AN ACT GRANTING THE PHILIPPINE RACING CLUB, INC., A FRANCHISE TO OPERATE AND MAINTAIN A RACE TRACK FOR HORSE RACING IN THE PROVINCE OF RIZAL.

• Number: Republic Act No. 6632
• Sections: 11

Section 1

SECTION 1. The Philippine Racing Club, Inc., a corporation duly organized and registered under the laws of the Republic of the Philippines, hereinafter called the grantee or its successors is hereby granted the right, privilege and authority to operate one race track in the Municipality of Makati, Province of Rizal, establish such, branches thereof for booking purposes and hold or conduct horse races therein with bettings either directly or by means of electric and/or computerized totalizator.

The races to be conducted by the grantee shall be under the supervision and control of the Games and Amusements Board, which shall enforce the laws, rules and regulations governing horse racing as provided in Republic Act Numbered Three hundred and nine, as amended and all the racing officials and personnel to be employed by the grantee shall be duly licensed as such by the said Games and Amusements Board in accordance with Section five of the same Act.

Section 2

SEC. 2. The term of this grant, right, privilege and authority abovementioned, is for a period of twenty-five (25) years computed from the date of approval of this Act.

Section 3

SEC. 3. The grantee or its duly authorized agent, may offer, take or arrange bets within the premises wherein horse races are held and in such other places where branches thereof have been or may be duly established. No other entity or person other than the grantee or its duly authorized agent shall take or arrange any bet on any horse participating in any race conducted by the same, or maintain or use totalizator or any other device, method or system to bet on any horse within its premises or outside the same in the course of horse races conducted and/or operated by the said grantee.

Section 4

SEC. 4. Any person or persons found to have violated the provisions of the aforementioned section shall be punished by a fine of not less than two thousand pesos but not more than five thousand pesos or by imprisonment for not less than one month but not more than six months, or both in the discretion of the Court. If the offender is a corporation, partnership or association, the criminal liability shall devolve upon its president, managing partner or manager responsible for such violation.

Section 5

SEC. 5. To achieve an orderly, clean and honest horse racing in the conduct thereof, the grantee shall provide the following mechanical and/or computerized devices, to wit: a) photo patrol and/or other electronic devices or camera; b) automatic starter; c) electric totalizator; d) photo finish devices; e) machine, directly connected to a computer in a .display board, for the sale of daily double, llave forecast, and/or "quenella" tickets, including those: sold from off-track stations; f), facilities or devices for tattoo-branding of horses for their proper identification; g) facilities, laboratories and instrument for "test for drugs"; h) weighing machines and devices for measurement of horses; i) modern sound system and loud speakers; j) facilities that will bring safety, security, comfort and: convenience: to the public; k) modern intercommunication devices; and l) such other facilities, devices or instrument that will insure clean, orderly and honest racing, within three years from the approval of this Act. In case of failure to provide and install any of the above mentioned equipment or facilities within the three-year period, the Games and Amusements Board shall forthwith suspend and prohibit the holding of races by the grantee until such time as the said equipment or facilities are provided and installed.

The Games and Amusements Board shall assign its auditors and/or inspectors to supervise and regulate the placing of bets, proper computation of dividends and the distribution of wager funds.

