A CALL FOR THE CITY GOVERNMENT
TO RECONSIDER ITS POLICY
ON REGULATED GAMBLING

I. BACKGROUND

The City of Naga has been hailed as one of the country’s most awarded cities due to its innovative ways of governance. It is also equally respected by various government and non-government entities- local and international-largely due to an empowered citizenry. The list of the awards it has received include, the Most Cost-Effective City in Asia (UK, 2005), Women-Friendly City (UN Development Fund for Women, 2004), Model City for Government Procurement (World Bank and Procurement Watch, 2003), CyberCity Award (UNDP, 2002), International Award for Improving the Living Environment (Dubai, 1998), and “Most Child-Friendly City” (Philippine Council for the Welfare of Children, 2006, among others.

These awards create a picture of a city which gives premium to the over-all welfare of the constituents over and above financial yields or short-term economic gains of the local government unit (LGU). Moreover, the said commendations also put primacy on the voice of the people in the formulation of key policies that touch on the lives of the stakeholders. They create an image of a government that listens to the sentiments of its valued members, makes earnest efforts to respond to such interest and put forth policies that actually protect the said interests.

The aforementioned characteristics of the City of Naga are the fundamental reasons why this position paper is made. We are of the full knowledge and hope that this paper will be given due attention and its contention will be considered by the City’s well-esteemed policy-makers. 

II. THE STATUS QUO

Currently, the City has approved the operation of Traditional and Electronic Bingo Games in the ALDP Complex, Diversion Road by virtue of Ordinance Number 2003-138 and Resolution Number 2008-467.

Indubitably, the operation of these bingo games adds to the revenues collected by the City and hopefully, ultimately redounds to the benefit of the Naguenos. These games of chance are also considered as added options for those looking for alternative means of leisure.

Certainly, there are various levels of objections to the continued operation of the bingo games in its current location as will be extensively expounded later. However, given the existence of authority bestowed on the operator by the City government, it is rather moot and academic to question operations under the conditions previously laid down. On the other hand, new developments concerning the matter arose, which in turn necessitated a careful and intelligent look by the stakeholders, the academic community included. It is due to these new developments that an effort to argue and persuade is hereby made.

On February 27, 2009, a public hearing was made on the following issues:
 

1. Request for approval of the Sangguniang Panglunsod to transfer the venue of the Traditional Bingo games to SM-City Triangulo, Naga City; and
2. Endorsement from the Office of the City Mayor of the letter of Mr. Anton Dy-Prieto applying to put up a PAGCOR E-Games (Internet Casino Station) in behalf of Mr. Jason J. Soriano of YOUPLAY Gaming Global Corporation.

A general opposition on the two issues aforementioned fundamentally requires a closer examination of the rationale behind the gaming industry as sanctioned by no less than the State. This corollarily necessitates a revisiting of the legislative enactment creating the Philippine Games and Amusement Corporation (PAGCOR).

A perusal of Presidential Decree No. 1869 , as amended by Republic Act No. 9487 yields a finding that PAGCOR was created with a three-pronged mandate: to regulate all games of chance, particularly casino gaming in the country, to raise funds for the governments' socio-civic and national developmental efforts, and to help boost the country's tourism industry.  

“PAGCOR is a corporation created directly by P.D. 1869 to help centralize and regulate all games of chance, including casinos on land and sea within the territorial jurisdiction of the Philippines. In Basco v. Philippine Amusements and Gaming Corporation, this Court sustained the constitutionality of the decree and even cited the benefits of the entity to the national economy as the third highest revenue-earner in the government, next only to the BIR and the Bureau of Customs. ”

Sec. 10 of R.A. 9487 provides that in order that PAGCOR can operate or license gambling casinos, gaming clubs, and other similar recreation or amusement places such as bingo, the corporation shall obtain the consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations. (Emphasis supplied) This provision clearly recognizes the authority and wisdom of the LGU concerned to assess whether or not an operation of any games of chance in its area will be beneficial or inimical to the interests of its constituents. Furthermore, the law provides for this condition knowing full well that since the LGU is closer to the people, it is in the best position to test the reasonableness and viability of an operation of any games of chance. This provision serves a the best and only tool in the possession of the LGUs in order to balance the power of the national government as laid down in the aforementioned statute. Therefore, this provision must be given the value that it rightfully deserves.

Anent the first issue, the City government must be mindful of the provision in R.A. No. 9487 which stipulates that, “The operation of slot machines and other gambling paraphernalia and equipment, shall not be allowed in establishments open or accessible to the general public unless the site of these operations are three-star hotels and resorts accredited by the Department of Tourism authorized by the corporation and by the local government unit concerned.” This provision undeniably rests on sound judgment. It is made part of the law for a reason. It is an implicit recognition of the ill effects of gambling if made generally open to the public’s view and access.
 
