Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

3867

HOUSE BILL NO.

INTRODUCED BY REP. JB BERNOS

EXPLANATORY NOTE

The mandate of the Games and Amusement Board (GAB), created by the virtue of
Executive Order No. 120, s. 1948, is to regulate and supervise professional sports and
allied activities. It is also tasked to prevent the existence and proliferation of illegal
betting sites and other forms of organized illegal gambling connected with all play-for-
Pay sports and amusements games. In the recent years, there had been significant
developments in activities under its purview that challenged its capacity to regulate
them. One of these significant developments is the increasing usage of off-site, online
betting technologies that circumvent the traditional methods of | betting in horse racing,
cockfighting, and jai alai. The easily accessible means of betting without the need for
being physically present in betting sites increases the likelihood for even Passive
bettors to aggressively place amounts on their favorites in these activities.

In the absence of legal framework and mechanisms to regulate these activities,
the GAB cannot oversee the sanctity and compliance of matches of professional sports
and cannot control the betting coming in through and the money coming out of these
online facilities, as the original Executive Order signed in 1948 did not foresee the
advancement in technologies that made online betting possible. The government
through GAB must ensure that all betting methods are properly accounted for and will
be a stable source of revenue where funds for social services will be drawn from. All
online betting facilities must submit to the authority of GAB when it comes to licensing
for their ventures. Furthermore, the government through this agency's quasi-judicial
Power must step in to ensure that all professional sports are done safely and


accordingly, and so that organizers will be held liable and responsible for any
untoward incidents and disputes arising from the games.

‘Through this measure, we seek to strengthen the GAB through the expansion
of its powers and functions, as well as the additional supervisory and regulatory
authority over other forms of amusement like pageants, concerts, and maintenance of
amusement parks.

In view of the foregoing, the immediate passage of this Bill is earnestly sought.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNo. __3867

INTRODUCED BY REP. JB BERNOS

AN ACT
STRENGTHENING THE GAMES AND AMUSEMENTS
BOARD AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the “Games and
Amusements Board Act”.

SEC. 2. Definition of Terms. — As used in this Act, the following terms shall
have the respective meanings hereafter set forth:

a. Cockfighting shall refer to the commonly known game or term “cockfighting
derby, pintakasi or tupada”, or its equivalent terms in different Philippine
localities;

b. Contact sports shall refer to sports, games, or competitions, other than
boxing and wrestling, that involve permissible degree of physical contact,
such as, but is not limited to, punching, striking, grappling, or any other
combat technique that is allowed under the rules, between the participants
or opponents;

c. Fronton shall refer to the court where basque pelota games are played,
including the adjoining structures used in connection with such games, such


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as the betting booths and galleries, totalizator equipment, and the
grandstands where the public is admitted in connection with such games;

. Jai-alai or basque pelota game shall refer to the pelota game and which

shall include the use of pala, raqueta, cesta punta, remonte and mano, in
which professional players participate;

. Pelotari shall refer to a professional player engaged in playing basque

pelota;

. Professional athlete shall refer to any natural person, who is paid a sum of

money or other equivalent compensation as a salary or prize money for
participating, either as an individual or member of a team, in a game, bout,
tournament or contest of professional sport; Provided, That it shall not
include those who are paid “token amounts” or its equivalent as salary,
prize, or compensation;

- Professional boxer or wrestler shall refer to a professional athlete engaged

in boxing or wrestling, respectively;

. Professional fighter shall refer to a professional athlete engaged in unarmed

contact sports, other than boxing or wrestling, such as mixed martial arts,
thai boxing, muay thai and kickboxing;

i. Professional sports or competitions shall refer to individual or team sports,

games, contest, bouts, tournaments or competitions, whereby the
participating athletes are paid sums of money or other forms of
compensation as salary or prizes for participation, or those that are
conducted by promoters, operators, owners or leagues, foundations or
athletic societies for profit; Provided, That competitions with gate entry
fees, television coverage, paid advertisements or sponsors are presumed to
be conducted for profit; Provided further, That it shall not include
competitions held by and under the auspices of national sports associations
duly recognized as such by the Philippine Sports Commission, solely for the
development of the national training pool, or under the auspices of schools,
colleges and universities, for the health and sports development of their


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students, including inter-school competitions, or athletic associations or
organizations of schools, colleges and universities participated in solely by
bona fide students of the member schools, colleges and universities;
Provided finally, That it shall not include competitions whereby the
participating athletes are paid “token amounts” or its equivalent as salary,
prize, or compensation;

j. Purse shall refer to prize, percentage or other remuneration for which
boxing, wrestling or mixed martial arts contestants compete;

k, Special Armed Combat refers to fights that involve the limited use of
traditional or cultural fighting implements such as arnis and other non-
bladed weapons involved in Filipino Martial Arts (FMA); and

1. Token amount shall refer to the money or prizes the value of which shall be
determined by the Board from time to time.

