FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 JUI -2 
,', ' 
' 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
~~~~~~~~6~~~ 
RV : 
Senate Bill No. 3 6 1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Supreme Court in the case of Mayor Pablo P. Magtajas and the City 
of Cagayan de Or0 vs. Pryce Properties Corporation, Inc. and Philippine 
Amusement and Gaming Corporation (PAGCOR), promulgated on July 20, 1994, 
upheld the power of PAGCOR to establish, operate and maintain casinos 
anywhere in the country, invoking Presidential Decree No. 1869 (PAGCOR 
Charter). 
Local ordinances prohibiting the establishment and operations of 
casinos were declared by the Court as violative of the PAGCOR Charter. 
The above case stemmed from the move of PAGCOR to expand its 
operation to Cagayan de Oro City in 1992. 
To Implement the expansion, 
PAGCOR leased a portion of a building belonging to Pryce Properties 
Corporation, renovated and equipped it for its operations scheduled to 
commence in December 1992. 
The City Government of Cagayan de Oro, however, opposed the move. 
The Sangguniang Panlungsod ng Cagayan de Oro later enacted two (2) 
ordinances prohibiting the operation of casinos in the City. 
PAGCORs petition to nullify the two ordinances was sustained by the 
Court of Appeals. The City Government of Cagayan de Or0 elevated the matter 
to the Supreme Court. 
The Supreme court empathically ruled: 
"The morality of gambling is not a justiciable issue. Gambling is not 
illegal per se. While it is general considered inimical to the interests of the 
people, there is nothing h the Constitution categorically prescribing or 
penalizing gambling or, for that matter, even mentioning it at all. It is left to 
Congress to deal with the activity as it sees fit. In the exercise of its own 
discretion, the legislature may prohibit gambling altogether or allow it 
without limitation or it may prohibit some forms of gambling and allow 
others for whatever reasons it may consider sufficient. 
Thus, it has 
prohibited jueteng and monte but permits lotteries, cockfighting and horse- 
racing. In making such choices, Congress has consulted its own wisdom, 
which this Court has no authority to review, much less reverse. Well has it 
been said that courts do not sit to resolve the merits of conflicting theories. 
That is the prerogative of the political departments. 
It is settled that 
questions regarding the wisdom, morality, or practicability of statutes are 
not addressed to the judiciary but may be resolved only by the legislative 
and executive departments, to which the function belongs in our scheme 


of government. 
That function is exclusive. 
Whichever way these 
branches decide, they are answerable only to their own conscience and 
the constituents who will ultimately judge their acts, and not to the court of 
justice." 
It is imperative, in the light of the Supreme Court decision above-cited, to 
grant local government units where casinos are supposed to be established by 
PAGCOR or the government, authority to participate in the decision-making 
process insofar as the establishment of casinos in their respective localities. 
The bill shall lend fealty to the State policy of granting LGU's genuine and 
meaningful local autonomy to enable them to attain their fullest development as 
self-reliant communities and make them more effective partners in the attainment 
of national goals. Through this measure, LGUs shall be given the authority and 
responsibility to decide what forms of activities may be allowed in their respective 
jurisdictions and which they believe will redound to the best interest of their 
constituents. 
The approval of this bill is, thus, earnestly requested. 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
7 
JUL -2 
!\! I :! ! 
,”., 
S E N A T E  
~~~~~{~~~ nv 
Senate Bill No. 3 6 1 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
REGULATING THE POWER OF THE PHILIPPINE AMUSEMENT AND 
GAMING CORPORATION (PAGCOR) TO ESTABLISH, OPERATE AND 
MAINTAIN CASINOS IN THE COUNTRY, AMENDING FOR THE PURPOSE 
PRESIDENTIAL DECREE NO. 1869, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Section 1 of Presidential Decree No. 1869 is hereby 
amended to read as follows: 
“SECTION 1, Dedarafion of Policy. - It is hereby declared 
to be the policy of the State to centralize and integrate all games of 
chance not heretofore authorized by existing franchises or 
permitted by law in order to attain the following objectives: 
(a) 
To centralize and integrate the right and 
authority to operate and supervised by the 
Government; 
To establish and operate clubs and casinos, 
SUBJECT TO THE APPROVAL OF THE 
SANGGUNIANG BARANGAY, SANGGUNIANG 
BAYAN OR PANLUNGSOD, IN THE CASE OF 
COMPONENT 
CITIES, 
AND 
THE 
SANGGUNIANG PANLALAWIGAN, OR THE 
SANGGUNIANG PANLUNGOSD, IN THE CASE 
OF HIGHLY URBANIZED CITIES, AS THE 
CASE MAY BE, IN CONSULTATION WITH 
DULY-REGISTERED 
PEOPLES 
ORGANIZATIONS, 
for 
amusement 
and 
recreation, including sports 
gaming pools 
(basketball), football, lotteries, etc. and such 
other forms of amusement and recreation 
including games of chance, which may be 
allowed by law within the territorial jurisdiction of 
the Philippines and which will: (1) generate 
sources 
of 
additional 
revenue 
to 
fund 
infrastructure and socio-civic projects, such as 
(b) 
ORGANIZATIONS 
OR 
NON-GOVERNMENT 


flood-control programs, beautification, sewerage 
and sewage projects, Tulungan ng Bayan 
Centers, 
Nutritional 
Programs, 
Population 
Control and such other essential public services; 
(2) create recreation and integrated facilities 
which will expand and improve the country’s 
existing tourist attractions; and (3) minimize, if 
not totally eradicate, the evils, malpractices and 
corruptions that are normally prevalent in the 
conduct and operation of gambling clubs and 
casinos without direct government involvement. 
SEC 2. Effectivity. - This Act shall take effect upon its publication in at 
least two (2) national newspapers of general circulation. 
Approved,