Manila Jockey Club Inc. (MJC) said it would not renew its legislative franchise, which expires on Oct. 23, and will lease its horse racing facilities in Carmona, Cavite, to Hapi Jockey Club Inc. (HJCI)1. The lease follows the shutdown of MJC's 155-year-old horse racing operations, which the company is ending to focus on real estate development1.
MJC said the specific terms and conditions of the lease were yet to be finalized, and that the deal is subject to approval by the boards of both companies and relevant government regulators1. The company said it would disclose those terms once definitive agreements are executed1.
"The board expects no significant impact on the company's financial condition in 2022 and in the years to come. The cessation allows the company to pivot to more stable revenue streams."
HJCI is a corporation organized by horse owners and holds a 25-year legislative franchise for horse racing1. In May it broke ground for its fourth race track, in Batangas1. MJC said that, depending on market conditions, it plans to file an application for a new horse racing franchise either under its own name or through a new wholly owned subsidiary1.
MJC reported P1.31 billion in net income in the first half, a reversal from a P94.58-million net loss in the same period a year earlier, supported by revenue recognized from the sale of a P1.47-billion investment property1. Revenue from club races rose 92 percent to P54.6 million from P28.4 million a year earlier1. The company started as a social club of horse racing aficionados from prominent Spanish, American and Filipino families in Manila in 1867, was established as a business entity in 1937 and was granted a congressional franchise for horse racing in 19971.
What it means for players
MJC's franchise expires on Oct. 23 and it will not seek renewal, so its own racing operations end on that date1. Racing at the Carmona, Cavite facility is set to continue under HJCI as tenant, but the lease terms, and therefore the conditions under which racing there resumes or continues, have not been finalized and still need board and regulatory approval1. Until those terms are disclosed, it has not been reported what the change means for the schedule, pool sizes or bet types at Carmona.
HJCI already holds a 25-year legislative franchise for horse racing, so it is a licensed operator in its own right1. MJC has said it may apply for a new franchise under its own name or a subsidiary, but no application has been reported as filed. For background on how Philippine racing is licensed and taxed, see Philippine Racing Franchise Tax and Tax on Racing Winnings (RA 7953) and Betting on Horse Racing in the Philippines. For how pools and bet types work across the region, see Horse Racing Bet Types Explained and Win and Place Bets in Horse Racing.
What happens next
MJC's legislative franchise expires on Oct. 231. The lease to HJCI is subject to approval by both companies' boards and relevant government regulators, and the specific terms have not been finalized1. MJC said it will disclose those terms once definitive agreements are executed1. Any application for a new horse racing franchise by MJC, under its own name or a new wholly owned subsidiary, depends on market conditions and has not been reported as filed1.
Sources1 sources
- Manila Jockey to lease out Cavite horse racing facility | Inquirer Business, business.inquirer.net
