Franchise for Philippine Jai-Alai and Amusement Corp.

The grant is justified by the expiration of the previous franchise under Commonwealth Act No. 485, with land, buildings, and improvements transferred to government by operation of law upon expiration in October, 1975.
The franchise is intended to further develop Basque pelota as a sport and amusement for the general public.
The decree directs support to exploit Basque pelota’s tourism and international renown in aid of government development objectives and revenue generation.

Section 1 grants the grantee (and its successors) the right, privilege, and authority to construct, operate and maintain a court for Basque Pelota within the greater Manila area.
Section 1 includes authority to operate games of skill: pala, raqueta, cestapunta, remonte and mano.
Section 1 authorizes the grantee to establish branches for booking purposes.
Section 1 authorizes the grantee to hold or conduct Basque pelota games with bettings either directly or by means of electric and/or computerized totalizator.
Section 1 fixes the supervision of all games under the Games and Amusements Board (the Board), with enforcement of Basque pelota laws, rules, and regulations under Commonwealth Act No. 485, as amended.
Section 1 requires that all officials and pelotaris be duly licensed by the Board.

Section 2 authorizes the grantee or its duly authorized agent to offer, take, or arrange bets within or outside the place, enclosure, or court where games are held.
Section 2 allows bets offered, taken, or arranged outside the place/enclosure/court only in places duly licensed by the corporation, and subject to Board supervision.
Section 2 prohibits any person other than the grantee or its duly authorized agents from taking or arranging bets on any pelotari or on the game.
Section 2 prohibits any person other than the grantee or its duly authorized agents from maintaining or using a totalizator or other device, method or system to bet on any pelotari or on the game within or without the place/enclosure/court where games are held.
Section 2 provides criminal penalties for violations: a fine of not more than PHP 2,000 or imprisonment of not more than six months, or both, at the discretion of the Court.
Section 2 states that if the offender is a partnership, corporation, or association, criminal liability devolves on its president, directors, or any other officials responsible for the violation.

Section 3 requires the grantee to provide mechanical and/or computerized devices within three years from the approval of this Act.
Section 3 enumerates required devices and facilities as:
- electric totalizator;
- a machine directly connected to a computer in a display board for ticket sales (including tickets sold from off-court stations);
- a modern sound system and loud speakers;
- facilities ensuring safety, security, comfort and convenience for the public;
- modern intercommunication devices; and
- such other facilities, devices and instruments for clean, honest and orderly Basque pelota games.
Section 3 requires the Board to assign auditors and/or inspectors to supervise and regulate:
- the placing of bets;
- the proper computation of dividends; and
- the distribution of wager funds.

Section 4 requires apportionment of the total wager fund or gross receipts from the sale of betting tickets as follows.
Section 4 mandates that 85% be distributed as dividends among holders of “win” or “place” number or holders of the winning combination or grouping of numbers (as the case may be).
Section 4 mandates the remaining 15% be allocated as:
- 11 1/2% (11 A12%) as the commission fee of the grantee; and
- 3 1/2% (3 A12%) allotted to special health, educational, civic, cultural, charitable, social welfare, sports, and other similar projects directed by the President.
Section 4 further provides that breakage—receipts from betting corresponding to the fraction of ten centavos eliminated from the dividends paid to the winning tickets—is also set aside for the same special projects.

Section 5 authorizes the grantee to hold Basque pelota games on all days of the week except Sundays and official holidays.
Section 5 expressly applies this operational schedule to games including pala, requeta, cestapunta, remonte and mano.

Section 6 deems Commonwealth Act No. 485, as amended incorporated into the franchise rules.
Section 6 provides that this Act takes precedence over Commonwealth Act No. 485, and over all other laws, executive orders, and regulations that are inconsistent with it.

Section 7 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise permit, or the rights or privileges acquired thereunder, to any person, firm, company, corporation, or other commercial or legal entity, without previous approval of the President of the Philippines.
Section 7 prohibits the grantee from merging with any other person, company, or corporation organized for the same purpose without the previous approval of the President of the Philippines.

Section 8 authorizes the grantee to use existing fronton, stadium and facilities located along Taft Avenue, City of Manila.
Section 8 specifies that the existing facilities belong to the government by virtue of Commonwealth Act No. 485.

Section 1 provides that the franchise term is twenty-five years from approval and is extendable for another twenty-five years without the necessity of another franchise.