingo caller and as indicated in the bingo program or posters of the game with the scheme. 8. Prizes in progressive bingo games continue to accumulate until a player wins the game. There are selected criteria to win the prize provided such criteria are indicated in the bingo program/game mechanics and fully explained when announced. If the prize is not won using these criteria, the prize shall continue to accumulate and remain available until the game is won or approved revisions in the said criteria are made. 9. The Operator may offer a progressive prize scheme in bingo games. However, prize shall be subject to capping at a specified maximum amount and to be played off once that cap has been reached. A maximum 14-day timeframe for the pay-off to occur, during which time another pot may be accumulated. The amount to be awarded is the prize pool consisting of the cap plus the accumulated amount after the cap is reached. The PAGCOR Representatives in the gaming site shall strictly monitor the development of this scheme especially if it involves high stake prizes accumulated over a specific period of time allowed. 10. Jackpot prize for regular or special games which remain “unwon” on a specified period of time of its implementation must be returned to the players by way of introducing “must go” mini-jackpot prize to be awarded per game to which the jackpot prize is attached to. The mini- jackpot prize shall be deducted from the jackpot prize until the total amount is exhausted. Another option is to set a schedule for a one- time special game wherein the jackpot prize will be given away. (b) Record of Winners of Bingo Prizes 1. All payments of prizes for bingo games shall be accounted for and documented in a manner that affords independent verification of the amount paid and the manner of distribution to winners. Payment shall be properly supported by a pre-numbered duplicated prize voucher or receipt containing all information as follows: a) Date; b) Game number/session; 115

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 c) Complete name and address of the winner; d) Valid ID (to be photocopied for attachment); e) Tax Identification Number, if single prize is more than PhP10,000;. f) Amount of cash prize; and g) Approval of authorized gaming site staff. Original copy of the prize voucher or receipt shall be furnished to the winner and duplicate on file. 2. Prize vouchers or receipt together with the winning card and the required supporting documents shall form part of the bingo records. Section 8. Cancellation of bingo games Cancellation of bingo games shall adhere to the following rules: (a) Conduct of uncompleted bingo games may be allowed by PAGCOR to be cancelled provided the following conditions are met: 1. Fortuitous events such as fire, earthquake, floods and events of similar nature, circumstances although foreseen but unavoidable such as riot, strike, civil disobedience and the like, or events that are avoidable but justifiable such as prolonged power failure; and 2. Low estimated sales turnout to be able to cover up at the least to the extent of the prize payout for the particular game, session, or day. (b) If cancellation is due to fortuitous events and circumstances although foreseen yet unavoidable, the following shall apply: 1. When bingo games have started, the Operator, in consultation with PAGCOR Representative may opt to cancel the game and shall refund the price of the bingo cards to the players and announce the schedule of resumption of bingo operation. 2. During special bingo events with pre-sold bingo tickets, the Operator shall reset the scheduled event and request for cancellation shall be submitted to PAGCOR Representative in the gaming site who in turn shall submit the same to CMED together with its Incident Report on the subject cancellation. No refund shall be given. (c) If cancellation is due to prolonged power failure, the following shall apply: 1. If the game has not started yet and the gaming site has no back-up power supply system, the Operator, in consultation with PAGCOR Representative/s, may suspend bingo operation only after a lapse of at least thirty (30) minutes from the start of scheduled bingo game, session or day. 116

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 2. If the game is ongoing, the Operator in consultation with PAGCOR Representative/s, shall continue the drawing of balls “manually” until winner is declared after manual verification of the probable winning card. Succeeding games shall be automatically cancelled if the power is not restored within thirty (30) minutes from start of the next scheduled game. The Operator shall refund the price of the cards for the game or session in accordance with the formula developed for this purpose as shown in the refund schedule in the Item (e) below. 3. In cases when power is repeatedly interrupted during a game, rule no. 2 under Item (c) above shall likewise apply. 4. In all cases PAGCOR Representatives shall submit the Incident Report thereof to CMED. (d) If cancellation is due to circumstances although avoidable but justifiable other than power failure, the following shall apply: 1. During special bingo events with pre-sold bingo tickets, the Operator shall submit notice of rescheduling of said event(s) at least two (2) days in advance to PAGCOR Representatives who will submit the same together with its recommendation or objection and reasons therefore to the said cancellation or re-scheduling. No refund shall be given. (e) In those cases where refund is allowed, the amount of refund shall be based on the price of the bingo card, or pro-rata price of package of cards determined by using the following formula developed based on the prize(s) in the games in a session: Example: a. Given information: b. Application of formula: 117

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (f) In cases where few players are present in a session(s) with higher/bigger payout, the Operator may be allowed to set aside the regular bingo program and implement an existing bingo program with lower/smaller payout scheme in order to minimize loss for the said session in lieu of the cancelled game(s). Section 9. Disputed bingo games The Operator shall adhere to the following rules in disputed games: (a) If it is discovered that the correct numbered balls, 1 to 75, are not in the bingo ball chamber, more than 75 balls are found to be present, or a ball is so badly damaged that it is unable to be properly mixed to ensure an opportunity to be drawn, the following shall apply: 1. If discovered before the start of the game, then, the necessary changes/corrections shall be implemented and start the game. 2. If discovered while the game is in progress, then that game is void and shall be played over at no cost to players. 3. If discovered after a bingo session is completed, then, no game shall be replayed. 4. If the number of cards each player is playing during the affected game can be determined, then each player shall receive the same number of cards for the replay of the game. If the number of cards cannot be determined for all players, then an equal number of bingo cards shall be given to each player. (b) If it is discovered that a ball was incorrectly called, or improperly placed or entered into the masterboard, then one of the following shall apply: 1. If discovered immediately, then the game shall be stopped. The error shall be corrected clearly restating the incorrect call or indicating the improper placement and indicating what the correct call or placement should have been and continue the game. 2. If discovered after additional balls have been called, then the game shall be stopped. The Operator shall determine whether the game can 118

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 be reconstructed by recalling the game from point of error and continuing. If game cannot be reconstructed, the game shall be declared void and replayed. If disposable cards were being used, then the Operator shall issue replacement disposable bingo cards of equivalent value at no cost to the players to play the make-up games. If the number of cards cannot be determined for all players, then an equal number of bingo cards shall be given to each player. Ball sequence report done manually shall be used in the precise reconstruction of the balls drawn and called. (c) In the case of a disputed game, if the prize has been paid to a player before the discovery of the error, the prize shall remain the property of the winner. (d) In the investigation of disputed game, PAGCOR may instruct the Operator to pay the disputed prize if the preponderance of the evidence is in favor of the player. Section 10. Activities conducted as part of bingo games Only activities authorized by PAGCOR shall be conducted inside the Operator’s gaming site. The Operators may award prizes to winners of activities’ authorized by PAGCOR when such activities are conducted as part of bingo games. Such activities shall be deemed to be bingo games if all players paying to participate are allowed to compete equally and all prizes awarded are treated as bingo game prizes. The following activities are authorized: (a) RAFFLE. Operator shall be allowed to award prizes that are determined by a random drawing of tickets or by other random selection methods involving the numbering system with the following requirements: 1. Rules regarding these drawings including requirements to qualify for participation are clearly posted and distinctly explained to the players; 2. Tickets or other facsimiles used to enter such drawings are awarded only to players purchasing cards to play in bingo games; 3. Tickets, from which the winners of any such drawings are selected, shall not be accumulated for a period that is no longer than ninety (90) days from start of the said promotion to the intended draw date; 4. Operator may award prize to the raffle winner, if the following conditions are met: a) The winning player shall be present during the draw date. Otherwise, he forfeits his chance and the Operator has the right to draw another ticket entry. 119

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 b) The winning player shall be required to present upon claim of the prize the claim stub (of the winning ticket entry) to establish the rightful winner. c) In the event that the winning player is unable to present his claim stub, any valid ID must be presented to establish the true identity of the claimant by matching the information contained in the presented ID with that of the winning ticket entry as follows; i. Name of ticket holder/owner ii. Signature of ticket holder/owner iii. Address of ticket holder/owner d) In the event that the possible winner/s fails to present any of the abovementioned requirements, it is automatically disqualified to claim the prize. (b) “Good Neighbor” Prize Scheme. Operator may award prizes based upon the seating location of a player or players in regards to a winner of a bingo game. The following requirements must be observed prior to the awarding to “good neighbor” prizes. 1. Rules regarding this prize scheme and requirements to qualify for a prize must be clearly posted and distinctly explained to the players; and 2. A record shall be completed setting out the criterion for awarding such prizes during each session, and maintained as part of the daily bingo records. (c) Creativity and Originality Contests. Operator may conduct contests requiring skills such as bingo tournament and the like. (d) Second element of chance schemes may be used to increase the minimum prize for a bingo game has been determined by calling numbers or letters if: 1. Schemes do not involve the use of prohibited gambling devices. 2. This scheme is attached to or rider of a regular bingo game. It is a separate game, but a prize pool offered with a regular bingo game. It is a progressive prize scheme played with regular bingo games in a bingo program. The ability to win is tied to the winning of a regular bingo game on a specific number or bingo ball. 3. The scheme does not require the player to risk any portion of a prize already won. 120

