Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila
FIFTEENTH CONGRESS
First Regular Session

3269

House Bill No._“

Introduced by Honorable Elpidio F. Barzaga, Jr.

EXPLANATORY NOTE

Gambling is not illegal per se. What makes it illegal is the State’s policy of
avoiding the evil effects of excessive gambling, the reliance of people to instant
monetary gain instead of giving importance to the value of dignified work,
perseverance and thrift. However, betting on jueteng, ending, masiao, last two or
toa number combination has been a practice and habit of Filipinos. In fact, it has
been stamped in our culture since the Spanish times and for several generations,
the numbers game continues to thrive in the country.

Despite repeated efforts of the State to curtail the illegal numbers game,
its illegality does not prevent the people from betting on it. The imposition of
penalties and stringent measures against jueceng do not deter the operators and
kubradors from collecting and soliciting bets from the people.

Jueteng, masiao and other numbers game generally cater to the ordinary
folks since only small amount of money is involved. With the current setup of
government regulation in gambling, it gives the notion that small-time gambling
is being prohibited while casinos, horse racing, jai alai, cockfighting, etc. are
considered lawful gambling. Moreover, to the poor who cannot afford the
government-run small town lotteries (STL) and casinos, they resort more to the
illegal numbers game wherein a one-peso bet can make him earn as much as
seven hundred fifty pesos (P750.00) in a single draw.

Even with the advent of casinos, lotteries and other forms of legal
gambling, jueceng and the other illegal numbers game remained as the favorite
game of the masses. Therefore, the operation of jueteng, masiao, swertres lottery
and other numbers game could be tapped as a source of much needed revenues


for the local government. Instead of revenues being used as payolas, protection
money and earnings of the gambling lords, the local government unit could
instead get funds from the operation of the numbers game.

Furthermore, the indigents who obtain their only source of living from the
operation of numbers game shall be provided with lawful employment which in
turn will result towards their being active participants in the economic
development of our country.

Moreover, the draws from these games may be fixed and lack
transparency since the draws are being held in an undisclosed place and not
subject to public view,

Finally, it is more imminent to stop the resulting corruption of public
officers from the proceeds of collection from the underground and illegal
operation of the said numbers game. Hence, the practical approach to erase the
evil brought about by these illegal numbers games is to institute its operation
into the local level under the direct control and supervision of the local
government unit with full transparency of the draws.

In light of the foregoing, the approval of this bill is earnestly sought.

ATTY. ELPIDIO F. BARZAGA, JR.
Lone District, City of Dasmarifias,
Province of Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
FIFTEENTH CONGRESS
First Regular Session

3289

House Bill No.__©

Introduced by Honorable Elpidio F. Barzaga, Jr.

AN ACT LEGALIZING THE OPERATION OF JUETENG, LOTTERY,
MASIAO, SWERTRES, FIRST TWO OR LAST TWO, OR ANY VARIANT
OF THE NUMBERS GAME IN THE CITIES AND MUNICIPALITIES
AND AUTHORIZING THE CITY AND MUNICIPAL GOVERNMENT TO
CONDUCT SUCH GAMES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Title. - This act shall be known as City and Municipality Lottery Act
of 2010.

SECTION 2. Definition of Terms.

a) Numbers Game. - Any form of gambling activity which uses numbers or
combinations thereof as factors in giving out jackpots.

b) Jueteng. - A numbers game that involves the combination of thirty-
seven (37) numbers against thirty-seven (37) numbers from number one
(1) to thirty seven (37) serving as a form of local lottery where bets are
placed and accepted per combination, and its variants.

©) Masiao. ~ A numbers game where the winning combination is derived
from the results of the last game of Jai Alai or any result thereof based on

any Jai Alai game consisting of ten (10) players pitted against one another,
and its variants.

d) Lottery. - The drawing of lots in which prizes are distributed to the
winners.


e) Swertres. - A lottery game introduced by the Philippine Charity
Sweepstakes Office (PCSO) involving three-digit combination, which has
midday, afternoon and evening draws

6) First Two/Last Two. - A numbers game where the winning combination
is derived from the first or last two (2) numbers of the lotto results or the
first prize of the winning Sweepstakes ticket from the PCSO draw, and its
variants.

8) Collector or Agent (“Cabo", "Cobrador’, “Coriador" or variants thereof). -
Any person who collects, solicits or produces bets in behalf of the city or
municipality for a numbers game.

