Regulatory Framework for Offenses and Penalties (Remote Gaming Operations) Rev. No. 1

PAGCOR

I-Gaming Licensing and Regulation Group Electronic Gaming Licensing Department

REGULATORY FRAMEWORK

FOR OFFENSES AND

PENALTIES

(Remote Gaming Operations)

Rev. No: 1 Effectivity: 3 1 JUL 2024

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OFFENSES AND PENALTIES (Remote Gaming Operations) Rev. No. 1

PagCor Electronic Gaming Licensing Department Effectivity JUL 3 1 2024

EXECUTIVE SUMMARY

This Regulatory Framework for Offenses and Penalties shall govern and administer

offenses/violations attributed to the conduct of PAGCOR licensed Operators, accredited

Service Providers, Contractees or Licensees of Integrated Resorts

This Regulatory Framework shall form part of the Gaming License issued by PAGCOR

to a qualified Operator for the establishment and operation of a gaming venue and of the

terms and conditions governing the accreditation of Service Provider for each game

offering duly regulated and sanctioned by PAGCOR, i.e., traditional bingo games, electronic bingo (eBingo) games, electronic (eCasino) games, sports betting, specialty

games, online Poker games, numeric games or any suite of games that may be allowed

by PAGCOR in the future and operation of online gaming platform by licensees

The provisions of this Regulatory Framework shall apply prospectively and shall repeal

previous issuances the independent provisions of which are inconsistent with the same.

By virtue of the foregoing, the provisions stated herein are laid down as the Regulatory

Framework for Offenses and Penalties for Remote Gaming Operations.

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OFFENSES AND PENALTIES (Remote Gaming Operations) Rev. No. 1

PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2924

TABLE OF CONTENTS

PAGE

I GENERAL GUIDELINES 3

HI. TABLE OF OFFENSES AND CORRESPONDING PENALTIES FOR GAMING VENUE OPERATORS 4

III. TABLE OF OFFENSES AND CORRESPONDING PENALTIES FOR SERVICE PROVIDERS 8

N. ASSESSMENT OF PENALTIES 1

V. MISCELLANEOUS PROVISIONS 12

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OFFENSES AND PENALTIES (Remote Gaming Operations) Rev. No. y

PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

I. GENERAL GUIDELINES

Section 1. General guidelines

(a) Based on the nature of the offense, each offense will correspond to

penalty/fine. Major offenses will be accorded a corresponding penalty and will be collected from the Operator/Service Provider or deducted

from the Performance Cash Deposit posted by the erring

Operator/Service Provider.

b In the event of non-compliance with the guidelines prescribed in the

regulatory frameworks and any subsequent amendment/addendum thereto, EGLD shall issue a "Show Cause" to the concerned

Operator/Service Provider requiring it to provide an explanation and/or

comply within fifteen (15) days, unless otherwise stated, from receipt of

the same except for cases that cannot be complied with/ addressed, as

determined by EGLD

C If the Operator/Service Provider is found to be non-compliant or the

Operator/Service Provider fails to comply with Item (b) above,

corresponding penalty shall be imposed as outlined under this regulatory

framework. EGLD shall issue an electronic "Notice of Non-compliance"

or "Imposition of Penalty" to the said erring entity. The decision on

actions to be taken against the Operator/Service Provider, if any, is at

EGLD's sole discretion. However, EGLD may elevate to the PAGCOR's Board of Directors for a decision on any major offenses, as may be

determined by EGLD

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OFFENSES AND PENALTIES (Remote Gaming Operations) Rev. No. 1

PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

( The Operator's privilege to operate a gaming venue may be revoked

pursuant to the provisions stated in the Regulatory Framework for the

Issuance of Gaming License for the Establishment of Gaming Venue.

(e) The Service Provider's privilege to maintain and to provide the Electronic

Gaming System (EGS) and Online Gaming Platform (OGP) may be revoked depending on the severity of the infraction and/or the attending

circumstances thereof.

II. TABLE OF OFFENSES AND CORRESPONDING PENALTIES

FOR GAMING VENUE OPERATORS

A written warning shall be issued to the gaming venue operator for the first offense

committed for each specific violation. For succeeding offenses, the applicable penalty

or fine will be as follows:

Item / Description Penalty/Fine Remarks

Allowing prohibited Refer to Gaming Licensing

individual and and Development

unregistered player to Department's Responsible

stay and play in the Gaming Code of Practice.

gaming venue.

