Senator seeks Pagcor abolition, wants new gaming agency

MANILA, Philippines—A senator allied with the administration is seeking the abolition of the Philippine Amusement and Gaming Corporation (Pagcor) and the creation of a new commission that will regulate gaming in the country.

Under Senate Bill 3178 filed by Senator Ralph Recto, Pagcor will be replaced by the Philippine Amusement and Gaming Commission or Pagcom, which will discharge the function of regulating the gaming operations in the country.

The existing Pagcor casinos, under the bill, will be privatized by the Privatization Management Office (PMO) and proceeds from the sale will be remitted to the National Treasury.

Recto said he filed the bill because Pagcor currently serves as regulatory body while also operating its own casinos – two “distinct functions” that he said should not be placed in one agency.

“These distinct functions should not be placed under one agency in order to maintain a separation of powers and uphold a system of checks and balances,” he said in his explanatory note of the bill.

The senator said there should be a clear separation between the regulatory and proprietary activities of Pagcor in order to achieve a level playing field with other private gaming corporations.

“The government also has no business running gambling facilities. Instead, the government should adopt the policy that its role should only be steering and not rowing,” he said.

“This means government should deal with coordination and control of gaming entities but should not get involved in direct gaming operation,” Recto added.

In order to ease the impact of the separation from government service, the proposed legislation provides a Severance Mitigation Package (SMP) for Pagcor officials and employees who will opt not to be absorbed by the new Pagcom.

Those who will avail of the SMP will not be eligible for employment in the Pagcom for the next five years from separation or retirement.

Also under the bill, Pagcom should register and issue license, authority, privilege or permit to gaming operators.

But the licenses should only be given to gaming operators in municipalities and cities with tourist arrivals of 100,000 or more foreign tourists annually as certified by Department of Tourism unless the gaming facility will be located in a new entertainment resort.

Pagcom should also require gaming operators to collect an entrance fee of not less than P1,000 for local players while no fees may be collected from foreign players.

A gross revenue tax of 5 percent, the bill said, should be collected by Pagcom from casino operators.

Originally posted at 11:12 am | May 16, 2012