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 4. Every possible outcome of the scheme provides the player with an additional prize. 5. Rules of the game are clearly posted and distinctly explained to the players. 6. The Operator may award prizes/gifts in promotional games to bingo players, where the merchandize gifts shall be on the account of the Operator. Section 11. General Traditional Bingo House Rules The following general traditional bingo rules shall be posted or viewed in a conspicuous place inside the bingo hall in full view of the players before the start of a game in order to inform and bind the players to abide by the said rules. General Bingo Rules (a) Before the start of the game, the production and serial number, type, color and design of cards to be used for a given game must be announced as the only valid cards for the game to win a prize. All players must check that their cards are of the correct specifications for the particular game. In case of discrepancy, player must surrender the same to the Command Station for exchange of new cards. The following must also be announced: 1. Pattern (including number of ways), ball bracket, prize payout and cost of cards or package cards/cost of extra card. 2. Splitting of multifaceted sheets (e.g. 2ons, 3ons, 4ons, etc.) is prohibited. Split cards are not entitled to win a prize. (b) A bingo ball is not officially drawn until the letter and number are completely called. The bingo ball with its corresponding letter and number as actually shown on the video screen is used for reference only. (c) In the event of incorrect call or incorrect ball number displayed on the flashboard, the actual ball drawn and placed on the rack (of the bingo machine) shall be deemed the official ball. (d) Should there arise, in any game played, a discrepancy in the number of the bingo balls called or announced between those displayed on the flashboard/video screen, and the number of the balls drawn and called, and placed on the rack, the last shall be deemed the official number of balls drawn and called. (e) Balls called must be daubed or marked with a ball pen, highlighter, or bingo dauber to form the winning pattern. Daubed or marked numbers 121

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 must remain clearly visible and readable. However, unmarked cards or cards without mark of the required winning patterns are not valid and disqualified to win a prize. This rule does not apply to carbonized duplicated cards. (f) To declare a “BINGO”, the player must shout “Bingo” loud enough for the Caller to hear. It is the responsibility of the player to shout “Bingo” to prevent the Caller from calling the next ball. (g) A possible winning card must be presented to the verifier for validation prior to declaration of “Good Bingo”/winner. (h) To declare a winning card, the winning pattern must be formed on the last ball called. Otherwise, it must be declared “sleeper” under the “Sleeper’ Rule. Sleeper Rule: “Possible winning card without the last number called in the required winning pattern is invalid and disqualified.” 1. Moving Pattern. A moving pattern is one pattern but displayed in more ways than one. A particular card or face of a multifaceted card with a winning pattern shall be declared valid even if same winning pattern has been formed in one or other way(s) before the last ball was called. 2. Multiple Patterns. Different patterns are formed in a single game. Most often, these patterns are continuous, starting from the simplest one and ending with a cover all (Blackout). Each pattern has its own corresponding prize payout. For games with multiple patterns, the consolation prize for each pattern formed must be awarded to the winner, whether won separately or simultaneously with another pattern. Thus, a bingo card earlier awarded with a consolation prize in a particular game is still eligible to win another consolation or jackpot prize in that same game. The total guaranteed prize payout declared for a game with multiple patterns must be awarded to the winner/s in full, as in any other regular game. However, in the case of a jackpot, the full amount of the jackpot prize must be awarded to the winner, thereby nullifying his right to the consolation prize for that particular pattern/game. Once a particular card or face is declared or deemed “Sleeper” in a particular pattern, the same card or face is still eligible to win other pattern/s played in the game with multiple patterns. 3. Multifaceted Sheet. Bingo cards may be in sets of one or more faces depending on the cut in a thirty six-face flat sheet of pre-printed bingo cards. Each face has an individual serial number and production number, which are the basic elements of a bingo card. Once a particular face of a multifaceted card is declared or deemed “sleeper”, under the “Sleeper Rule”, remaining faces of the same sheet can still qualify to form or win that same moving pattern or the other pattern/s 122

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 played in the game with multiple patterns. Once a card or a face of a multifaceted card is declared or deemed as “sleeper”, under the “Sleeper Rule”, the same shall be marked “cancelled” to invalidate it. (i) During verification, a possible winning card must be shown on the TV monitors with the use of a document camera. Once it is declared a “Good Bingo”, the winner must be paid the corresponding prize. The Operator commits to award the approved prize as announced. (j) In case of two or more winners, the prize/s shall be divided as follows: 1. Cash prize/s shall be divided equally among the winners. 2. Value of the non-cash prize shall be declared and properly disseminated to inform all concerned in case of multiple winners, in which case, the following options shall be available: a) Winners may agree on how the prize should be divided either by throwing of dice, drawing of lots, or purchase of the prize by one of the multiple winners and will be awarded the said prize. b) Winners shall be awarded the cash equivalent of the non-cash prize or receive their equal share of prize based on the declared value of the item. For this purpose, the Operator must submit to PAGCOR the cash receipt or sales invoice and official receipt as proofs of purchase of the prize showing its true value/amount. In the event that the Operator fails to present proof of purchase for said non-cash prizes, the prize must be paid in cash and awarded to the winners equally based on the supplier’s price quotation. (k) Once the game is officially closed, no other winner/s shall be considered. The players are then advised to discard their cards. (l) On Carbonized Duplicated Card, 1. A carbonized duplicated card is a two-part carbonized type of card and serially printed, containing numbers 1 to 15 under letter B, 16 to 30 under letter I, 31 to 45 under N, 46 to 60 under G and 61 to 75 under O. 2. Before the start of the game, the serial number, and color of cards to be used for a given game must be announced as the only valid cards for the game to win a prize. All players must check that their cards are of the correct specifications for the particular game. In case of discrepancy, player must surrender the same to the Command Station for exchange of new cards. 123

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. Players must encircle their chosen numbers on the carbonized duplicated card with the original copy on top of the duplicate copy. The original copy must be dropped into the designated dropbox for the particular game. In case the original copy is dropped into the wrong dropbox, it shall be cancelled and replaced with a new one; its serial number shall be indicated in the replacement card. 4. To declare a winning card, a player’s encircled chosen numbers must have all been drawn and declared on the last ball called. Otherwise, the “Sleeper Rule” shall apply. A winning card is where the entries in the duplicate copy must exactly match with those of the original copy in its entirety. Cards with alteration, erasure or correction shall be declared invalid and disqualified to win. However, unnecessary markings shall not void the winning card provided such markings do not obscure the identification of the chosen numbers. (m) No person shall be allowed to participate in a bingo game unless personally present at the bingo hall at the time the bingo games are being conducted. (n) No refunds on unused cards shall be allowed except when the game is cancelled due to unavoidable/justifiable circumstances as determined by the gaming site management upon proper consultation with PAGCOR Representative(s). (o) Silence must be observed while the game is in progress in order not to distract others in their playing of bingo. Section 12. Gross receipts from sale of bingo tickets and bingo cards Gross receipts from sale of bingo tickets and bingo cards shall be accounted for by the Operator at the time the receipts are received from each player. The following methods are used in the operational gaming sites: (a) Disposable Bingo Cards - Bingo cards may be used to record gross receipts from bingo operation, if the following requirements are met: 1. The cards in use are approved disposable bingo cards. 2. All disposable bingo cards purchased or otherwise obtained must be controlled and accounted for by the Operator. An inventory control record shall be prepared and maintained by the Operator: a) All purchase invoices, or photocopy thereof for disposable bingo cards received must be maintained in the gaming site premises. b) Manufacture packing records shall be maintained as part of the inventory control record. 124

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 c) The following information must be recorded for disposable cards, sheets of cards or package of cards: i. Identification and inspection stamp number ii. Serial number (Serial number of the top page for Package Cards) iii. Number of cards in the series iv. Type of card or package of cards v. Purchase invoice number and date 3. The following inventory control procedures shall be implemented for all disposable bingo cards. a) All disposable bingo cards shall be stored inside the cards storeroom which is properly secured. b) All movements of bingo cards such as receipts from Supplier, withdrawals for allocation, conversions and returns shall be properly recorded by the gaming site Card Custodian in the bin cards. Pertinent records shall be maintained at the premises and available for inspection and checking/verification by CMED representative/s. c) Monthly Inventory Report shall be submitted to CMED not later than the tenth (10th) day of the succeeding month. Said report shall be subject to checking/verification against actual inventory of cards on hand at the storeroom. Violation hereof shall result to the imposition by PAGCOR of sanctions. 4. Cards or sheets of cards intended for playing a single game, the following shall be recorded for each set of cards in the card preparation sheet: a) Serial number b) Color and/or border pattern c) Value of each card or sheet d) Lowest consecutive card or sheet number e) Last card or sheet number issued f) Missing cards or sheets per the manufacturer’s/supplier’s packing record g) Number of cards returned h) Number of cards issued i) Total gross receipts from all cards 5. Package of cards to be sold and intended for playing a defined set of games within a session – the following shall be recorded for each set or package of cards in the cards preparation sheet: a) Serial number of the top sheet or page of the package 125

