Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7368

HOUSE BILL NO.

Introduced by HON. ROY M. LOYOLA

EXPLANATORY NOTE

Cockfighting, or “sabong” in the local parlance,is a traditional recreational
activity that is deeply rooted in Filipino culture that it is considered a national
heritage. Cockfighting has permeated Filipino culture that laws were passed to
control and regulate the same. In fact, the Cockfighting Law of 1974 recognized
cockfighting as “a popular, traditional and customary form of recreation and
entertainment among Filipinos.”

Over the years, cockfighting has evolved into an industry which comprises
breeders from all over the country, and manufacturers of game fowl feed, medicine,
and vitamin supplements, among others.

Accordingly, the game of cockfighting presents a viable source of government
revenue and livelihood for Filipinos. This proposed bill seeks to harness the full
potential of cockfighting as a vital revenue stream to finance priority projects of the
National Government and the Local Government Units. The Electronic Commerce
Act of 2000 and advances in technology will bring cockfighting in the country to the
next level.



Republic of the Filipinos
HOUSE OF
Quezon City, Metro Mania

SEVENTEENTH CONGRESS
Second Regular Session

7368

House Bill No.

Introduced by Honorable Roy M. Loyola

AN ACT GRANTING MANILA COCKERS CLUB, INC.,

A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN COCKPIT
ARENAS IN THE PROVINCES OF CAVITE, LAGUNA, OR BATANGAS; AND
TO ESTABLISH, OPERATE, AND MAINTAIN OFF-COCKPIT BETTING
STATIONS THROUGHOUT THE PHILIPPINES

SECTION 1. Nature and Scope of Franchise. - Any provision of law to the contrary
notwithstanding, there is hereby granted to Manila Cockers Club, Inc., a corporation
duly organized and registered under the laws of the Philippines, hereinafter referred
to as the Grantee, its successors or assigns, a franchise to perform the following:

a. Construct, maintain, and operate cockpit arenas in any place within the
provinces of Cavite, Laguna, or Batangas;

b. Stream via online and/or broadcast thru cable or satellite television, the
10 cockfights held at the duly licensed cockpit arenas;

12 _c. Establish, operate, and maintain off-cockpit betting stations throughout the

3 Philippines, provided, that these off-cockpit betting stations shall secure a
14 business permit from the local government unit where they operate;

15

16d. Hold or conduct cockfights with bettings on the results of cockfights either
v7 directly or by means of any mechanical, electronic, digital, wireless, mobile
18 and/or computerized totalizator; and

20 e._ Carry outalll such acts, deeds and things as may be necessary to give effect to
a the foregoing authority.

23 SECTION 2. Authority of the Local Government Unit (LGU). - Th
24 the cockfights to be conducted by the Grantee shall be under the supervision and


regulation of the LGU where the cockpit arena is located. It shall promulgate and
enforce the laws, rules and regulations governing cockfighting, including the
following:

a. Schedule and betting of cockfights and allocation of prizes for winning
gamecocks;

b. __ Ensure that the Grantee uses a totalizator system to record the bets,
and compute the odds and dividends;

c. Appoint auditors/ inspectors to supervise and verify the accuracy of
reports of the Grantee with respect to the totalizator receipt and total
amount of wagers made on each cockfight event, the dividends and
payouts, and other computations;

d. _ Inspect books, records and accounts of Grantee; and

e. License cockpit officials and personnel.

SECTION 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.

SECTION 4. Offering, Taking or Arranging Bets for Cockfighting. - The Grantee or its
duly authorized agent or licensee may offer, take or arrange bets for cockfights
conducted in its duly-licensed cockpit arena(s), in person or by any other means of
communication and processing of transactions, including but not limited to,
telephone, fax, internet, or any other online, electronic, digital, wireless or other
technology, including smart phones, tablets, and similar devices, or thru other
related platforms or mediums which may be created or utilized in the future that
will facilitate the placement, receipt, and acceptance of bets, within or outside the
Philippines, within or outside the cockpit arena including off-cockpit betting
stations, a day in advance of and/or during scheduled cockfights. No other entity or
person other than the Grantee or its duly authorized agents or licensees shall offer,
take or arrange bets in any cockfight conducted by the Grantee, or maintain or use a
totalizator or any other device, method or system to bet on any cockfight held or
conducted by the Grantee.

SECTION 5. Penalties. - Any person or persons found to have violated the
aforementioned section shall be punished by a fine of not less than Twenty
Thousand Pesos (220,000.00) but not more than One Hundred Thousand Pesos
(100,000.00) or by imprisonment of a minimum of six (6) months and a maximum.
of one (1) 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.


