Final Paper in PA 231 Public Fiscal Administration
Glenne B. Lagura
Gaming || Gambling (Philippine Amusement and Gaming Corporation - PAGCor)
Submitted to: DR. ANTONIO M. FAUNILLIAN JR., MPA Instructor
Submitted by: Glenne B. Lagura
UNIVERSITY OF SOUTHEASTERN PHILIPPINES BO. OBRERO, DAVAO CITY College of Governance and Business Master of Public Administration
April 10, 2012
Glenne B. Lagura
Outline: I. Introduction a) b) c) d) Background of PAGCor Board of Directors Management PAGCor’s Operational Highlights Sources of PAGCor’s income PAGCor’s earnings PAGCor’s contribution to nation building
Discussion a) Where does PAGCor’s income go? b) Corporate Social Responsibilities of PAGCor
Analyses a) Social Problems b) Reduce Revenue? c) PAGCor: Problems and Challenges Illegal becomes Legal Aware or Unaware? or Aware to be Unaware? Institutional Problems d) Anomalies Regulate… Authorize… WATCHED! Is gambling a cursed? e) Corruptions f) Recent Issues
Possible Solutions and Recommendations a) b) c) d) e) Maintain the Status Quo; PAGCOR to concentrate on its regulatory function; Privatization; Abolish and close PAGCOR; and Formulated solutions from a study.
A. Background of PAGCor
The role and impact of Government-Owned and Control Corporation (GOCC) on the fiscal position of the government and the economy continue to be significant to this day. Despite reforms undertaken in the past, according to the Commission on Audit, there remain around one hundred thirty three GOCCs operating in the areas of agriculture, transportation, infrastructure, public utilities, provision of housing, industrial development and finance. The dismal performance of many of these corporations has contributed to the fiscal deficits of the public sector. As defined under PD 2029, GOCC is “a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered by special law or, if organized under the general corporation law, is owned or controlled by the government directly or indirectly through a parent corporation or subsidiary corporation, the extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock.” Philippine Amusement and Gaming Corporation (PAGCor) is a 100 percent government-owned and controlled corporation. It was established to regulate all games of chance in the country. It was created in 1977 to oversee the operation of gaming casinos, to generate funds for the government’s developmental projects, to promote tourism in the country, and to help curb illegal gambling. PAGCor had an initial authorized capital stock of P5 million which was later increased to P200 million. PAGCor is authorized to borrow money from local or foreign sources. Half of PAGCor’s earnings are remitted to the Bureau of the Treasury (BOT) to be used in programs and projects as directed and authorized by the Office of the President of the Philippines. This is aside from the mandated beneficiaries which receive funding from PAGCor. Its remaining funds form part of the Social Fund to finance infrastructure and/or socio-civic projects. The Corporation was created during the Martial Law years by virtue of a Presidential Decree (PD 1067-A) in response to calls for the Philippine Government to put a stop to the growing proliferation of illegal casino operations in various parts of the country then. The law creating PAGCor was later amended and consolidated by PD 1896 otherwise known as the PAGCor Charter. Under this Charter, PAGCOR is mandated to: Regulate, authorize and license games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines; Generate revenues for the Philippine Government’s socio-civic and national development programs; and Help promote the...