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 b) Color and/or border pattern of the top sheet or page of the package c) Lowest consecutive card, sheet or package number for the first package d) Card, sheet or package number of the last or highest package e) Number of package f) Number of package returned g) Missing package per the manufacturer’s packing record h) Value of each package i) Total gross receipts from all packages 6. Each disposable card, sheet or package of cards from the same set or collation shall be consecutively issued at each individual sales point. Each card, sheet or package which is not issued consecutively during a session and the audit number is lower than the highest audit number issued shall be retained for a period of not less than one year. Provided that the cards, sheets or package of cards required to be retained may be sold at the next bingo session that the specific set of cards is used. 7. Disposable cards issued for each type of sale shall be recorded separately, provided that, when more than one card or sheet number appears on a sheet of cards issued, then the primary card or sheet numbering system designated by the manufacturer shall be used to determine the beginning number sold and the ending number sold. Each time the numbering of the sheets breaks in the set, a separate entry shall be made in the records. 8. Refer to Section 1 under Regulation 21 for the accounting procedures of all bingo cards allocated for each regular session and floor sales for each game in a session. (b) Bingo Tickets - Bingo tickets may be used to record sales transactions from bingo operation. The following are required: 1. All tickets must be printed with the following information: a) Tickets must be serially numbered; and b) The value or the amount of money represented by each ticket. 2. Tickets shall be issued consecutively starting from lowest numbered ticket. 3. All tickets purchased must be accounted for by the Operator. Copy of the invoice for these tickets shall be maintained in the premises and shall be made available for inspection. 4. All bingo tickets allocated for a certain bingo event or special game shall be accounted along with the packages of cards issued in exchange for the tickets on the basis that each ticket entitles the holder of the corresponding package of cards. 126

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 5. Refer to Section 1 under Regulation 21 for the accounting procedures for bingo tickets. (c) Point of Sale (POS) – POS may be used to record gross receipts from bingo operation, under the following requirements: 1. A consecutively numbered receipt shall be printed by the POS and given to customer. The receipt shall contain the following information: a) The name of Operator; b) The date; c) The amount of money paid for the opportunity to play each game type; d) The pack number; e) The total amount paid; and f) The customer receipt number. 2. The POS has the ability to assign a consecutive four-digit customer receipt number. This number system must be of a type that can only be reset by service personnel and does not return to zero at the conclusion of any period of use or power interruption. 3. The POS memory unit must retain all transactions recorded during the session, regardless of whether or not its power source is interrupted. 4. All POS receipts for voids, returns, “no sales” and any other receipts not issued to player must be retained with the daily bingo records. 5. All transactions, customer receipt numbers and control totals must be recorded and retained in the POS. Printed reports shall be retained with the daily bingo records. 6. It is a computer-based system of recording bingo-related transactions, and monitoring and control of sales (by floor sellers and cashiers) and production of the required reports. It has two functions, namely, “Cashier Function” and “Manager Function”. a) Cashier Function. This handles the sales of cards to players. Once the player has selected the particular packs of cards or number of cards, a receipt is automatically generated where pack number and control number are printed on the top position of the receipt and the details of the transactions including the total amount of payment. If electronic player units (like Electronic Bingo Card Daubers) are connected to POS, the stored bingo cards are downloaded from the POS to the player units which are ready for play. b) Manager Function. This handles the generation of reports on gross sales-quantity of packs of cards of each type sold and summary of all transactions for the session. If an electronic player unit is 127

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 connected to the POS, the POS can reboot the individual player unit, void packs of cards, print winning cards and such other details. PART II – BINGO GAMES VIA CLOSED CIRCUIT TELEVISION (CCTV) AND COMPUTER LINKS The following procedural guidelines shall govern the conduct and operation of the Bingo games via Closed Circuit Television (CCTV) and computer links, commonly known as Bingo Link to ensure integrity and fairness thereof: Section 1. Gaming parameters for bingo games via Closed Circuit Television (CCTV) and computer links General Bingo Link Rules shall apply to the conduct and operation of bingo games via Closed Circuit Television (CCTV) and computer links or link games: (a) Before the start of the game, the production and series numbers and color and design of cards to be used for a given game must be announced as the only valid cards for the game to win a prize. All players must check their cards and surrender the same to the Command Station for exchange of new cards in case of discrepancies. The following must also be announced: 1. Pattern, ball bracket, prize payout and price of cards or package of cards. 2. Splitting of multifaceted cards (e.g. 2ons, 3ons, 4ons, etc.) is prohibited. Split cards are not entitled to win a prize. Each site should use a different set of bingo cards with distinct serial numbers from each other. The host site must exercise control in the assignment of sets of cards to prevent duplication of serial numbers, and thus producing multiple winners with cards bearing same serial numbers. (b) A bingo ball is not officially drawn until the letter and number are completely called. The bingo ball with its corresponding letter and number as actually shown on the video screen is used for reference only. (c) In bingo link games, host site caller should allow a four (4) second interval before repeating the calling of the currently drawn ball, and a ten (10) second interval in between the calling of bingo balls in order to give ample time for the players with multiple cards to daub their cards, and at the same time to give allowance to the response time of the remote sites to the ball calling at the host site. 128

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (d) In the event of an incorrect call or incorrect ball number displayed on the flashboard, the actual ball drawn and placed on the rack shall be deemed the official ball. (e) In the remote sites at the start of the game, the local machine operator must place all the 75 balls in the machine ball rack and must remove the corresponding ball called/announced by the host site to prepare the site to continue the game off-link under Section B – Guidelines in case of Technical Failure in the Bingo Link System below. (f) Should there arise, in any game played, a discrepancy between the number of the bingo ball called or announced, displayed on the flashboard/video screen, and the number of the ball drawn and placed on the rack, the last shall be deemed the official number of the ball. In case of discrepancy between balls placed on the racks of the host site and remote site/s, the balls on the rack of the host site shall prevail. (g) Balls called must be daubed or marked with by a ballpoint pen or highlighter to form the winning pattern. Unmarked cards are not valid and disqualified. This does not apply to carbonized duplicated cards. (h) To declare a “Bingo”, the player must shout “Bingo” loud enough for the bingo caller to hear in order to relay to the host site said “Bingo” to prevent the calling of the next ball. It is the responsibility of the player to prevent the bingo caller from calling the next ball. (i) To declare a winning card, the winning pattern must be formed on the last ball called. Otherwise, it must be declared a sleeper under the “Sleeper Rule”. (j) Possible winning card must be presented to the verifier for validation prior to declaration of “Good Bingo”/winners. Host site caller shall allow enough time for possible winners at the remote sites. (k) No payment of a prize shall be made until a possible winning card is verified/validated by the host site. (l) In case of two or more Bingo winners at the same or different sites, the prizes shall be divided as follows: 1. Cash Prizes shall be equally divided among the winners. 2. Value of the non-cash prizes shall be declared and properly disseminated to inform all concerned in the case of multiple winners. 3. In case of multiple winners, the following options shall be available to the winners: 129

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 a) Winners may agree on how the prize should be divided either by throwing of dice, drawing of lots, or purchase of the prize by one of the multiple winners and the final winner will be awarded the said prize. b) Winners shall receive their equal share of the prize based on the declared value of the item. (m) Once the game is closed, the players are then advised to discard their cards. No other winner/s shall be considered after. (n) In case of dispute or discrepancy, the management of the venue shall have the final decision upon proper consultation with the PAGCOR representative/s in the venue. Section 2. Guidelines in case of technical failure in the bingo link system. As a matter of procedure during bingo link games, the remote site’s machine operator shall remove the corresponding ball called from the machine ball rack and set it aside in a separate box so that in case of a technical breakdown on the video link, the remote site disconnected from the link can continue the game locally without any delay using the audio link system. The following procedures shall be observed in case of failure of video link system: (a) In the event of a technical breakdown during the bingo link games via Closed Circuit Television (CCTV) and computer links resulting in the failure of video link system, the disconnected site shall continue playing the game through live audio. To continue the game off-link (without video), balls called relayed through the back-up audio system must be shown by the remote site’s machine operator to the camera to register the ball called on the TV monitors. (b) In the event of technical breakdown during bingo games via Closed Circuit Television (CCTV) and computer links resulting in the failure of video and audio system, re-establishment or reconnection shall be attempted within fifteen (15) minutes. In the meantime, the game shall be momentarily suspended until reconnection within 15 minutes is established with the host site. 1. If reconnection is established within 15 minutes, game is resumed. 2. If reconnection fails after 15 minutes of attempt, the disconnected remote site or sites shall proceed with the game locally independent of the link games. All balls remaining on the rack of the disconnected site will be used as basis in drawing of balls to continue the game. 130