SEC. 3. Games and Amusements Board. - The Games and Amusements
Board, hereinafter referred to as the GAB, shall be attached to the Office of the
President for policy and program coordination. Except as otherwise herein provided,
the GAB, created pursuant to Executive Order No. 392 s. 1951, shall continue to
exercise its mandate over professional sports under Presidential Decree No. 871,
boxing and wrestling under Executive Order No. 120 8. 1948, betting on horseracing
under Republic Act No. 309, as amended, cockfighting under Presidential Decree No.
449 in relation to Presidential Decree No. 1802, jai-alai or basque pelota games under
Executive Order No. 135 s. 1948, as amended, and anti-illegal gambling under
Administrative Order Nos. 262 s. 1992 and 222 s. 1995.

SEC. 4. Composition of GAB. — The GAB shall be composed of a Chairman
and two (2) Commissioners to be appointed by the President. The Chairman shall be
the executive officer and shall manage the day-to-day operations of the agency.

SEC. 5. Powers and Functions of GAB. - The GAB, sitting as a collegial body,
shall have the following powers and functions:


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a)

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authority:

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Rule Making Power. - The GAB shall be the policy making body of the
agency. It shall have the power to promulgate rules and regulations necessary for the
implementation of this Act and the accomplishment of its purposes and objectives;

Quasi —Judicial Power. - The GAB shall have the power to hear and
decide any matter, controversy, or dispute arising from this Act, including the

To promulgate its own rules of procedure for the speedy disposition
of cases before it;

. To designate any of its officers to conduct hearing or investigation of

any case pending before it;

. To summon parties, issue subpoena or require the production of such

books, papers, contracts, records or other documents as may be
necessary for the just determination and adjudication of any matter
under investigation;

. To impose administrative sanctions and fines;
. To grant requests for provisional remedies;

. To conduct mediation, conciliation, arbitration or other modes of

settling disputes; and

. To perform such other duties and exercise other powers incidental to

or necessary to the exercise of its quasi-judicial powers.

Appeal. — All actions of the GAB in the exercise of its quasi —judicial
power shall be appealable to the Court of Appeals.

Other Powers. — The GAB shall likewise have the authority to:

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Cooperate with local and international professional sports

organizations or regulatory bodies and attend relevant sports conventions,
competitions and events;


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2. Cooperate with organizations engaged in the promotion and control
of amateur and collegiate sports;

3. Appoint personnel as it shall deem necessary in the exercise
and performance of its powers and duties, and/or to employ the services by
contract or otherwise, consultant or any local or foreign expert or technical
personnel to provide technical and necessary assistance, conduct seminars and
training and pay reasonable emoluments for their services;

4. Inspect the books, records and accounts of any person, entity or
association conducting or authorized to conduct professional sports and require
that the books and financial or other statement of such person, entity or
association shall be kept in such manner as it may prescribe; and

5. Perform such other duties and exercise all other powers incidental or
necessary for the attainment of the purposes of the Board and proper
enforcement of the provisions of this Act.

CHAPTER II
PROFESSIONAL SPORTS,

A. General Provisions.

SEC. 6. Powers and Duties Over All Professional Sports and Athletes. - The

GAB shall have the power to:

a. Supervise and regulate all professional sports in the country including
training exhibitions in connection therewith;

b. Supervise and regulate new and emerging professional sports in the country
including competitive computer/video gaming and other professional racing
sports;

c. Enforce all laws, decrees, executive orders, rules and regulations, relating to
professional sports;


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|. Issue professional sports licenses for all professional athletes, officials,

employees and persons connected with professional sports and collect fees
therefor;

. Supervise the conduct of professional sports officials while in the

performance of their duties as such;

Issue permits for the holding of professional sports and collect fees therefor;

. Help in the preservation of Filipino Martial Arts by issuing licenses and

permits for Special Armed Combat under strict terms and conditions the
GAB may deem fit, with due regard to the safety of the fighters;

. Approve or disapprove, based on the minimum standards set by the GAB,

the rules and regulations issued by persons, entities or associations relative
to the operation and conduct of professional sports;

Order the suspension or cancellation of any game in case of ‘violation of law
or non-compliance with the provisions of this Act or the rules and
regulations promulgated hereunder or whenever such action is necessary for
the best interest of the professional sports under the supervision of the
GAB;

Consider, investigate, hear and decide all questions, matters, controversies
or disputes arising out of or connected with professional sports under its
supervision in accordance with the rules and procedures it may adopt;

Primary jurisdiction to hear and decide internal disputes of professional
sports leagues and organizations;

Adjudicate the claims between and among athletes, managers, promoters,
and other persons connected with professional sports, arising out of and in
accordance with their contract and award damages;

Impose administrative sanctions and fines to erring athletes, boxers,
fighters, promoters, managers, referees and other professional licensees of
the GAB;


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n. Investigate game-fixing, point shaving and similar machinations in
professional sports and cause the filing of appropriate cases against the
parties involved;

0. Designate any of its officers to conduct hearing or investigation of any case
pending before it in the exercise of its quasi-judicial powers under this Act;

p. Require any promoter or entity applying for a permit to conduct
professional sports, contests or exhibitions to furnish the GAB with a cash
or surety bond, in an amount equivalent to twenty-five per centum (25%) of
the total estimate of receipts from the full seating capacity of the building,
stadium or structure where the contest or exhibition is to be held, to answer
for the following obligations in the order named:

i. Government share as provided for in Section 13;
ii. Reimbursement of tickets when so ordered by the GAB;

iii, Guarantee payment of services and prizes to competitors and
games officials.

