Preamble
WHEREAS, Presidential Decree Nos. 1067-A, 1067-B, 1067-C, 1390 and 1632 relative to the Franchise and Powers of the Philippine Amusement and Gaming Corporation (PAGCOR), were enacted to enable the Government to regulate and centralize thru an appropriate institution ail games of chance authorized by existing franchise or permitted by law; WHEREAS, to facilitate the enforcement and application of the above-mentioned Presidential Decrees, it is imperative to consolidate them into one statute; WHEREAS, since its creation in 1977, PAGCOR has demonstrated its reliability as a source of income for the Government, particularly for the funding of government infrastructure projects, such that, as of December 1982, PAGCOR has generated gross revenue of P1.677 Billion, contributing P956 Million as the 60% share of the Government plus P83 Million in the form of 5% franchise tax; WHEREAS, PAGCOR's operation has enabled the Government to identify the potential sources of additional revenue, provided games of chance are strictly managed and made subject to close scrutiny, regulation, supervision and control by the Government; WHEREAS, to make it more dynamic and effective in its tasks, PAGCOR should now be reorganized by (a) increasing the participation of the private sector in the subscription of the authorized capital stock of PAGCOR and by adjusting the share of the Government in the gross earnings to 50%; provided, that the annual income of the Government is not less than P150 Million and, if it is less, then the share of the Government shall be 60% of the gross earnings; (b) providing for a settlement of the portion of the Government's share that was utilized for the stabilization of casino operations, and (c) providing for greater flexibility in operation by limiting governmental audit only to the determination of the 15% franchise tax and the Government's share of 50% of the gross earnings; WHEREAS, in order to make PAGCOR's regulatory powers more effective, it is necessary that businesses primarily engaged in gambling operations be affiliated with PAGCOR, and become subject to its regulatory powers with respect to operation, capitalization and organizational structure; WHEREAS, under Presidential Decree No. 1416, as amended, the President of the Philippines is authorized to reorganize the administrative structure of government offices: NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and by Presidential Decree No. 1416, as amended, do hereby decree; CORPORATION