NGO urges SC to void offshore gaming licenses from PAGCOR

A non-government organization asked the Supreme Court (SC) on Wednesday to declare as unconstitutional the regulations covering offshore gaming licenses issued in September by the Philippine Amusement and Gaming Corporation (PAGCOR).

Accusing PAGCOR of grave abuse of discretion, the Union for National Development and Good Governance-Philippines (UNLAD-Philippines) said the gaming regulator was not authorized under its charter (Presidential Decree 1869) to either operate or regulate internet gambling that caters to foreign-based players and gamblers outside the Philippine jurisdiction.

"PACGOR’s act of mere issuing a license is in itself a violation of its franchise as there is none in the provision of the law that allows PAGCOR to delegate that authority to various license holders it already authorized," the petition read.

"The PAGCOR law must first be amended for it to legally delegate that authority exclusively franchised to it,” it added.

PAGCOR expanded its powers without authority from Congress, UNLAD-Philippines claimed.

“The Rules on Offshore Gaming approved and currently implemented by PAGCOR is null and void on the ground that PAGCOR is patently without jurisdiction, legislative franchise, authority or power to issue licenses for the opening, establishment, operation, regulation, control and management of online gaming as defined under the Rules on Offshore Gaming,” the petition stated.

Offshore gaming licenses are a new source of revenue for PAGCOR, since it decided not to renew the licensing deal with PhilWeb Corp., once owned by businessman Roberto Ongpin.

The agreement with PhilWeb involves 286 e-games outlets or internet cafes exclusively dedicated to casino games.

The application and processing fees for an offshore gaming license cost $50,000 for an e-casino, and $40,000 for sports betting.

According to PAGCOR, an offshore gaming license is a non-transferable privilege and not a vested right, and may be suspended or canceled by the PAGCOR board of directors if the licensee commits an offense against Philippine anti-gambling laws or violates any condition attached to the license. — Virgil Lopez/VS, GMA News