Philippines Gambling Regulation

Presidential Decree No.1067-A

Presidential Decree No.1067-A was drafted during the administration of President Ferdinand Marcos and was officially adopted on January 1, 1977. Thanks to this decree, casinos within the Philippines were finally legalized.

The primary goal of legalizing casinos was to improve the country’s infrastructure and economy, particularly in Metro Manila. The legalization of land-based casinos sparked a booming gambling sector that, in turn, boosted tourism throughout the Philippines. By offering more entertainment options, the archipelago attracted additional visitors who were willing to spend money on casino games.

The responsibilities of PAGCOR were also outlined in the decree, defining its functions as well as the manner in which revenue would be collected and managed by the regulator.

Presidential Decree No. 1602

On June 11, 1978, President Ferdinand Marcos signed Presidential Decree No. 1602 into law. The legislation was enacted to introduce harsher penalties for anyone who breaks the law by engaging in illegal gambling. Section 1 of the decree lists all gambling activities considered unlawful, each carrying possible penalties of imprisonment or a fine of no more than six thousand pesos.

Because earlier laws were too easy to circumvent, many individuals took part in illegal gambling without facing consequences. The amendments in Presidential Decree No. 1602 set out a clearer framework for gambling offenses and the corresponding penalties.

Republic Act 7922

On February 4, 1995, Republic Act 7922 was signed, establishing the Cagayan Economic Zone Authority (CEZA) and other economic zones across the country. Defining these zones was intended to foster their development while allowing each jurisdiction to regulate gambling in line with national laws.

Republic Act 7922 also created the Cagayan Freeport, which provided easier access to trading routes in the Pacific Ocean and the China Sea. As a result, the Cagayan economic zone could engage in trade with the Far East as well as countries in Southeast Asia and North America.

Under the act, ecozones were permitted to govern themselves and advance financial, industrial, tourism, commercial, and other sectors within their respective areas. In addition, Cagayan province received the exclusive right to operate independently of PAGCOR, allowing the ecozone to issue licenses to casino operators seeking to offer gambling services within Cagayan.

Republic Act 9287

Responding to public demand for stricter oversight of number games, Congress enacted Republic Act 9287 in 2004. The law focuses primarily on illegal conduct and participation in Jueteng. Before it took effect, numerous loopholes allowed Filipinos to bet on the game without facing penalties.

Although Presidential Decree No. 1602 deemed number games illegal, it did not clearly define which activities qualified. To close this gap, Republic Act 9287 replaced the vague term “numbers game” with a precise definition, labeling “any other illegal gambling activity devised to evade prosecution” as an offense subject to penalties. The act specifically targets games such as jueteng, Jai Alai, Last Two, Masiao, and others.

Executive Order No. 13

On February 2, 2017, President Rodrigo Duterte signed Executive Order No. 13 into law. This order empowered Filipino authorities to combat illegal gaming more effectively following a reorganization of the country’s regulatory bodies. The law took effect after the Philippine National Police (PNP) and the National Bureau of Investigation (NBI) suspended anti-drug operations, transferring those duties to the Philippine Drug Enforcement Agency.

Executive Order No. 13 also clarified the rights and responsibilities of jurisdictions throughout the Philippines. Clarification was necessary because several licensing bodies had been issuing permits to operators located outside their territorial authority.

Republic Act 10927

On November 4, 2017, the Anti-Money Laundering Council of the Philippines introduced Republic Act 10927. This legislation amends the Anti-Money Laundering Act of 2001, addressing ambiguities in the original law. Republic Act 10927 strengthens oversight of gambling operators within the Philippines.

Under the act, only players who are not based in the Philippines may legally use online casinos hosted on local servers. Filipino residents cannot wager on locally licensed gaming websites. However, because there is no prohibition on playing at foreign sites, Filipinos may legally gamble on offshore casino platforms.

House Bill 8910

House Bill 8910 was proposed to regulate e-sabong (cockfighting). The bill received congressional approval in February 2019 and seeks to oversee the sport across various online platforms while generating revenue to support the nation’s economy.

In February 2021, e-sabong was legalized in the Philippines, and PAGCOR issued operating licenses to four companies. Within just four months of legalization, licensed operators offering e-sabong betting generated more than Php1 billion (US$20 million) in fees for PAGCOR.