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 3. If reconnection is established after 15 min., the disconnected site shall rejoin only at the start of the next link game. (c) In the event of technical failure in the bingo link system, prize payout shall be as follows: 1. Guaranteed prize (“must go”- no ball limit). If no reconnection is established after 15 minutes and the disconnected site continues the game locally, the prize pay-out under the link game shall be divided equally among the participating sites, provided that the equivalent share of the guaranteed prize must not be less than the prize of a regular local game with the same price of card. 2. Jackpot prize (with ball limit) If no reconnection is established after 15 minutes and the disconnected site continues the game locally, a separate jackpot prize of the same amount under the link game shall be maintained by the disconnected site for that particular game only. Section 3. Ticket allocation and sales The following procedures shall be observed in the allocation of tickets and sales thereof: (a) Ticket Allocation. Each site shall be assigned a particular color of tickets in order to determine ticket source and accounting of tickets issuance and sales if players choose to play in other venues cluster-wide or metro-wide. (b) Ticket Issuance. Monitoring of tickets issuance shall be based on serial numbers and estimated quantity of tickets to be sold. (c) Ticket Returns. Tickets that are not sold at cut-off date shall be returned and accounted for in order to determine the number of tickets sold. C. ELECTRONIC BINGO Section 1. Guidelines and gaming rules (a) Bet is expressed in terms of credits. Cash shall be inserted through a bill/note acceptor installed in the electronic bingo machine to earn credits for play. In some electronic bingo systems, electronic bingo receipts may be accepted in addition to cash. (b) Players have the option to choose any electronic bingo terminal and electronic bingo game type they want to play. 131

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (c) When a prize in the pay table is won, player’s account, i.e. electronic bingo machine, is automatically credited the prize amount. Payment of prize is also expressed in terms of credits. Should the player decide to stop playing; he/she has to print the electronic bingo receipt for encashment. (d) The electronic bingo receipt presented by player for encashment must be verified. (e) Encashment of all winnings/prizes shall be honored only within the same trading day, i.e. 6 am of the current day until 5:59 am of the following day. (f) Details of the prizes won shall remain accessible from the main menu of the electronic bingo machine until the closing time of the day. (g) All paid electronic bingo receipts shall be retained by the Operator as part of the electronic bingo records for the day. (h) The Operator shall commit to adhere/abide in the implementation of the General House Rules for the orderly conduct and operation of electronic bingo games. Section 2. Prizes (a) The Operator shall put up a prize fund sufficient to accommodate estimated payments of prizes for the day. Prize fund shall be at least two hundred fifty thousand pesos (PhP250,000.00) to cover large prizes. Partial collection may be allowed in extreme cases provided with prior CMED approval. (b) All prizes over ten thousand pesos (PhP10,000.00) shall be subject to the twenty percent (20%) withholding tax which the Operator will withhold and subsequently remit to the BIR. However, the 20% withholding tax shall not be deducted from the prize due to the winner. For recording purposes, computation of the total payout for each winner of jackpot prize over PhP10,000.00 shall include the 20% prize tax imposed on this prize. Operator shall be required to submit to CMED proof of remittance of the same to the BIR on the period prescribed. (c) All payments for winnings/prizes shall be made based on electronic bingo receipt issued by the electronic bingo machine after performing the required receipt validation except via manual payments, i.e. electronic bingo vouchers, as a result of defective or uninstalled receipt printer. (d) Release of the jackpot prizes shall be supported by the following documents: 1. Prize Certification, if the single prize is over ten thousand pesos (PhP10,000.00) (to include information on the amount of prize, 132

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 electronic bingo machine number, kind of bingo game, date, and name of winner, address, TIN and signature). 2. Photocopy of valid Identification Card (with picture) such as Driver’s License/Company I.D./SSS I.D., etc. 3. Duly accomplished twenty percent (20%) Withholding Tax Form for the signature of the winner. (e) All prizes won in the electronic bingo games must be claimed on the same date during operating time of the electronic bingo area. Unclaimed prizes after closing time shall be forfeited in favor of the House and deducted from the total registered winnings/prizes for the day to arrive at the total paid prizes. (f) The Operator shall have no liability or responsibility to a player who claims a prize and is unable to submit an electronic bingo receipt. (g) The Operator shall have discharged all liabilities in relation to payment of a prize by making payment to a person who has submitted a valid electronic bingo receipt, or unable to claim a prize during the same bingo day. The paid electronic bingo receipt shall be retained as part of the Operator’s electronic bingo records for the day. (h) The Operator shall have no liability or responsibility to a player or any person for or in respect of any failure, disruption or malfunction of the electronic bingo machine/system resulting to malfunction of transactions in the main menu of the electronic bingo machine after verification of the said failure, disruption or malfunction of the machine/system by PAGCOR. D. General House Rules Section 1. General House Rules for gaming sites The following general house rules which shall be displayed in a conspicuous place inside the gaming site for the playing public’s full view shall apply to the actual conduct and operation of bingo games: General House Rules (a) Only registered players are allowed to play. All persons allowed entry are obliged to observe all the rules and regulations prescribed by the management. (b) Persons below twenty (21) years old or students of any school, college or university in the Philippines are not allowed to play in the gaming site. The following are not allowed to enter, stay and/or play in the gaming site: 133

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1. Public officials, which includes elective and appointive officials and employees, permanent or temporary, whether in the career or non-career service, whether or not they receive compensation, regardless of amount; and 2. Members of the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP) (c) Officials and employees of PAGCOR are not allowed to enter and stay, except for official business purposes. Officials and employees of PAGCOR are prohibited to play. (d) Spouse, common-law partner, children, parents of public officials, members of the Armed Forces of the Philippines, including the Army, Navy, Air Force or Philippine National Police, and PAGCOR officials and employees shall be banned from playing as well. (e) Gaming site Operators and employees are prohibited to play. (f) Management reserves the right to deny entry to any person. Management shall only allow entry to legitimate players who will play or are actually playing in the gaming site. There shall be no other transactions other than for legitimate gaming purposes. (g) Players shall be held liable for any breakage or damage done, whether intentionally or unintentionally, on the machines/terminals and/or equipment. (h) Bystanders are prohibited outside the gaming site area and within the gaming site areas. (i) Firearms or deadly weapons are strictly prohibited inside the gaming site. (j) No Cash, No Play. (k) Limit to Playing Time: No customer is allowed to play and remain in the gaming site for more than six (6) hours. (l) Before placing a bet or start of each game, the Player shall be responsible for reading and understanding the following: 1. House Rules – posted within the premises; and 2. Game Rules and Mechanics. (m) The Player shall be fully aware that there is risk of losing credit or money by placing a bet and/or participating in electronic games/bingo games. 134

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (n) PAGCOR may suspend or cancel certain online games/game programs without prior notice. (o) Management is not responsible for loss of any betting credits left in the electronic gaming terminals/electronic bingo machine. (p) Encashment of all winnings/prizes shall be honored until closing time of the current trading day in which the initial cash-in was made, for electronic bingo games. (q) Any system or machine malfunction voids all plays and pays. (r) In the event of technical malfunction and the electronic bingo machine does not dispense receipt, said credit shall be cashed-in and paid only upon management’s verification of the correct credit amount. (s) Electronic games and electronic bingo games are subject to change without prior notice. (t) In case of dispute or discrepancy, the management shall have the final decision upon proper consultation with the PAGCOR Representative, if any, assigned in the gaming site in a manner deemed fairest to all concerned and that the decision shall be binding to all Players. (u) In order to play an e-bingo a minimum buy-in of one thousand pesos (PhP1,000.00) shall be required. 135

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 19 Regulation MARKETING AND PROMOTIONS The Operator shall conduct marketing activities and/or promotions necessary to promote and improve the performance of the gaming site. Section 1. Marketing activities and/or promotions (a) The Operator may formulate and implement its marketing activities and/or promotions which may include the following: 1. Any membership or loyalty program by which: a) points, credits or rewards may be earned from the playing of any game in a gaming site; or b) points, credits or rewards may be redeemed within the gaming site premises for the playing of a game. 2. Any contest, lucky or raffle draw or tournament in which: a) a prize may be won directly or indirectly as a result of visiting any gaming site or playing any game in a gaming site; or b) a prize may be redeemed on or used for the playing of any game in a gaming site. 3. Any activity, program or incentive, or any combination of them, which gives publicity to, or otherwise promotes or is intended to promote: a) the visiting of a gaming site; or b) the playing of any game in a gaming site. (b) The Operator shall notify GLDD of its marketing activities and/or promotions by submitting the following documents at least one (1) business day prior to implementation: 136