q. Prescribe minimum standards for contracts between professional athletes
and their managers, including their sharing in the purse or prize money, if
any, and require the same to be registered with and approved by the GAB;

r. Require the parties concerned to furnish the GAB with a copy of all
contracts between promoters or other persons or entities conducting
professional sports, contests or exhibitions, and professional athletes, their
managers, and other persons who officiate at such sports, contests or
exhibitions, at least seven (7) days before the sports, contest or exhibition to
which the contract relates;

s. Require the promoter or entity conducting the professional sports, contests
or exhibitions to pay immediately after such sports, contest or exhibition, or,
in case of a percentage contract, immediately after the percentage is
determined by the auditor of the GAB, in cash or check, the prizes, purses,
compensation or other remuneration of professional athletes, contestants,


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and all other persons entitled to payment, and to furnish the Board or its
authorized representative with a copy of the receipt for such payment; and

t. Perform such other duties and exercise all other powers incidental or
necessary for the attainment of the purposes of the Board and proper
enforcement of the provisions of this Act.

SEC. 7. License. — No professional athlete, professional sports official or
person connected with professional sports, regardless of nationality and residence,
shall be allowed to engage in professional sports in the country, whether on a regular,
seasonal or one-time basis, without first obtaining the appropriate professional license
from the GAB. Such license may be suspended or revoked in any case where the GAB
shall have reason to believe that any of the aforesaid persons is guilty of any dishonest
or fraudulent practice, or has violated any law, decree, executive order, rule or
regulation on professional sports, or for any just cause.

No person, entity or association shall employ or enter into a contract with any
professional athlete or sports official for the conduct of professional sports without
such athlete or sports official having been duly licensed by the GAB.

SEC. 8. Qualifications. - The GAB shall, by regulation, prescribe the
qualifications and requisites which each applicant for a license shall possess. All
professional athletes shall be examined by a GAB physician, or the physician’s duly
authorized representative, who shall certify to both the applicant’s physical and
mental fitness for competition before he is granted a license.

SEC. 9. Permit, - It shall be unlawful for any person, entity or association to
conduct professional sports without permit duly issued by the GAB. Every permit
issued shall specify the person, entity or association to which it was issued, the place
where and the date when the games are to be held.

SEC. 10. Assignment of Sports Officials. - At each professional sport, the
GAB shall assign among the duly licensed professional sports officials the referees,
timekeepers, scorers and other officials to officiate thereat and only the officials so
designated shall have authority to perform their respective functions.


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SEC. 11. Duty of Person, Entity or Association Conducting Professional
Games. — It shall be the duty of the person, entity or association conducting
professional sports, to see that peace and order is maintained in the premises of the
place where the games are being conducted and that the rules and regulations
governing the same are properly observed.

SEC. 12. Admission Receipts and Other Income. — The GAB shall, through its
duly authorized representatives, supervise the sale of admission tickets for any
professional sport. All tickets, except complimentary tickets, shall state the price,
name of person, entity or association conducting the professional sports, team names
and the date of the games printed plainly thereon. No ticket shall be sold for more
than the price as printed thereon and any change in ticket prices or the date of the
games shall be subject to the approval of the GAB.

SEC. 13. Government Share. ~ Any person, entity or association conducting
professional sports shall set aside and remit to the GAB three per cent (3%) of the
gross gate receipts and income from television, radio, motion picture rights, and other
forms of streaming or broadcasting using advanced technology and other electronic
media, if any, which shall be available to defray the expenses of the personnel of the
GAB assigned to supervise the games and for such other expenses in other activities of
the GAB.

SEC. 14. Submission of Copies of Contracts. - All persons, leagues,
corporations and other entities involved in professional sports shall submit to the GAB
copies of all their contracts with radio and television networks or with entities engaged
in other forms of streaming or broadcasting of professional sports using advanced
technology and other electronic media, within ten (10) days from execution of the
same.

SEC. 15. Exempt Sports. - The provisions of this chapter shall not apply to
competitions held by and under the auspices of national sports associations duly
recognized as such by the Philippine Olympic Committee solely for the development of
the national training pool, or by schools, colleges and universities for the health and
sports development of their students, including inter-school competitions, or by
athletic associations and organizations of schools, colleges and universities


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participated in solely by bona fide students of the member schools, colleges and
universities.

SEC. 16. Foreign Travel. - To ensure safety and welfare of licensees, the GAB
may require athletes, officials, or other licensees who will travel abroad to participate
in any sports tournaments, games or competitions to secure from the GAB an
authority or clearance to travel and compete abroad: Provided, That this requirement
shall be mandatory for boxers or fighters and their accompanying managers, trainers,
promoters, or their duly authorized representatives who will travel to, and participate
in any foreign boxing promotion or other contact sports competition abroad.

