Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
Introduced by REPRESENTATIVES JOEY SARTE SALCEDA, SHARON S. 
GARIN, AND CONRADO M. ESTRELLA 
AN ACT 
GRANTING LUCKY 8 STAR QUEST INC. A FRANCHISE 
TO OPERATE OFFSITE BETTING ACTIVITIES ON DULY-LICENSED 
COCKFIGHTING, DERBIES, AND OTHER SIMILAR ACTIVITIES 
THROUGH ON-LINE OR OTHER SIMILAR MODERN MEANS, 
ANYWHERE IN THE PHILIPPINES 
EXPLANATORY NOTE 
Offsite cockpit betting stations (OCBS) are given some recognition by local governments 
and the Philippine Amusement and Gaming Corporation, but the national government is 
unable to maximize the revenue potential of the industry and its ability to regulate the sector 
due to a lack of a national regulatory framework.  
However, the standing of Congress to regulate the industry and to delegate the authority to 
conduct the activity is clear. Operating betting activities on horseracing, for example, is 
authorized solely by an act of Congress. 
Furthermore, the merit of a national government franchise is clear: For example, the lack 
of clarity on whether these activities fall under the revenue-collecting ambit of the national 
government prevents more accountability and transparency in the system, as the Bureau of 
Internal Revenue (BIR) does not have clear and explicit legal oversight on the revenue-
generating capacity of these activities. 
The confusion over taxing and regulatory powers is compounded by the fact that most of 
these activities are electronic derivatives of already licensed physically-conducted 
activities.  
Republic Act No. 7160, or the Local Government Code granted the Sangguniang Bayan (at 
the Municipal and City level) the authority to “authorize and license the establishment, 
July 19, 2021
10:39 am
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operation, and maintenance of cockpits, and regulate cockfighting and commercial 
breeding of gamecocks.1”   
The LGC, however, appears not to have been able to anticipate the limits of these powers 
in the case of electronic betting on such activities. These activities also do not explicitly 
fall within the purview of the government gaming agencies, such as the Philippine 
Amusement and Gaming Corporation (PAGCOR) or the Philippine Charity and 
Sweepstakes Office (PCSO).  
Also, as these activities involve broadcasting the games and the use of the airwaves to do 
so, and as broadcasting is considered under the broad definition of a “public utility,” the 
Philippine Constitution explicitly “prohibits the issuance of any franchise to operate a 
public utility except in accordance with certain conditions, including that this shall be 
‘subject to amendment, alteration, or repeal’ by Congress” including for broadcasting. 
To set the precedent for the regulation of this activity, and to ensure that Congress has 
adequate oversight of the activity, this franchise sets strict conditions and standards for the 
grantee. It also sets mechanisms and safeguards to ensure fair play and transparency in the 
conduct of authorized activities. Finally, it provides the necessary provisions to specify 
taxing power and the power to regulate the industry, while respecting the power of local 
governments.  
This precedent-setting opportunity also allows Congress to regulate an industry at its early 
stages, so that it can be studied  
In view of the foregoing, the approval of this bill is urgently sought. 
JOEY SARTE SALCEDA 
SHARON S. GARIN 
CONRADO M. ESTRELLA III 
1 Local Government Code (LGC), Sec. 458, par. 3 (v) and Sec. 446, par. 3 (v). 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
Introduced by REPRESENTATIVES JOEY SARTE SALCEDA, SHARON S. 
GARIN, AND CONRADO M. ESTRELLA 
AN ACT 
GRANTING LUCKY 8 STAR QUEST INC. A FRANCHISE 
TO OPERATE OFFSITE BETTING ACTIVITIES ON DULY-LICENSED 
COCKFIGHTING, DERBIES, AND OTHER SIMILAR ACTIVITIES 
THROUGH ON-LINE OR OTHER SIMILAR MODERN MEANS, 
ANYWHERE IN THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
NATURE, SCOPE, AND TERM OF FRANCHISE 
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 operate offsite betting activities on duly-licensed cockfighting, derbies, and 
other similar or derivative activities. 
 In the exercise of the franchise, the grantee shall also be allowed to broadcast live 
and data streamed cockfighting activities and derbies, through on-line or other similar 
modern means, anywhere in the Philippines, and to construct, establish, operate and 
maintain on-cockpit and off-cockpit betting stations for the taking of wagers on the result 
of the duly-licensed activities, 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 or consent of the local government of the city or 
municipality where the off-cockpit betting station shall be established. 
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Provided further, That the cockfighting activities broadcast and on whose result 
wagers are made shall be subject to the approval by the relevant local government unit, 
pursuant to Section 447 (3) (v) of the Local Government Code, as amended, in the case of 
municipalities, and to Section 458 (3) (v) in the case of cities. 
 
SEC. 2. Term of Franchise. – This franchise shall be for a term of twenty-five (25) 
years from the date of acceptance of the franchise by the grantee, unless sooner revoked or 
cancelled by an Act of Congress. 
 
SEC. 3. Other authorized activities. – Notwithstanding any law to the contrary, 
nothing in this Act shall be construed as precluding the grantee from operating activities 
outside the scope of this franchise.   
 
 
CHAPTER II 
REGULATION OF THE GRANTEE AND AUTHORIZED ACTIVITIES 
 
SEC. 4. Authority of the Philippine Amusement and Gaming Corporation 
(PAGCOR). – Unless otherwise provided by law, the Philippine Amusement and Gaming 
Corporation (PAGCOR) shall exercise supervision and regulation over the operation and 
conduct of offsite betting on locally authorized and remotely broadcast cockfighting 
matches and their activities in order to promote and maintain, orderly, honest and fair 
conduct of activities, provide protection to the betting public and patrons and ensure that 
offsite betting on locally authorized and remotely broadcast cockfighting matches and 
similar activities as authorized under this franchise shall remain a stable base for revenue 
generation.   
 
