WHEREAS,
the present system of control and supervision of gaming, particularly
the operations of offshore casino gaming, is found inadequate to cope
up with the increasing pace of gaming activities in the country today;chanroblesvirtualawlibrary
WHEREAS, it is necessary to regulate and control all forms of
authorized gaming in order to support the tourism program of the
government, broaden the base for revenue generation and provide better
protection to the betting public;chanroblesvirtualawlibrary
WHEREAS, in order to control and regulate effectively these gaming
activities, it is necessary to centralize as much as possible in one
agency, such power and authority of control and regulation and to
impose taxes on operators of gaming establishments and on players.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree as follows:cralaw:red
PART I
The National Gaming Commission
Section 1. Creation of the National Gaming
Commission. — There is hereby created the National Gaming Commission,
hereinafter referred to as the Commission, which shall be composed of a
Chairman and two (2) members, who shall be appointed by the President
and shall hold office at his pleasure. chanroblesvirtualawlibrary
The Chairman shall receive a salary of P50,000 per annum, while each of
the two (2) members shall receive P40,000 per annum.
The Chairman and members shall serve on full-time basis and shall not
hold any other public or private office, nor shall they be pecuniarily
interested in any business or organization conducting gaming covered by
this Decree.
Section 2. Functions and powers of the Commission. —
The Commission shall have the power to:cralaw:red
a) Grant permits to persons who under its rules and
regulations may be qualified to operate gaming activities authorized by
law;chanroblesvirtualawlibrary
b) Revoke the said permit under its rules and
regulations, the conduct of the gaming activities justifies such
revocation;chanroblesvirtualawlibrary
c) Supervise and regulate all gaming authorized by
law such as casino gambling, horse racing, jai alai and cockfighting,
taking into consideration the protection of the betting public and the
promotion of tourism;chanroblesvirtualawlibrary
d) Authorize the use of gaming equipment,
paraphernalia and such other facilities by gaming establishments; chanroblesvirtualawlibrary
e) Prohibit the use of improper devices, drugs,
stimulants, and other means as to artificially affect the results of
any gambling game;chanroblesvirtualawlibrary
f) Suspend or revoke for a reasonable cause a
license or permit issued by it;chanroblesvirtualawlibrary
g) Prepare its budget, and fix the number and
compensation of its personnel in accordance with law;chanroblesvirtualawlibrary
h) Recruit, appoint, suspend, or terminate the
services of its personnel in accordance with law;chanroblesvirtualawlibrary
i) Delegate its licensing and regulating powers over
cockfighting to any national or local agency; and
j) Issue rules and regulations necessary to carry
out the provisions of this Decree. chanroblesvirtualawlibrary
Section 3. Jurisdiction. — The jurisdiction of the
Commission shall embrace all forms of authorized gaming; Provided,
however, That sweepstakes races and lotteries shall remain under the
jurisdiction of the Philippine Charity Sweepstakes Office; and
provided, further, That boxing, wrestling and professional basketball
shall remain under the jurisdiction of the Games and Amusement Board.
Section 4. Appropriation. — To carry out the
purposes of this Decree, there is hereby appropriated out of the funds
in the National Treasury not otherwise appropriated, the sum of
P1,000,000 for the initial year of operation of the Commission.
Thereafter, such amount as may be necessary for its operation shall be
included in the annual appropriation.
PART II
Tax on Casinos
Section 5. Taxes on Casino. — There shall be
collected from the grantee the following taxes and fees:cralaw:red
a) An initial permit fee of P1,000,000 and an annual
permit fee of not less than P50,000 nor more than P200,00 as may be
determined by the Commission; and
b) A weekly fixed tax of:cralaw:red
(1) not less than P2,000 nor more than P5,000 for
each type of game per table, and
(2) not less than P300 nor more than P500 for each
slot machine or similar devices as may be determined by the Commission.
Section 6. Taxes on Chips. — There shall be
collected on every sale of chips by the casino operator to a player a
tax equivalent to five per centum of the value thereof. The tax herein
imposed shall be in lieu of income tax for which the player may be
liable on his winnings. chanroblesvirtualawlibrary
For this purpose, no bet shall be allowed in the casino except through
chips purchased from the Cashier's box inside the casino. Under no
circumstances shall chips be purchased on the gaming table nor any
chips be borrowed from another player inside the casino.
Section 7. Annual License Fee on Gaming Employee of
Casino. — There is hereby imposed an annual license fee of P75 on every
casino manager and pit boss, and P50 on every dealer and other similar
gaming employee of the casino.
