Senator Gatchalian wants to impose taxes on “online sabong”
Senator Gatchalian wants to impose taxes on “online sabong”
“Online Sabong” is defined as remote or
off-site wagering or betting on live cockfighting matches, events, and/or
activities streamed by the local government unit (LGU) in control of the event.
“Sabong,” or making bets on live cockfighting, is a
long-standing practice in the Philippines that dates back over three thousand
(3,000) years.
With the rise of technology, it has progressed to the
popularity of online forms where patrons may place bets or “Online Sabong,”
which became more popular during the COVID-19 pandemic when actual cockpits
were closed.
Live cockfighting is regulated by the local
government, whereas Online Sabong is regulated by the Philippine Amusement and
Gaming Corporation (PAGCOR), which charges Online Sabong operators a fixed
regulatory fee of only ₱12,500 per fight or a minimum guaranteed fee of ₱75
million per month, whichever is higher, under the current system.
Senator Sherwin Gatchalian has filed Senate Bill No.
2281 or “An Act Imposing Taxes on Offsite Betting
Activities on Locally Licensed Cockfights and Derbies”
Senator Gatchalian noted in his explanatory note that “with
the growing popularity of Online Sabong, which means more profits for the
operators and lower tax revenues from other gaming operations, a clear tax
system for Online Sabong is needed.”
To promote a more transparent tax collection system
and to recoup earnings following the shutdown of casinos and gaming facilities
due to the pandemic, the law proposes imposing a franchise tax on transactions
involving offsite betting operations on locally permitted cockfights and
derbies.