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HOUSE OF REPRESENTATIVES
Quexon City
oy

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 7096

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Cockfighting, or “sabong” is a traditional recreational activity that is long-
entrenched in Filipino culture and considered a part of national heritage. Being
recognized as part of Filipino culture, laws were enacted to supervise and regulate
cockfighting, In effect, the Cockfighting Law of 1974 established that cockfighting is
“a popular, traditional and customary form of recreation and entertainment among
Filipinos.”

Over the years, cockfighting has been through several evolution. Joining the whirl of
trends of online casinos, electronic games, and sports betting, “e-sabong’” is the live
streaming of actual cockfighting events, where the collection of bets is wired
electronically. Especially during this pandemic where social gatherings and mass
assemblies are discouraged, bettors have resorted to this kind of gaming and
recreation.

In view of that, the game of cockfighting stages a viable source of government
revenue and livelihood for Filipinos. To harness the full potential of cockfighting as a
vital revenue stream for both National Government and Local Government Units, the
granting of legislative franchise is just but proper, which shall include tax
provisions, its terms and scope, and providing the regulating authority of Games and
Amusement Board (GAB) over it.

Accordingly, through Department of Justice (DOJ) OPINION No. 25 Series of 2006,
DOJ stated that the proposed operation of “Tele-Sabong” further requires an
enactment of such a law by Congress granting franchise to tele-sabong since the
Local Government Code limits the authority of the local sanggunians to the


establishment, operation and maintenance of cockpits and regulation of cockfighting
and commercial breeding of gamecocks, Adding that the proper authority over tele-
sabong should be conferred by the legislature.

In view of the foregoing, the approval of this measure is earnestly sought.

Uy pahr

LuIs |UND “LAY” F. VILLAFUERTE JR.,


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HOUSE OF REPRESENTATIVES
Queen City

EIGHTEENTH CONGRESS
First Regular Session

7096
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT GRANTING LUCKY 8 STAR QUEST INC., A FRANCHISE TO
BROADCAST LIVE AND DATA STREAMED COCKFIGHTING ACTIVITIES
AND DERBIES, THROUGH ON-LINE OR OTHER SIMILAR MODERN MEANS,
ANYWHERE IN THE PHILIPPINES

SECTION 1. Nature and Scope of Franchise. - Subject to the provisions of the
Constitution and the applicable laws, rules and regulations, there is hereby granted
to Lucky 8 Star Quest Inc, hereunder referred to as the grantee, its successors or
assigns, a franchise to broadcast live and data streamed cockfighting activities and
derbies, through on-line or other similar modern means, anywhere in the
Philippines, as well as to construct, establish, operate and maintain on-cockpit and
off-cockpit betting stations for the bettings on the result of the cockfights, either
directly or by means of any mechanical, electrical and/or computerized totalizator,
and to do and carry out all such acts, deeds and things as may be necessary to give
effect to the foregoing: Provided, That the establishment of off-cockpit betting
stations anywhere in the country shall be subject to the approval/consent of the
local government units where the off-cockpit betting station shall be established,
and in case of a municipality or component city, approval or consent of the
provincial government shall likewise be obtained,

SEC. 2, Authority of the Games and Amusement Board (GAB). - The cockfighting
events to be conducted by the grantee shall be under the supervision and regulation
of the Games Amusement Board, which shall enforce the laws, rules and regulations
governing cockfighting events.


SEC. 3. Term of Franchise. - This franchise shall be for a term of twenty-five (25)
years from the date of effectivity of this Act unless sooner revoked or cancelled.
From the time the grantee accepts this franchise, its business operation shall be
exclusive within the next five (5) years in order that it may recuperate from all its
expenses and investments, and no other franchise shall be granted to any person or
entity within the said period,

‘The grantee shall secure from local government units and such other government
agencies concerned the necessary licenses and other permits for the construction,
establishment, operation and maintenance of its on-cockpit and off-cockpit betting
stations.

SEC. 4. Computerized and/or Mechanical Devices. - The grantee shall provide and
operate, and is hereby authorized to do and carry out all such acts, deeds and things
as may be necessary for the effective conduct of the business under this franchise,
and to achieve an orderly, clean and honest cockfighting events in the conduct
thereof, the grantee shall in particular, provide and operate any mechanical,
electrical and/or computerized devices, equipment and facilities, including, but not
limited to: (a) Electric and/or computerized totalizator; (b) Machines directly
connected to a computer in a display board for the sale of tickets including those
sold in off-cockpit betting stations; (c) Modern sound system and loud speaker
facilities; (d) Modern telecommunications, and broadcasting equipment and
facilities, whether at the grantee's off-cockpit betting stations, for receiving and
transmitting, whether live or otherwise, messages, signals and pictures by any
means now known or which in the future may be developed for the reception and
transmission of messages, signals and pictures relating to the betting system, the
actual conduct of cockfighting events, the announcements of winning numbers and
dividends paid or to be paid thereon, and any other form of information relating to
the conduct and promotion of cockfighting events within or outside the Philippines;
(e) Continuous and back-up power supply, and such other instruments, devices,
equipment, facilities and systems; (f) Facilities that will bring safety, security,
comfort and convenience to the public; and (g) Such other facilities, devices and
instruments that will ensure clean, honest and orderly betting on cockfighting
events.

