Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Eighteenth Congress 
Third Regular Session 
HOUSE BILL NO. _____ 
Introduced by Rep. Jose “Bonito” C. Singson, Jr. 
EXPLANATORY NOTE 
As early as 1867, horse racing has been practiced in the Philippines. Since then, 
it has been a popular sport and recreational activity. 
Due to its immense popularity, horse racing has not only been a source of 
revenue for the national and local governments through the years, it has also created 
jobs and livelihood for the horse racing community and provided much-needed funds 
for charitable entities and causes. 
While recent years have seen a decline in horse racing in the Philippines, it 
remains a lucrative industry. The Philippine Racing Commission expects sales to 
reach P2.8 billion to P3.2 billion for 2021 and P5 billion for 2022. 
The participation of Luzon Racetrack Inc. in the horse racing industry of the 
Philippines will serve at least two (2) essential purposes. First, it will revitalize the 
horse racing community and expand opportunities for employment and additional 
revenues. Second, it contributes to the continued growth of horse racing in the 
country, ultimately resulting in the development of related industries. 
This bill seeks to grant a legislative franchise to Luzon Racetrack Inc. to 
construct, operate, and maintain racetracks anywhere in the Philippines for the 
conduct of horse racing in the Philippines. 
In view of the foregoing, the approval of this bill is earnestly sought. 
HON. JOSE “BONITO” C. SINGSON JR. 
Probinsyano Ako Partylist 
September 27, 2021
1:40 pm
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  Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Eighteenth Congress 
Third Regular Session 
HOUSE BILL NO. _____ 
Introduced by Rep. Jose “Bonito” C. Singson, Jr. 
AN ACT GRANTING THE LUZON RACE TRACK INC., A FRANCHISE TO 
CONSTRUCT, OPERATE AND MAINTAIN RACE TRACKS, AND CONDUCT 
RELATED ACTIVITIES FOR HORSE RACING ANYWHERE IN THE 
PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Nature and Scope of Franchise. – Subject to the provisions of the 
Constitution and applicable laws, rules and regulations, there is hereby granted to the 
Luzon Race Track, Inc., hereunder referred to as the grantee, its successor or assignees, 
a franchise to a) construct, operate, and maintain a racetrack anywhere in the 
Philippines, b.) establish branches thereof for booking purposes anywhere in the 
country, c.) hold and/or conduct horse race competitions and such other contests 
directly or indirectly related to horse racing activities d.) manage and receive bets on 
the results of such horse races and other related contests and e) do and carry out all 
such acts, deeds, and activities as may be necessary to give effect to the foregoing. 
Sec. 2. Authority of the Philippine Racing Commission and the Games and Amusement 
Board. – The races to be conducted by the grantee shall be under the supervision and 
regulation of the Philippine Racing Commission (PHILRACOM), which shall enforce 
the laws, rules and regulations governing horse racing, including the framing and 
scheduling of races, the construction and safety of racetracks, the allocation of prizes 
for winning horses, and the security of racing as provided in Presidential Decree No. 
420, otherwise known as “Creating the Philippine Racing Commission”, as amended: 
Provided, That the Games and Amusements Board (GAB) shall continue to supervise 
and regulate betting in horse races as provided in Sections 6, 11, 15, 17 of Republic Act 
No. 309, otherwise known as “An Act to Regulate Horse-Racing in the Philippines”, 
as amended. 
Sec. 3. Term of Franchise. – This franchise shall be in effect for a period of twenty-
five (25) years from the date of the effectivity of this Act, unless sooner cancelled. This 
franchise shall be deemed ipso facto revoked in the event that the grantee fails to 
comply with any of the following conditions: 
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(a) Commencement of operations within three (3) years from the approval of 
its operating permit by the PHILRACOM; 
(b) Commencement of operations within five (5) years from the effectivity of 
this Act; and 
(c) Continuous operation of two (2) years. 
Sec. 4. Renewal or Extension of Franchise. – The grantee shall apply for the 
renewal or extension of its franchise three (3) years before its expiration which shall 
be reckoned from fifteen (15) days after the publication of the franchise in the Official 
Gazette or in a newspaper of general circulation, whichever comes earlier. 
Sec. 5. Conduct of Horse Races and Other Related Contests/ Activities.- The grantee 
and its agents and representatives is duly authorized to hold and/or conduct horse 
race competitions and such other contests directly or indirectly related to horse racing 
activities within the race track subject of this franchise. The grantee, its agents and 
representatives, are free to create and develop rules and mechanisms, subject to 
internationally accepted rules on horse racing and with the endorsement of the 
Philippine Racing Commission, aimed to make the horse races safe, secure, more 
dynamic, inclusive, varied and enticing to the viewers. Other contests related to horse 
racing may likewise be created, developed, and conducted by the grantee, its agents, 
and representatives. 
Sec. 6. Broadcast, Livestream, Telecast of Horse Races and Other Related 
Contests/Activities. The grantee, its agents and representatives are authorized to 
broadcast, livestream, or telecast, within the Philippines or anywhere abroad, all horse 
race competitions and such other related contests held and conducted within its 
racetrack. 
In case of broadcasting abroad, this may be made through sale of the content for a 
fixed fee or by offering, taking or arranging bets pursuant to Sec. 7 of this franchise. 
Should the case be the former, the 5% franchise fee on the gross sales for the content 
shall be applied. 
Authority is likewise granted to broadcast, livestream, telecast horse races as well as 
related activities held and conducted abroad, brought in the country for Philippine 
viewing. 
Broadcasting, livestreaming and telecasting may be made and done through television 
or web-based sites, applications or social media portals using modern technology 
solutions or equipment, such as but not limited to computers, iPad, cellphones and 
such are equipment which may be later invented for the same purpose. 
Sec. 7. Offering, Taking or Arranging Bets for Races and Other Related Contests. – 
The grantee or its duly authorized agent may offer, manage, take, receive or arrange 
bets for races conducted within or outside the Philippines, in person or by any 
electronic or other means of processing transactions, anywhere in the Philippines and 
abroad, whether within or outside the place, enclosure, or track where horse races are 
held, at an on-track or off-track betting stations, or received through web-based 
betting platforms through deposits or money transfer from BSP accredited bank or 


