Amendments to the Provisions of Existing Regulatory Frameworks for Electronic Gaming Operations | Amendments

Philippine Amusement and Gaming Corporatior

PAGCOR I-GAMING LICE NSING & REGULATION GROUP BACONG PILIPINAS

Electronic Gaming Licensing Department

27 February 2025 MEMORANDUM

TO ALL SERVICE PROVIDERS

ALL OPERATORS OF GAMING VENUES ALLLICENSEES OF INTEGRATED RESORTS

FROM THE ASSISTANT VICE PRESIDENT II

SUBJECT AMENDMENTS TO THE PROVISIONS OF EXISTING REGULATORY FRAMEWORKS FOR ELECTRONIC GAMING

OPERATIONS

Please be informed that the PAGCOR's Board of Directors during its meeting on 27 February 2025 approved the implementation of the updated versions of the following regulatory frameworks:

2 3. 1 Regulatory Framework for Offenses and Penalties (Remote Gaming Regulatory Framework for the Accreditation of Service Providers and Regulatory Framework for the Fees and Rates on Gaming Venue Processing of System-Related Requests Rev. No. 3; Operations Rev. No. 3; and Operations) Rev. No. 2.

The signed and stamped copy of the above Regulatory Frameworks shall bel uploaded to the PAGCOR's website once available.

Hereunder are the salient changes / amendments to the provisions of the above updated Regulatory Frameworks:

1. As PAGCOR Share, the Licensed Casinos of Integrated Resorts offering virtual

or electronic games as a Gaming Venue Operator or Gaming System Service Provider shall remit to PAGCOR the maximum percentage rate of twenty-two percent (22.00%) of the Gross Gaming Revenue (GGR) exclusive of the five (5.00%) Franchise Tax and subject to an additional ten (10.00%) based on the PAGCOR Share as an Audit Fee for both on-site and online gaming platforms for the billing period January 2025 onwards. The reduced rate of maximum of 22.00% shall apply only to an IR with investment commitment of at least Two Hundred Million US Dollars (US$200 Million). This rate shall apply to the operations of eCasino games and RNG-based games; otherwise, PAGCOR Share rates shall be pegged at the rates as prescribed above.

P60ES25-319 MET Live Building,Metro ParkEDSA Extension corner Pres.Diosdado Macapagal BlvdPasay CityMetro Manila

Website:www.pagcor.ph

revised percentages from the GGR for both on-site and online gaming platforms: Moreover, as PAGCOR Share, Operators shall remit to PAGCOR the following

Traditional Bingo Electronic eCasino) Games Electronic Bingo (eBingo) Sports Betting Game Offerings Live Sports Virtual Sports Share Rate PAGCOR 30.00%% 25.00% 30.00% 25.00% 20.00% 30.00% 17.50% 30.00% 15.00% January 2025 onwards January 2026 onwards January 2025 onwards July 2025 onwards July 2025 onwards Billing Period January 2025 January 2025 January 2025 July 2025

Specialty Games RNG -based Games Live-streamed Games 30.00% 15.00% January 2025 onwards January 2025 onwards

Numeric Games RNG -based Games Live-streamed Games 15.00% 30.00% January 2025 onwards January 2025 onwards

Online Poker Games* Note: * PAGCOR Share shall be based on total collection (gross rake collection, 15.00% January 2025 onwards

tournament entry fees, jackpot rake administrative fees)

2. An IR that is accredited as Gaming System Service Provider and/or is licensed as an Operator of Gaming Venue shall be exempt from the required minimum

number of gaming venues and/or gaming terminals.

3. For clarification, a foreign entity applying for accreditation as Data/Content

Streaming Provider or its local counterpart/business entity in the Philippines must be registered with the Securities and Exchange Commission (SEC) of the Philippines, wherein the existing application documentary requirements in the regulatory framework must be complied with.

4 For clarifications, Application Fees for the additional and/or transfer of live studio

gaming set-up of an accredited Datal Content Streaming Provider (DCSP) are as follows:

a) The standard Permit to Hold (PTH) Application Fee of One Million

Pesos (PhP1,000,000.00), renewable every year, shall be assessed for the initial and any additional live gaming studio set-up to be operated by the DCSP.

b) A one-time PTH Application Fee in the amount of Two Hundred Fifty

Thousand Pesos (PhP250,000.00) shall be assessed for the transfei of the existing live gaming studio to another floor, non-adjacent space/room in the same floor, or another building.

c) An expansion to an adjacent space of the existing live gaming studio

set-up shall not be assessed of an Application Fee; however, a PTH reprinting fee in the amount of Twenty Thousand Pesos (PhP20,000.00) shall be assessed, if necessary.

d) The continuing/remaining validity period of the original PTH shall be

applied to the new PTH for both transfer and expansion of the live gaming studio set-up.

5. The Operator shall be required to establish at least one gaming venue and install one gaming terminal for Online Poker Games prior to the

commencement of live operations.

6. The PAGCOR-approved Rapid Bingo System (RBS) shall be classified under

Electronic Bingo (eBingo) Games game offering. As such, all gaming venues that will offer RBS games must comply with the requirements for the operation of eBingo Games game offering

For your guidance and strict compliance.

Thank you.

Sincerely yours.

Assistazt Vice President I JEREMY/B.LUGLUG Electronic Gaming Licensing Department

CC:OCCEO VP,IGLRG AWP, MEG A/AVP, CMED-IG A/AVP,AD