FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The attached bill seeks to expressly exclude jai-alai games from the franchised activities 
of the Philippine Amusement and Gaming Corporation (PAGCOR) by an express amendment of 
Presidential Decree No. 1869, the PAGCOR charter. 
The basic principle, conceded by all legislators, is that the permit or franchise for the 
operation and regulation of any form of gambling is a legislative prerogative. In other words, 
gambling - in this instance jai-alai - being a prohibited activity can only allowed by clear and 
express provision of law. 
The proposed legislation will settle with finality the issue of authority of PAGCOR to 
operate and manage jai-alai games. This, in view of the recent judicial ruling that PAGCOR is 
vested with power to operate jai-alai games, a ruling arrived at when the issue was raised before 
the Court for the third time, a ruling marked by strong disagreements between and among the 
members of the highest court. 
The issue of jai-alai is not merely and simply a legal issue; it involves peace and order, 
public policy and public morals. We cannot quibble about this. As all Cebuanos know only too 
well, the pernicious gambling activity called masiao - the illegal numbers game in the Visayas 
and Mindanao - is rooted in jai-alai. Masiao is hitched to - and thrives on - the three number 
winning combination that results kom what is known as the special Have in professional jai-alai 
games. With masiao in the streets because of jai-ala;, Cebu would have to contend with criminal 
activities, the shady dealings and the dubious characters that masiao is sure to bring. It happened 
in the past when jai-alai was around; it will happen again the moment jai-alai is back - unless jai- 
alai games are totally stopped by Congress. 


This is consistent with the strong policy of the President that - exercising her power of 
control over all executive offices - she is against the resumption of jai-alai operations by 
PAGCOR and the proliferation of any form of gambling. Needless to say, the quick response of 
the President clearly indicates the sincerity and passion with which she wages her war against the 
proliferation of gambling and other vices and affirms her confidence in the unstinting moral 
crusade of the people of the Visayas against masiao and the ill effects and deeds it breeds. It 
gives us the assurance needed to push for the most restrictive reforms in the area of gambling. 
This is a Senate counterpart bill to one filed in the House of Representatives by Rep. Raul 
V. Del Mar 11. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
ALA1 GAMES FROM THE FRANCHISED ACTIVITIES OF THE 
PHILIPPINE AMUSEMENT AND GAMING CORPORATION 
AMENDING PRESIDENTIAL DECREE NO. 1869, EXPRESSLY EXCLUDING JAI- 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section l(b) of Presidential Decree No. 1869 is hereby amended to read 
as follows: 
"(b) To establish and operate clubs and casinos, for amusement and 
recreation, sports gaming pools (basketbali, football, lotteries, etc.) and such 
other forms of amusement and recreation including games of chance, 
EXCEPT JAI-ALAI, 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 
flood control programs, beautification, sewerage and sewage projects, Tulungan 
ng Bayan Centers, Nutrition 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." 
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SECTION 2. Section 10 Presidential Decree No. 1869 is likewise amended to read as 
follows: 
“Sec. 10. Nature and term of franchise - Subject to the terms and 
conditions established in this Decree, the Corporation is hereby granted for a 
period of twenty-five (25) years, the rights, privileges and authority to operate 
and maintain gambling casinos, clubs, and other recreation or amusement 
places, sports, gaming pools, i.e. basketball, football, lotteries, etc. EXCEPT JAI- 
ALAI, whether on land or sea, within the territorial jurisdiction of the Republic of 
the Philippines.” 
SECTION 3. Any law, presidential decree or issuance, executive order, letter of 
instruction, administrative order, rule or regulation contrary to or inconsistent with the provisions 
of this act is hereby repealed, modified or amended accordingly. 
SECTION 4. This Act shall take effect fifteen (15) days after its publication in at least 
two (2) newspapers of general circulation. 
Approved, 
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