QuestionsQuestions (PROCLAMATION NO. 439)
Republic Act No. 7953 amends Republic Act No. 6632 granting the Philippine Racing Club, Inc. the franchise to operate and maintain a race track for horse racing, extends the franchise by 25 years, and outlines the regulatory framework for horse racing operations and betting activities.
The Philippine Racing Club, Inc. is authorized to construct, operate, and maintain one race track in the Municipality of Makati, Metro Manila, or anywhere within the provinces of Rizal, Laguna, and Cavite.
Yes, the transfer of the race track from Makati to another location in the specified provinces or cities is allowed but is subject to approval of the host province or city/municipality through a public hearing conducted by the local government unit concerned.
The Philippine Racing Commission supervises and regulates the horse races, enforcing laws, rules, and regulations governing horse racing, including race scheduling, safety, prize allocation, and security. The Games and Amusements Board supervises and regulates betting in horse races.
Any person who violates the provisions on unauthorized betting shall be punished by a fine of not less than ₱2,000 but not more than ₱5,000 or imprisonment of not less than one month but not more than six months, or both. If the offender is a corporation or association, criminal liability devolves on the responsible president, managing partner, or manager.
The franchise is extended by twenty-five (25) years from the expiration of Republic Act No. 6632, which was on October 1997.
The grantee may offer, take, or arrange bets on races conducted inside or outside the Philippines, using any method including electronic means or computerized totalizators, and operate on-track or off-track betting stations. No other entity may conduct betting on races held by this grantee.
The grantee must provide devices including photo patrol cameras, automatic starters, electric totalizators, photo finish devices, computerized ticket-selling machines, horse tattoo branding facilities, drug testing labs, weighing machines, sound systems, communication equipment, continuous power supply, and any other necessary facilities within three years from effectivity.
Eighty-two percent (82%) are distributed as dividends to winning ticket holders; 8.5% retained by the grantee as commission; 8.5% for stakes or prizes and bonuses; and 1% allocated to the Philippine Racing Commission (with 0.5% shared with the Games and Amusements Board for a jockey and trainer compensation fund). Breakage funds are also allocated among hospitals, drug rehab, racing commission, and horse breeding activities.
Winners pay a 10% tax on their winnings except for double, forecast/quenella, and trifecta bets which are taxed at 4%. The grantee pays a franchise tax equal to 25% of its gross earnings from horse races, allocated among the national government, local government, Philippine Charity Sweepstakes Office, Philippine Anti-Tuberculosis Society, and White Cross.
No, the grantee shall not lease, transfer, sell, assign, or merge the franchise or its rights without the approval of the Congress of the Philippines.
Horse races may be held on at least two days during the week as determined by the Philippine Racing Commission, on all Saturdays, Sundays, and official holidays except holidays when horse racing is expressly prohibited, and on the eve of public holidays starting not earlier than 5:30 PM for up to five days a year.