Guidelines for the Disposal/Decommissioning of Gaming Equipment and Other Gaming Paraphernalia

PAGCOR

INTERNET GAMING-LICENSING AND REGULATION GROUP Offshore Gaming Licensing Department

GUIDELINES FOR THE

DISPOSALIDECOMMISSIONING OF

GAMING EQUIPMENT AND OTHER

GAMING PARAPHERNALIA

RevNo: 1 Effectivity:

GUIDELINES FOR THE DISPOSAL Page No. Page 1 of 12

PAGCOR DECOMMISSIONING OF GAMING EQUIPMENT AND OTHER GAMING PARAPHERNALIA Offshore Gaming Licensing Department Effectivity Rev. No. OCT4 2023

IMPORTANT QO

No part of this document shall be reproduced, in any form or means withdut 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

PAGCOR may make this document or its contents available to Non-Intended information purposes only. The publication of this document or its contents on this document.PAGCOR makes no warranty or representation whatsoever with regard Recipients by publishing them on its website or by any other means for general 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 of

to the unofficial copies of this document to any Non-Intended Recipient.

otherwise) suffered directly or indirectly by Non-Intended Recipients who enter into PAGCOR assumes no responsibility or liability for any consequences (financial or

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 These guidelines are subject to change from time to time to adapt to the continual development and evolution of internet gaming in the Philippines.PAGCOR reserves

this manual.

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EXECUTIVE SUMMARY

the gaming operations of Internet Gaming Licensees, Gaming Content Providers These guidelines shall be strictly followed for the permanent decommissioning. Remote Play Licensees, and other entities possessing gaming equipment under the destruction,or disposal of gaming equipment and other gaming paraphernalia used in

regulation of the Offshore Gaming Licensing Department.

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TABLE OF CONTENTS

SECTION 1 DISPOSALIDECOMMISSIONING OF GAMING EQUIPMENT AND OTHER

GAMING PARAPHERNALIA

SECTION 2 SHIP-OUT OFGAMINGEQUIPMENT AND PARAPHERNALIA OTHER GAMING 5

SECTION 3 TRANSFER OF GAMING EQUIPMENT AND PARAPHERNALIA TO OTHER PAGCOR LICENSED GAMING OPERATOR

SECTION 4 DESTRUCTION OF GAMING EQUIPMENT AND PARAPHERNALIA----9

SECTION 5 MODES OF DESTRUCTION OF GAMING EQUIPMENT AND PARAPHERNALIA 10

SECTION 6 DONATION OF GAMING EQUIPMENT AND PARAPHERNALIA TO

PAGCOR 11

ANNEXES 12

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SECTION 1.DISPOSALIDECOMMISSIONING OF GAMING

EQUIPMENT AND OTHER GAMING PARAPHERNALIA

its gaming site, cancellation of licenselauthorization or if the gaming The Internet Gaming Licensee/Gaming Content Provider/Remote Play Licensee may dispose and/or decommission its gaming equipment or paraphernalia due to closure of decommissioning may be carried out through any of the following, subject to the equipment/paraphernalia islare discontinued or already worn out. Disposal and/or guidelines and procedures set forth herein

1. Ship out of Philippine territory of all its imported gaming equipment and/or paraphernalia;

2. The Internet Gaming Licensee/Gaming Content Provider/Remote Play PAGCOR-licensed or authorized gaming site operator; Licensee may transfer its gaming equipment and/or paraphernalia to another

3. The Internet Gaming Licensee/Gaming Content Provider/Remote Play Licensee may destroy its gaming equipment and/or paraphernalia as prescribed in Section 4 of these guidelines;

(a)For gaming sites with cancelled license or authorization, the paraphernalia within ninety(90 calendar days from the date of notice of Licensee/Gaming Content Provider shall dispose of its gaming equipment or

licenselauthorization cancellation.