Late remittance and/or 25% of the total amount Penalty shall be imposed on

non-remittance Of due for remittance a per transaction basis (per

PAGCOR Share within offense).

the prescribed period.

Continuous non-remittance

of PAGCORShare as

evaluated by EGLD may be

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PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

Item / Description Penalty / Fine Remarks

subject to suspension or revocation of License.

Non-payment of player's PhP100,000.00 or Players Winnings shall

winnings amount of the winnings, include winnings on raffle

whichever is lower draws / jackpots.

Making any PhP100,000.00 or unauthorized deduction amount of the winnings,

from winnings 0 whichever is lower

redeemed balances of

players. Unauthorized PhP50,000.00 Penalty is per day of offense.

suspension Of operations without just Notwithstanding the

cause (including failure penalties imposed for each

to resume operations day of offense, continuous

after the unauthorized suspension of

approved/allowed period operations, as defined under

of non-operation). Article XIV of the Regulatory

Framework for the Gaming

Venue Operations, may cause the revocation of thel License.

Implementation of brand PhP50,000.00

I suite of games without

prior approval from

EGLD.

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PagCor Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

Item / Description Penalty I Fine Remarks

Failure to restore or PhP50,000.00 Penalty is for every month of

update the Performance non-compliance, i.e. 30

Cash Deposit (PCD) at days.

its original level within

thirty (30) calendar days Pro-rated on a daily basis.

from receipt of notice.

Unauthorized PhP200,000.00

commencement of

operation of the gaming

venue.

Non-compliance with the PhP80,000.00 documents pertain to

manual and/or electronic gaming venue, the penalty of

submission of PhP80,000.00 shall be

documentary imposed on a per gaming

requirements on time venue basis.

Failure to submit the PhP100,000.00| Penalty is per year of

annual Business Permit. offense.

Failure to submit on time PhP30,000.00

the renewal application. Failure to notify EGLD PhP30,000.00

within 30 days from the

occurrence of the

change in composition of

Board members. 95% or less operational PhP30,000.00 Penalty is for every month of

electronic gaming non-compliance, i.e. 30

terminals or machines days.

for a period of seven (7)

consecutive days. Pro-rated on a daily basis.

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Item / Description Penalty / Fine Remarks

Non-compliance with the PhP30,000.00 Penalty is for every month of

installation of the non-compliance, i.e. 30

required minimum days.

number of electronic

gaming terminals Or Pro-rated on a daily basis

machines

Unauthorized reduction/ PhP50,000.00

addition transfer

movement of terminals

without prior approval from PAGCOR

Unauthorized operation PhP50,000.00

of electronic gaming terminals / machines without prior notification to EGLD.

Portable gaming PhP100,000.00

terminal/s is/are found

outside the gaming

venue. Procurement of gaming PhP200,000.00

equipment and

paraphernalia without

prior approval.

Failure to maintain PhP20,000.00 The penalty shall be on a per

gaming venue standards offense basis.

on CcTV requirements

and guidelines.

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PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

Item / Description Penalty / Fine Remarks

Implementation of PhP20,000.00 marketing and/or promotions, including any form of advertisements, without

prior approval from

PAGCOR. Any act not covered by PhP30,00.00

the above Which undermines PAGCOR's regulatory authority or

any other relevant

communication or memorandum issued by PAGCOR, and/or any law, local or national, of

the Philippines.

III. TABLE OF OFFENSES AND CORRESPONDING PENALTIES

FOR SERVICE PROVIDERS

Violation Offense Penalty

1st Warning

system, platform websites, applications, and/or other channels. Unauthorized including operation remote of gaming gaming 2nd 3fd 4th PhP500,000.00 and PhP250,000.00 Suspension Revocation

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PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

Violation Offense Penalty

1 st Warning

Failure to integrate with PAGCOR's third 2nd PhP100,000.00

period. party audit platform within the prescribed 4th + 3rd PhP500,000.00 and PhP200,000.00 Suspension