The City government must be cautious in granting the request of Isarog Gaming Corporation for the approval to transfer the venue of the Traditional Bingo Games to SM City-Naga. The City government owes it to the Naguenos to put primordial consideration to the latter’s welfare. It has to ensure that due observance of the provisions of pertinent laws is made.

Even assuming that R.A. 9487 does not apply to the operations of the Traditional Bingo considering that it was allowed by virtue of an ordinance, still the reason for the above-cited provision deserves respect and recognition. It must be equally applied as it will not imperil the welfare of the people rather it will guarantee that gaming is strictly regulated.

The proposed venue of the Traditional Bingo Games is a shopping mall which is accessible to people from all walks of life. It is open to minors and students. Even if there will be strict enforcement of laws disallowing minors from participating, the fact that it is open to their view equally promotes gambling as a leisure or fun activity. It has the potential of luring people with money barely enough to buy one meal to wager and in turn lose whatever little he or she has.

In consideration of the second issue, the City government, given its mandate and current thrust of good governance must see the multifarious costs of continuously operating or augmenting the number of gaming stations in the area. These costs as fully articulated below, although not conclusive, must be sufficient enough to convince the City government that continued operations of bingo games, internet casino stations and other similar games of chance must not be continued nor their operations increased.

1. Moral and ethical costs

Gambling is morally and ethically questionable. “The moral and ethical arguments against gambling all lead to a sense of loss about wasted resources, which could have been used for more productive endeavors that improve lives and reduce community problems. The sense of loss and waste in turn triggers efforts by the private and public sectors, and religious groups, to control, penalize and even eliminate gambling. Yet gambling on a national scale goes on unabated.”

The Catholic Church has been consistently opposing the gambling industry, especially the State’s institutionalization and legalization of gambling in the country. The primary argument put forth by the Church is that gambling consequently corrodes public morals.
The attitude that it creates among the wagers is that their hard-earned money albeit, small can exponentially increase just by the simple act of betting. Gambling promises easy money. It creates an illusion that one can get what he or she wants in life by simply relying on chance.

Once a person gets hooked on gambling, he resorts to illegal means to find resources so that he or she can continue the vice. The government agency tasked to enforce the laws on gambling does not in any way check the source of the money. The person will be allowed to bet as long as he has the means without taking into consideration the possibility that the money being spent may have been acquired through theft, robbery or any other illegal means.

Gambling in any form, legal or illegal, runs counter to the very thrust of the government of rebuilding or strengthening the moral character of the nation. It has the long term effect of creating a decadent society, no longer mindful of the essential values that underpin the moral fiber of the country.

2. Social and economic costs

In the paper written by Rhys Stevens in 2006, an enumeration of the social and economic costs of gambling was made. These include, among others: “increased criminal justice system impacts, health-care related to the treatment of problem gambling, costs borne by individual problem gamblers and their families.”

Furthermore, the promise of easy gain possibly brought about but not guaranteed by gambling breeds laziness. Instead of nurturing the sense of fulfillment generated by one’s ability to produce results manifesting his or her talents and skills, gambling fosters more inclination to forget one’s competence and just simply rely on chance.

The collective sense of efficiency and fulfillment in seeing the society soar to greater heights due to hard work and determination is threatened by the continued operations of gambling.

A person’s social skills are also endangered by the attention he gives to wagering or gaming. Such attention could have been meaningfully spent caring for the family, engaging in academic endeavors, perfecting one’s craft or profession or simply, socializing with friends.

Economically, gambling or the promise of easy gain has the propensity to lure the people to spend their hard-earned money in casinos, bingos, or lottery instead of saving it in banks, which provide a very minimal gain due to low interest rates on deposits. For those people who may have very little, some would even use their money to buy lotto tickets rather than use it to buy food or medicine. What they do not realize is that the minimal amount they spend each time they buy ticket when summed up within a month or a year can translate into a rather reasonable amount which could have been justly spent on more important things.

The State as part of its policy of regulating the gambling industry must also cease underscoring the monetary rewards of legal gambling operations because it has the tendency of downplaying the ill effects of this nefarious activity. A visit to PAGCOR’s website will prompt the reader that PAGCOR is now the third largest revenue producing agency of the government. The revenues it generates are translated into social services. This information alludes to a conclusion that operating games of chance under the authority of the government brings forth more good than harm. It fails to put in the equation an elucidation of the harmful effects of gambling to the individual as well as to the collective psyche of the nation.

III. CONCLUSION

Naga City is popularly known as “an maogmang lugar”. For the City to live up to this reputation, it must look after the welfare of the people by closely and seriously considering the ramifications of its action on the two issues enumerated above. The City in arriving at an intelligent and rational decision, must take into account not only the legality of its actions but also, if not more importantly, its propriety and morality.

We urge the City government to heed the call of the Naguenos- the parents, the youth, the religious sector, the academe and all other stakeholders to deny the requests for the transfer of the Traditional Bingo Games to SM Naga and the authority to operate the PAGCOR E-Games at ALDP Complex.