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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by Honorable Wes Gatchalian 
AN ACT 
IMPOSING TAXES ON OFFSITE BETTING ACTIVITIES ON LOCALLY LI-
CENSED COCKFIGHTS AND DERBIES, AMENDING SECTION 125 OF 
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED. 
Explanatory Note 
Cockfighting or “Sabong” is a form of gambling, the presence of which 
in the Philippines can be traced as far back as three thousand (3,000) years 
ago. This gaming activity is done by placing two roosters/cocks, equiped with 
metal spurs, in an arena and betting on which between the two will come out 
victorious. 
Before the pandemic, "Sabong" was allowed only in licensed cockpits on 
Sundays and legal holidays, as well as during local fiestas lasting a maximum 
of three days. To help prevent the spread of the coronavirus disease, however, 
our government ordered the closure  of cockpit arenas and stoppage of all 
cockfighting activities. This contributed to the fast accent in popualirity of 
online cockfighting platform or “E-Sabong.” the Philippine Amusement and 
Gaming Corporation (PAGCOR) defined ESabong as the online or remote or 
off-site wagering or betting on live cockfighting matches, events, and/or 
activities streamed by local government unit (LGU) having jurisdiction 
thereof.1 
Under the current system, live cockfighting is regulated by the LGU 
concerned while E-Sabong is regulated by PAGCOR, which charges E-Sabong 
operators with a fixed regulatory fee amounting to only P12,500 per fight or a 
minimum guaranteed fee of P75 million per month, whichever is higher. 
However, with the rising popularity of E-Sabong, which consequently results 
1 PAGCOR Regulatory Framework for Electronic Sabong (E-Sabong) 
June 15, 2021
9:39 am
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to higher revenues for the operators, and declining tax revenues from other 
gaming activities, a clear tax regime for E-sabong is urgently needed. 
This proposed measure aims to impose franchise tax on transactions 
involving offsite betting activities on locally licensed cockfights and derbies to 
provide a more transparent tax collection system and to recoup revenues 
following the closure of casinos and gaming facilities due to the pandemic. 
In view of the foregoing, passage of this bill is earnestly sought. 
HON. WES GATCHALIAN 
Representative, 1st District of Valenzuela 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. __________ 
Introduced by Honorable Wes Gatchalian 
AN ACT 
IMPOSING TAXES ON OFFSITE BETTING ACTIVITIES ON LOCALLY LI-
CENSED COCKFIGHTS AND DERBIES, AMENDING SECTION 125 OF 
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. SECTION 1. Section 125 of the National Internal Revenue 
Code of 1997, as amended, is hereby added to read as follows: 
“SEC. 125. Amusement Taxes. There shall be collected from the pro-
prietor lessee and operator of cockpits, INCLUDING OPERATORS 
OF ONLINE PLATFORMS AND OFFSITE BETTING STATIONS 
FOR SUCH 6 COCKPITS, cabarets, night or day clubs, boxing ex-
hibitions, professional basketball games, Jai-Alai and racetracks, a 
tax equivalent to: 
(a) Eighteen percent (18%) in the case of cockpits: PRO-
VIDED, THATFOR OFFSITE BETTING ACTIVITIES ON LOCALLY 
LICENSEDCOCKFIGHTS AND DERBIES AND OTHER DERIVA-
TIVE ACTIVITIES,THERE SHALL BE LEVIED, ASSESSED, AND 
COLLECTED A TAX EQUIVALENT TO FIVE PERCENT (7%) 
BASED ON THE GROSS RECEIPTS WHICH SHALL BE DIRECTLY 
REMITTED TO THE BUREA OF INTERNAL REVENUE (BIR) AND 
SHALL BE IN LIEU OF ALL OTHER PERCENTAGE TAXES PUR-
SUANT TO SECTION 109 (1) (E), BUT NOT OF LOCAL GOVERN-
MENT TAXES AND REGULATORY FEES AND CHARGES APPLI-
CABLE TO SUCH ACTIVITIES. 
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(b) xxx 
(c) xxx 
(d) xxx 
(e) xxx 
For the purpose of the amusement tax, the term ‘gross receipts’ em-
braces all the receipts of the proprietor, lessee or operator of the 
amusement place. Said gross receipts also include income from tel-
evision, radio and motion picture rights, if any. A person or entity or 
association conducting an activity subject to the tax herein imposed 
shall be similarly liable for said tax with respect to such portion of 
the receipts derived by him or it. 
FOR PURPOSES OF SECTION 125 (a) HEREIN, THE TERM 
“GROSS RECEIPTS” EMBRACES ALL THE RECEIPTS DERIVED 
BY THE PERSON, ENTITY OR ASSOCIATION, INCLUDING IN-
COME DERIVED FROM ‘PLASADA’ OR NET COMMISSION FROM 
OFFSITE BETTING ON LOCALLY AUTHORIZED AND REMOTELY 
BROADCAST COCKFIGHTING MATCHES OF ALL GAMING OP-
ERATORS. 
