Amending the Franchise of PAGCOR

January 1, 1977

PRESIDENTIAL DECREE NO. 1067-C

AMENDING THE FRANCHISE OF THE PHILIPPINE AMUSEMENT AND GAMING CORPORATION

WHEREAS, on the basis of its future actual performance, PAGCOR should be given the authority in its franchise, Presidential Decree No. 1067-B, to effectively discharge the role that it is intended to perform under its charter, Presidential Decree No. 1067-A, Section 1, wherein it is the declared policy of the state to centralize and integrate games of chance not heretofore authorized by existing franchises or permitted by law in order to attain the following objectives:

1. To centralize and integrate the right and authority to operate and conduct games of chance into one corporate entity to be controlled, administered and supervised by the government.

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WHEREAS, a proper basis for gauging PAGCOR's performance would be its ability to generate the projected revenues and the government's share, specifically gross revenues of P1.2 Billion and a contribution therefrom of Seven Hundred Twenty (P720) nMillion as the government's share, which shall constitute conditions precedent for PAGCOR's franchise to become exclusive in character.

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 the following:

SECTION 1. Section 1 of the Presidential Decree No. 1067-B is hereby amended to read as follows:

SECTION 1. NATURE AND TERM OF FRANCHISE. — Subject to the terms and conditions established in this Decree, the Philippine Amusement and Gaming Corporation is hereby granted for a period of twenty-five years, renewable for another twenty five (25) years, the right, privilege and authority to operate and maintain gambling casinos, clubs and other recreation or 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. This franchise shall become exclusive in character, subject only to the exception of existing franchises and games of chance heretofore permitted by law, upon the generation by the Franchise Holder of gross revenues amounting to P1.2 Billion and its contribution therefrom of the amount of P720 Million as the government's share.

SECTION 2. 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.

n Note from the Publisher: As corrected. Formerly P270 Million. Handwritten correction was duly initialed by President Marcos.