Title
Jaworski vs. Philippine Amusement and Gaming Corp.
Case
G.R. No. 144463
Decision Date
Jan 14, 2004
PAGCOR's grant of authority to SAGE for internet gambling was nullified as it exceeded P.D. No. 1869's scope, violated territorial limits, and lacked legislative approval.

Case Digest (G.R. No. 144463)
Expanded Legal Reasoning Model

Facts:

  • PAGCOR’s Legislative Franchise under P.D. No. 1869
    • Enacted July 11, 1983, to centralize all games of chance and eradicate malpractices; authorized PAGCOR as a government-owned corporation to operate casinos, clubs, sports gaming pools (basketball, football, lotteries, etc.) for 25 years, renewable for another 25.
    • Section 14 limits activities to “land or water within the territorial jurisdiction of the Republic of the Philippines.”
  • Grant of Authority to SAGE
    • March 31, 1998: PAGCOR’s board approved a “Grant of Authority and Agreement for the Operation of Sports Betting and Internet Gaming,” allowing Sports and Games Entertainment Corporation (SAGE) to operate sports betting stations in PAGCOR casinos and Internet gaming, subject to integrity safeguards.
    • September 1, 1998: Agreement executed by PAGCOR’s Chairperson Alicia Ll. Reyes and SAGE’s Chairman Henry Sy, Jr. and President Antonio D. Lacdao; SAGE commenced trial Internet gambling using prepaid cards redeemable at Bingo Bonanza outlets.
  • Senator Jaworski’s Petition
    • Filed a petition for certiorari and prohibition under Rule 65, seeking to nullify PAGCOR’s grant of authority to SAGE.
    • Contended that Internet gambling was not contemplated by P.D. 1869, transcends territorial limits, and does not fall within “casinos,” “clubs,” or “other recreation or amusement places” as defined in the decree.

Issues:

  • Statutory Authorization
    • Is PAGCOR authorized under P.D. No. 1869 to operate or to vest another entity with the authority to operate Internet gambling?
  • Jurisdictional and Discretionary Boundaries
    • Did PAGCOR act without or in excess of its jurisdiction or with grave abuse of discretion when it authorized SAGE to conduct Internet gambling under Section 10 of P.D. 1869?
  • Delegation of Franchise Rights
    • Does PAGCOR’s legislative franchise include the power to share or delegate any part of its authority to a third party, specifically for Internet gaming?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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