“OFFSITE BETTING ACTIVITIES ON LOCALLY LICENSED COCK-
FIGHTS AND DERBIES” SHALL REFER TO ACTIVITIES BY GAM-
ING OPERATORS, AS DEFINED IN THIS SECTION, WHICH IN-
VOLVE PLACING AND ACCEPTANCE OF WAGERS, INCLUDING 
FACILITATION THEREOF, BY REMOTE AND/OR ELECTRONIC 
MEANS, ON COCKFIGHTING ACTIVITIES DULY AUTHORIZED 
AN LICENSED BY LOCAL GOVERNMENT UNITS (LGU) IN THE 
EXERCISE OF THEIR POWERS UNDER REPUBLIC ACT NO. 
7160: PROVIDED, THAT WHENEVER APPLICABLE, OFFSITE 
BETTING STATIONS, ACTIVITIES OR OPERATIONS SHALL BE 
DULY AUTHORIZED OR LICENSED BY THE LGU IN WHICH THE 
STATIONS, ACTIVITIES, OR OPERATIONS ARE PHYSICALLY 
LOCATED PROVIDED, FURTHER, THAT OFFSITE BETTING, AS 
REFERRED TO IN THIS SECTION, SHALL NOT INCLUDE OTHE 
GAMES AND ACTIVIVIES SPECIFICALLY AUTHORIZED BY LAW 
TO BE PERFORMED BY OTHER GOVERNMENT GAMING AU-
THORITIES, SUCH AS THE PHILIPPINE AMUSEMENT AND GAM-
ING CORPORATION AND THE PHILIPPINE CHARITY AND  
SWEEPSTAKES OFFICE. 
“GAMING OPERATOR” SHALL REFER TO A REGISTERED RES-
IDEN ENTITY, SUCH AS A CORPORATION, A PARTNERSHIP, AN 
INDIVIDUAL OR AN ASSOCIATION, DULY AUTHORIZED BY THE 


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GAMES AND AMUSEMENT BOARD (GAB) TO SUPERVISE, MAN-
AGE AND OPERATE OFFSITE BETTING ACTIVITIES ON LO-
CALLY LICENSED COCKFIGHTS AND DERBIES AS DEFINED IN 
THIS SECTION. WHEREVER APPLICABLE, OFFSITE BETTING 
ACTIVITIES ON LOCALLY LICENSED COCKFIGHTS AND DER-
BIES SHALL BE INCLUDED BY THE GAMING OPERATOR IN DIS-
CLOSURES AND DOCUMENTATIONS REQUIRED BY THE BIR, 
THE GAB AND OTHER REGULATORY GOVERNMENT AGENCIES 
AND INSTRUMENTALITIES.”  
The taxes imposed herein shall be payable at the end of each quarter 
and it shall be the duty of the proprietor, lessee or operator con-
cerned, as well as any party liable, within twenty (20) days after the 
end of each quarter, to make a true and complete return of the 
amount of the gross receipts derived during the preceding quarter 
and pay the tax due thereon. 
FOR THE EFFICIENT ASSESSMENT AND VERIFICATION OF TAX 
DUES AND TO ENSURE THE VIABILITY OF THE ACTIVITIES 
TAXED HEREIN AS A REVENUE SOURCE, THE GAB SHALL IS-
SUE RULES AND REGULATIONS FOR THE FAIR CONDUCT OF 
OFFSITE BETTING ON LOCALLY LICENSED COCKFIGHTS AND 
DERBIES, INCLUDING DEVICES REQUIRED OF GAMING OPER-
ATORS, AGENTS, AND OTHER RELATED MAY BE ALLOWED BY 
THE NATIONAL INTERNAL REVENUE CODE AND OTHER LAWS, 
RULES AND REGULATIONS.” 
SECTION 2. Implementing Rules and Regulations. – Within thirty 
(30) days after the 10 effectivity of this Act, the Commissioner of Internal Rev-
enue and the Chairperson of 11 GAB shall promulgate the rules and regula-
tions necessary for its implementation. 
SECTION 3. Separability Clause. - If, for any reason or reasons, any 
part or provision of this Act shall be declared as unconstitutional or invalid, 
the other parts or provisions hereof which are not affected thereby shall con-
tinue to be in full force and effect.  
SECTION 4. Repealing Clause. - All provisions of existing laws, orders, 
rules and regulations or parts thereof which are in conflict or inconsistent 
with the provisions of this Act are hereby repealed, amended or modified ac-
cordingly.  
SECTION 5. Effectivity. - This Act shall take effect immediately upon 
its publication in the Official Gazette or in at least two (2) newspapers of gen-
eral circulation in the Philippines. 
 


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Approved,