non-bank financial institutions, a day in advance of and/or during scheduled races 
held or conducted within or outside the Philippines. No other entity or person other 
than the grantee or its duly authorized agents or licensees shall offer, take or arrange 
bets on any horse participating in any race conducted by the same, or maintain or use 
a totalizator or other device, method or system to bet on any horse within its premises 
or outside the place, enclosure or track in the course of horse races conducted and/or 
operated by the grantee. 
The grantee may create, develop and manage viewing and betting mechanisms 
through available modern technology, such as but not limited to development of 
machines, equipment and other modern hardwares, web-based platforms, solutions 
or software. 
Sec. 8. Penalties. – Any person or persons found to have violated the provisions 
of the preceding section shall be punished by a fine of not less than Twenty thousand 
pesos (PhP 20,000.00) but not more than One hundred thousand pesos (PhP 
100,000.00), or by imprisonment of not more than six (6) months, or both, at the 
discretion of the court. If the offender is a partnership, corporation, or association, the 
criminal liability shall devolve upon its president, managing partner or manager 
responsible for the violation. 
Sec. 9. Use of Computerized, Electronic and Mechanical Devices. – The grantee is 
hereby authorized to do and carry out all such acts, deeds and activities as may be 
necessary for the effective conduct of the business granted under this franchise in an 
orderly, clean and honest manner, and, in particular, to provide and operate any 
mechanical, electrical, electronic or computerized devices, equipment and facilities, 
including the following: 
(a) Photo patrol and other electronic devices or cameras; 
(b) Automatic starter; 
(c) Electrical, electronic and computerized totalizator; 
(d) Photo finish devices; 
(e) Machines directly connected to a computer in a display board for the sale of 
tickets including those sold from off-track stations; 
(f) Facilities or devices for tattoo branding of horses for their proper 
identification; 
(g) Facilities, laboratories and instruments for testing for drugs; 
(h) Weighing machines and devices for measurement of horses; 
(i) Modern sound systems and loud speaker facilities; 
(j) Facilities that will bring safety, security, comfort and convenience to the 
public; 


