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PRESIDENTIAL DECREE NO. 1067-B
PRESIDENTIAL DECREE NO. 1067-B -
GRANTING THE PHILIPPINE AMUSEMENTS AND GAMING CORPORATION A FRANCHISE
TO ESTABLISH, OPERATE, AND MAINTAIN GAMBLING CASINOS ON LAND OR WATER
WITHIN THE TERRITORIAL JURISDICTION OF THE REPUBLIC OF THE PHILIPPINES
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WHEREAS,
new sources of revenues must be created by the government to help
finance priority infrastructure and socio-civic projects within the
Metropolitan Manila Area to stabilize social growth and accelerate
national economic development; ESTDIA
WHEREAS, the operation and conduct of games of chance have been
identified by historical statistics and after a careful study and
survey as a potential source for generating these additional revenues;
provided such games of chance are strictly manageable and made subject
to close scrutiny, direction, supervision and control by the government;chanroblesvirtualawlibrary
WHEREAS, such management and supervision can only be effectively
exercised if the operation and conduct of games of chance is operated
by or thru a government owned/controlled corporation;chanroblesvirtualawlibrary
WHEREAS, sixty (60%) percent of the gross earnings derived by the
grantee of this franchise shall be allocated to finance priority
infra-structure and socio-civic projects; cAHITS
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by
virtue of the powers vested in me by the Constitution, hereby decree a
Franchise in favor of the Philippine Amusements and Gaming Corporation,
any provision of law to the contrary notwithstanding.
Section 1. Nature and Term of Franchise. — Subject to
the terms and conditions established in this Decree, the Philippine
Amusements and Gaming Corporation is hereby granted for a period of
twenty-five (25) years, renewable for another 25 years, the right,
privilege, and authority to operate and maintain gambling casinos,
clubs and other recreation of amusement places, sports gaming pools,
i.e., basketball, football, etc., whether on land or sea, within the
territorial jurisdiction of the Republic of the Philippines.
Section 2. Scope of Franchise. — In addition to the
right and privileges granted it under Sec. 1, this Franchise shall
entitle the franchise holder to do and undertake the following:cralaw:red
(1) Enter into operator's and/or management contracts
with duly registered and accredited company possessing the knowledge,
skill, expertise and facilities to insure the efficient operation of
gambling casinos; Provided, That the service fees of such management
and/or operator companies whose services may be retained by the
franchise holder of this Franchise shall not in the aggregate exceed
ten (10%) percent of the gross income. ECSHAD
(2) Purchase foreign exchange that may be required
for the importation of equipment, facilities and other gambling
paraphernalia indispensably needed or useful to insure the successful
operation of gambling casinos.
(3) Acquire the right of way access to or thru public
lands, public waters or harbors, including the Manila Bay Area; such
right to include, but not limited to, the right to lease and/or
purchase public lands, government reclaimed lands, as well as land or
private ownership or those leased from the government. This right shall
carry with it the privilege of the franchise holder to utilize piers,
quays, boat landings, and such other pertinent and related facilities
within these specified areas for use as landing anchoring, or berthing
sites in connection with its authorized casino operations.
(4) Build or construct structures, buildings,
coastways piers, docks, as well as any other form of landing and
berthing facilities for its floating casinos. cASTED
(5) To do and perform such other acts directly
related to the efficient and successful operation and conduct of games
of chance in accordance with existing laws and decrees.
Section 3. Special Condition of Franchise. — Sixty
(60%) percent of the aggregated gross earnings derived by the franchise
holder from this Franchise shall be immediately set aside and allocated
to fund the following infrastructure and socio-civic projects within
the Metropolitan Manila Area:cralaw:red
(a) Flood Control.
(b) Sewerage and Sewage.
(c) Nutritional Programs.
(d) Population Control.
(e) "Tulungan ng Bayan" Centers.
(f) Beautification.
Section 4. Exemptions. —
(1) Duties, taxes and other imposts on importations.
— All importations of equipment, vehicles, boats, ships, barges,rcraft
and other gambling paraphernalia or facilities for the sole and
exclusive use of the casinos, clubs and other recreation or amusement
places to be established under and by virtue of this Franchise shall be
exempt from the payment of duties, taxes and other imports.
(2) Income and other taxes. — No income or any other
form of taxes shall be assessed and collected under this Franchise from
the franchise holder; nor shall any form of tax or charge attach in any
way to the earnings of the franchise holder, EXCEPT a Franchise Tax of
five (5%) percent of the gross revenue or earnings derived by the
franchise holder from its operation under this Franchise. Such tax
shall be due and payable quarterly to the National Government and shall
be in lieu of all taxes of any kind, nature or description, levied,
established, or collected by any municipal, provincial or National
authority.
Section 5. Other Conditions. —
(1) Place. — The franchise holder shall conduct the
gambling activities or games of chance on land or water within the
territorial jurisdiction of the Republic of the Philippines.
(2) Time. — Gambling activities may be held and
conducted at anytime of the day or night; Provided, however, That
during curfew hours all players and personnel of the gambling casinos
shall remain within the premises of the casinos.
(3-a) Persons allowed to play. —
(a) Tourists and/or foreigners who are not residents
of the Philippines. IHcSCA
(b) Residents with a net income for the previous year
of at least P50,000.00, which fact to be certified to by the Bureau of
Internal Revenue.
(3-b) Persons not allowed to play. —
(a) Government officials connected directly with the
operation of the government or any of its agencies.
(b) Members of the Armed Forces of the Philippines,
including the Army, Navy,r Force or Constabulary.
(c) Persons under 21 years of age or students of any
school, college or university in the Philippines.
From these are excepted the personnel employed by the casinos, special
guests, or those who at the discretion of the management may be allowed
to stay in the premises.
(4) Audit of income. — The books of accounts of the
franchise holder, as well as all financial records and other supporting
documents, shall be subject to audit by the Commission on Audit or his
duly authorized representative.
(5) Operation of related services. — The franchise
holder is authorized to operate such necessary and related services,
shows and entertainment. Any income that may be realized from these
related services shall not be included as part of the gross income of
the franchise holder for the purpose of applying the franchise tax, but
the same shall be considered as a separate income of the franchise
holder and shall be subject to income tax. aESTAI
(6) Personnel. — No union or any form of association
shall be formed by persons working as employees of the casinos, whether
directly or indirectly. For such purpose, all employees of the casinos
shall be classified as "confidential" appointees and their employment
thereof, whether by the franchise holder, or the operators, or the
managers, shall be exempt from the provisions of the Labor Code or any
implementing rules and regulations thereof.
Section 6. The conditions of this Franchise shall be
subject at all times to the provisions of all existing laws or
decrees. HaSEcA
Section 7. This Decree shall take effect immediately.
Done in the City of Manila,
this 1st day of January, in the year of Our Lord, nineteen hundred and
seventy-seven.
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