PHILIPPINES MINISTER CHANGES VIEW ON INTERNET GAMBLING

13 July 2007

DOJ says Zambo Internet casino illegal

The Inquirer.net news site in the Philippines reports this week on the ongoing dispute over Internet gambling within the Zamboanga City Special Economic Zone (Zamboecozone).

Apparently Justice Secretary Raul Gonzalez has reversed an earlier opinion supporting the legality of the operations of an online casino in the zone after the issue was opposed by PAGCOR, the Philippine Amusement and Gaming Corporation (see previous InfoPowa reports).

PAGCOR claimed that the existence of the online casino and the authority of the Zamboecozone to operate gaming facilities, or issue licenses to Internet gaming companies, are within its authority and not that of the special economic zone.

The Inquirer reports that in a letter dated June 27 addressed to PAGCOR chair Ephraim Genuino, Secretary Gonzalez said he premised his earlier opinion on a letter from Zamboecozone chair Georgina Yu, which asserted that the ecozone has the power to issue licenses to operate online or Internet gaming.

PAGCOR argued that unlike the case of the Cagayan Economic Zone Authority (Ceza), which has been clearly authorised to operate gambling facilities such as casinos, Zamboecozone’s charter did not specify that it could authorise this type of operation.

Gonzalez pointed out that the issue on Zamboecozone had been decided when Malacañang ruled that the special economic zone lacks the authority to operate or issue licenses to gambling companies. He added that in the same ruling, Manuel Gaite, deputy executive secretary for legal affairs, also affirmed that PAGCOR is the sole regulator of “...all persons primarily engaged in gambling within the territorial jurisdiction of the Republic of the Philippines.”

Zamboecozone had accordingly be ordered to immediately stop any gambling activities in its area of jurisdiction, but apparently this was disregarded, leading to PAGCOR filing a Supreme Court petition to halt the zone's gambling activities.

Gonzalez has confirmed that after reviewing the facts of the case, he had decided to recall his first opinion about Zamboecozone’s authority to operate gambling, or issue licenses to gambling companies.

“For one, the Office of the President has already issued an opinion regarding the matter. Like all other acts of the President, the order here is hereby binding upon all offices and bureaus of the executive branch, including the Department of Justice,” he said. Gonzalez also admitted that the decision to recall his earlier opinion was because the issue is now with the Supreme Court.

Zamboecozone chairman Yu declined to comment specifically on Gonzalez’s ruling and the fact that the issue was being pursued by PAGCOR.

Online Casino News courtesy of InfoPowa