Case Digest (G.R. No. 177333)
Facts:
Philippine Amusement and Gaming Corporation (PAGCOR) represented by Atty. Carlos R. Bautista, Jr., petitioner, v. Philippine Gaming Jurisdiction Incorporated (PEJI), Zamboanga City Special Economic Zone Authority, et al., G.R. No. 177333, April 24, 2009, Supreme Court Second Division, Carpio Morales, J., writing for the Court.In 1995 Congress enacted Republic Act No. 7903 (RA 7903) on February 23, 1995, creating the Zamboanga City Special Economic Zone (ZAMBOECOZONE) and vesting powers in the ZAMBOECOZONE Authority, including Sec. 7(f): "To operate on its own, either directly or through a subsidiary entity, or license to others, tourism-related activities, including games, amusements and recreational and sports facilities."
Acting under what it viewed as that grant, public respondent ZAMBOECOZONE Authority adopted Resolution No. 2006-08-03 dated August 19, 2006 approving private respondent Philippine Gaming Jurisdiction, Inc. (PEJI) as a Master Licensor/Regulator of online/electronic gaming. PEJI then conducted international advertising representing itself as such licensor/regulator.
PAGCOR filed a petition for prohibition challenging the Authority’s power to operate, license, or regulate games of chance within ZAMBOECOZONE, asserting that Sec. 7(f) did not encompass "games of chance" and that such powers remain with PAGCOR under existing law (including Presidential Decree No. 1869 and related ecozone statutes). PAGCOR compared RA 7903 with other ecozone statutes—RA No. 7227 (Subic), RA No. 7922 (Cagayan), and RA No. 7916 (Special Economic Zone Act)—which explicitly mention gambling, casinos, or games of chance.
ZAMBOECOZONE Authority countered that PAGCOR lacked personality to file the petition and that the words "games" and "amusements" in Sec. 7(f) include games of chance. PAGCOR submitted an Opinion of the Office of the President (Nov. 27, 2006, Deputy Executive Secretary Manuel B. Gaite) concluding RA 7903 does not authorize ZAMBOECOZONE to enter into gaming activities unless expressly provided by law.
The Court, on petition for p...(Subscriber-Only)
Issues:
- Whether Section 7(f) of R.A. No. 7903 authorizes the ZAMBOECOZONE Authority to operate, license, or regulate games of chance (gambling).
- Whether the respondents should be directed to cease and desist from operating, licensing, or regulating games of chance pursuant to the li...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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