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1. A duly accomplished Marketing and/or Promotion Form (GS Form No. 28) duly signed by the Operator’s duly authorized signatory; 2. Implementing Rules and Guidelines (IRG) of the marketing and/or promotion containing the following: a) Title b) Period Covered c) Objectives d) Prizes e) General Mechanics f) Terms and Conditions g) Irregularities and Resolution h) Other concerns that need to be included 3. Marketing activities and/or promotions must target lower middle income and above customers. 4. The Operator shall not implement any marketing activities or promotions without the approval of PAGCOR, which must resolve applications for marketing and/or promotions within ten (10) business days from submission of all documents. (c) Requests with incomplete submissions shall not be processed and shall be returned to the Operator. (d) All marketing costs to be incurred in any marketing activity and/or promotion shall be solely for the account of and shouldered by the Operator. Section 2. Promotional coupons (a) The Operator may, for specified marketing purposes, provide its patrons with promotional coupons redeemable for complimentary credits. (b) The Operator shall be responsible for ensuring that the promotional coupons issued and redeemed are genuine and valid. The Cashier, or any authorized gaming site staff, shall verify that the coupon has not expired or is otherwise void on its face. (c) Promotional coupons are non-cashable; (d) Promotional coupons shall be redeemed at the Cashier or authorized booth only. Promotional coupons redeemed by players for complimentary credits shall form part of the Gross Collection and shall reflect as part of the Gross Gaming Revenue. (e) The Operator shall furnish GLDD with an inventory list of promotional coupons issued to players, as may be required from time to time. 137

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (f) Promotional coupons issued by the Operator for complimentary credits can only be used once. (g) All promotional coupons redeemed pursuant to this section shall be cancelled either: 1. by the Cashier upon redemption; or 2. by a duly authorized staff. (h) At the end of each promotion, all unissued coupons no longer valid shall be voided by the Operator either by punching a hole in or by stamping “void” across the face of each unissued coupon. Section 3. Gaming points/ Total credits redeemable for coupons (a) Gaming points or total credits may be used to redeem coupons in exchange for complimentary credits subject to Section 2 above. (b) Except as otherwise stated in Item (a) above, gaming points or total credits are not redeemable for complimentary credits. Section 4. Photo/Video coverage of an event inside the gaming site premises (a) An Operator that wish to have a photograph and video coverage of an event inside the gaming site premises shall notify GLDD by submitting a duly accomplished Photograph and Video Coverage Notification Form (GS Form No. 34) at least two (2) business days prior to intended date of implementation. (b) There will be no tri-media coverage or documentation of cash games. (c) Players will sign waivers that they agree to include their faces in the documentation of the tournament. (d) The photo and/or video coverage shall not cause any disruption to poker operations. (e) The use of camera/s other than that of the Operator or its authorized photographer/videographer shall be prohibited. (f) For promotional purposes other than poker tournaments, photo and/or video coverage shall be allowed purely on “mock-up/production set-up” where actors/actresses portray gaming site customers playing on gaming tables. (g) When shooting photos or videos of non-gaming events in the gaming site (e.g. documentaries, et. al.), camera(s) shall not be allowed to focus at or 138

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 point in general direction of the cash table areas. (h) PAGCOR reserves the right to prohibit the commercial use and/or conduct post-audit of any photograph or video footage taken during the shoot as it deems warranted. (i) Use of any photograph or video footage as advertising material shall be in accordance with Section VII of PAGCOR’s Responsible Gaming (RG) Code of Practice and any applicable RG circular which can be viewed respectively at “Responsible Gaming” and “Announcements” links at www.pagcor.ph/regulatory/index.php. 139

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 20 Regulation BANNED PERSONALITIES Banning is the act of prohibiting a person access into a venue. Certain individuals are banned from entering casinos or gaming sites due to various reasons. Pursuant to Presidential Decree 1869 as amended by Republic Act 9487 otherwise known as the PAGCOR Charter, persons under twenty one (21) years of age or students of any school, college or university in the Philippines are not allowed to play in casinos or gaming sites. Pursuant to Malacañang Memorandum Circular No. 8, series of 2001, the following persons are prohibited from entering, staying and/or playing in casinos or gaming sites: (a) Government officials and employees connected directly with the operation of the Government or any of its agencies; and (b) Members of the Armed Forces of the Philippines including the Army, Navy, Air Force or the Philippine National Police. In addition, banning may come in the form of: (a) Self-Exclusion; (b) Family Exclusion; and (c) Licensee-emanating The banning order shall be effected nationwide across all licensed casinos and gaming sites. Refer to Responsible Gaming Code of Practice. Section 1. Personalities not allowed to enter and play in the gaming areas (a) A banned personality is a person who is: 1. In pursuance to the PAGCOR Charter and Malacañang Memorandum Circular No. 8, series of 2001, 140

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1. a Government official connected directly with the operation of the Government or any of its agencies; 2. a Member of the Armed Forces of the Philippines, including the Army, Navy, Air Force or the Philippine National Police; and 3. a Person under 21 years of age or student of any school, college or university in the Philippines. From these are excepted the personnel employed by the Gaming Sites or those who at the discretion of PAGCOR may be allowed to stay in the premises. 2. Banned by an Exclusion Order as contemplated under Responsible Gaming Code of Practice. 3. Individuals who are not allowed to enter and play at any gaming site as provided under this Gaming Site Regulatory Manual. (b) The Operator shall not allow a banned personality to enter and play in the gaming area(s). (c) An Operator or its employee who knows that a banned person is about to enter the gaming area(s) shall, using no more force than is reasonably necessary, prevent the banned person from entering the Gaming Site premises. (d) An Operator who allows a banned personality to play at the gaming site shall be imposed a demerit as prescribed in Regulation 24. (e) The Operator shall install signage(s) and/or standee(s) to notify the general public, stating in verbatim the prohibitions indicated under Presidential Decree 1869 as amended by RA 9487 otherwise known as the PAGCOR Charter and Malacañang Memorandum Circular No. 8, series 2001. (f) The signage(s) and/or standee(s) must be installed at the following areas: 1. Access point(s) to the gaming area; 2. Cage and/or Cashier’s booth and redemption kiosks; and 3. Other strategic locations in the gaming areas. The signage or standee shall be made of a Stanchion post not higher than 37 inches with a fabricated frame (portrait orientation) measuring 16.5 inches x 11.7 inches (A3 paper size) that will house the warning sign/notice. Following is a sample of the warning sign/notice: 141

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 NOTICE Pursuant to Presidential Decree 1869, as amended by Republic Act 9487, persons under 21 years of age or students of any school, college or university in the Philippines are not allowed to play in this gaming establishment. Pursuant to Malacañang Memorandum Circular No. 8 and to the rules and regulations issued by PAGCOR, the following are not allowed to enter, stay and/or play in this gaming establishment: 1. Government officials and employees connected directly with the operation of the government or any of its agencies; and 2. Members of the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP). 3. Persons under 21 years of age or students of any school, college, or university in the Philippines; 4. PAGCOR officials and employees; 5. Gaming site Operators and employees; 6. Unregistered players; 7. Banned individuals; 8. Spouse, common-law partner, children, parents of officials and persons mentioned in items (1), (2), and (4) above. 142

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 2. Banning order issued by an Operator (a) An Operator may issue a banning order to ban an individual from its gaming site premises, which banning order shall be in accordance with the guidelines set under the Responsible Gaming Code of Practice. Section 3. Removal of banned personalities from gaming site premises Operator shall be responsible for the removal of a banned personality from the gaming site premises. 143

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 21 Regulation DETERMINATION OF GROSS SALES AND GROSS GAMING REVENUES FROM GAMING SITES Section 1. Definition of Gross Sales Gross Sales (GS) is the total gross receipts from sale of bingo tickets and cards including electronically stored bingo cards played through an electronic device (electronic card dauber). It includes also receipts from sale of Instant Game tickets (pull tabs, scratch cards) and Bingo game variant cards. Section 2. Determination of Gross Sales from traditional bingo games Gross receipts from sale of bingo tickets and bingo cards shall be accounted for by the Operator at the time the receipts are received from each player. a) Disposable Bingo Cards - Bingo cards may be used to record gross receipts from bingo operation. All bingo cards allocated for each regular session and floor sales for each game in a session shall be accounted in the following manner: PACKAGE SALES FLOOR SALES Card Allocation Less: Returned Cards Cancelled Cards Cards Sold × Price Total Sales b) Bingo Tickets - Bingo tickets may be used to record sales transactions from bingo operation. All tickets purchased must be accounted for by the Operator. The accounting shall be done in the following manner: 144

