MANILA Cockers Club Inc. (Manila Cockers), a wholly owned subsidiary of the Manila Jockey Club Inc. (MJCI) is affirming the legality of the operation of its cockpit in Carmona, Cavite, and the acceptance of bets through its licensed off-cockpit betting stations at the local government units where they are located.
Atty. Peter Francis G. Zagala, president of Manila Cockers, said that his club has a valid and existing license from Carmona, Cavite to operate a cockpit, broadcast its cockfights and offer and accept bets, electronically and/or through other means within its territorial jurisdiction.
The license issued to Manila Cockers is pursuant to Presidential Decree No. 449, known as the Cockfighting Law of 1974, as amended by Republic Act No. 7160, otherwise known as ìLocal Government Code of 1991î which vested the sole authority to grant licenses to operate, conduct cockfights and the regulation thereof to LGUs.
In the advent of Republic Act No. 8792, known as the Electronic Commerce Act (E-Commerce Act), transactions outside the territorial jurisdiction of an LGU is deemed transacted in the LGU where the electronic data is received. In this case, Manila Cockers operates its own totalizator system duly authorized under its license. Manila Cockers likewise uses its own network of terminals located in its Off-Cockpit Stations (OCS) to process bets for cockfighting; and Manila Cockers has separate, valid and existing contracts with its OCS operators.
The point of sale of the situs where a cockfight bet from an OCS is transacted, accepted and confirmed is in Carmona, Cavite where the totalizator system of Manila Cockers is located. This process is similar to the popular internet-based commerce stores such as Amazon and Ebay, which are examples of how E-Commerce Act is applied.
The Games and Amusement Board authorized the use of OCS in processing bets for cockfighting provided that the LGUs, where the OCS are located consent to the same through the issuance of business permits. Accordingly, in its letter dated Oct. 12, 2016, the GAB directed the Manila Cockers to submit business permits of its OCS. In compliance thereof, Manila Cockers submitted the business permits of its OCS operators.
The operations of the OCS does not require a license from the Sangguniang Bayan or Panlalawigan as this requirement only applies if a cockpit will be established and cockfights will be held within their respective jurisdictions. Given that Manila Cockers operates only one cockpit duly licensed by the Sangguniang Bayan of Carmona, Cavite; and does not operate and/ or maintain cockpits or conduct cockfighting in areas where its OCS are located, the business permits obtained by its OCS suffice to comply with the Cockfighting Law, as amended.
Atty. Lucas Carpio, Director of MJCI and Special Legal Cousel in his letter to the GAB, the Philippine Racing Commission and other agencies relayed the position that Manila Cockers has the legal authority under existing laws to offer and take bets for cockfighting outside the territorial jurisdiction of Carmona, Cavite. Hence, Manila Cockers has the approval from the appropriate licensing authorities as required by E.O. 13.
Furthermore, Manila Cockers pays the proper taxes and complies with national and local government laws, rules and regulations. In 2016, Manila Cockers paid P21,669,098 as percentage taxes to the Bureau of Internal Revenue, P3,202,000.00 as business taxes, and P480,000 as sultada fees paid to the town of Carmona.
For the first quarter of 2017, the percentage tax payable is P8,988,947.29, while local tax to be paid is P1,328,366.66 and cockfight fees will amount to P148,200.