B. Professional Boxing and other Contact Sports.

SEC. 17. Measures to be Undertaken Before, During, and After Each Match. -
‘The GAB shall implement the appropriate measures to be undertaken before, during
and after each match of boxing or contact sports to ensure the safety of all boxers,
wrestlers and fighters.

SEC. 18. Medical Tests - In addition to medical tests required by the GAB, the
GAB shall also require regular Commuted Tomography Scan (CT Scan) of the brain
and when necessary, Magnetic Resonance Imaging (MRI) or such other additional
tests as the GAB may in its discretion hereafter require.

‘All government hospitals, laboratories, clinics and medical installations
catering to the public shall provide free annual CT Scans of the brain or MRI, when
necessary, to indigent boxers, wrestlers and fighters, upon proper certification by the
GAB.

SEC. 19. Age of Contestants. - No contestant under the age of eighteen (18)
years shall be licensed as a professional boxer, wrestler or fighter. The GAB may,
under exceptional circumstances, allow a minor, but not less than sixteen (26) years of
age, to apply for a license and participate in a professional boxing, wrestling or mixed
martial arts match upon written consent of his/her parents or in the absence thereof,
the court appointed legal guardian.

SEC. 20. Persons Prohibited from Admission. - Persons under sixteen (26)
years of age, persons carrying firearms or deadly weapons of any description except

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government officials performing their official duties, intoxicated persons, and persons
of disorderly nature and conduct who are apt to disturb peace and order, shall not be
admitted or allowed to remain in and around the premises of the place where boxing,
‘wrestling or other contact sport contest or exhibition is being conducted: Provided,
‘That persons under sixteen (16) years of age may, when accompanied by any of their
parents or court appointed guardians, be admitted therein.

SEC. 21. Licensed Physician. - It shall be the duty of every promoter or person
or entity conducting boxing, wrestling or contact sports contests or exhibitions to have
in attendance at every such contest or exhibition at their expense, a licensed physician
who has bad not less than three years’ medical practice, whose duty shall be to observe
the physical condition of the boxers, wrestlers, and fighters and advise the referees
with regard thereto, and one hour before the contestants enter the ring, to certify in
writing to the GAB or its representative the contestants’ physical condition to engage
in the contest or exhibition.

SEC. 22. Rest Period. - In order to protect the health and safety of boxers,
wrestlers or fighters, the GAB shall, by regulation, provide for mandatory rest periods
for such boxers, wrestlers or fighters who participated in a fight, bout, contest or
exhibition before they may be allowed to compete again.

C. Athletes’ Welfare Fund.

SEC. 23. Establishment of Athletes’ Welfare Fund. - The Athletes’ Welfare
Fund shall be established and managed by the GAB for the benefit of athletes who
sustain injuries or die in the exercise of their profession, or in such other cases as the
GAB may deem fit, except if the disability or death is a result of an unauthorized or
illegally-conducted professional sports activity.

The GAB shall develop a program for immediate financial and medical
assistance to deserving indigent athletes suffering from injuries and emergencies
related to their profession.

‘The Athlete’s Welfare Fund shall be constituted from one percent (1%) of all
receipts and income of the GAB.


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‘The GAB shall likewise be authorized to receive in trust any donation,
endowment or contribution to the athletes’ welfare fund.

CHAPTER Il
BETTING ON HORSE RACING

SEC. 24. Powers and Duties Relative to Horse Racing. — The betting aspect of
horse racing including betting through off-track betting (OTB) stations or through the
use of the telephone, the internet and other electronic means such as short messaging
service (SMS), mobile and desktop applications and similar platforms, shall be under
the exclusive regulation and supervision of the GAB, while all other aspects of the
conduct of horse racing, including the framing and scheduling of races, the
construction and safety of race tracks, the allocation of prizes, and the security of
racing, shall be under the Philippine Racing Commission pursuant to Presidential
Decree No. 420.

SEC. 25. Establishment of Off-Track Betting Station - The GAB may authorize
the establishment of Off Track Betting (OTB) station anywhere in the Philippines,
subject to compliance with the terms and conditions set by the GAB including distance
from other OTB stations and from places of worship and educational institutions.

SEC. 26. OTB Station Permit to Operate. - No OTB station shall be established
and operated without obtaining the appropriate permit from the GAB. Neither shall
any betting be conducted through the telephone, the internet and other electronic
means such as short messaging service (SMS), mobile and desktop applications and
similar platforms without the appropriate permits issued by the GAB.

SEC. 27. Records of Tickets Sold. - No person, race-track, racing club, nor any
other entity holding horse races shall be allowed to hold races, unless such person,
race track, racing club, or entity is provided with an automatic, electrically-operated
public indicator system and ticket-selling machines, by means of which every ticket
purchased on every horse in any race, shall be automatically and instantaneously
recorded by electrical impulse on a prominently-displayed bulletin board, each figure,
letter, or symbol of which shall be readable from a distance.

