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Senate bill imposes 5-percent amusement tax on ‘e-sabong’ (Sabong News)

Senate bill imposes 5-percent amusement tax on ‘e-sabong’
Author Butch Fernandez
Date JUNE 09 2021
The Senate is on track to consider the passage of a revenue bill taxing Internet betting on locally popular cockfighting, known as “e-sabong.” Senate Bill 2281, filed by Sen. Sherwin Gatchalian, mandates government to collect 5-percent amusement tax on gross receipts, or earnings of off-site betting stations allowed by local governments. The gross receipts are based on earnings from bets placed in online cockfighting, as well as revenue from airing cockfighting derbies on radio and television. As provided in the bill, the “sabong tax” will be collected quarterly. It also requires the Games and Amusement Board (GAB) to issue the guidelines for off-site betting even as the Bureau of Internal Revenue implements its own process for taxing online betting. In filing the enabling legislation, Gatchalian said it is time to tax e-sabong given the revenue potentials earned by its operators, projected to be much more than doubled, given the pandemic that banned mass gathering events, like popular cockfight derby’s. “It’s time to impose additional taxes on e-sabong considering the net earnings e-sabong of operators rake in amid the pandemic that forced cockpit arenas to shut down,” the senator said. At the same time, Gatchalian acknowledged the government’s need to replace the lost revenue from closure of casinos and other gaming facilities. He added that the Philippine Amusement and Gaming Corp. collects regulatory fee of P12,500 for every derby or a minimum guaranteed fee of P75 million a month, or whichever is higher.

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