SECTION 6. Computerized, Electronic and/or Mechanical Devices, Equipment and
Facilities. - 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 conduct of cockfights, the Grantee shall, in particular, provide and operate
computerized, digital, wireless, electronic and/or mechanical devices, equipment
and facilities, including but not limited to:

(a) Photo and Video cameras;

(b) Weighing machines and devices for measurement of gamecocks;

(0) Facilities or devices for branding of gamecocks for proper identification;

(A) Facilities, laboratories and instruments for testing for drugs;

(e) Betting Terminals located at the off-cockpit betting stations;

(® Desktop computers, Laptops, Smart Phones, Tablets, and other
communication devices;

(g) Modem/routers;

(h) Computerized and/or electronic totalizator;

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

(j) Modern sound system and loud speaker facilities;

(k) Modern telecommunications, audio/video/data streaming and broadcasting
equipment and facilities, whether at the Grantee's duly authorized cockpit
arena or off-cockpit betting stations, for receiving and transmitting,
whether live or otherwise, any and all data, messages, signals, pictures,
and videos by any means now known or which in the future may be
developed for the reception and transmission of any and all data,
messages, signals, pictures, and videos relating to the betting system on
cockfights, the actual conduct of the cockfights, the announcement of
winners and dividends paid or to be paid thereon, and any other form of

information relating to the conduct and promotion of cockfights within or
outside the Philippines;

() Continuous and back-up power supply, and such other related instruments,
devices, equipment, facilities, and system;


(m) Facilities that will bring safety, security, comfort and convenience to the
public; and

(n) Such other devices, equipment and facilities that will ensure clean, orderly
and honest cockfights and betting on cockfights,

within one (1) year from the effectivity of this Act. In case of failure to provide and
install any of the abovementioned devices, equipment or facilities within the
aforementioned one-year period, the relevant LGU having territorial jurisdiction
over the cockpit arena or off-cockpit betting stations shall forthwith suspend and
prohibit the holding and conduct of cockfights by the Grantee until such time as the
said devices, equipment or facilities are provided installed.

SECTION 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.

SECTION 8. Commissions for the conduct of cockfights. - The Grantee shall be entitled
to retain a maximum commission of seven and a half percent (7.5%) from all win
bets in cockfights conducted by the Grantee, provided, that in case of daily double, pic
4, pic 5, winner take all, karambola, and other exotic bets, the Grantee shall be
entitled to retain a commission of ten percent (10%) from all bets.

SECTION 9. Breakage. - The receipts from betting corresponding to the fraction of
less than Ten centavos (P0.10) eliminated from the dividends paid to the winning
tickets (hereinafter, the “Breakage”), shall be set aside as follows:

(a) Fifty percent (50%) for the benefit of the local government hospital in the LGU
where the cockpit arena is located and where the cockfights are held; and

(b) Fifty percent (50%) to fund the establishment and operation of a drug
rehabilitation facility in the LGU where the cockpit arena islocated and where
the cockfights are held. In the absence of a drug rehabilitation facility in the
LGU, the breakages shall be for the benefit of an educational institution or
educational projects of programs located in the LGU where the cockpit arena
islocated and where the cockfights are held.

SECTION 10.Tax Provision. - The Grantee, its successors or assigns, shall pay a
franchise tax equivalent to five percent (5%) of the gross revenues derived by the
Grantee from its cockfighting operations to be remitted to the national government.
The Grantee shall further pay a municipal business tax not exceeding three percent
(8%) of the gross revenues of the Grantee from its cockfighting operations to be
remitted to the LGU where the cockpit arena is located and where the cockfights are
held.


The franchise tax and municipal business tax prescribed herein shall be in lieu of any
and all taxes including income tax, duties, fees and charges of any kind, nature or
description levied, established or collected by any authority whatsoever, including
but not limited to, city, municipal, provincial or national, from which the Grantee is
hereby expressly exempted from the date of the effectivity of this Act.

SECTION 11.Equality of Treatment in Cockfighting. - Any advantage, favor, privilege,
exemption or immunity granted under existing franchises, or may hereafter be
granted, shall ipso facto become part of previously granted cockfighting franchises
and shall be accorded immediately and unconditionally to the Grantees of such
franchises: Provided, however, That the foregoing shall neither apply to nor affect
provisions of cockfighting franchises on the following: (i) nature and scope of
franchise, and (ii) term of the franchises.

SECTION 12. Non-Transferability of Franchise - The Grantee shall not sell, lease,
transfer, assign, grant the usufruct of, or otherwise dispose of, this franchise, or the
rights and privileges acquired thereunder, to any person, corporation, partnership,
association or other commercial or legal entity, nor merge with any other
corporation or entity organized for the same purpose without the prior 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.

SECTION 13.Warranty in Favor of National and Local Governments. - The Grantee shall
hold the national, provincial and municipal governments of the Philippines free and
harmless from all claims, accounts, demands or actions arising out of accidents or
injuries, whether to property or to persons, caused by the establishment or operation
of the off-cockpit betting stations of the Grantee.

SECTION 14.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.

SECTION 15. 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.

SECTION 16. 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.

SECTION 17.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.


SECTION 18. Effectivity. - This Act shall take effect fifteen (15) days from the date of
its publication in at least two (2) newspapers of general circulation.

Approved.