Section 6

SEC. 6. The distribution of wager funds or gross receipts from the total sales of betting tickets during the entire racing day shall be apportioned as follows: eighty-four per centum (84%) shall be distributed in the form of dividends among the holders of betting tickets in the following manner: in pari-mutuel or regular races, the dividends shall be distributed among the ticket holders of win, place and show horses; in the case of the daily double, forecast and/or races, the dividends shall be distributed among the ticket holders of winning combinations of horses i.e., two horses that won first place in the two races in the case of daily double, and in the case of forecast and "llave", among the ticket holders of winning combinations of horses, i.e., the two horses that won first and second places or either way as the case may be. The remaining balance; of sixteen per centum (16%) shall be distributed as follows: eight and one fourth per centum (8 ¼% shall be set aside as the commission of the grantee conducting the races; six and three fourths per centum (6 ¾%) shall be set aside for the payment of stakes or prizes of win, place and show horses and the authorized bonus for jockeys; one-half per centum (½%) shall be set aside for the benefit of and turned over to the Jockeys and Horse Trainers, Injury, Disability and Death Compensation Fund created under Republic Act Numbered Three hundred and nine, as amended; and one-half per centum (½%) as a special fund to be used by the Games and Amusements Board to cover its expenses and such other purposes authorized under the same Act. The receipts from betting corresponding to the fractions of less than ten centavos eliminated from the dividends paid to the winning tickets, commonly known as breakage, shall be set aside as follows: twenty-five per centum (25%) for the operations expenses of the Philippine Amateur Athletic Federation; twenty-five per centum (25%) for the charitable institutions within the Municipality of Makati; and fifty per centum (50%) for the rehabilitation of drug addicts, as provided in Republic Act Numbered Six thousand four hundred twenty-five.

Section 7

SEC. 7. The provisions of any existing law, executive or administrative order to the contrary notwithstanding, the grantee is hereby authorized to hold horse races on all Saturdays, Sundays and official holidays of the year, except on those official holidays where the law expressly provides that no horse races are to be held. The grantee may also conduct races on the eve of any public holiday to start not earlier than five-thirty (5:30) o'clock in the afternoon but not to exceed five days a year.

The grantee shall allocate racing days pursuant to the provisions of Republic Act Numbered Three hundred and nine, as amended.

Section 8

SEC. 8. In consideration of the franchise and rights herein granted to the Philippine Racing Club, Inc., the grantee shall pay into the National Treasury a franchise tax equal to twenty-five per centum : (25%) of its gross earnings from the horse races authorized to be held under this franchise which is equivalent to the eight and one fourth per centum (8 ¼%) of the total wager funds or gross receipts on the sale of betting tickets during the racing day as mentioned in Section six hereof, allotted as follows: a) National Government, five per centum (5%); the Municipality of Makati, five per centum (5%); b) Philippine Charity Sweepstakes Office, seven per centum (7%); c) Philippine Anti-Tuberculosis Society, six per centum (6%) ; and d) White Cross, two per centum (2%). The said tax shall be paid monthly and shall be in lieu of any and all taxes, except the income tax, of any kind, nature and description levied, established or collected by any authority whether barrio, municipality, city, provincial or national, on its properties, whether real or personal, from which taxes the grantee is hereby expressly exempted.

Section 9

SEC. 9. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise, or the rights or privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other person, company or corporation organized for the same purpose without the approval of the Congress of the Philippines first had. Any corporation to which this franchise may be sold, transferred or assigned, shall be subject to the Corporation laws of the Philippines now existing or hereafter enacted, and any person, firm, company, corporation or other commercial or legal entity to which this franchise is sold, transferred or assigned shall be subject to all conditions, terms, restrictions and limitations of this franchise as fully and completely and to the same extent as if the permit has been originally granted to the same person, firm, company, corporation or other legal entity.

Section 10

SEC. 10. The provisions of Republic Act Numbered Three hundred and nine not inconsistent with this Act shall be deemed incorporated herein, provided that any and all provisions of any Act, Executive Order and Administrative Regulation which are inconsistent with the provisions of this Act are deemed automatically repealed.

Section 11

SEC. 11. This Act shall take effect upon its approval.

Approved,

GIL J. PUYAT

CORNELIO T. VILLAREAL

President of the Senate

Speaker of the House of Representatives

Finally passed by the Senate on September 23, 1972.

This Act, which originated in the House of Representatives, was finally passed by the same on September 23, 1972.

ELISEO M. TENZA

INOCENCIO B. PAREJA

Secretary of the Senate

Secretary of the House Representatives

Approved: June 17, 1972

FERDINAND E. MARCOS

President of the Philippines