G.R No.

177333
PETITIONER:
PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR), represent by ATTY.
CARLOS R. BAUTISTA JR.
V
RESPONDENT:
PHILIPPINE GAMING JURISDICTION INCORPORATED (PEJI), ZAMBOANGA SPECIAL
ECONOMIC AUTHORITY, et. al.
FACTS:
- Before the Court is a petition for Prohibition
- R.A No. 7903 (enacted into law on Feb. 23, 1995) created the Zamboanga
City Special Economic Zone (ZAMBOECOZONE) and the ZAMBOECOZONE
Authority
- Section 7, R.A 7903 provides:
o (f) To operate on its own, either directly or through a subsidiary entitiy
or license to others, tourism-related activities, including games,
amusements and recreational and sports facilities.
- In the exercise of the power vested in ZAMBOECOZONE Authority, it passed
Resolution No. 2006-08-03 (dated Aug 19, 2006) approving the application of
Philippine Gaming Jurisdiction Incorporated to be a Master Licensor/Regulator
of on-line/internet/electronic gaming/games of chance.
- PEJI undertook extensive campaign which drew the attention of PAGCOR to
file the Prohibition which assails the authority of ZAMBOECOZONE to operate,
license or regulat the operation of games of chance in the ZAMBOECOZONE.
- PAGCOR contends that R.A. No. 7903 Section 7(f) does not give power or
authority to ZAMBOECOZONE Authority to operate, licene, or regulate the
operation of games of chance in the ZAMBOECOZONE.
- PAGCOR also cited 3 pertinent statutes where the authority to operate games
of chance is clearly expressed, but is not similarly in R.A. 7903:
o 1. R.A. No. 7227 Bases Conversion and Development Authority Act
Section 13
o 2. R.A. No. 7922 Cagayan Economic Zone Act of 1995 Section 6
o 3. R.A. No. 7916 Special Economic Zone Act of 1995 Section 51
- PAGCOR: compared to above-cited ecozone-related statutes, R.A. No. 7903
Section 7(f) does not categorically empower ZAMBOECOZONE Authority to
operate, license or authorize entities to operate games of chance
- ZAMBOECOZONE Authority: PAGCOR has no personality to file represent
petition as it failed to cite a superior law which proves its claim of having
been granted exclusive right and authority to license and regulate all games
of chance within the Philippines
-

RULING:
The Court finds that R.A 70903 does not authorize the ZAMBOECOZONE
Authority to operate and/or license games of chance/gambling.
(f) To operate on its own, either directly or through a subsidiary entitiy or
license
to
others,
tourism-related
activities,
including
games,
amusements and recreational and sports facilities.

In statutory construction, where words of a statute are clear, plain, and free
from ambiguity, it must be given its literal meaning and amplied without
attempted interpretation.
- VERBA LEGIS/ Plain meaning rule- rests on valid presumption that the words
employed by the legislature in a statute correctly expresses its intention or
will and preclude the court from construing it differently.
- The words game and amusement have definite and unambiguous
meaning in law which are clearly different from games or chance or
gambling.
- Therefore, RA 7903 DID NOT grant to ZAMBOECOZONE Authority the power to
operate, license or otherwise authorize and regulate the operation of any
games of chance
PETITION IS GRANTED.