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SEC. 28. Track Auditors and Checkers. — For the purpose of supervising and
verifying the accuracy of reports of any person, race track, racing club, or any other
entity holding races, with respect to the totalizator receipt or the total amount of wager
made on each racing event, the dividends awarded for winning horses, whether win,
place, or show on each event, and other matters referring to the financial
computations or statements, the GAB shall appoint such number of auditing officers
and checkers as may be necessary to be placed in the offices and tracks, race track,
racing club, or entity concerned. It shall be the duty of said auditing officers and
checkers to report to the GAB any irregularities or erroneous computations, which
they may discover in connection with reports on the totalizator sales or the total sales
of wager tickets, or the dividends awarded on each racing event.

SEC. 29. Betting. - The face value of totalizator tickets for wager may be One
Peso (P1.00), Two Pesos (P2.00) or Five Pesos (P5.00), whether for win, place, or
show. The face value of said tickets, as the case may be, shall be the basis for the
computation of dividends, and such dividends shall be paid after eliminating fractions
of Ten Centavos (Po.50). If no ticket has been sold on a winning horse, whether for
win, place or show, the dividends corresponding to such race shall be paid out to the
holders of tickets sold on the horses that finished dead heat, or on the horse that
finished next to that on which not a single ticket was sold: Provided, That the owner of
said winning horse shall be entitled to the corresponding stake or prize.

SEC. 30. Persons Prohibited from Betting. ~ Racing clubs, race tracks, persons
or entities holding horse races, and their officials, including stewards, judges,
handicappers, jockeys and starters shall not be permitted to participate directly or
indirectly, in the betting on races conducted in their own race-tracks. GAB members,
including GAB officials and employees, are likewise prohibited from betting on any

race.

SEC. 31. Persons Prohibited from Admission. - Minors under eighteen (8)
years of age, except when accompanied by their parents or guardians, persons carrying
deadly weapons or firearms of any description, except peace officers or officials of the
race track or racing club of the GAB, in the performance of their official functions, and
intoxicated persons, shall not be admitted or allowed to remain in a race track or OTB
station during a racing day. In no case shall persons under 15 years of age be allowed

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admission to a race track or OTB station and in no case shall persons under 21 years of
age be allowed to bet or to purchase wager tickets for others.

SEC. 32. OTB Station Limitation. - No OTB station shall be allowed to be
ectablished and allowed to operate less than 100 meters away from schools or learning
institutions and churches or places of worship actively and currently being used as
such, New OTB stations shell only be allowed to be established if it is situated 500
meters away from an existing and operating OTB station. An existing OTB station
transferring to another location shall be considered a new OTB station and shall be
required to comply with the requirements therefor.

SEC. 33. Time for Running Daily Double Races; Posting of Ticket Sales. —
‘The time for the running of the first race of any daily double event shall be determined
by the GAB depending upon the circumstances surrounding each racing day which
shall be announced to the public by the person, race track, racing club, or entity
holding the races through loudspeakers at the time of the selection of the races
constituting the daily double event, and the second race thereof shall be run not later
than forty-five minutes after the first race. The sale of tickets for the daily double races
shall be allowed after the Board or its authorized representatives have announced to
the public the two races constituting each daily double event. ‘The number of tickets
sold on each horse in the two races of each daily double event and the totals thereof
shall be posted at conspicuous bulletin boards. This information shall also be given to
the public through loudspeakers. ‘The closing of the sale of tickets for each event shall
be properly announced by the ringing of a bell, after which no more tickets shall be
sold.

SEC. 34. Distribution of Receipts. - The total wager funds or gross receipts
from the sale of pari-mutuel tickets shall be apportioned as follows: eighty-seven and
one-half per centum (87.5%) shall be distributed in the form of dividends among
holders of win, place and show horses, asthe case may be, in the regular races; twelve
and one-half per centum (12.5%) shall be set aside as the commission of the person,
race track, racing club, or any other entity conducting the races, which shall include
the amounts for the payment of authorized stakes or prizes for win, place and show
horses, and authorized bonuses for jockeys; and in the case of daily double races, the
gross receipts derived from the total sale of daily double tickets shall be apportioned in

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the same manner as provided hereinabove, except that the eighty-seven and one-half
per centum (87.5%) of the gross receipts from the total sale of daily double tickets
shall be distributed in the form of dividends among the holders of the winning
combination of horses, that is, the two horses that won first place in the two races,
instead of among holders of win, place and show horses, as in the case of regular races:
Provided, however, That of the twelve and one-half per centum (12.5%) representing
the commission of the person, race-track, racing club, or any other entity holding
horse-racing an amount equivalent to one-half per centum (0.5%) of the total wager
fands or gross receipts from the sale of tickets shall be set aside and turned over to the
GAB by the person, race-track, racing club, or any other entity holding the race as a
special fund activity to cover the expenses and such other purposes authorized under
this Act. Any unexpended balance of this fund at the end of each year in excess of Ten
‘Thousand Pesos (P10,000.00) shall be turned over to the Bureau of Animal Industry
to be used by the latter exclusively for the promotion of horse breeding in the
Philippines.

SEC. 35. Books, Records and Accounts. ~ ‘The GAB or its duly authorized
representative shall have the power to inspect at all times the books, records and
accounts of any person, race track, racing club, or any other entity holding horse
racing, It may require that the books and financial or other statements of such person,
race track, racing club, or other entity holding horse-racing shall be kept in such
manner as it may prescribe.

