THIRTEENTH CONGRESS OF THE REPUBLIC 1 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
1 
1- 
A 
S.B. NO. 
4 
Introduced by Senator JINGGOY EjERCITO ESTRADA 
EXPLANATORY NOTE 
The Supreme Court in the recent case of Mayor Pablo P. Magtajas and the City of 
Cagayan de Or0 vs. Pryce Properties Corporation, Inc. and Philippine Amusement and 
Gaming Corporation, 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 operation 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 Or0 Cify in 1992. To implement the e>xpansion, 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. 
1
.
.
 
The City Government of Cagayan de Or0 City, however, opposed the move. The 
Sangguniang Panlungsod of Cagayan de Or0 City later enacted two (2) ordinances 
prohibiting the operation of casinos in the City. 
PAGCOR’s petition to nullify the two ordinances was sustained by the Court of 
Appeals. The City Government of Cagayan de Oro 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 generally considered inimical to the interests of the 
people, there is nothing in 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 dlow it without limitation or it 
may prohibit some foms of gambling and dlow 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. “kt 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 depswents, to which the function belongs in our scheme of 
g6W=nment, That function is exclusive. Whichever way these branches decide, 
they are answerable O R I ~  
to their own conscience and the constituents who will 
ultimately judge their acts, and not to the court ofjustice.” 
c 


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 d ~ i s i o n - ~ k i ~ ~  
process insofar as the 
establishment of casinos in their respective localities. 
This bill shall lend fealty to the State policy of granting LGU’s genuine and 
ieaninsful local autonomy to enable them attain their fullest development as self-reliant 
communities and make them more effective partners in the attainment of national goals. 
Through this measure, LGU’s 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. 
EJERClTO ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE REpuBLlC ) 
OF THEPHILIPPINES 
) 
FIRST REGULAR SESSION 
1 
E N A T  
S.B. NO. 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
REGULATING THE POWER OF THE PHXLIPPDIE AMUSEMENT AND 
GAMING CORPORATION (PAWOR) TO ESTABLISH, OPERATE AND 
MAINTAIN CASINOS IN T3E CO NTRU-, ~ M E N ~ I N ~  
FOR THE PURPOSE 
PRESIDENTIAL DECREE NO, 1869, AND FOR OTHER PURPOSES 
- _- 
--- - 
SECTION 1. Section 1 of Presidential Decree No. 1869 is hereby amended to read, as 
follows: 
"SECTION I. Declaration 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 
fianchises or permitted by law in order to attain tbe following objectives: 
(a) To centralize and integrate the right and authority to operate and supervised by the 
.
.
 
Government: 
(b) To establish and operate clubs and casinos, SUBJECT TO THE APPROVAL OF 
THE 
SANGGUNIA" BARANGAY, 
SANGGUNfANG BAYAN 
OR 
PA"GSOD, 
IN THE CASE OF COMPONENT CITIES, AND THE 
SANGGUMANG 
PANLALAWIGAN$ OR 
THE 
SANGGUNfA" 
PANLUNGSOD, IN THE CASE OF " L Y  W A N L Z E D  CITIES, AS TECE 
CASE MAY BE, IN CONSULTATION W H  DULY-REGISTERED 
PEOPLE'S 
ORGANIZATIONS 
OR 
NON- 
GOVE€tNM€WT 


. . .  k 
ORGANIZATIONS, for amusement and recreation, including sports gaming 
pools (basketball), football, lotteries, etc. and such other fonns 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 flood 
control programs, beautification, sewerage and sewage projects, Tulungan ng 
Bayan Centers, Nutritional Programs, Prrpulation C ~ n t d  
and such other essential 
public services; (2) create recreation and integrated facilities which will expand 
and improve the country’s existing tourJst 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. 
SECTION2. This Act shall take effect upon its publication in at least two (2) 
national newspapers of general circulation. 
Approved, 
. . 
.