(k) Modern telecommunications and broadcast equipment and facilities, 
whether at the grantee’s tracks or off-track betting stations, and including web-
based platforms and solutions, for receiving and transmitting, whether live or 
otherwise, messages, signals and pictures or videos 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 horse races, the announcements of winning numbers and dividends paid or 
to be paid thereon, and any other information relating to the conduct and 
promotion of horse races within or outside the Philippines; 
(l) Continuous and back-up power supply, and such other instruments, 
devices, equipment, facilities and systems; and 
(m) Such other facilities, devices or instruments that will ensure clean, honest 
racing, betting on horse races or derivative games. 
The GAB shall assign its auditors and inspectors to supervise and regulate the placing 
of bets, the proper computation of dividends and the distribution of wager funds. 
Sec. 9. 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. 10. Distribution of Total Wager Funds or Gross Receipts. – The total wager 
funds or gross receipts from the sales of betting tickets shall be apportioned as follows: 
(a) Eighty-two percent (82%) shall be distributed in the form of dividends 
among the holders of winning tickets whether from pari-mutuel, daily double, 
forecast, llave, quinella, trifecta, exotics or any other manner of betting; 
(b) Eight and one-half percent (8.5%) shall be retained by the grantee as its 
commission or fee for conducting the horse races; 
(c) Eight and one-half percent (8.5%) shall be set aside for the payment of stakes 
or prizes of win, place and show horses and the authorized bonuses for jockeys; 
(d) One-half percent (0.5%) shall be set aside for the use of the PHILRACOM: 
Provided, That in the case of gross receipts derived from the sale for pari-
mutuel cases, the one-half percent (0.5%) government share shall be set aside 
for use of the GAB, to be shared equally with the Jockeys and Horse Trainers’ 
Injury, Disability and Death Compensation Fund created under Republic Act 
No. 309, as amended; and 
(e) One-half percent (0.5%) shall be set aside for the operation of drug testing 
facilities for personnel, jockeys, trainers and horses and rehabilitation of the 
racing facilities of the grantee. 
 


Sec. 11. Breakage. – The receipts from betting corresponding to the fractions of 
less than Ten centavos (P0.10) eliminated from the dividends paid to the winning 
ticket, commonly known as breakage, shall be set aside as follows: 
(a) Fifty percent (50%) to be used by the PHILRACOM exclusively for the 
payment of additional prizes for races that it sponsors, and for the necessary 
capital outlay and expenditures relative to the horse breeding activities of the 
National Stud Farm; 
(b) Twenty-five (25%) to the city or municipal hospitals where the race track is 
located; and 
(c) Twenty-five (25%) to augment the funding for the  establishment, 
maintenance,and operation of drug rehabilitation centers in the country, as 
provided inRepublic Act No. 9165, otherwise known as the Comprehensive 
Dangerous Drugs Act of 2002, as amended. 
 
Sec. 12. Schedule of Races. – The provision of any existing law to the contrary 
notwithstanding, the grantee is hereby authorized to hold horse races on at least two 
(2) days during the week as may be determined by the PHILRACOM, and on all 
Saturdays, Sundays and official holidays of the year, except on those official holidays 
where the law expressly provides that no horse races are to be held. The grantee may 
also conduct races on the eve of any public holiday to start not earlier than five-thirty 
in the afternoon, but not to exceed five (5) days a year. The grantee shall allocated 
racing days pursuant to the provisions of Republic Act No. 309, as amended. 
Sec. 13. Tax Provisions. – The provision of existing laws to the contrary 
notwithstanding, the following taxes shall be imposed: 
(a) The grantee, its successors or assignees shall pay and/or remit: 
1) Documentary Stamp Tax. – On each horse race ticket, there 
shall be collected a documentary stamp tax of Ten centavos 
(P0.10): Provided, That if the cost of the ticket exceeds One peso 
(P1.00), an additional tax of Ten centavos (P0.10) on every One 
peso (P1.00) or fractional part thereof shall be collected. 
2) Franchise Tax. – The grantee, its successors or assignees, shall 
be liable to pay the same taxes on their real estate, buildings and 
personal property, exclusive of this franchise, as other persons or 
corporations are now or hereafter may be required by law to pay. 
In addition thereto, the grantee, its successors or assignees, shall 
pay a franchise tax equal to five percent (5%) of its gross earnings 
from the horse races authorized under this franchise which is 
equivalent to the eight and one-half percent (8 ½%) of the total 
wager funds or gross receipts on the sale of betting tickets during 
the race days as mentioned in Section 11 hereof, allotted as 
follows: 


 
i. One and a half percent (1 ½%) for the national government; 
ii. Two percent (2%) for the province or city/municipality where 
the racetrack is located; and 
iii. One and a half percent (1 ½%) for the benefit of health workers 
of the municipal hospital where the racetrack is located. 
The said taxes shall be paid monthly and shall be in lieu of any and all 
taxes of any kind, nature and description levied except the income tax, 
established or collected by any authority whether barangay, municipal, 
city, provincial or national, on its properties, whether real or personal, 
from which taxes the grantee is hereby expressly exempted. 
The grantee shall file the return with and pay the taxes due thereon to 
the Commissioner of Internal Revenue or his duly authorized 
representatives in accordance with the National Internal Revenue Code, 
as amended, and the return shall be subject to audit by the Bureau of 
Internal Revenue. 
 
