Question & AnswerQ&A (Republic Act No. 11649)
Republic Act No. 11649 grants the Hapi Jockey Club, Inc. a franchise to construct, operate, and maintain race tracks for horse racing in the provinces of Batangas, Laguna, and Cavite.
The Philippine Racing Commission (PHILRACOM) supervises and regulates the horse races conducted by the Grantee, while the Games and Amusements Board (GAB) supervises and regulates betting on horse races.
No. Only the Grantee or its duly authorized agents or licensees may offer, take, or arrange bets on any horse races conducted by the Grantee.
Violations are punishable by a fine of not less than Twenty thousand pesos (P20,000) but not more than One hundred thousand pesos (P100,000), imprisonment of not more than six (6) months, or both. If the violator is a corporation, the responsible officers shall be held criminally liable.
The Grantee may use mechanical, electrical, electronic, or computerized devices such as photo patrol cameras, automatic starters, computerized totalizators, photo finish devices, ticket sale display boards, tattoo branding facilities, drug testing instruments, weighing and measurement machines, and telecommunications and broadcast equipment.
The distribution is: 82% as dividends to winning ticket holders; 8.5% for stakes and bonuses for horses and jockeys; 0.5% for PHILRACOM/GAB government share; 0.5% for drug testing facilities and rehabilitation of race facilities.
Breakage refers to fractional amounts less than Ten centavos (P0.10) eliminated from dividends. 50% of breakage goes to PHILRACOM for races and horse breeding; 25% to city or municipal hospitals near the race track; and 25% to support drug rehabilitation centers.
The Grantee may hold races at least two days a week as determined by PHILRACOM, on all Saturdays, Sundays, and official holidays except those prohibiting races by law, and may conduct races on up to five (5) eves of public holidays starting after 5:30 PM.
The Grantee must pay documentary stamp tax on each ticket, real estate and property taxes as applicable, a franchise tax of 25% of gross earnings from the races, and taxes on winnings—10% generally, 4% on certain bets, with exemptions for winnings of P10,000 or less.
The franchise shall be deemed ipso facto revoked if the Grantee fails to commence operations within three (3) years from PHILRACOM approval or within five (5) years from the effectivity of the Act, or fails to continuously operate for two (2) years.
No, the franchise is not exclusive and is subject to amendment, alteration, or repeal by Congress as public interest requires.
The Grantee may not sell, lease, transfer, grant usufruct, or assign the franchise or merge without prior approval of Congress and must inform Congress within 60 days of such transactions, failure of which results in ipso facto revocation.
The Grantee must submit an annual report to Congress by April 30 each year, including compliance, operations, financial statements, SEC documents, and certifications from PHILRACOM and GAB. Failure to comply incurs fines.
A fine of Five hundred pesos (P500) per working day of noncompliance, collected by PHILRACOM and remitted to the Bureau of Treasury, in addition to other imposed penalties.
The Grantee holds the national and local governments free from all claims arising from accidents causing injury or damage in connection with construction or operation of the race tracks.