(b) Should the gaming equipment or paraphernalia, whether declared destroyed, Content Provider's possession after the ninety(90) day disposal period, the sold, shipped out, or otherwise, be still found under the Licensee's/Gaming

Philippine laws. Licensee/Gaming Content Provider may be held criminally liable under

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Offshore Gaming Licensing Department Effectivity OCT 0 4 2023

SECTION 2. SHIP-OUTOFGAMINGEQUIPMENT AND OTHER

GAMING PARAPHERNALIA

A. Ship-out of gaming equipment and/or paraphernalia shall require the prior following to the OGLD at least fifteen(15) working days prior to the scheduled approval of the OGLD.The LicenseelGaming Content Provider shall submit the

ship-out:

1 Duly accomplished Revised Ship-Out Clearance Request and Approval Form

information: OGLD Form No. 1066.The Approval Form shall contain the following

b.Gaming site location d. List of gaming equipment to be shipped out with the following details: a. Name of LicenseelGaming Content Providerl C. Type of gaming equipment to be shipped out; i.Manufacturer of the gaming equipment; ii. Description of the gaming eguipment ii.Gaming equipment serial number,if anyand iv.Quantity of gaming equipment to be shipped out.

The LicenseelGaming Content Provider may attach an additional sheet containing the list of gaming equipment if necessary

e. Pull-out location i.e. gaming site or LicenseelGaming Content Provider's

h. g. Mode of ship-out (i.e. by air or by sea) Expected date of pull-out and ship-out from the Licensee/Gaming Content Reason for pull-out and ship-out; authorized storage area); Provider;

Port of exit; Country of destination K Name of the recipient

m. Reference importation Commercial Invoice/ Pro-forma Invoice number; and Exact address of the recipient;

n. Name and contact number of designated customs broker.

2 Copy of the reference importation commercial invoice or pro-forma invoice on

gaming equipment and/or paraphernalia to be shipped out.

B. The Licensee/Gaming Content Provider shall designate only one (1) broker who shall be responsible in securing the permit to ship-out (as authorized by

PAGCOR) from the Department of Finance and actual transporting of gaming equipment and/or paraphernalia to the port.

C. The Ship-out Clearance Request and Approval Form shall be signed by the

Licensee's/Gaming Content Provider's authorized signatory

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D. A reference serial number of the Ship-out Clearance and Approval Form shall

be provided by the OGLD upon approval of the request.

E. The OGLD 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.

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SECTION 3. TRANSFER OF GAMING EQUIPMENT AND

PARAPHERNALIA TO OTHER PAGCOR LICENSEEIGAMING OPERATOR

A. Gaming equipment may be transferred from one Licensee/Gaming Content

the gaming equipment. the transferee shall henceforth assume full responsibility and accountability for Provider to another LicenseelGaming Content or to other PAGCOR Licensed Gaming Operators (i.e. casino,poker clubs, slot machine clubs) provided that

B. Prior to the transfer of a gaming equipment, the following shall seek first the approval of PAGCOR before effecting such movement:

1. LicenseelGaming Content Provider causing such gaming equipment to be transported or moved("Transferor);and 2 Licensee/Gaming Content Provider receiving the gaming equipment

("Transferee").

C. The Transferor shall submit a duly accomplished Pull-Out and Transfer Clearance Request and Approval Form (Form to OGLD at least ten10

calendar days prior to the scheduled pull-out and transfer.

Pull-Out and Transfer Clearance Request and Approval Form shall contain the following information:

a. Name of Licensee/Gaming Content Provider b. C. Type of gaming equipment to be transferred (i.e. gaming tables,EGMs, Casino Location;

d. List of eguipment to be transferred with the following details surveillance equipment, bill validatorlacceptor, slot machine signages, casino management system hardware, shufflers, roulette wheel, money wheel,auxiliary table games, and other gaming equipment)

i.Manufacturer of the gaming eguipment to be transferred ii. Description of the gaming equipment to be transferred; iii.PAGCOR inventory tag number of the gaming equipment iv.EGM serial number

vi. Quantity of gaming equipment to be transferred. v. EGM game name/theme; and

e. Expected date of pull-out and transfer from the Transferors location; & Reason for pull-out and transfer; g. Name of the Transferee; h. Location of Transferee; Transferor's undertaking that it shall coordinate with the Compliance Monitoring and Enforcement Department CMED for the conduct of inspection and inventory prior to the pull-out and transfer of the gaming

equipment.

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D.The Pull-Out and Transfer Clearance Request and Approval Form shall be

E. The OGLD may reject the Pull-Out and Transfer Clearance Request and signed by the LicenseelGaming Content Provider's authorized signatory.