SEC. 36. Unclaimed Dividends. - All winning prizes or dividends unclaimed
by the winners within thirty (30) days from the date of the race shall be forfeited in
favor of the government, and collected by the GAB.

CHAPTER IV
COCKFIGHTING

SEC. 37. Powers and Functions relative to Cockfighting. - Except as
otherwise devolved to the local government units pursuant to Republic Act No. 7160,
otherwise known as the Local Government Code, the supervision, regulation, and
control of all other aspects of cockfighting shall be with the GAB. ‘The GAB shall have
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Promulgate rules and regulations relative to the holding, methods,
procedures, operations and conduct of cockfighting in general, as well as
accreditation of cockpit personnel and association of cockpit owners,
operators and lessees, to elevate the standard of cockfighting;

. Establish uniform rules and regulations to govern actual cockfighting

enforceable in all cockpits in the Philippines and to provide sanctions for
violations thereof;

. Supervise and regulate the conduct of international derbies and collect fees

therefor;

. Regulate and supervise the live streaming, broadcasting or other forms of

transmission of cockfights, and any and all betting on cockfighting through
Off-Cockpit Betting Stations (OCBS) or through the telephone, internet and
other electronic means such as short messaging service (SMS), mobile and
desktop applications and similar platforms, and to collect fees amounting to
three percent (3%) of the gross bets made through OCBS and the
aforementioned platforms to defray the expenses of the GAB;

s Prescribe policy guidelines for the issuance of permits by the Bureau of

‘Animal Industry for the importation or entry of gamecocks into the country
for breeding or competition purposes;

Promulgate its own rules and procedures relative to the conduct of its own
business;

. Deputize any government office, entity, agency and public officer in the

implementation of all laws, decrees, letters of instructions, general orders
pertinent to cockfighting and rules and regulations ‘issued by the GAB;

Initiate, undertake, hear and decide any investigation for any violation of
this Act, rules and regulations of the GAB and in connection therewith, to
issue subpoena ad testificandum and subpoena duces tecum;

Establish regional offices in such number and location as it will allow it to
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Perform such other functions as may be authorized by law.

SEC. 38. Cockpits and Cockfighting. - In General:

a.

Ownership, Operation and Management of Cockpits. Only Filipino citizens
not otherwise inhibited by existing laws shall be allowed to own, manage
and operate cockpits. Cooperative capitalization is encouraged.

. Establishment of Cockpits. Only one (1) cockpit shall be allowed in each city

or municipality, except that in cities or municipalities with a population of
over one hundred thousand (100,000), two (2) cockpits may be established,
maintained and operated, which shall be licensed as such by the local
government units in accordance with the Local Government Code.

. The GAB may authorize the establishment of OCBS anywhere in the

Philippines, subject to compliance with the terms and conditions set by the
Board including distance from other OCBS and from places of worship and
educational institutions: Provided, That the operators of the OCBS shall
have a legislative franchise;

. No OCBS shall be established and operated, nor any betting through the

telephone, the internet and other electronic means such as short messaging
service (SMS), mobile and desktop applications and similar platforms be
conducted, without a legislative franchise and the appropriate permits
issued by the GAB;

. Cockpits Site and Construction. Cockpits shall be constructed and operated

within the appropriate areas as prescribed in zoning law or ordinance. In
the absence of such law or ordinance, the local executives shall see to it that
no cockpits are constructed within or near existing residential or
commercial areas, hospitals, school buildings, churches or other public
buildings. Owners, lessees, or operators of cockpits which are now in
existence and do not conform to this requirement are given three (3) years
from the date of effectivity of this Act to comply herewith. Approval or
issuance of building permits for the construction of cockpits shall be made

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by the city or provincial engineer in accordance with their respective
building codes, ordinances or engineering laws and practices.

{Holding of Cockfights. Cockfighting shall be allowed only in licensed
cockpits on days as the local government unit concerned sees fit: Provided,
‘That no cockfighting shall be held on December 30 (Rizal Day), June 12
(Philippine Independence Day) November 30 (National Heroes Day), Holy
‘Thursday, Good Friday, Election or Referendum Day and during
Registration Days for such election or referendum.

g. Other games during cockfights proscribed. No gambling of any kind shall
be permitted on the premises of a cockpit or place where a cockfight is held
while a game is ongoing. The owner, manager or lessee off such cockpit and
the violators of this injunction shall be criminally liable.

SEC. 39. Cockfighting Officials. - Gaffers, referees, mangagamot or
specialists, bet takers or promoters of local cockfights shall not act as such in any
cockfight herein authorized, without first securing a license from the city or
municipality where such cockfighting is held. Gaffers, referees, mangagamot or
specialists, bet takers or promoters who shall engage in a cockfight held in a different
municipality or city or in international derbies shall secure a license from the GAB. In
both cases, the GAB shall maintain a register of all such gaffer, referees or bet takers.

SEC. 40. International Cockfighting Events. - For international cockfighting
events, the GAB shall collect from the cockpit operator an amount equivalent to three
percent (3%) of all gate receipts collected at the entrance gates. ‘The GAB shall also
collect from the cockpit operator the equivalent of 3% of its customary share from the
betting pool, otherwise known as the plazada, from every international cockfight.

