SECTION 1. Any provision of law to the contrary notwithstanding, there is hereby granted to Manila Jockey Club, Inc., a corporation duly organized under the laws of the Philippines, hereinafter called the grantee or its successors, for a period of twenty-five years from the approval of this Act, the right, privilege and authority to construct, operate and maintain one race track in any place within the City of Manila or in the Province of Bulacan, establish branches thereof for booking purposes and hold or conduct horse races therein with betting 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 Amusement 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,

SEC. 2. The grantee or its duly authorized agent may offer, take or arrange bets within or outside the place, enclosure or track where the horse races are held. No person other than the grantee or its duly authorized agents shall take or arrange bets on any horse, or maintain or use a totalizator or other device, method or system to bet on any horse within or without the place, enclosure or track where the horse races are held by the grantee. Any violation of this section shall be punished by a fine of not more than six months, 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.

SEC. 3. In order to maintain a clean, honest and orderly horse racing, the grantee shall provide mechanical and/or computerized devices, namely: a) photo patrol; b) automatic starter; c) electrical 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 instruments 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 and instruments for a clean, honest and orderly horse 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 franchise, 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.

SEC. 4. The total wager funds or gross receipts from the sale of betting tickets will 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 eighter way as the case may be. The remaining balance of sixteen per centum (16%) shall be distributed as follows: eight and one-half per centum (8-1/2%) shall be set aside as the commission of the grantee conducting the races; six and one-half per centum (6-1/2%) 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 (1/2%) shall be set aside for the benefit of 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 (1%) as a Special Fund to be used by the Games and Amusements Board to cover expenses and such other purposes authorized under the same Act. The receipts from betting corresponding to the fractions of 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 rehabilitation of drug addicts as provided in Republic Act Numbered Sixty-four hundred and twenty-five, and fifty per centum (50%) for the benefit of the Philippine Amateur Athletic Federation, subject to the condition that the funds shall be used exclusively for the training of Filipino athletes who will participate in international sports contests.

SEC. 5. The provisions of any existing law to the contrary notwithstanding, the grantee is hereby authorized to hold horse races on all Saturdays, Sundays and official holidays of the year, excluding Thursdays and Fridays of the Holy Week, June twelfth, commonly known as Independence Day, Election Day, and December thirtieth, commonly known as Rizal Day.

The grantee shall allocate racing days pursuant to the provisions of Republic Act Numbered Three hundred and nine, as amended, for the benefit of charitable institutions, which shall be given choice where to hold their races.,

SEC. 6. In consideration of the franchise and rights herein granted to the Manila Jockey 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 half per centum (8-1/2%) of the total wager funds or gross receipts on the sale of betting tickets during the racing day as mentioned in Section four hereof, allotted as follows: a) National Government, five per centum (5%)); b) the city or municipality where the race track is located, five per centum (5%); c) Philippine Charity Sweepstakes Office, seven per centum; (7%); d) Philippine Anti-Tuberculosis Society, six per centum (6%); and e) 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, now or in the future, on its properties, whether real or personal, and profits, from which taxes the grantee is hereby expressly excepted,

SEC. 7. The provisions of Republic Act Numbered Three hundred and nine shall be deemed incorporated herein, provided that the provisions of this Act shall take precedence over the provisions of Republic Act Numbered Three hundred and nine and all other laws, executive orders and regulations which are inconsistent herewith.

SEC. 8. The grantee shell 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 Congress of the Philippines.

This Act shall take effect upon its approval.

Approved, October 23, 1972.