Section 8. Player's Annual License Fee. — There is
hereby imposed a player's annual fee of P500 on every person who enters
and takes part in gambling games in the casino.
The Commission shall prescribe the qualifications of persons who may
apply for a player's license: Provided, however, That in no case shall
a player's license be issued to a person whose annual net taxable
income, as shown by his latest income tax returns, be less than
P50,000: Provided, further, That a tourist from abroad shall be allowed
to enter and play in the casino without having to comply with these
requirements other than the presentation of a valid passport.
Section 9. Manner, place and time for payment of
tax. — It shall be the duty of the grantee to make a true and complete
return of the types of games per table, slot machines or similar
devices under Section 5(b), and pay the tax to the Bureau of Internal
Revenue on or before the first business day of the following week.
For purposes of collecting the tax imposed in Section 6, the grantee is
hereby constituted withholding agent and shall submit a weekly return
of the amount of chips sold and remit the tax due thereon to the Bureau
of Internal Revenue on or before the first business day of the
following week. chanroblesvirtualawlibrary
All taxes and fees imposed under Sections 5(a), 7 and 8 of this Decree
shall be paid to the Bureau of Internal Revenue on or before the 31st
of January.
If the tax or fee is not paid within the time prescribed therein, the
amount of the tax shall be increased by twenty-five per centum, the
increment to be a part of the tax. In addition thereto, there shall be
collected an interest of fourteen (14) per centum per annum from the
original due date.
In case of willful neglect to file the return within the period
prescribed herein, or in case a false or fraudulent return is willfully
made, there shall be added to the tax, or on the basis of such returns
before the discovery of the falsity or fraud, a surcharge of fifty per
centum of the amount of such tax or deficiency tax. The amount so added
to any tax shall be collected at the same time and in the same manner
as part of the tax, unless the tax has been paid before the discovery
of the falsity or fraud, in which case, the amount so added shall be
collected in the same manner as the tax.
Section 10. Apportionment of Revenue. — The proceeds
of the taxes, fees and licenses collected under this Decree shall be
apportioned as follows:cralaw:red
a) To the Metropolitan Manila Authority, the taxes
under Section 5 of this Decree.
b) To the National Government, the proceeds of the
taxes and fees under Section 6, 7 and 8 of this Decree.
Section 11. Importation of Gaming Paraphernalia and
Devices. — The importation of gaming paraphernalia and devices shall
not be allowed, except when the importation is made by the grantee for
its exclusive use in the casino and duly authorized by the Commission.
The paraphernalia and devices so imported shall be subject to a tariff
duty of 100% ad valorem of the dutiable value of such article and a 70%
compensating tax, the provisions of existing laws to the contrary
notwithstanding.
Section 12. Keeping of books of accounts, invoices
and receipts. — The grantee shall keep books of accounts and other
accounting records for its daily transactions and issue invoices or
receipts for every sale of chips. The books of accounts, accounting
records, invoices or receipts, which shall be duly registered with the
Bureau of Internal Revenue, in accordance with the pertinent provisions
of Sections 334 to 337 of the National Internal Revenue Code and the
regulations thereunder, shall be open for inspection and examination by
the Commission and the Bureau of Internal Revenue.
PART III
Penalties
Section 13. Penalties. — Any person who violates any
of the rules and regulations promulgated by the National Gaming
Commission pursuant to this Decree shall, upon conviction, be fined in
an amount not less than P2,000 nor more than P5,000, and suffer
imprisonment for not less than one year nor more than three years.
If the offender is a juridical person, the penalties shall be imposed
on its President, or Vice President, or office or officers responsible
for the offense.
If the offender is an alien, he shall, after he has paid the fine and
served the sentence imposed by the Court as hereinabove prescribed,
suffer the additional penalty of deportation without the necessity of
further proceedings to be instituted by the Commission on Deportation
and Immigration.
PART IV
Transitory and Repealing Provisions
Section 14. Transitory Provisions. — Pending
issuance of implementing letters of instructions to effect the smooth
turnover to the Commission of the appropriate functions of the Games
and Amusements Board, the Philippine Racing Commission, and the
Agencies which presently regulate cockfighting, said Board, Commission
and Agencies shall continue to perform their respective functions.
Section 15. Repealing Clause. — All Acts, Decrees,
Executive Orders, proclamations, rules and regulations, or parts
thereof inconsistent with any of the provisions of this Decree are
hereby repealed or modified accordingly. chanroblesvirtualawlibrary
Section 16. Effectivity. — This Decree shall take
effect upon approval.
Done in the City of Manila this
9th day of July, in the year of Our Lord, nineteen hundred and
seventy-six.
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