CHAPTER V
JAIALAI

SEC. 41. Powers and Functions Relative to Jai-Alai. - The GAB shall:


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a. Exercise supervision over the establishment, maintenance and operation of
fronton, basque pelota games and off-fronton stations operated by entities
with the appropriate franchise;

b. Promulgate rules and regulations relative to the holding, methods,
procedures, operations and conduct of jai-alai;

c. License pelotaris and all jai-alai personnel and to suspend or revoke any
license granted under this Act to any basque pelota fronton or to any official
or employee thereof, for violation of any of the rules and regulations which
the GAB may prescribe, or for any just cause;

4. Supervise and regulate the live streaming or broadcasting of jai-alai games
and to collect fees therefor;

e. Promulgate its own rules and procedures relative to the conduct of its own

business;

£ When warranted by the circumstances, deputize any government office,
entity, agency and public officer in the implementation of all laws, decrees,
letters of instructions, general orders pertinent to jai-alai and rules and
regulations issued by the Board;

g. To initiate, undertake, hear and decide any investigation for any violation of
this act, rules and regulations of the Board and in connection therewith, to
issue subpoena and subpoena duces tecum and ad testificandum;

h. To perform such duties and exercise such powers as may be necessary or
incidental to achieve the objectives of this Act;

i. To perform such other functions as may be authorized by law.

SEC. 42. Persons Prohibited From Admission. - Persons under sixteen (16)

years of age, persons carrying firearms or deadly weapons of any description, except
government officials actually performing their official duties therein, intoxicated
persons, and persons of disorderly nature and conduct who are apt to disturb peace
and order, shall not be admitted or allowed in any fronton: Provided, That persons

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under sixteen (16) years of age may, when accompanied by their parents or guardians,
be admitted therein but in no case shall such minors be allowed to bet.

SEC. 43. Gambling Prohibited. - No card games or any of the prohibited
games shall be permitted within the premises of any fronton.

SEC. 44. Books, Records and Accounts. — The GAB, or its duly authorized
representative, shall have the power to inspect at all times the books, records, and
accounts of any fronton. The GAB may, in its discretion and as the circumstances may
warrant, require that the books and financial or other statements of the person or
entity operating the game be kept in such manner as the GAB may prescribe.

SEC. 45. Pelotaris, Judges, Referees, etc. shall be Licensed. — No person or
entity operating a fronton, wherein games are played with betting, shall employ any
pelotari, judge or referee, superintendent of games (intendente), or any other official
whose duties are connected with the operation or supervision of the games, unless
such person has been duly licensed by the GAB. Such license shall be granted upon
satisfactory proof that the applicant is in good health, knows the rules and usages of
the game, and is a person of good moral character and of undoubted honesty. In the
case of pelotaris, such license shall be granted only upon the further condition that
they are able to play the game with reasonable skill and with safety to themselves and
to their opponents. The GAB may further require other reasonable qualifications for
applicants to a license, not otherwise provided herein.

SEC. 46. Installation of Automatic Electric Totalizator. — Any person or entity
operating a fronton wherein betting in any form is allowed shall install in its premises
‘an automatic electrically operated indicator system and ticket selling machine,
commonly known as totalizator, which shall clearly record each ticket purchased on
every player in any game, the total number of tickets sold on each event, as wel as the
dividends that correspond to holders of winning numbers.

SEC. 47. Establishment of Off-fronton Stations. - The GAB may authorize the
establishment of off-fronton stations anywhere in the Philippines, subject to
compliance with the terms and conditions set by the GAB including distance from
other off-fronton stations and from places of worship and educational institutions.

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SEC. 48. Off-fronton Station Authority to Operate. - No off-fronton station
shall be established and operated without the appropriate permit from the GAB.
Neither shall any be betting be conducted through the telephone, the internet and
other electronic means such as short messaging service (SMS), mobile and desktop
applications and similar platforms without the appropriate permits issued by the GAB.

SEC. 49. Supervision Over Sale of Betting Tickets and Payment of Dividends.
— For the purpose of verifying the accuracy of reports in connection with the sale of
betting tickets and the computation of dividends awarded to winners on each event, as
well as other statements with reference to the betting in the games played, the GAB
shall assign such number of auditing officers and checkers as may be necessary for the
purpose. These auditing officers and checkers shall be placed in the ticket selling
Dooths, dividend computation booths and such other parts of the fronton, where
betting tickets are sold and dividends computed. It shall be their duty to check up and
correct any irregularity or any erroneous report or computation that may be made by
officials of the fronton, in connection with the sale of tickets and the payment of
dividends.

