FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 4 f{ 4 
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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 OrO vs. Pryce Properties Corporation, Inc. and Philippines 
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 ordinance 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 oit for its operations scheduled to 
commence in December 1992. 
The City Government of Cagayan de Oro, however, opposed the move. 
The Sanguniang Panglungsod ng Cagayan de Oro later enacted two (2) 
ordinances in prohibiting the operations 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 SUlJreme yourt 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 interest 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 is 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 horseracing. In making such choice, 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 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 eon science and the 
constituents who will ultimately judge their: acts, and not to the court of justice." 
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It is imperative, in the light of the Supreme Court decision 'abov~-cit~d; to· 
grant local government units where casinos are supposed to be establish 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 reality 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 goal. Through this measure, LGUs shall be given the authority and 
responsib11ity to decide what forms of activities may be allowed in their respective 
jurisdictions and which they believe will rebound to the best interest of their 
constituents. 
The approval of this bill is, thus, earnestly requested. 
Y EJERCITO ESTRADA 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 4'24 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
REGULATING THE POWER OF THE PHILIPPINES 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. Declaration of Policy. - it hereby declared to be policy 
of the State to centralize and integrate all games of chance not heretofore 
authorize by existing franchise or permitted by law in order to attain the following 
objective: 
(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 
SANGUNIANG 
BARANGAY, 
SANGUNIANG 
BAYAN 
OR 
PANLUNGSOD, IN THE CASE OF COMPONENT 
CITIES, AND THE SANGUNIANG PANLALAWIGAN, 
OR THE SANGUNIANG PANGLUNGSOD, IN THE 
CASE OF HIGHLY URBANIZED CITIES, AS THE CASE 
MAY BE, IN CONSULTANT WITH DULY-REGISTERED 
PEOPLE'S ORGANIZATION OR NON-GOVERNMENT 
ORGANIZATIONS, for amusement and 
recreation, 
including sports gaming pools (basketball), football, 
lotteries, etc and such other forms 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 
project, such as flood-control programs, beautification, 
sewerage and sewage project, 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 attraction; and (3) 


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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 govemment involvement. 
SEC. 2. Effectivity - This Act shall effect upon its publication in at least 
two (2) national newspaper of general circulation . 
. Approved,