SEC. 5. Offering, Taking or Arranging Bets for Cockfight Events. - The grantee or
its duly authorized agent may offer, take or arrange bets for cockfighting events
conducted in or outside the Philippines, in person or by any electronic, on-line or
other means of processing transactions, anywhere in the Philippines, whether
within or outside the place, enclosure of the cockpit where the cockfight events are
held, in on-cockpit or off-cockpit betting stations, No other entity or person other
than the grantee or its duly authorized agents or licensees shall offer, take or
arrange any bets on any cockfighting events participating in any cockpit arenas
conducted by the same, or maintain or use a totalizator or any other device, method
or system to bet on any cockfights within its premises or outside the same


enclosure, in the course of cockfighting events conducted and/or operated by the
same grantee.

SEC. 6. Penalties. - Any person or persons found to have violated the provisions of
the aforementioned section shall be punished by a fine of not less than Twenty
thousand pesos (P20,000.00) but not more than One hundred thousand pesos
(P100,000.00) or by imprisonment of a minimum of six months and a maximum of
one year, or both, at the discretion of the court. If the offender is a corporation,
partnership or association the criminal liability shall devolve upon its president,
managing partner or manager responsible for such violation.

SEC. 7.Terms of Betting Tickets.- The grantee shall publish and display
prominently and in appropriate places the terms and conditions regarding the sale
of betting tickets.

SEC. 8. Tax Provision- In consideration of the franchise and rights herein granted,
the grantee shall pay to the National Treasury a franchise tax equivalent to five
percent (5%) of its gross receipts less total number of payouts. The said tax shall be
paid monthly and be in lieu of any and all taxes, except income tax, of any kind,
nature and description levied, established or collected by any authority whether
city, municipality, provincial or national, on its properties, whether real or personal,
from which taxes the grantee is hereby expressly exempted.

SEC, 9.Non-transferability of Franchise.- The grantee shall not lease, transfer,
grant the usufruct of, sell nor assign or otherwise dispose of the rights and
privileges acquired hereunder to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any other corporation or entity
organized for the same purpose without the approval of the Congress of the
Philippines. Any person or entity to which this franchise is sold, transferred or
assigned shall be subject to the same conditions, terms, restrictions and limitations
of this Act. Any transfer of franchise in violation of this section shall render the
franchise ipso facto revoked.

SEC. 10. Warranty in Favor of National and Local Governments. - The grantee
shall hold the national, provincial and municipal governments of the Philippines free
from all claims, accounts, demands or actions arising out of accidents or injuries,
whether to property or persons, caused by the construction or operation of the off-
cockpit betting station of the grantee.

SEC. 11, Acceptance and Compliance. - Acceptance of this franchise shall be given
in writing within sixty (60) days after the effectivity of this Act. Upon giving such
acceptance, the grantee shall exercise the privileges granted under this Act. Non-
acceptance shalll render the franchise void.

SEC. 12. Reportorial Requirement. - The grantee shall submit an annual report to
the Congress of the Philippines on its compliance with the terms and conditions of


the franchise and on its operations within sixty (60) days from the end of every
year.

SEC. 13, Equality Clause. - Any advantage, favor, privilege, exemption or immunity
granted under existing franchises or may hereafter be granted shall ipso facto
become part of this franchise and shall be accorded immediately and
unconditionally to the herein grantee: Provided, however, That any advantage,
favor, privilege, exemption or immunity granted under this franchise shall also ipso
facto become part of existing and future franchises: Provided, further, That the
foregoing shall neither apply to nor affect the provisions concerning territory
covered by the franchise and the life span of the franchise.

SEC. 14, Separability Clause. - If any of the sections or provisions of this Act is held
invalid, all the other provisions not affected thereby shall remain valid.

SEC. 15, Repealability and Non-Exclusivity Clause. - This franchise shall be subject
to amendment, alteration or repeal by the Congress of the Philippines when the
public interest so requires and shall not be interpreted as an exclusive grant of the
privileges herein provided for.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days from the date of its
publication in at least two newspapers of general circulation in the Philippines.