Internet Gaming Definitions Regulations

PAGCOR

INTERNET GAMING-LICENSING AND REGULATION GROUP Offshore Gaming Licensing Department

INTERNET GAMING

DEFINITIONS REGULATIONS

Rev. No: 1 Effectivity:

*Revision pertains only to the form, i.e. change on July 6, 2023, shall remain in force and table of offenses, as well as applicable penalties under the Internet Gaming Licensing Regulations which was approved by the Boarc of logo. All provisions, terms and condition efect

PAGCO INTERNET GAMING DEFINITIONS REGULATIONS Offshore Gaming Licensing Department Effectivity Page No. Rev. No. Page 1 of 4 JUl 12 2023 1

IPORTANT 00M

No part of this document shall be reproduced, in any form or means, withouf written permission from the Philippine Amusement & Gaming Corporation ("PAGCOR").

This document is officially transmitted to specific recipient(s) only ("Intended transmitted shall be deemed to be a Non-Intended Recipient. Recipient(s)"). Any other person to whom this document has not been officially

to the unofficial copies of this document to any Non-Intended Recipient. PAGCOR may make this document or its contents available to Non-Intended Recipients by publishing them on its website or by any other means for general information purposes only. The publication of this document or its contents on PAGCOR's website or by any other means does not constitute official transmission thereof to any person. Non-Intended Recipients may not rely on unofficial copies oi this document.PAGCOR makes no warranty or representation whatsoever with regard

PAGCOR assumes no responsibility or liability for any consequences (financial or otherwise) suffered directly or indirectly by Non-Intended Recipients who enter into any commercial activities upon reliance on any information on unofficial copies of this document.

the right to change its policies and to amend, modify, or supplement any information in this manual. This manual is subject to change from time to time to adapt to the continual development and evolution of internet gaming in the Philippines. PAGCOR reserves

INTERNET GAMING DEFINITIONS REGULATIONS Offshore Gaming Licensing Department Page No. Effectivity Rev. No. Page 2 of 4 JUL 1 2 2023 1

This manual shall be referred to as the "Internet Gaming Definitions Regulations".

In these regulations and subsequent issuances for Internet Gaming, unless the context otherwise requires:

through the latter's website with the following conditions: "Authorized players" refer to players of the licensee who may access its games

a. Any individual who is physically in a country other than the Philippines; this excludes Filipino citizens even if abroad and individuals in territories where online gaming is prohibited: b. Age of at least 21 years old; C. Must be a registered player with an established gaming account in the licensee's

website;

live tables, said amount shall depend on the number of its live tables; gaming content or support to Internet Gaming Licensees or Online Gaming Operators licensed by a reputable gaming authority abroad, for Gaming Content Providers with "Authorization Fee" refers to monthly fee for allowing an Authorization to provide

"Board" shall mean the PAGCOR Board of Directors;

tender in the country of issue; "Foreign currency" are notes and coins other than Philippine peso which are valid

construed accordingly depending on the context; internet gaming service, or providing internet gaming content or support, and shall be "Gaming" means an activity consisting in participating in an internet game, offering an

"Gaming Content Provider" - one who supplies or manages gaming contents for the gaming websites

technical standards established and accepted by gaming jurisdictions worldwide; "Independent Testing Laboratories" refer to entities responsible for the testing of gaming systems and software of all Licensees and ensuring that the same pass

necessary in the conduct of gaming operations; "Gaming Paraphernalia" means apparatus, furnishing, or accessories used in or

"Gross Gaming Revenue" means gross bets less the total amount of payout.

"Internet Gaming" refers to the offering of a PAGCOR licensee of authorized online games of chance or sporting events via the internet exclusively to foreign players abroad;

functions: host or network interface identification and location addressing; "IP Address" refers to the numerical label assigned to a device in a computer network that uses internet protocol for communication. An IP address serves two principal

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Offshore Gaming Licensing Department Effectivity JUL 1 2 2023

"Letter of no objection (LONO)" is a letter or resolution issued by the local conduct of internet gaming operations in their jurisdiction; government unit (LGU) stating that they have no objection in the establishment and

Licensing Regulations and "licensee" or "license holder" shall be construed accordingly "License" means an Internet Gaming License in terms of the Internet Gaming

"Management of gaming content/support" means the provision of ongoing active maintenance and support which is indispensable to the provision of the online gaming service.

"Minimum Guaranteed Fee (MGF)" refers to the minimum monthly regulatory fee imposable on an Internet Gaming Licensee.

in accordance with applicable regulations during the conduct of Compliance Checking. "Notice to Explain" refers to the memorandum issued to a licensee/authorized provider upon observation of conduct and/or operations which are not, or may not be,

"Operating Site" refers to one (1) floor in the operations of a licensee/authorized provider, the legitimacy of it shall be evidence by a certificate.

"PAGCOR Monitoring Team (PMT)" refers to the group of inspections comprised of PAGCOR representatives from the Compliance Monitoring and Enforcement regulations; Department whose main task is to check a licensee's compliance with internet gaming

"Performance Bond" refers to the amount posted by a licensee/authorized provider to guarantee the fulfillment of its monetary obligations to the PAGCOR;

providers authorizing them to possess gaming equipment and paraphernalia; "Permit to Possess" is a certificate issued by the PAGCOR to licensees/authorized

credit against such license holder, taking into account all wagers placed and all prizes won by such player and any other debits or credits as may be permitted by regulations; "Player's account" means a record kept by the license holder, as may be applicable. which record shall at all times be accessible to the player, which shows the player's

identity, to include all officials of the corporate applicant, finances, integrity, competence, and criminal associations; "Probity Checker" refers to entities responsible for the verification of an applicant's

"Service Agreement" refers to the legal contract entered into by the Internet Gaming Licensee and the Support Provider in which the latter commits to provide gaming support to the latter for its internet gaming operation;

importations of gaming equipment and paraphernalia needed by licensees in the "Shipment Clearance" refers to the authorization issued by the PAGCOR to

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issuance of shipment ciearance conduct of their internet gaming operations. A Permit to Possess is required prior to

that a licenseelauthorized provider is conducting its affairs in serious breach of any "Show Cause Order" refers to the issuance upon existence of reason/s to suspect hold a license/authorization during the conduct of a Compliance Review. applicable regulations or laws in the Philippines or is otherwise no longer suitable to

"Support Provider -- one who supplies support services to necessary facets of gaming operations; to include customer service, marketing, customer registration other similar services which must prove to be indispensable for gaming operations (KYC), payment solutions, odds making, office support, leasing of office space, and