WHEREAS, by virtue of the provisions of Commonwealth Act numbered 485 the franchise to operate and maintain a fronton for the Basque pelota and similar games of skill in the City of Manila, shall expire on October, 1975 whereupon the ownership of the land, buildings and improvements used in the said game will be transferred without payment to the government by operation of law;

WHEREAS, there is a pressing need not only to further develop the game as a sport and amusement for the general public but. also to exploit its full potential in support of the government's objectives and development programs;

WHEREAS, Basque pelota is a game of international renown, the maintenance and promotion of which will surely assist the tourism industry of the country;

WHEREAS, the tourism appeal of the game will be enhanced only with the government's support and inducement in developing the sport to a level at par with international standards;

WHEREAS, once such tourism appeal is developed, the same will serve as a stable and expanding base for revenue generation for the government's development projects.

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 Jai-Alai and Amusement 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 approval of this Act, extendable 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) within the greater Manila area, establish branches thereof for booking purposes and hold or conduct Basque pelota games therein with bettings either directly 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 Amusements 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.

SEC. 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. No person other than the grantee or its duly authorized agents shall take or arrange bets on any pelotari or on the game, or maintain or use a totalizator or other device, method or system to bet on any pelotari or on the game within or without the place, enclosure or court where the games are held by the grantee. Any violation of this section shall be punished by a fine of not more than two thousand pesos or by imprisonment 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. 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.

SEC. 4. The total wager fund or gross receipts from the sale of betting tickets will be apportioned as follows: eighty-five per centum (85%) shall be distributed in the form of dividends among the holders of "win" or "place" number or holders of the winning combination or grouping of 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 ½%) shall be set aside as the commission fee of the grantee, and three and one-half per centum (3 ½%) thereof shall be set aside and alloted to any special health, educational, civic, cultural, charitable, social welfare, sports, and other similar projects as may 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 the above-named special project.

SEC. 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, requeta, cestapunta, remonte and mano) on all days of the week except Sundays and official holidays.

SEC. 6. The provisions of Commonwealth Act numbered four hundred and eighty-five as amended, shall be deemed incorporated herein, provided that the provisions of this Act shall take precedence over the provisions thereof and all other laws, executive orders and regulations which are inconsistent herewith.

SEC. 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.

SEC. 8. For the purposes of this franchise, the grantee is herein authorized to make use of the existing fronton, stadium and facilities located along Taft Avenue, City of Manila, belonging to the government by virtue of the provisions of Commonwealth Act numbered four hundred and eighty-five.

SEC. 9. This Act shall take effect upon its approval.

Done in the City of Manila, this 16th day of October, in the year of Our Lord, nineteen hundred and seventy-five.