Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
___________________________________________________________________________ 
Introduced by REPRESENTATIVE ARNOLFO A. TEVES 
___________________________________________________________________________ 
AN ACT 
GRANTING VISAYAS COCKERS CLUB, INC. A FRANCHISE TO OPERATE 
OFFSITE BETTING ACTIVITIES ON DULY-LICENSED COCKFIGHTING 
EVENTS, AND OTHER SIMILAR ACTIVITIES THROUGH ELECTRONIC, ON-
LINE, MOBILE OR OTHER SIMILAR MODERN MEANS, ANYWHERE IN THE 
PHILIPPINES 
EXPLANATORY NOTE 
Cockfighting and its corresponding bet taking activities has evolved through time, 
that one doesn’t have to be personally present in the cockpit to bet on his rooster or of 
someone else’s. This modern way of betting saves time, and one can be more 
productive while still enjoying his passion for cockfighting. 
Philippine Amusement and Gaming Corporation (PAGCOR) recently issued permits 
for e-sabong providers to stream live cockfighting events through mobile or electronic 
means. Apart from betting through mobile phones or other electronic means, Offsite 
Cockpit Betting Stations (OCBS) can be used, 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.  
September 14, 2021
12:52 pm
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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, operation, and maintenance of cockpits, and regulate cockfighting and 
commercial breeding of gamecocks. 
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. 
ARNOLFO A. TEVES, JR. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _________ 
___________________________________________________________________________ 
Introduced by REPRESENTATIVE ARNOLFO A. TEVES 
___________________________________________________________________________ 
AN ACT  
GRANTING VISAYAS COCKERS CLUB, INC. A FRANCHISE TO OPERATE 
OFFSITE BETTING ACTIVITIES ON DULY-LICENSED COCKFIGHTING 
EVENTS, AND OTHER SIMILAR ACTIVITIES THROUGH ELECTRONIC, 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 
VISAYAS COCKERS CLUB, 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 
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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.  
 
Provided further, That the cockfighting activities broadcasted 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 broadcasted 
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 reasonable regulatory fee of Three thousand pesos (Php 
3,000.00) per cockfighting match broadcasted by the grantee, or Twenty Million pesos 
(Php 20,000,000.00) 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 (Php 20,000.00) but not more than One hundred 
thousand pesos (Php 100,000.00) 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 
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,