The Supreme Court of the Philippines has this week dismissed a series of petitions challenging the authority of gaming regulator PAGCOR to regulate the nation’s Internet Gaming Licensees (IGLs), formerly known as POGOs.
According to local media reports, the three petitions – filed by the Union for National Development and Good Governance Philippines (Unilad), the Anti-Trapo Movement of the Philippines Inc and lawyer Jovencio Evangelista – had claimed that PAGCOR has no authority to regulate offshore gaming operators because online gaming did not exist when the agency’s charter was developed in 1983. Evangelista also argued that online gaming was still not mentioned when an amended law on PAGCOR was passed in 2007.
Unilad’s petition claimed PAGCOR has no authority to regulate online gambling aimed at foreign-based players, while the Anti-Trapo Movement said PAGCOR was breaching its charter by granting franchises to other entities.
For its part, PAGCOR argued that it has the authority to operate all games of chance as per Presidential Decree – other than for some clearly defined exceptions – including games in existence at the time of the charter’s creation and any new games developed thereafter.
In issuing its decision in favor of PAGCOR, the Supreme Court questioned why the petitioners had gone straight to the highest court in the land without good reason, and ultimately junked all three petitions by “refraining from discussing the constitutionality and legality of the [2016 rules and regulations around POGOs].”
It explained, “Unfortunately, petitioners failed to show exceptionally compelling reasons to justify direct resort to this Court. Petitioners were not able to clearly explain why preventing PAGCOR from regulating and requiring the registration of offshore gaming operations is of transcendental importance, warranting the immediate attention of this Court and a deviation from the doctrine of hierarchy of courts.
“Questions on the validity and constitutionality of the [2016 rules and regulations], to be sure, may have well been passed upon by the Court of Appeals, which similarly has jurisdiction over the subject matter and whose writs are likewise nationwide in scope.
“All told, in view of petitioners’ failure to observe the doctrine of hierarchy of courts and sufficiently establish the elements of judicial review, this Court shall refrain from discussing the constitutionality and legality of the [2016 rules and regulations].”
Facing increasing pressure in recent years over the criminal behavior of many POGO operators, PAGCOR has embarked on a mission to clean up the industry and last year put all POGOs under a “probationary stance” by which each was required to undergo a stricter probity process under a revised regulatory framework.
PAGCOR Chairman and CEO Alejandro Tengco said last month that the agency has since slashed the number of IGLs from around 250 prior to the probation period to around 75 issued new licenses.
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