M a n i l a



WHEREAS, civic organizations, the press, and the church, including the Archbishop of Cebu, have brought to the attention of the authorities the proliferation of illegal numbers game, locally called "Masiao", to the detriment of the citizenry;

WHEREAS, it has been recommended by certain sectors such as the Cebu Queens City Lions Club, Cebu Jaycees, and the Cebu Tourism Council, that the re-opening of the Jai-Alai Fronton would substantially minimize the problem associated with the operation of the illegal numbers game;

WHEREAS, the experience of the government in holding out Basque Pelota as a sport, as an amusement, as tourism attraction, and as base for revenue generation for the government's development projects since the enactment of Presidential Decree No. 810, has been most encouraging and successful;

NOW, THEREFORE, I, FERDINAND. E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, hereby decree as follows:

Section 1. Any provision of law to the contrary notwithstanding, there is hereby granted to the Philippine Games and Holidays Corporation, a corporation duly organized and registered under the laws of the Philippines, hereinafter called the grantee, or its successors, for a period of twenty-five years from the promulgation of this Decree, extendible for another twenty-five years without the necessity of another franchise, the right, privilege, and authority to construct, operate and maintain a court for Basque Pelota (including the games of pala, raqueta, cestapunta, remonte, and mano) in the City of Cebu, establish branches thereof for booking purposes, in the City of Cebu or elsewhere, and hold or conduct Basque pelota games therein with bettings either direct or by means of electric and/or computerized totalizator.

The games to be conducted by the grantee shall be under the supervision of the Games and Amusement Board, hereinafter referred to as the board, which shall enforce the laws, rules and regulations governing Basque Pelota as provided in Commonwealth Act numbered four hundred and eighty-five, as amended, and all the officials of the game and pelotaris therein shall be duly licensed as such by the Board.

Section 2. The grantee or its duly authorized agent may offer, take or arrange bets within or outside the place, enclosure or court where the Basque pelota games are held; Provided, That bets offered taken or arranged outside the place, enclosure or court where the games are held, shall be offered, taken or arranged only in places duly licensed by the corporation, Provided, however, That the same shall be subject to the supervision of the Board. Any person, not otherwise authorized under this Act, who shall offer, take or arrange bets on any basque pelota game or event and similar games of skill or knowingly permit the commission of any of the act prohibited in this Act in any inhabited or uninhabited place or any building, vessel or other means of transportation owned or controlled by him: violates any provision of this Act shall be punished by a fine of not less than one thousand pesos nor more than five thousand pesos, or by imprisonment of not less than six months, or both in the discretion of the Court; Provided, further, That any person who shall make or place a bet with such unauthorized person, operators or maintainers shall likewise be punished by a fine of not less than five hundred nor more than two thousand pesos, or by imprisonment of one day to thirty days, or both, in the discretion of the court. If the offender is a partnership, corporation or association, the criminal liability shall devolve upon its president, directors or any other officials responsible for the violation.

Section 3. The grantee shall provide mechanical and/or computerized devices, namely: a) electric totalizator; b) machine directly connected to a computer in a display board, for the sale of tickets, including, those sold from the off-court stations; c) modern sound system and loud speakers; d) facilities that will bring safety, security, comfort and convenience to the public; e) modern intercommunication devices; and f) such other facilities, devices and instruments for clean, honest and orderly Basque pelota games, within three years from the approval of this Act.

The 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 4. The total wager fund or gross receipts from the sale of betting tickets shall be apportioned as follows: eighty-five per centum (85%) shall be distributed in the form of dividends among the holders of "win" or "place" numbers as the case may be. The remaining balance of fifteen per centum (15%) shall be distributed as follows: eleven and one-half per centum (11 1/2%) shall be set aside as the commission fee of the grantee, and the three and one-half per centum (3 1/2%) thereof shall be set aside and allotted to any special health, educational, civic, cultural, charitable, social welfare, sports, and other projects, including national government projects in Cebu, as shall be directed by the President. The receipts from betting corresponding to the fraction of ten centavos eliminated from the dividends paid to the winning tickets, commonly known as breakage, shall also be set aside for abovementioned projects.

Any provisions of law, decree or order to the contrary notwithstanding, the tax on winning of bettor on the basque pelota games be only five per centum (5%) of the actual amount paid to the winners, which tax shall be collected in the manner and under such regulations as now or may hereafter be prescribed; Provided, however, That an additional five per centum (5%) shall be levied on such winnings as special assessment thereon to be set aside to augment the amount allocated for the special and other projects mentioned in the next proceeding paragraph.

Section 5. The provision of any existing law to the contrary notwithstanding, the grantee is hereby authorized to hold Basque pelota games (including the games of pala, raqueta, cestapunta, remonte and mano) on all days of the week except Sundays and official holidays.

Section 6. The provisions of Commonwealth Act numbered four hundred and eighty-five as amended, shall be deemed incorporated herein. Pertinent provisions of Republic Act nine hundred fifty-four (R.A. 954) relative to Basque pelota games, and all other laws, decrees, executive orders, rules and regulations, or parts thereof inconsistent with this decree are hereby repealed and/or modified accordingly.

Section 7. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise permit, 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 previous approval of the President of the Philippines.

Section 8. This Act shall take effect upon its approval.

Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

The Lawphil Project - Arellano Law Foundation