Transition Period for the New Regulatory Framework and Implementation of the Updated Existing Regulatory Frameworks

Philippine Amusement and Gaming Corporation

PAgCor I-GAMING LICENSING AND REGULATION GROUP BAGONG PILIPINAS

Electronic Gaming Licensing Department

MEMORANDUM 05 August 2024

TO ALL SERVICE PROVIDERS

ALL GAMING VENUE OPERATORS ALL GLDD-ENROLLED SUPPLIERS ALL LICENSEES OF INTEGRATED RESORTS ALL CONCERNED PARTIES

FROM THE ASSISTANT VICE PRESIDENT II

SUBJECT TRANSITION PERIOD FOR THE NEW REGULATORY

FRAMEWORK AND IMPLEMENTATION OF THE UPDATED EXISTING REGULATORY FRAMEWORKS

In furtherance of the implementation of the new Regulatory Framework, please be informed that the PAGCOR's Board of Directors, in its meeting held on 31 July 2024, approved the following guidelines:

1. Transitory period for the new Regulatory Framework for the Accreditation Regulatory Framework) of Service Providers and Processing of System-Related Requests (New

a) All Gaming System Service Providers shall comply with the provisions of

all existing regulatory frameworks issued by the Electronic Gaming Licensing Department (EGLD).

b) Imposition of a transition period until 31 December 2024 for the

implementation of the new Regulatory Framework. Compliance with the provisions of the regulatory frameworks during the transition period shall be solely determined by EGLD.

C The requirement in the new Regulatory Framework that only Content Provider with an IS017025-accredited test facility may opt to submit a

certification for the conduct of extensive testing on each game, shall be deleted. Previous requirements on game testing shall be maintained.

d) impiementation of the new provision on the required minimum number of

terminals shall be waived until the end date of the transition period.

Pesos (PhP30,000.00) for every month of non-compliance. Otherwise, a corresponding penalty / fine amounting to Thirty Thousand

MET Live Building,Metro Park,EDSA Ext Website: www.pagcor.ph res. Diosdado Macapagal Blvd, Pasay City, Metro Manila

e) The Return-to-Player (RTP) percentage for electronic bingo (eBingo) games shall be from eighty-eight percent (88%) to less than ninety-seven percent (97%), in lieu of the previously prescribed RTP%.

2. Online Poker Games

a)The Gaming System Service Providers (GSSP) for Online Poker Games shall establish or contract operational Poker Club/s, as follows:

For a newly accredited GssP, at least one Poker Club prior to commencement, then at least two (2) operational Poker Clubs within twelve (12) months from the commencement date, and five (5) operational Poker Clubs within twenty-four (24) months from the commencement date.

ii. For the converted GssP for Online Poker Games, at least two (2)

five (5) operational Poker Clubs on or before 31 December 2025. operational Poker Clubs on or before 31 December 2024 and

b) The GSSP (on behalf of the Operators) shall remit to PAGCOR, on a per Poker Club basis,the PAGCOR Share of Fifteen Percent(15%)of the total

monthly Minimum Guaranteed Fee (MGF) shall no longer apply. collection (gross rake contribution, tournament entry fees, jackpot rake administrative fees) beginning on 01 July 2024. The option to remit a

3. Numeric Games and Specialty Games

As the provisions of the new regulatory framework shall apply to all game offerings, the following additional guidelines shall specifically apply to the recently approved Numeric Games and Specialty Games:

a) For Numeric Games, the minimum number of gaming terminals to be

installed at a Gaming Venue prior to commencement of its live commercial operations shall be at least one gaming (or betting) terminal.

b) For Numeric Games, the minimum bet shall be not less than Five Pesos (PhP5.00).

C The Return-To-Player (RTP) percentage of an RNG-based Numeric Game

games with specialty games) shall be similar to those of their equivalent live (along with Specialty Game) shall be from sixty percent (60%) to less than ninety-seven percent (97%), while live-streamed numeric games (along

4. Partial lifting of the moratorium on accepting new applicants for accreditation of Service Providers

As the moratorium on accepting applications from new applicants was by the following entities as new applicants shall be accepted and processed imposed effective 01 March 2024, applications for accreditation as GSSP filed

by EGLD:

a b Licensees of Integrated Resorts Suppliers of gaming equipment and paraphernalia enrolled with GLDD

before 01 March 2024 c) Applicants for Accreditation as a Data/Content Streaming Provider.

5. Amendments / Revisions to the Reguiatory Framework for the Fees and

Rates on Gaming Venue Operations

No. 1 shall be implemented effective 01 July 2024: The following additional amendments/revisions to the existing Regulatory Framework for the Fees and Rates on Gaming Venue Operations, Rev.

a) Application and inclusion of the new rates according to game type for PAGCOR Share for Specialty Games, amending Item 1 under Article IV

the type of specialty games being offered whether live streamed or Random Number Generator (RNG)-based games, as follows: (Monetary Obligations) of the regulatory framework, in consideration of

Game Offerings PAGCOR Share Rate Billing Period

Specialty Games RNG-based Live-streamed 35.00% 15.00% August 2023 onwards July 2024 onwards

30.00% January 2025 onwards

b To implement that all Operators remit to PAGCOR the Audit Fee whether

the EGS, OGP and games are integrated with the third-party audit platform or not, Item 2 under IV (Monetary Obligations) shall be revised as follows:

"Remittance of PAGCOR Share computed from the above rates shall still be subject to an additional ten percent (10%) audit fee computed based on the PAGCOR Share, for all games except

linked gaming machines (within the gaming venue)." for on-site games utilizing an electronic gaming system for locally

C Implementation for effective processing of request for refund of

PerformanceCash Deposit(PCD), the following documentary requirements, among others, shall be included for submission by the Operator under Item 13.a under Article IIl.(Performance Cash Deposit) to be required for all new applications:

I. Duly accomplished Application for Refund of Performance Cash Notarized sworn affidavit stating that the arrears with the Operator's Deposit (EG Form No. 40)

stakeholders of the gaming venue (i.e. rent, utilities, salaries of employees) have been paid H. Copy of latest General Information Sheet (GIS)

iv. Original copy of Gaming License.

6. Updated Versions of Existing Regulatory Frameworks

a The recommended amendments, inclusion and/or revisions to the

provisions of the above-cited regulatory frameworks shall repeal all of the regulatory frameworks, as amended, that are inconsistent with the same. related/affected provisions of all existing guidelines and/or EGLD-issued

b) The implementation of the updated versions of the following regulatory frameworks with effectivity date of 31 July 2024:

I and Processing of System Related Requests Rev. No. 1; Regulatory Framework for the Accreditation of Service Providers Regulatory Framework for the Fees and Rates on Gaming Venue

I. Gaming Operations) Rev. No. 1. Operations Rev. No. 2; and Regulatory Framework for Offenses and Penalties (Remote

Copy of aforesaid frameworks may be viewed or downloaded through the link https://www.pagcor.ph/regulatory/regulatory-manual-ebld.php.

For your information and guidance

Thank you.

JEREMY B/LUGLUG

CC: VP, IGLRG OCCEO VP,MEG OIC, CMED-EG A/AVP,AD AVP,GLDD