Approval Form if the information contained in the form is incomplete or incorrect

F. CMED shall conduct an inspection and inventory of the gaming equipment on the following occasions:

1. Prior to the Transferor's scheduled pull-out and transfer; and 2.Upon delivery of the gaming equipment to the Transferee

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SECTION 4. DESTRUCTIONOF GAMING EQUIPMENT AND

PARAPHERNALIA

A. For Operational Gaming Sites - the Licensee/Gaming Content Provider shall notify OGLD at least three (3) working days of its intent to destroy gaming equipment or paraphernalia using the Destruction of Gaming Equipment and other Gaming Paraphernalia Request and Approval Form (OGLD Form No.

duly accomplished by the LicenseelGaming Content Provider's authorized

information as may be required: signatory which shall include the following, in addition to such other items or

1. Date and location at which the destruction will be performed; 2. 3. Number of gaming equipment or paraphernalia to be destroyed Denomination and amount of value of chips and plaques to be destroyed; 4 Description of the gaming equipment or paraphernalia to be destroyed, which

5. Detailed explanation of the method of destruction. shall include the name of supplier or manufacturer; and

B. For Cancelled/Revoked License - the Licensee/Gaming Content Provider may proceed with the destruction of gaming equipment or paraphernalia without need to submit the destruction notification form as prescribed in subsection A above, subject to the following

2.Submission to OGLD of the following: 1. Receipt of notice of approval on license cancellationand

ai. Notarized Undertaking stating that the Licensee/Gaming Content Provider Closing inventory list enumerating the total inventory of all gaming equipment and paraphernalia. shall ensure that the gaming equipment or paraphernalia are completely

destroyed and rendered unusable for gaming operations.

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SECTION 5. MODES OF DESTRUCTION OF GAMING EQUIPMENT

AND PARAPHERNALIA

Mode of Destruction

1.Playing Cards 2. Gaming Equipment/Paraphernalia Gaming Table and Lay-out a b V A C A A J e I I g

V 3.Chips and Plaques J V A 4. Electronic Gaming Machine A

Y

5.Bill validatorlacceptor D A 6. 7. Multi-deck Continuous Shufflers Casino Hardware Management System J V V A A

8.Peripherals Gaming Equipment

a. Auxiliary Table System b.Non-electronic Card Shoe f C. d.Money Wheels e. Pai-gow Wheels Dice Roulette Wheels

9.Data Servers g.Card Shufflers V L

V

11.Electronic Dice Shakers 10.Lottery Machine A D V V I 12.Electronic Sic Bo Tables V *all other gaming eguipment shall be subject to separate approval for mode of destruction

Legend:

a-Grinding b -- Shredding c - Incineration, but subject to environmental standards

f-Overwriting or Degaussing g-Crushing d-Drilling of hole e -- Disassembly or Physical Destructions

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SECTION 6. DONATION OF GAMING EQUIPMENT AND

PARAPHERNALIA TO PAGCOR

A.Gaming Licensee/Gaming Content Provider to PAGCOR subject to acceptance of PAGCOR and compliance to the following guidelines: equipmentandparaphernaliamaybedonatedbythe

1. The Licensee/Gaming Content Provider shall notify and communicate to

OGLD its intent to donate gaming equipment or paraphernalia which as may be required shall include the following, in addition to such other items or information

I Detailed description of the gaming eguipment or paraphernalia to

be donated, which shall include the name of supplier or

I Reason/s for donation. manufacturer; and

2. The Licensee/Gaming Content Provider must attach a certification stating that: i. All duties, taxles and other financial obligation due to the gaming

I The Licensee warrants to hold PAGCOR free and harmless from equipment are paid and settled prior to the donation.

I. imposed by any taxing authority on the fees or earnings due to They will be solely responsible for any action or suit brought about any claim and/or liability from any tax obligation which may be the usage of the gaming equipment.

by any third party for violation of such party s intellectual property rights.

B.OGLD in coordination with SMD,TGD,FMED,CMED and other departments shall conduct inspections and initial evaluations of the intended donations of gaming equipment and/or paraphernalia.

C. PAGCOR shall communicate to the Licensee/Gaming Content Provider its Licensee/Gaming Content Provider shall execute a Deed of Donation to that acceptance of the donations either in whole or in part. PAGCOR and the effect.

D.The Licensee/Gaming Content Provider shall bear any and all expenses in relation to the transfer of the gaming equipment and/or paraphernalia to

PAGCOR.

E. PAGCOR shall be the new owner of the donated gaming equipment and/or

paraphernalia and shall enjoin all the rights and privileges related thereof but in

from the previous owners of such donated gaming equipment and/or no event that PAGCOR shall subrogate to any liabilities or obligations arising paraphernalia.

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ANNEXES