The Philippines is racing to set up a legal framework for online cockfighting. But until everything is ready and the Philippines Amusement and Gaming Corporation (PAGCOR) gives the go-ahead, local authorities are trying to hunt down those currently offering what’s locally called e-sabong.

The House committee on ways and means have approved a substitute tax bill for online cockfights and derbies. While the previous bill would create transparency around cockfights for the Bureau of Internal Revenue (BIR), this one specifically calls for a tax equivalent to 5% based on gross receipts from offsite betting activities on locally-licensed cockfights and derbies.

In the measure, “offsite betting activities on locally-licensed cockfights and derbies” are defined as cockfighting activities that involve placing, acceptance, and facilitation of wagers through remote or electronic means and licensed by local government units. It excludes offerings provided by either PAGCOR or the Philippine Charity Sweepstakes Office (PCSO).

This provides a clearer bill, should it become a law, to legalize, supervise and tax online cockfighting offerings going forward. But with them still existing in a legal grey area, local authorities are still cracking down.