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Step 1 - Account for the sold tickets, packages of cards and claim stubs. QUANTITY BINGO PACKAGE TICKETS CARDS Allocation Less: Returned Cards Quantity Sold Claim Stub Step 2 - Determine the total sales Total Tickets Sold Less: Claim Stubs Net Ticket Sold Add: Packages Sold × Package Price P Total Sales P c) Point of Sale (POS) – POS may be used to record gross receipts from bingo operation using electronic bingo card daubers. 1. The POS is a computer-based system of recording bingo-related transactions, and monitoring and control of sales (by floor sellers and cashiers) and production of the required reports. It handles the generation of reports on gross sales-quantity of packs of cards of each type sold and summary of all transactions for the session. Printed reports shall be used to determine the daily Gross Sales. 2. Refer to Item (c) of Section 12 under Part I of Regulation 18 for the POS requirements to record gross receipts from bingo operations. d) Instant Game Tickets – Gross Sales from Instant Game tickets are determined after their delivery to the Operator’s storage area or gaming site supported by delivery receipts (DRs) and Commercial/Proforma Invoice issued by Supplier. CMED representative/s shall verify all deliveries and DRs at the Operator’s storage area or gaming site on a monthly basis. e) Joining Fees – All joining fees in all bingo games and sessions shall be incorporated into the cost of the package/extra cards, thus subject to the mandatory fifteen percent (15%) PAGCOR Share. Section 3. Definition of Gross Gaming Revenue Gross Gaming Revenue (GGR) is equal to Gross Collection less Payouts (PO), where 145

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Gross Collection shall be the total amount of cash collected from each electronic bingo (electronic bingo) machine including any Overage. Overage shall be the positive difference between the actual cash collected from each electronic bingo machine and the total cash as reflected in the system-generated report, [refer to Item (c) under Section 4 below]. PO shall be the total amount paid out by the Cashier for redeemed electronic bingo receipts or vouchers plus the twenty percent (20%) prize tax for all jackpot prizes above ten thousand pesos (PhP10,000.00). PO shall be net of all unredeemed electronic bingo receipts or vouchers. Section 4. Determination of Gross Gaming Revenue from electronic bingo games The following guidelines shall be carried out in determining the daily Gross Gaming Revenue (GGR) for electronic bingo (electronic bingo) area: (a) Collection of cash from all terminals, i.e. electronic bingo machines, shall be conducted daily by the Operator on per terminal basis to account for the day’s gross collection. (b) Counting of cash collection and recording in the Daily Cash Inflow Reports on per terminal basis shall be done immediately after collection, subject to reconciliation procedures below. Reconciliation of cash against meter reading report on per terminal basis or the system-generated End Session Report from the server shall be made by the Operator to determine any variance. Should there be a variance, causes have to be determined. GGR to be reported is the higher amount between the meter reading report on per terminal basis and the system-generated End Session Report from the server, which shall be referred to as system-generated amount. 1. Positive variance or Overage (actual cash collected minus system- generated amount equals positive amount) – Report on Gross Gaming Revenue and PAGCOR Share for Electronic Bingo should reflect the total actual cash collection as follows: i. System-generated amount - input in “Daily Collection (Total-In)” of the Report on Gross Gaming Revenue and PAGCOR Share for Electronic Bingo; and, ii. Overage amount – input in “Overage”. 2. Negative variance – to re-check the cash box and surrounding area inside the terminal for the presence of bills, tickets or Accounting Summary Tickets for possible error in recording. However, if the cause points to the error of the bill acceptor or the cause cannot be established, the Operator shall pay the shortage. Report on Gross 146

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Gaming Revenue and PAGCOR Share for Electronic Bingo should reflect the system-generated amount in the “Daily Collection (Total-In)”. (c) Payouts shall be accounted (taking into consideration the applicable tax on jackpot prizes thereon) less whatever electronic bingo receipts or vouchers that remained unredeemed after the closing of the previous trading day’s operation, i.e. forfeited, to arrive at the total paid payouts for the day. 147

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 22 Regulation FINANCIAL REPORTING AND REMITTANCE GUIDELINES Section 1. Computation of PAGCOR Share In consideration of the License issued to Operators, PAGCOR shall be entitled to a PAGCOR Share computed as follows: (a) Traditional Bingo Games including Instant Games and Bingo game variants Gross Sales (GS) xxx PAGCOR SHARE (PS)* = 15.00% of GS xx (b) Electronic Bingo (eBingo) Games: Gross Collection xxx Less: Total Payout (inclusive of taxes on Jackpot Prizes of above PhP10,000) xxx __________________________________________________________ GROSS GAMING REVENUE (GGR) xx PAGCOR SHARE (PS)* = 50.00% of GGR xx *PAGCOR Share is for remittance to PAGCOR (c) Refer to Regulation 21 for the definition and determination of Gross Sales (GS) and Gross Gaming Revenue (GGR). Section 2. Remittance to PAGCOR (a) The Operator shall remit the PAGCOR Share twice weekly, every Monday (to cover the amount due from Wednesday to Saturday) and every Thursday (to cover the amount due to PAGCOR from Sunday to Tuesday), provided however that the amount due to PAGCOR 148

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 corresponding to the remaining days up to the end of the month shall be remitted not later than two (2) days following the end of the month without the need for prior demand. If the remittance day falls on a Saturday, Sunday or holiday, remittance shall be done on the following banking/working day. The Operator shall use for remittance the Report on Gross Gaming Revenue and PAGCOR Share for Electronic Bingo and/or Report on Gross Sales and PAGCOR Share for Traditional Bingo, as the case may be, along with the corresponding attachments as required by CMED. (b) The amount due to PAGCOR shall be computed based on the total gross sales (for bingo area) and/or gross gaming revenue (for electronic bingo area) of days within a particular remittance period covered. For electronic bingo operations, in the event that total players’ winnings/prizes exceed total collection within a particular remittance period covered, Operator shall not be bound to remit any amount to PAGCOR for that particular remittance period only. (c) Consolidation and reconciliation of Gross Gaming Revenue and PAGCOR Share for electronic bingo operation shall be on a monthly basis using the Monthly Gross Gaming Revenue Report for Electronic Bingo. (d) The Operator shall not offset any negative PAGCOR Share (PS) within the month. Any offsetting of PS shall be done only after consolidation and reconciliation of the monthly GGR and PS, taking into consideration any corrections and adjustments made at the end of the month. Offsetting of the resulting over remittance for the current month, if any, shall be applied by the Operator on the following month/s. (e) PS from the Instant Game tickets delivered during the month shall be settled by the Operator to CMED not later than the fifth (5th) day of the following month without need for demand or billing statement. The Operator shall ensure that instant game ticket deliveries are supported at all times by Commercial/Proforma Invoice and delivery receipts (DRs). CMED representative/s shall verify the deliveries on a monthly basis. (f) Failure of the Operator to remit the amount due to PAGCOR on time will entitle PAGCOR to an interest of twelve percent (12%) per annum on all remittances made after the prescribed remittance schedule up to the time of payment, prorated on a daily basis. (g) In addition to the imposition of the interest charge, any delay or default in the remittance of said amount, after the lapse of five (5)-day grace period, shall subject the Operator to the following administrative sanctions: 1. Automatic suspension of the Operator's operation of Bingo games to commence the day following the non-remittance of amount due to PAGCOR. However, the Operator may be allowed to resume its 149

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 operation only upon full payment of the required amount. A formal clearance/notice shall be issued by PAGCOR to the Operator prior to resumption of operation. 2. Imposition of thirty thousand pesos (PhP30,000.00) penalty and five (5) demerit points. (h) Failure to remit the amount due to PAGCOR within thirty (30) days from remittance due date shall be a ground for the revocation of the License. (i) Amounts due to PAGCOR shall be remitted to PAGCOR Bingo Savings Account No. 1441-0526-30 maintained at the Land Bank of the Philippines (LBP) UN Avenue, Manila Branch or at PAGCOR’s CMED Office. (j) The Operator shall dutifully settle all its tax obligation/s resulting from the operation of its gaming site, including income and franchise taxes, as applicable, and shall report to CMED all taxes paid and proof of payment thereof within fifteen (15) days from payment or deadline of payment of said taxes, whichever comes first. Section 3. Operator’s computation of PAGCOR Share Acceptance by PAGCOR of its share as computed by the Operator does not preclude PAGCOR from assessing the Operator a different amount should its audit and verification lead to such a conclusion. Such additional assessments shall be billed to the Operator and shall be settled on the next scheduled remittance day Section 4. Proof of remittance to PAGCOR The Operator shall comply with the submission of documentary requirements as proof of remittance (such as bank-validated duplicate deposit slip) of the amount due to PAGCOR if deposited directly to the PAGCOR Bingo bank account cited in Item (f) under Section 2 above. Section 5. Operator’s documentation and reporting requirements (a) The Operator shall file with PAGCOR not later than the third (3 rd) day of the succeeding calendar month a Monthly Report of Sales for Traditional Bingo and Monthly Gross Gaming Revenue Report for Electronic Bingo, as applicable, along with corresponding attachments duly signed by the Operator or its authorized representative showing in detail the true and correct amount of gross receipts from the sale of bingo cards/tickets, computed GGR and PAGCOR Share/s for the month, and the amount of PAGCOR Share due to PAGCOR, if any. 150

