Philippines Gambling Regulation

Presidential Decree No.1067-A

Presidential Decree No.1067-A is a piece of legislation that was drafted under the administration of President Ferdinand Marcos and was officially adopted on January 1, 1977. Thanks to this Presidential Decree, casinos on the territory of the Philippines were finally legalized.

The main purpose of legalizing casinos in the Philippines was to improve the infrastructure and economy of the country, especially within Metro Manila. The legalization of land-based casinos led to a booming gambling industry that helped the development of the tourist industry in the Philippines. By offering more options for entertainment for tourists, the archipelago was able to attract even more tourists and put them in the mood to spend their money on casino games.

The responsibilities of PAGCOR were also defined by the Presidential Decree, giving a definition of its function as well as the way revenue will be accumulated and handled by the regulatory body.

Presidential Decree No. 1602

On June 11, 1978, President Ferdinand Marcos signed Presidential Decree No. 1602 into law. This piece of legislation was adopted to introduce harsher penalties for those who break the law and participate in illegal gambling activities. Under section 1 of Presidential Decree No. 1602, one could see a list of all gambling activities that are deemed unlawful and could lead to a penalty of imprisonment or a fine of not more than six thousand pesos.

Due to previous laws being way too easy to circumvent, there were too many cases of individuals participating in illegal gambling without being held responsible for their actions. The new amendments to the Presidential Decree provided a clearer outline of the gambling laws and the respective penalties that individuals may face in case of breaking the law.

Republic Act 7922

It was on February 4, 1995, that Republic Act 7922 was signed, establishing the Cagayan Economic Zone Authority (CEZA) as well as other economic zones on the territory of the country. The purpose of defining the different economic zones within the Philippines was to help each one of them to properly develop while the respective jurisdictions in every area regulate gambling in accordance with the established gambling laws.

Thanks to Republic Act 7922, the Cagayan Freeport was created, offering easier trading via the channels in the Pacific Ocean and China Sea. Thanks to them, the Cagayan economic zone was able to trade with the Far East as well as countries in Southeast Asia and North America.

Under Republic Act 7922, ecozones could operate themselves and help the development of the financial, industrial, tourism, commercial, and other areas in the respective zones in the Philippines. Under the same act, the Cagayan province was granted an exclusive right to operate independently from PAGCOR. This means that the ecozone is authorized to issue licenses to casino operators that wish to conduct gambling services on the territory of Cagayan.

Republic Act 9287

Pressured by the public’s demand for stricter regulations on number games, Congress enacted Republic Act 9287 in 2004. The law was targeting mainly illegal conduct and participation in Jueteng games. Up until Republic Act 9287 came into effect, there were many loopholes in the law, allowing numerous Filipinos to bet on the number game without facing any penalties.

While number games were described as illegal in Presidential Decree No. 1602, there were no clear definitions of activities that count as number games. To prevent defenders from taking advantage of such misunderstanding, Republic Act 9287 replaces the phrase “numbers game” with a much clearer definition, deeming “other illegal gambling activity devised in order to elude prosecution” as an illegal act that may lead to penalties. The act also specifically targets games like jueteng, Jai Alai, Last Two, Masiao, and others.

Executive Order No. 13

On February 2, 2017, the Philippines ‘ President Rodrigo Duterte signed Executive Order No. 13 into law. The new law allowed Filipino authorities to effectively combat illegal gaming after there was a reorganization in the structure and operations of governing bodies in the Philippines. The new law came into effect after the Philippine National Police (PNP) and the National Bureau Investigation (NBI) halted anti-drug operations, with the responsibilities for these matters being shifted towards the Philippine Drug Enforcement Agency.

With the passing of Executive Order No. 13, there was a clearer definition of the rights and responsibilities of jurisdictions in the Philippines. The reason why this was a matter that needed clarification was a number of licensing bodies that were issuing licenses to operators that were based outside the borders of the respective authorities.

Republic Act 10927

On November 4, 2017, the Anti-Money Laundering Council of the Philippines introduced Republic Act 10927. This piece of legislation is an amended version of the Anti-Money Laundering Act of 2001, making sure to clarify any misunderstandings that arose from the previous legislation. Republic Act 10927 provides better regulation on gambling operators on the territory of the Philippines.

Under this law, only players who are not based in the Philippines can legally play at online casinos that operate on local servers. Meanwhile, Filipinos are not allowed to place wagers on locally licensed gaming websites. That said, as there is no restriction on Filipino players enjoying online gambling at foreign websites, they can legally play on offshore casino sites.

House Bill 8910

House Bill 8910 is a bill that was proposed in order to regulate e-sabong (cockfighting). The bill received Congress’ approval in February 2019 and aims to regulate the sport across several online platforms and determine a way to generate revenue that would contribute to the development of the country’s economy.

In February 2021, e-sabong was legalized within the territory of the Philippines, with PAGCOR issuing operational licenses for e-sabong to four companies. In just four months after the betting format was legalized and operators were allowed to legally offer e-sabong betting, PAGCOR reported having earned more than Php1 billion (US$20 million) thanks to the fees that were collected through the licensed e-sabong operators.