SEC. 5. Permits with the local government units. – The grantee shall secure from 
local government units and such other relevant government agencies the necessary licenses 
and other permits for the construction, establishment, operation and maintenance of its on-
cockpit and off-cockpit betting stations. 
 
Provided, that the process for such permits and licenses shall be subject to the 
provisions of Republic Act No. 9485, or Anti-Red Tape Act of 2007, as amended by the 
Republic Act No. 11032, or the Ease of Doing Business Law 
 
SEC. 6. 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. 
 
To ensure that activities authorized under this franchise are conducted in an orderly, 
clean and honest manner, 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. 
 
The Philippine Amusement and Gaming Corporation shall issue guidelines as to 
the fairness and effectiveness of cockfights, derbies, and other activities authorized under 
this franchise. 
 
SEC. 7. Offering, Taking or Arranging Bets for Cockfighting Events or Derbies. – 
The grantee or its duly authorized agent may offer, take or arrange bets for cockfighting, 
derbies, and other similar 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. 8. 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, be they physical or virtual tickets. 
 
 
CHAPTER III 
TAXATION AND REVENUE MONITORING AND INTEGRITY 
 
SEC. 9. Taxation. – There shall be levied, assessed, and collected on the grantee a 
tax equivalent to five percent (5%) based on gross gaming receipts derived from activities 
authorized under this franchise: Provided, that ‘gross gaming receipts’ embraces all the 
receipts including income derived from ‘plasada’ or net commission from activities 
authorized by this franchise, net of agents’ commissions and marketing expenses: Provided 
further, that such revenues shall be directly remitted to the Bureau of Internal Revenue 
(BIR): Provided furthermore, that such tax shall not be in lieu of local government taxes 
and regulatory fees and charges applicable to such activities: Provided finally, that all other 


activities of the grantee whose authorization does not derive from this franchise shall be 
subject to applicable taxes under the National Internal Revenue Code, as amended, and 
other applicable local and national laws, and that the fiscal regime provided under this 
Section does not extend to agents and all other distinct and separate persons or entities 
whose activities are ancillary to those of the grantee. 
 
SEC. 10. Revenue monitoring. – The Bureau of Internal Revenue (BIR) shall have 
the authority to inspect totalizators and other gambling devices used in the collection, 
consolidation, and recording of wagers made in offsite betting activities on locally licensed 
games. 
 
The Philippine Amusement and Gaming Corporation (PAGCOR) and the BIR shall 
establish a system of exchange of information with regards to the monitoring of revenues 
of the grantee.  
 
SEC. 11. Monitoring through financial institutions. – To discourage transactions in 
bulk cash, to ensure that the grantee’s cash inflows remain available for use in the economy, 
and to allow the financial system regulators to monitor cash flows of the grantee, in the 
interest of revenue integrity protection, the grantee shall, as far as practicable, make use of 
Bangko Sentral ng Pilipinas -Supervised Financial Institutions (BSFIs) in its transactions. 
 
The Bangko Sentral ng Pilipinas (BSP) shall issue a compliance checklist of 
minimum requirements that the grantee must present to BSFIs when availing of their 
services, as well as other guidelines to assist BSFIs discriminate between authorized and 
unauthorized operators and agents, and to ensure that cash flows of the grantee can be kept 
within regulated financial institutions.  
 
SEC. 12. Regulatory fee. – The Philippine Amusement and Gaming Corporation 
(PAGCOR) may impose a regulatory fee of twelve thousand five hundred pesos 
(P12,500.00) per cockfighting match broadcast by the grantee, or one hundred twenty 
million pesos (P120,000,000.00) for every month of the grantee’s operations, whichever is 
higher. 
 
CHAPTER IV 
OTHER PROVISIONS 
 
SEC. 13. Penalties. – 
 
(a) Violation of provisions on operations. – Any person or entity found to have 
violated the provisions of Sections 1, 2, 3, 6, 7, and 8 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 determination 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. 


 
(b) Violation of tax provision. – Any person or entity who willfully attempts in any 
manner to evade or defeat any tax imposed under this franchise or the payment thereof 
shall, in addition to other penalties provided by law, upon conviction thereof, be punished 
with a fine of not less than Five hundred thousand pesos (P500,000) but not more than Ten 
million pesos (P10,000,000), and imprisonment of not less than six (6) years but not more 
than ten (10) years: Provided, That the conviction or acquittal obtained under this Section 
shall not be a bar to the filing of a civil suit for the collection of taxes. Provided further, 
that the civil suit for the collection of such taxes shall be subject to applicable provisions 
of Title VIII of the National Internal Revenue Code, as amended. 
 
Nothing in this Act shall be construed as to prevent the grantee from seeking 
damages from any liable person or corporation for the unauthorized use of the privileges 
of this franchise. 
 
SEC. 14. 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. 15. 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. 16. Acceptance and Compliance. – Acceptance of this franchise shall be 
given in writing to the Congress within one (1) year after the effectivity of this Act. Upon 
giving such acceptance, the grantee shall exercise the privileges granted under this Act. 
Non-acceptance shall render the franchise void. 
 
SEC. 17. 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. 18. 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. 


Provided finally¸ that the conduct of activities or the exercise of any advantage, favor, 
privilege, exemption, or immunity granted covered under this franchise shall similarly 
require the grant of a legislative franchise. 
 
SEC. 19. 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. 20. 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. 
 
Approved,