Rules for Social Reform and Poverty Act 1998

RA 6632 grants the Philippine Racing Club, Inc. the right, privilege, and authority to operate and maintain one race track for horse racing in the Municipality of Makati, Province of Rizal, and to conduct horse races there with betting either directly or through electric/computerized totalizator systems.

It is authorized in the Municipality of Makati, Province of Rizal.

The Games and Amusements Board (GAB) must supervise and control the races, enforce relevant laws and rules on horse racing, and license racing officials and personnel.

The franchise term is for 25 years computed from the date of approval of the Act.

Only the grantee or its duly authorized agent may take or arrange bets on horses participating in races conducted by the grantee.

No other entity or person other than the grantee or its duly authorized agent may take/arrange bets, or maintain or use any totalizator or other device/method/system to bet on any horse within the grantee’s premises or outside in the course of races operated by the grantee.

A fine of not less than PHP 2,000 but not more than PHP 5,000, or imprisonment for not less than one month but not more than six months, or both, at the court’s discretion.

Criminal liability devolves upon its president, managing partner, or manager responsible for the violation.

Examples include: photo patrol/electronic devices or camera; automatic starter; electric totalizator; photo finish devices; facilities/devices for tattoo-branding of horses; facilities/laboratories/instruments for drug testing; weighing machines and measurement devices; modern sound system and loud speakers; modern intercommunication devices.

The GAB shall forthwith suspend and prohibit the holding of races by the grantee until the required equipment/facilities are provided and installed.

They supervise and regulate the placing of bets, proper computation of dividends, and distribution of wager funds.

84% goes to dividends to betting ticket holders (with rules for win/place/show and winning combinations for certain bet types). The remaining 16% is allocated to: 8.25% commission of the grantee; 6.75% stakes/prizes for win/place/show and authorized bonus for jockeys; 0.5% to the Injury, Disability and Death Compensation Fund; and 0.5% to GAB expenses and other authorized purposes.

Daily double: winning combinations are two horses that won first place in the two races. Forecast/llave: winning combinations are two horses that won first and second places (or either way as provided for the specific bet type).

Breakage refers to receipts from fractions of less than ten centavos eliminated from the dividends paid to winning tickets. It is allocated: 25% for the operations expenses of the Philippine Amateur Athletic Federation; 25% for charitable institutions within the Municipality of Makati; 50% for the rehabilitation of drug addicts under RA 6415.

The grantee may hold races on Saturdays, Sundays, and official holidays except those holidays where the law expressly provides that no horse races are to be held. It may also conduct races on the eve of a public holiday starting not earlier than 5:30 PM, but not to exceed five days a year, and must allocate racing days under RA 309 as amended.

The grantee must pay a franchise tax equal to 25% of its gross earnings from the horse races authorized under the franchise, equivalent to 8.25% of the total wager funds or gross receipts from betting ticket sales during the racing day (as referenced in Section 6).

The franchise tax is in lieu of any and all taxes (except income tax). Thus, the grantee is exempt from taxes of any kind on its properties (real or personal) imposed by any authority at all levels, but the income tax remains applicable.

No. The grantee may not lease, transfer, grant the usufruct of, sell, or assign the franchise/rights/privileges, nor merge with another entity for the same purpose without prior approval of Congress.

Provisions of RA 309 that are not inconsistent with RA 6632 are deemed incorporated. Any provisions of acts, executive orders, and administrative regulations inconsistent with RA 6632 are automatically repealed.