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) The Operator shall make and maintain complete, accurate and legible records of all transactions pertaining to bingo operations and the applicable taxes thereon. (c) The Operator shall, whenever requested by PAGCOR to do so: a. Produce to PAGCOR all record pertaining to bingo operations and permit the examination of such records, the taking of extracts from them and making copies of them; and, b. Furnish PAGCOR all such information as PAGCOR may require in connection with any such records. (d) The Operator’s financial records and reports shall be subject at all reasonable times for inspection or the conduct of a compliance examination by authorized representative(s) of PAGCOR. Said books and records shall be available on demand. Specific records for inspection and compliance examination include but are not limited to the following: 1. Report on Sales, GGR, PAGCOR Share, Prize Payouts, taxes (if any) and other supporting documents related to bingo operations. 2. All records pertinent to the inspection and compliance examination. (e) All records required to be prepared and kept by the Operator shall be retained for a period of at least six (6) years or such longer period as may be required by law. (f) Any failure or refusal of the Operator to permit inspection of such records, accounts and reports in accordance with the provisions of the License shall result to imposition by PAGCOR of sanction. 151

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 23 Regulation PATRON DISPUTES Section 1. Issuance of notification (a) In the event of any complaints of players lodged in with PAGCOR resulting from the Operator’s violation of guideline/s prescribed in this regulatory manual, GLDD shall issue a “Notice of Non-compliance” to the Operator requiring it to comply with such guideline/s within fifteen (15) business days. GLDD may thereafter evaluate matters pertaining to this subsection prior to action to penalize the Operator in accordance with the guidelines enumerated in Regulation 24. The decision on actions to be taken against the Operator, if any, is at PAGCOR’s sole discretion. (b) For complaints of players other than those described in subsection (a) above, the Operator shall be notified of such complaint and shall be required to resolve the dispute. The Operator shall submit a report within fifteen (15) business days on the status of the resolution. Section 2. Resolution of system-related disputes (a) In case of dispute, the Cashier/Gaming Assistant (GA) handles complaint of players and, if necessary, shows to the complainant the game history which contains the details of the most recent games. In case the Cashier/GA cannot handle the situation, he/she seeks the assistance of gaming site Manager/OIC to settle the dispute. (b) In event of discrepancy in the number of credits being registered in the player’s account or gaming terminal, the Cashier/GA/Manager/OIC and the technician shall verify and resolve the discrepancy and make payment of refund, if any. 152

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Section 3. Report on dispute resolution (a) The Operator shall submit a report on the resolution of dispute stating that if the player has accepted explanation and has agreed to close the case. 153

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 24 Regulation LIST OF OFFENSES AND CORRESPONDING DEMERITS AND PENALTIES Section 1. General guidelines (a) Based on the nature of the offense, each offense will correspond to demerits and penalties. Major offenses will be accorded a corresponding demerit and penalty and will be collected from the Operator or may be deducted from its Performance Cash Deposit. (b) Demerit points will be marked against the Operator’s Performance Score Card at the time of License renewal. Notwithstanding the imposition of penalties, the commission of offense/s by an Operator shall be taken into consideration in the renewal of License. (c) In the event of non-compliance with the guidelines prescribed in this regulatory manual and any subsequent amendment /addendum thereto, GLDD shall issue an electronic “Notice of Non-compliance” to the Operator originating from gldd.rgucompliance@pagcor.ph requiring the Operator to comply within fifteen (15) days, unless otherwise stated, from receipt of the same. (d) Failure by the Operator to comply with Item (c) above shall cause the imposition of penalty as outlined under this Regulation. The decision on actions to be taken against the Operator, if any, is at PAGCOR’s sole discretion. Section 2. Table of offenses Item/ Demerit Sanction Penalty Remarks Description Points KEY PROVISIONS Allowing Penalty + 25 PhP 100,000.00 prohibited Demerit individuals and unregistered 154

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Item/ Demerit Sanction Penalty Remarks Description Points player/s to enter or place bets. Non- Penalty + 5 PhP 30,000.00 Continuous non- Remittance of Demerit remittance of PAGCOR PAGCOR Share shall Share be subject to suspension or revocation of License as prescribed in Item (f) under Section 2 of Regulation 22 Non-payment Penalty + 5 PhP 50,000.00 of player’s Demerit or amount of winnings the winnings, whichever is higher Making any Penalty + 5 PhP 50,000.00 unauthorized Demerit deduction from winnings or redeemed balances of players. Violation of Penalty + 20 PhP 30,000.00 Violation of sworn sworn Demerit undertaking to comply undertaking to with labor laws, comply with including the labor laws, regularization of including the contractual employees regularization working for more than of contractual six (6) months employees working for more than six (6) months 155

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Item/ Demerit Sanction Penalty Remarks Description Points Unauthorized Demerit 5 Demerit is per day of suspension of offense; operations Notwithstanding the (including demerits imposed for failure to each day of offense, resume continuous operations unauthorized after the suspension of approved operations, as defined period of non- under Regulation 25, operation may cause the granted by revocation of the PAGCOR). License. Failure to Demerit 10 Demerit is for every restore the month of non- Performance compliance. Cash Deposit at its original level within fifteen (15) calendar days from deduction. Document Submission Non- Penalty + 5 PhP 30,000 If documents - Notwithstanding the compliance Demerit pertain to site, penalty and demerits with the the demerit imposed, non- manual and/or and fine of issuance of a renewal electronic PhP30,000.00 License upon submission of shall be expiration of the documentary imposed on a current License shall requirements per site basis; cause the automatic on time suspension of gaming If documents site operations; pertain to the Operator, only Should the the demerit suspension reach a shall be period of thirty (30) imposed on a days, the gaming site per site basis; will be permanently the closed. PhP30,000.00 fine shall be - Failure to submit the imposed on Business permit may the Operator cause the revocation once (per of the License. offense). 156

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Item/ Demerit Sanction Penalty Remarks Description Points Electronic Bingo Machines, Equipment and Paraphernalia 95% or less Demerit 3 operational electronic bingo machines, due to defects, for a period of seven (7) consecutive days. Unauthorized Demerit 5 operation of additional terminals/mac hines, where GLDD/CMED are not notified Non- Demerit 3 procurement of generator after the lapse of the six (6)- month period Posting of Demerit 3 non-compliant exterior signages Failure to Demerit 10 The demerit and maintain penalty shall be gaming site on a per month standards on basis. CCTV requirements and guidelines. Section 3. Assessment of demerits (a) PAGCOR may issue additional list of offenses with corresponding penalties, as deemed necessary. 157

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) All gaming sites will be given one hundred (100) points at the start of their License/License renewal year. Demerits will be recorded through the course of the year and will be deducted from the gaming site’s points pool. 1. Gaming sites with forty one (41) demerit points and higher will result in the non-renewal of the License. 2. A corresponding penalty of ten thousand pesos (PhP10,000.00) shall be imposed per demerit assessed. The total penalty shall be collected from the Operator or may be deducted from its Performance Cash Deposit at the end of the License year. Should the Operator’s Performance Cash Deposit be found insufficient to cover its assessed penalties, the Operator shall be given thirty (30) days to settle the same with PAGCOR. Failure to do so may cause the suspension or termination of operations of its gaming site. (c) Upon termination of gaming site operations, voluntary or otherwise, the penalty of ten thousand pesos (PhP10,000.00) per demerit assessed will be deducted from the Performance Cash Deposit. (d) The Operator must pay to PAGCOR the corresponding regulatory sanction or penalty within a period of fifteen (15) days from the receipt of the notice of imposition of penalty. Interest amounting to twelve percent (12%) per annum shall be imposed on any amount which remains unpaid after fifteen (15) days from receipt of the notice, pro rated on a daily basis. 158

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 25 Regulation TEMPORARY SUSPENSION AND CLOSURE OF GAMING SITE In the event that an Operator has to temporarily suspend operations or decides to close its gaming site, the following procedures shall apply. Failure of an Operator to comply with these procedures shall be taken into consideration in the renewal of License for its gaming site or other gaming site/s, if any, or in future application with PAGCOR. Section 1. Temporary suspension of operations initiated by the Operator (a) The Operator shall notify GLDD at least fifteen (15) business days prior to its intended date of suspension or closure of operation, stating the reasons and duration for the same, using the Temporary Suspension of Operations Form (GS Form No. 6). The duration of the suspension of operations must not exceed ninety (90) days, and must first be approved by PAGCOR prior to implementation. Continuous non-operation after ninety (90) days shall be sufficient ground for the revocation of the License. (b) If suspension of operation is less than ninety (90) days, the following guidelines shall apply: 1. Should an Operator fail to immediately resume its gaming site’s operations as scheduled, the days where Operator did not resume operations will be considered as an unauthorized suspension of operations. A penalty shall be imposed per day of unauthorized suspension in accordance with Regulation 24. 2. Failure to resume operations within thirty (30) days after the approved temporary suspension of operation date, may lead to the permanent closure of the gaming site and revocation of the License. (c) The Operator may suspend its gaming site operation on holidays, as described in subsection (d) of Section 1 under Regulation 18. The Operator shall notify CMED at least one (1) business day prior to its intended date of suspension of operation, stating the reasons and duration 159