(b) Taxes on Winnings. – Every person who wins in horse racing shall pay a tax 
equivalent to ten percent (10%) of his winnings or dividends, the tax to be based 
on the actual amount paid to him for every winning ticket after deducting the 
cost of the ticket: Provided, That in the case of winnings from double, 
forecast/quinella and trifecta bets, the tax shall be four percent (4%), and in the 
case of winning race horses, the tax shall be ten percent (10%) of the prize: 
Provided, further, That winnings amounting to Ten thousand pesos (P10,000) 
or less shall be exempt. 
The taxes herein prescribed shall be deducted from the dividends 
corresponding to each winning ticket or the prize of each winning race horse 
owner and withheld by the operator, manager or person in charge of the horse 
races before paying the dividends or prizes to the persons entitled thereto. 
The operator, manager or person in charge of horse races shall, within twenty 
(20) days from the date the tax was deducted and withheld in accordance with 
the preceding paragraph, file a true and correct return with the Commissioner 
of Internal Revenue in the manner or form prescribed by the Secretary of 
Finance, and pay within the same period the total amount of tax so deducted 
and withheld. 
Sec. 14. Warranty in Favor of the National and Local Governments. – The grantee 
shall hold the national, provincial, city, and municipal governments of the Philippines 
free from all claims, liabilities, demands or actions arising out of accidents causing 
injury to persons or damage to properties, during the construction or operation of the 
racetrack of the grantee. 


Sec. 15. Dispersal of Ownership. – The grantee shall offer at least thirty percent 
(30%) of its common stocks, or a higher percentage that may hereafter be provided by 
law, in any securities exchange in the Philippines within five (5) years from the 
effectivity of this Act: Provided, That in cases where public offer of shares is not 
applicable, other methods of encouraging public participation by citizens and 
corporations must be implemented. Noncompliance therewith shall render the 
franchise ipso facto revoked. 
Sec. 16. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. – The 
grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or 
the rights and privileges acquired thereunder to any person, firm, company, 
corporation, or other commercial or legal entity, nor merge with any other corporation 
or entity, nor the controlling interest of the grantee be transferred, simultaneously or 
contemporaneously, to any person, firm, company, corporation, or entity without the 
prior approval of Congress. The grantee shall inform Congress of any sale, lease, 
transfer, grant of usufruct, or assignment of franchise or the rights and privileges 
acquired thereunder, or of the merger or transfer of the controlling interest of the 
grantee, within sixty (60) days after the completion of the said transaction. Failure to 
report to Congress such change of ownership shall render the franchise ipso facto 
revoked. 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. 
Sec. 17. Reportorial Requirement. – The grantee shall submit an annual report to 
the Congress of the Philippines, through the Committee on Legislative Franchises of 
the House of Representatives and the Committee on Public Services of the Senate, on 
its compliance with the terms and conditions of the franchise and on its operations on 
or before April 30 of every year during the term of its franchise. 
The annual report shall include an update on the roll-out, development, operation or 
expansion of business, audited financial statements; latest General Information Sheet 
officially submitted to the Securities and Exchange Commission, if applicable, and 
certification of the PHILRACOM and the GAB on the status of its permits and 
operations. 
The reportorial compliance certificate issued by Congress shall be required before any 
application for permit or certificate is accepted by the PHILRACOM and the GAB. 
Sec. 18. Fine. – Failure of the grantee to submit the requisite annual report to 
Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working 
day of noncompliance. The fine shall be collected by the PHILRACOM form the 
delinquent franchise grantee separate from the reportorial penalties imposed by the 
PHILRACOM, if any, and the same shall be remitted to the Bureau of the Treasury. 
Sec. 19. Equality Clause. – Any advantage, favor, privilege, exemption, or 
immunity granted under existing franchises, or which may hereafter be granted for 
horse racing, upon prior review and approval of Congress, shall become part of this 
franchise and shall be accorded immediately and unconditionally to the herein 
grantee: Provided, That the foregoing shall neither apply to nor affect the provisions 
of horse racing franchises concerning territorial coverage, the term, or the type of 
service authorized by the franchise. 


Sec. 20. Repealability and Nonexclusivity 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. 20. 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. 21. Repealing Clause. – All laws, acts, decrees, executive orders, issuances, 
and rules and regulations or parts thereof which are contrary to and inconsistent with 
this Act are hereby repealed, amended or modified accordingly. 
Sec. 22. Effectivity. – This Act shall take effect fifteen (15) days following its 
complete publication in two (2) newspapers of general circulation or in the Official 
Gazette. 
 
Approved.