SEC. 50. Distribution of Wager Funds. — Unless otherwise provided for in the
their franchise, the total wager funds or gross receipts collected by duly authorized jai-
alai operators/clubs from the sale of the betting tickets shall be apportioned as
follows: a commission not exceeding ten and one-half per centum (10.5%) on the total
pets on each game or event shall be set aside for the person or entity operating the
fronton and four and one-half per centum (4.5%) of such bets shall be remitted into
the National Treasury for disposition as may be authorized by law or executive order;
and the balance or eighty-five per centum (85%) of the total bets shall be distributed in
the form of dividends among holders of “win” or “place” numbers or holders of the
winning combination or grouping of numbers, as the case may be: Provided, however,
That of the ten and one-half per centum (10.5%) representing the commission of the
person or entity operating the fronton, an amount equivalent to one-half per centum
(5%) of the total bets or wager funds shall be set aside and remitted to the GAB, and
made available to cover its expenses for the supervision and regulation of basque
pelota games in frontons and off-frontons.

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SEC. 51. Supervision over the Conduct of Games; Enforcement of Rules and
Regulations. - The GAB shall place within the premises of the fronton such number of
inspectors and agents as may be deemed necessary to supervise the conduct of the
games, to see that the rules of the games are strictly enforced, and to carry out the
provisions of this Act as well as such other regulations as may hereafter be prescribed.

SEC. 52. Rules Governing the Games and Personnel of the Fronton. ~ The
rules and regulations that have been adopted by any fronton to govern the operation of
its games and the behavior, duties and performance of the officials and personnel
connected therewith, such as pelotaris, judges, referees or superintendents of games
(intendentes) and others, shall be the recognized rules and regulations of such fronton
until the same are altered or repealed by the GAB; and subject to the approval of the
GAB, any fronton may introduce any type or form of games or events, provided they
are not contrary to the provisions of this Act or any law, rule or regulation hereafter
issued.

SEC. 53. Regulations Governing Pelotaris. - Any rule or regulation adopted
by any established fronton governing the conduct or performance of pelotaris to the
contrary notwithstanding, the following regulations shall be observed:

a. The pelotaris who are participating in the games shall not be allowed to
communicate verbally or through signs with anyone in the public or with
any official or employee of the fronton during the games, except with the
judges or referees or the superintendent of games (intendente) in charge of
the games;

b. The program of games or events, as well as the line-up or order of playing of
the pelotaris in each event shall be determined by the superintendent of
games (intendente), subject to the approval of the city or municipal mayor,
or the mayor’s authorized representatives;

c. Pelotaris shall be in good physical condition before participating in any
game and shall be laid off from playing at least two days in a week. Every
month, a pelotari shall secure a medical certificate from a government
physician to be designated by the city or municipal mayor concerned
certifying to the pelotari’s physical fitness to engage in the games; and

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d. The amount of dividends computed for any event shall not be posted within
the view of the pelotaris participating in the event until after the termination
of said event.

CHAPTER VI
OTHER FORMS OF AMUSEMENTS

SEC. 54. Setting Up of a One-Stop Shop. - The GAB shall set up a one-stop
shop for the issuance of licenses or permits for the conduct of international
amusement events or productions, such as concerts, theatrical plays, circus acts,
among others, in coordination with the Bureau of Immigration, Department of Labor
and Employment, Department of Tourism and other government agencies concerned.

CHAPTER VII
ANTI -ILLEGAL GAMBLING UNIT

SEC. 55. Enforcement and Investigation Division. - There shall be an
Enforcement and Investigation Division that shall combat and prevent the existence
and proliferation of illegal bookie joints and other illegal forms of organized gambling
in professional sports and amusement games.

SEC. 56. Creation of Anti-Illegal Gambling Unit. - To assist the GAB in its
fight against illegal bookie joints and other illegal forms of organized gambling in
professional sports and amusement games, an ‘Anti-Ilegal Gambling Unit (AIGU) is
hereby created to be composed of personnel from GAB Enforcement and Investigation
Division and other organic personnel to be appointed by the GAB: Provided, That the
GAB-AIGU may request for operational assistance from government agencies involved
in gaming operations or law enforcement in the exercise of its functions.

SEC. 57. Prosecution. The GAB-AIGU shall monitor the status of arrests made
and complaints filed to ensure that suspects are prosecuted. The GAB shall submit a
quarterly report on the operations of the GAB-AIGU to the Office of the President.

CHAPTER VII
FINAL PROVISIONS

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SEC. 58. Appropriations. - The amount needed to implement the provisions
of this Act shall be charged against the current year’s appropriation of the GAB and
thereafter included in the Annual General Appropriations Act.

SEC. 59. Implementing Rules and Regulations. - The Board shall, within
ninety (90) days after the effectivity of this Act, promulgate such rules and regulations
necessary to implement this Act.

SEC. 60. Separability Clause. — If any part or provision of this Act shall be
held to be unconstitutional, other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.

SEC. 61. Repealing Clause. - Presidential Decree No. 871, Executive Order
No. 120 (s. 1948), Presidential Decree No. 449, Presidential Decree No. 1802,
Executive Order No. 135 (s. 1948). Sections 6 and 7 of Executive Order No. 392 (s.
1951), and Sections 6,11,15,18, and 24 of Republic Act No. 309 are hereby repealed. All
other laws, orders and proclamations, rules and regulations, or parts thereof,
inconsistent with or contrary to the provisions of this Act or its purposes are hereby
amended or modified accordingly.

SEC. 62. Effectivity Clause. — This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in a newspaper of general
circulation. :

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