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 for the same, using the Temporary Suspension of Operations Form (GS Form No. 6). Section 2. Suspension of operations initiated by Local Government Units or due to force majeure (a) The Operator shall notify GLDD within five (5) days from the occurrence of the suspension of the gaming site’s operations, stating the reasons and expected duration for the same. The duration of the suspension of operations must not exceed ninety (90) days, and must be approved by GLDD. Continuous non-operation after ninety (90) days shall be sufficient ground for the revocation of the License. (b) If suspension of operation is less than ninety (90) days, the following guidelines shall apply: 1. Should an Operator fail to immediately resume its gaming site’s operations as scheduled, the days where Operator did not resume operations will be considered as an unauthorized suspension of operations. A penalty shall be imposed per day of unauthorized suspension in accordance with Regulation 24. 2. Failure to resume operations within thirty (30) days after the approved temporary suspension of operation date, may lead to the permanent closure of the gaming site and revocation of the License. Section 3. Voluntary closure of gaming site (a) In the event of voluntary closure of operations, the Operator shall notify GLDD at least fifteen (15) days prior to the intended closure using the Voluntary Closure/ Non-Renewal of Gaming License Notification Form (GS Form No. 30), where the following shall be provided/ attached: 1. Operator’s name; 2. Gaming site location; 3. Gaming License details including its validity; 4. Reason/s for voluntary closure of gaming site or non-renewal of License; 5. Signatures of the majority stockholders, if Operator is a corporation or partnership, signifying their concurrence to the voluntary closure of gaming site or non-renewal of License; or, Board resolution stating that the corporation is voluntarily closing its gaming site or not renewing the License; and, 6. Copy of latest GIS duly received by SEC. 160

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (b) A recommendation on the revocation of the License of the gaming site for closure shall then be submitted to the PAGCOR Board for approval/confirmation. (c) A written notice on the approval of the revocation of License shall be issued by GLDD. Section 4. Post-operational activities (a) Upon issuance by GLDD of notice on the approval of the revocation of License, whether caused by voluntary closure of gaming site or any other reason, the Operator must undertake the following: 1. Submit to GLDD and CMED within fifteen (15) business days from receipt of notice of revocation a duly accomplished and certified copy of the Closing Inventory List of Gaming Equipment and Paraphernalia (GS Form No. 37) enumerating the total inventory of all gaming equipment and paraphernalia currently located at the gaming site. 2. Disposal of the electronic gaming machines or terminals, gaming equipment and/or paraphernalia through the following within ninety (90) days from date of notice of License revocation, in accordance with Regulation 15: i. Ship out of Philippine territory; ii. Transfer to another Operator; iii. Return to its Supplier; or iv. Destruction. 3. Submit to GLDD and CMED a notice on removal of all gaming related digital assets from all terminals, machines or equipment, which the Operator intends to use for other purpose/s. 4. Remove all gaming site signage, PAGCOR logo sticker, and marketing collaterals within the site premises, and submit to GLDD a notice on its compliance with the removal. 5. Submit to GLDD a letter of request for refund of Performance Cash Deposit; and 6. Submit to GLDD the original copy of Performance Cash Deposit official receipt. (b) Upon compliance with the post-operational activities mentioned in subsection (a), GLDD shall recommend to the PAGCOR Board the refund of the Operator’s Performance Cash Deposit (net of any outstanding obligations to PAGCOR). 161

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 (c) The Operator shall be advised of the availability of the refund of its Performance Cash Deposit. (d) Should the Operator fail to comply with the post-operational activities as prescribed in subsection (a) above, the Performance Cash Deposit shall not be released. 162

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 26 Regulation RESPONSIBLE GAMING The Operator shall institute a Responsible Gaming Program guidelines of which shall be in accordance with PAGCOR’s Responsible Gaming Code of Practice. 163

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 27 Regulation GAMING EMPLOYMENT LICENSE The Operator shall ensure that their employees have obtained a Gaming Employment License (GEL) from PAGCOR pursuant to the guidelines set in Online GEL Manual and any guidelines that PAGCOR may issue from time to time. 164

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 28 Regulation THE PAGCOR MONITORING TEAM Section 1. Designated PAGCOR Monitoring Team (a) CMED shall designate its own monitoring team, i.e. PAGCOR representatives, who shall be referred to as the PAGCOR Monitoring Team (PMT). The PMT may be assigned to monitor the operations of gaming sites. (b) CMED shall provide advance written notice to the concerned Operators of the composition (names and position title) of, and any changes to the PMT’s composition. Section 2. Main functions of the PAGCOR Monitoring Team The PMT may exercise the following functions: (a) Monitors the Operator’s compliance to the terms and conditions of the License and to the regulations contained herein and to other regulations that may be issued by PAGCOR from time to time; (b) Ensures the determination of Gross Gaming Revenues, and monitor transactions that have a direct effect on the gaming site’s Gross Gaming Revenues and/or Gross Sales; and (c) Reports incidents of deviations from the Gaming Site Regulatory Manual. Section 3. Records to be made available to the PAGCOR Monitoring Team (a) For the purpose of ensuring compliance with the terms and conditions of the License and this Gaming Site Regulatory Manual, the Operator shall make available to the PMT and at no cost to PAGCOR, the following in respect of gaming operations: 165

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 1. Records of gaming operations; and 2. Financial and accounting records affecting Gross Gaming Revenue and/or Gross Sales. (b) The Operator shall retain and maintain or cause such books and records to be retained, maintained or stored for at least six (6) years or such longer period as may be required by law. (c) The PMT shall furnish the Operator with a letter request listing the reports and records, and indicating the frequency of such reports and records that shall be submitted to the PMT. 1. The letter request shall be signed by the head of the department supervising the PMT. 2. Any amendment to the initial letter request and all other requests for other reports to be submitted to the PMT shall be signed by the head of the department supervising the PMT. (d) An Operator who wilfully misstates or without reasonable excuse refuses to provide any information or produce any report, record or copy thereof required of it by the PMT, shall be liable for disciplinary action. Section 4. Access to gaming site premises The Operator shall give the PMT access to premises such as the gaming areas, CCTV monitoring room and other such areas as may be required by PAGCOR from time to time. 166

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 APPENDICES 167

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Annex A List of Independent Gaming Laboratories duly recognized by PAGCOR 1. Gaming Laboratories International (GLI) 2. BMM Compliance 3. Slovenian Institute of Quality and Metrology (SIQ) 4. QA Lab 5. Technical Systems Testing (TST) 6. NMI Metrology and Gaming PAGCOR may consider in its evaluation of electronic system, game and/or machine other independent gaming laboratories not listed above, which are duly recognized in other gaming jurisdictions. 168

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Annex B LIST OF FORMS Reference GS Form Regulation Name of Form No. No. 2 Personal Disclosure Statement 3, 5 Application Forms Part I and Part II 1A, 1B 4 Payment Processing Request Form 2 6 Request for Renewal of Gaming License Form 3 7 Notification of Target Opening Date 5 7, 25 Temporary Suspension of Operations Form 6 7 Game Offering Request and Approval Form 7 7 Gaming Terminal Expansion/Reduction Notification Form 8 New System, Game and/or Machine Request and Approval 8, 9 9 Form Game Conversion/Change in Parameter Settings 9 10 Notification Form 12 Shipment Clearance Request and Approval Form 11 14 Transfer of Gaming Equipment Notification Form 13 14 Ship-Out Clearance Request and Approval Form 15 Destruction of Gaming Equipment/ Paraphernalia 15 22 Notification Form Certificate of Gaming Equipment/ Paraphernalia 15 23 Destruction Form 18 Change in Gaming Site Operating Hours Notification Form 24 18 Bingo Program/Card/Link Notification Form 26 18, 19 Marketing and/or Promotion Notification Form 28 22 Remittance Payment Processing Request Form 29 Voluntary Closure / Non-Renewal of Gaming License 25 30 Notification Form Voluntary Pre-termination of Gaming License Notification 6 31 Form 7 Gaming Site Establishment Compliance Notification Form 32 2 Certificate of Non-filing of Annual Income Tax Return 33 169

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Reference GS Form Regulation Name of Form No. No. 19 Photograph and Video Coverage Notification Form 34 8 Betting Limits Request and Approval Form 36 Closing Inventory List of Gaming Equipment and 25 37 Paraphernalia Form 6 Request for Amendment to Gaming License Form 38 170

G A M I N G S I T E R E G U L A T I O N S (B i n g o G a m e s ) Version 3.0 Annex C LIST OF SAMPLE REPORTS Reference Regulation Name of Report No. Report on Gross Gaming Revenue and PAGCOR Share for Electronic 22 Bingo 22 Report on Gross Sales and PAGCOR Share for Traditional Bingo 22 Monthly Gross Gaming Revenue Report for Electronic Bingo 22 Monthly Sales Report for Traditional Bingo 24 Performance Score Card 171