1 st Warning Non-adherence to the processes and operational standards as prescribed 2nd PhP100,000.00

provided for in any of the applicable 3rd PhP200,000.00

regulatory frameworks. 4th + and Suspension PhP300,000.00

Implementation settings other than the Of game PAGCOR parameter 2nd 1st PhP100,000.00 Warning

approved settings, e.g., min/max bet and 3rd PhP200,000.00

RTP %. 4th + and Suspension PhP300,000.00

Accepting bets or sales outside the 1 st PhP500,000.00 and Suspension

Philippines. 2nd Revocation

1 st Warning

2nd PhP100,000.00 Implementation of marketing promotions, including any form of advertisements. 3 rd PhP200,000.00

without prior approval from PAGCOR. 4th + and Suspension PhP300,000.00

Non-reporting and/or concealment of 1st Warning

player transactions from any of the 2nd PhP100,000.00

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PAGCOR Electronic Gaming Licensing Department Effectivity 3 1 JUL 2024

Violation Offense Penalty

registered remote gaming platform 3rd PhP200,000.00 websites.

4 th + and Suspension PhP300,000.00

1st Warning

Contracting an entity without Gaming 2nd PhP100,000.00

the system and games. License or EGLD's approval to implement 4th + 3rd and Suspension PhP200,000.00 PhP300,000.00

1st Warning

2 nd PhP100,000.00

Operation of game content/s without prior 3fd PhP200,000.00

PAGCOR approval. Penalty is per game content 4th + and Suspension PhP300,000.00

Note: All income resulting from the operation of unauthorized game content/s shall be collected in

favor of PAGCOR.

1st PhP250,000.00

Access and play in the remote gaming platform by banned and unregistered 2nd and Suspension PhP500,000.00

personalities. 3rd Revocation

Non-issuance or delayed issuance of 1st PhP25,000.00

or any portion thereof (in behalf of the player's winnings and/or account balance registered Operator). 3rd+ 2nd PhP100,000.00 PhP50,000.00

Noncompliance with the submission of 1st Warning

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Violation Offense Penalty

documentary requirements on time 2nd PhP100,000.00

3d PhP200,000.00

4th + and Suspension PhP300,000.00

1st PhP25,000.00

Suspension of electronic gaming system, 2nd PhP50,000.00

registered remote gaming platform

website, without prior notice with 3rd+ PhP100,000.00 PAGCOR.

PhP300,000.00

Failure torestore or updatethe

Performance Cash Deposit at its original level within thirty (30) calendar days from 1 st + The penalty is for every month of non-compliance, i.e. 30 days.

receipt of notice.

Pro-rated on a daily basis.

Any act not covered by the above that 1st Warning

undermines PAGCOR's regulatory 2nd PhP30,000.00

communication or memorandum issued authority or any other relevani 3rd PhP50,000.00

by PAGCOR, and/or any law, local or 4th + PhP100,000.00 national, of the Philippines.

IV. ASSESSMENT OF PENALTIES

Section 1. General guidelines

() Any violation of the provisions of all regulatory frameworks not covered

by the Table of Offenses in Articies II and III above may, as determined

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by EGLD, result to issuance of either warning or imposition of a fixed

penalty of PhP30,000.00.

b) PAGCOR may issue additional list of offenses with corresponding

penalties, as deemed necessary.

C Upon termination of gaming venue operations, voluntary or otherwise,

the total amount of unpaid imposed penalties will be deducted from the

Performance Cash Deposit (PCD).

Upon termination of accreditation of Service Provider, voluntary or

otherwise, the total amount of unpaid imposed penalties will be deducted

from the PCD

() The Operator/Service Provider 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, unless otherwise stated.

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.

V. MISCELLANEOUS PROVISIONS

1. Penalties paid to PAGCOR must be submitted to PAGCOR-Fund Management

Department (FMD), copy furnish EGLD, together with the duly accomplished

Payment Processing Request Form (EG Form No. 2) for issuance of Official

Receipt (O.R.) and proper recording.

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2.The Operator/Service Provider must secure an O.R. from PAGCOR-FMD, as proof

of its payment of the penalties. A copy of which shall be submitted to EGLD as

proof of payment.

3. PAGCOR may increase or decrease the penalties, as deemed necessary

4. This regulatory framework shall repeal previous issuances the independent

provisions of which are inconsistent with the same.