SECTION 3. Specific Authority of Cities and Municipalities. - All cities and
municipalities are hereby authorized to operate jueteng, masiao, swertres, first
two or last two or any other variants of the numbers game except lotto within its
territorial jurisdiction.

SECTION 4, One Numbers Game per City or Municipality. - The City or
Municipality shall implement only one (1) numbers game within its respective
jurisdiction after due public consultation and deliberation.

SECTION 5. Non-Transferability of Authority, - The City or Municipality cannot
assign, cede, contract, convey, franchise, or transfer, in any way, the operation of
the numbers game. ‘he City or Municipality shall directly operate the numbers
game. All collectors or agents shall be considered as city or municipal employees.

SECTION 6, Conduct of Draws. - The draw shall be public and shall be held in
the City or Municipal Hall or any place open to the public and under the auspices
of the local government unit concerned. The City or Municipality is allowed to
conduct draw at a maximum frequency of three (3) times a day.

SECTION 7. Distribution of Revenues. - The revenues collected from the
numbers game shall be distributed as follows:

a) 55% ofthe Gross of Proceeds - Prize fund of the city or
municipality for the numbers game;

b) 5% ofthe Gross of Proceeds - To the Barangays within the
City or Municipality, 50% of which shall be used as additional


remuneration of the barangay officials, justices, tanods, and other
persons being employed by the barangay and the remaining 50% to be
used primarily for the establishment and/or enhancement of day care
centers and for educational purposes;

©) 5%oftheGrossof Proceeds - To the local PNP assigned
within the City or Municipality, to be used as additional remuneration
not to exceed the equivalent of their three (3) month-salary per
annum and the remaining shall be used for operational expenses;

d) 2% of the Gross of Proceeds - To the Provincial Government,
to be used as additional remuneration of the provincial employees not
exceeding the equivalent of their three (3) month-salary per annum
and the remaining balance shall be used exclusively for educational
purposes within the province;

e) 2% ofthe Gross ofProceeds - To the Provincial PNP, to be
used as additional remuneration not exceeding the equivalent of theit
three (3) month-salary per annum and the remaining balance shall be
used for operational expenses;

f) 5% ofthe Gross of Proceeds - ‘To the National Government, to
be used exclusively for educational purposes, particularly to fund the
establishment of new educational institutions and state universities;

he remaining 26% shall belong to the city or municipality operating the
numbers game and to be used as additional remuneration of the city or
municipal employees not exceeding the equivalent of their three (3) month-
salary per annum. Any remainder thereof shall be used for the establishment of
additional classrooms in public elementary and high schools, hiring of public
school teachers, purchase of school equipment, and for other educational
purposes.

Independent and highly-urbanized cities which do not form part of the
jurisdiction of the province shall not make any remittance to the Provincial
Government and also to the Provincial PNP. In such case, the share intended for
the Provincial Government and the Provincial PNP shall belong to the
independent or highly-urbanized city subject to the provisions of the
immediately preceding paragraph.

SECTION 8. Operating Fund. - The city or municipality through their respective
Sanggunian shall set aside a portion of its budget to be used as initial operating
fund of the city or municipality for the numbers game.


SECTION 9. Trust Fund. - The share of the local government units and/or
government entities indicated hereunder shall form part of the Trust Fund of the
agencies concerned and shall be used exclusively for the purposes indicated
herein,

SECTION 10. Prohibition, - The Philippine Charity Sweepstakes Office (PCSO) is
prohibited from conducting any numbers game which the city or municipality
shall operate pursuant to the provisions of this law.

SECTION 11, Implementing Rules and Regulations. ~ Within sixty (60) days
from the effectivity of this Act, the Department of Interior and Local Government
(DILG) shall promulgate the implementing rules and regulations, as may be
necessary to ensure the efficient and effective implementation of the provisions
of this Act.

SECTION 12. Separability Clause, - If for any reason any section or provision
of this Act, or any portion thereof, or the application of such section, provision or
portion thereof to any person, group or circumstance is declared invalid or
unconstitutional, the remaining provisions of this Act shall not be affected by
such declaration and shall remain in force and effect.

SECTION 13. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations and other issuances, or parts thereof which

are inconsistent with the provisions of this Act, are hereby repealed, amended or
modified

SECTION 14. Effectivity Clause. - 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,