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Republic of the Philippines
HOUSE OF REPRESENTATIVES \\~
Quezon City

Second Regular Session
EIGHTEENTH CONGRESS

House Bill No.__ 7936

Introduced by Rep. Manuel “Way Kurat” E. Zamora

EXPLANATORY NOTE

Cockfighting or “sabong” is a traditional recreational activity
long-entrenched in Filipino culture, and considered as part of national
heritage. Being recognized as part of Filipino culture, laws have been
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 evolved: from traditional pit
fighting, it is now following the trends of online casinos, electronic
games, and online sports betting, and “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 such, the game of
cockfighting promises to be 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 but proper, which shall include
tax provisions, its terms and scope, and providing the regulating
authority of the Games and Amusement Board (GAB) over the
franchise.


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Moreover, in Department of Justice (DOJ) Opinion No. 25
Series of 2006, the DOJ stated that the proposed operation of “Tele-
Sabong” 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. The proper authority over tele-
sabong thusly should be conferred by the legislature.

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

MANUE) AY K ” E. ZAMORA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Second Regular Session
EIGHTEENTH CONGRESS

House Bill No.__7938

Introduced by Rep. Manuel “Way Kurat” E. Zamora

AN ACT GRANTING ROOSTER GAMING
INCORPORATED A FRANCHISE TO BROADCAST LIVE
AND DATA-STREAMED COCKFIGHTING ACTIVITIES AND
DERBIES, THROUGH ONLINE OR OTHER ANALOGOUS
MEANS, ANYWHERE IN THE PHILIPPINES

Be it enacted by th fe and the House of Representatives of the

Philippines in Congress assembled:

SECTION 1. Name and Scope of Franchise. — Subject to the
provisions of the Constitution and the applicable laws, rules and
regulations, there is hereby granted to Rooster Gaming Corporation,
hereunder referred to as grantee, its successors or assignees, a
franchise to broadcast live and data-streamed cockfighting activities
and derbies, through cable, satellite, internet livestreaming, on-line or
other analogous technologies, similar or modern means, held at the
duly licensed cockpit arenas 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.

SECTION 2. Authority of the Local Government Unit. - The
establishment of off-cockpit betting stations anywhere in the country
shall be subject to the approval or consent of the local government
units where the off-cockpit betting station shall be established, and in


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case of a municipality or component city, approval or consent of the
provincial government shall likewise be established. 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.

SECTION 3. Authority of the Games and Amusement Board. —
The cockfighting events and the data streamed cockfighting activities
and derbies to be conducted by the grantee shall be under the
supervision and regulation of the Games Amusement Board (GAB),
which shall enforce the laws, rules and regulations governing
cockfighting events.

SECTION 4. 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.

SECTION 5. Use of Computerized, Electrical and/or
Mechanical Devices, Equipment and Facilities. — The grantee 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, and, in particular, to provide and operate any
mechanical, electrical and/or computerized devices, equipment and
facilities, including the following:

(a) Electric and/or computerized totalizator;

(b) Machines directly connected to a computer in a display
board for the sale of betting tickets including those sold in off-cockpit
betting stations;

(c) Modern sound system and loudspeaker facilities;

(d) Modern telecommunications and broadcast 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



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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 to the public; and

(f) Such other facilities, devices and instruments that will
ensure clean, honest and orderly betting on cockfighting events.

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.

SECTION 6. 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 a duly-licensed
cockpit arenas 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, a day in advance of and/or
during the schedule cockfights held or conducted within the
Philippines. 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.

SECTION 7. 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 an 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.


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SECTION 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.

SECTION 9. Tax Provision. — In consideration of the franchise
and rights herein granted, the grantee, its successors and/or assignees
shall pay to the national government 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.

SECTION 10. 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 hereunder 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 approval of the
Congress of the Philippines. Congress shall be informed 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.

SECTION 11. 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,
liabilities, demands or actions arising out of accidents causing injury
to persons or damage to properties during the construction or
operation of the off-cockpit betting station of the grantee.


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SECTION 12. 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 shall
render the franchise void.

SECTION 13. 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 and/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 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 GAB.

SECTION 14. 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 non-compliance. The
fine shall be collected by the GAB from the delinquent franchise
grantee separate from the reportorial penalties imposed by the GAB, if
any, and shall be remitted to the Bureau of the Treasury.

SECTION 15. Equality Clause. — Any advantage, favor,
privilege, exemption or immunity granted under existing franchises,
or which may hereafter be granted, 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,
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


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foregoing shall neither apply to nor affect the provisions concerning
territory covered by the franchise and the life span of the franchise.

SECTION 16. Separability Clause. If any of the sections or
provisions of this Act is held invalid, all other provisions not affected
thereby shall remain valid.

SECTION 17. Repealing and Non-Exclusivity Clause. — All
laws, decrees, orders, resolutions, instructions, rules and regulations,
and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified
accordingly. 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.

SECTION 18. Effectivity. — This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in a newspaper
of general circulation in the Philippines.

Approved,