Constitutional Issues Surrounding Presidential Decree No.

1869 (PD 1869) and

PAGCOR

I. Introduction
Presidential Decree No. 1869 is a Philippine law that was issued on July 16,
1983. It established the Philippine Amusement and Gaming Corporation (PAGCOR)
as the government-owned and controlled corporation responsible for regulating and
overseeing the operation of gambling and gaming activities in the country
(Presidential Decree No. 1869, S. 1983 | GOVPH, 1983).

PAGCOR is tasked with generating funds for socio-civic projects and

promoting tourism through the development of the gaming industry. It is also
responsible for ensuring that all gaming activities are conducted fairly and in
accordance with the law (Presidential Decree No. 1869, S. 1983 | GOVPH, 1983).

This case study analyzes the constitutional challenges faced by PD 1869,

focusing on the equal protection clause and its impact on local autonomy.

II. Problem Identification and Analysis of Problems and Issues

A. Equal Protection Clause

The selective legalization of certain gambling activities under PD 1869
raises concerns regarding compliance with the equal protection clause. Critics argue
that differential treatment based on the types of gambling allowed may violate the
constitutional principle of equal protection (The Constitution of the Republic of the
Philippines | GOVPH, n.d.). Analyzing the constitutional justification for these
distinctions is essential to determine the legality of PD 1869 in light of the equal
protection clause.

B. Local Autonomy and Taxation Powers

Another critical issue pertains to the potential encroachment on local
autonomy, particularly concerning taxation powers. The question arises as to
whether PD 1869 infringes on the authority of local government units to levy taxes
and regulate gambling activities within their jurisdictions. Evaluating the safeguards
in place to protect local autonomy and ensuring that PD 1869 respects the
boundaries of local taxing powers is crucial in understanding the implications of the
decree on local governance (The Constitution of the Republic of the Philippines |
GOVPH, n.d.).

III. Evaluation of Alternative Solutions

A. Constitutional Justification
Assess whether the classification of gambling activities under PD 1869 is
based on a rational and non-arbitrary basis to justify differential treatment .

B. Local Autonomy Safeguards

Evaluate mechanisms to ensure that PD 1869 does not unduly infringe on
the taxation powers of local government units while upholding the principle of local
autonomy.

IV. Conclusion
The court's decision to uphold the constitutionality of PD 1869 and
PAGCOR underscores the importance of balancing national governance with local
autonomy. By recognizing the limitations on local taxing powers and the validity of
classification in legislation, the court reaffirmed the primacy of constitutional
principles in regulating gambling activities.

V. Recommendations and Implementations

A. Legislative Review
Conduct a comprehensive review of PD 1869 to ensure alignment with
constitutional principles and address any potential areas of concern.

B. Stakeholder Consultation
Engage with local government units and stakeholders to solicit feedback on
the implementation of PD 1869 and PAGCOR regulations.

C. Public Awareness Campaigns

 Launch educational initiatives to raise awareness about the legal framework
governing gambling activities and the role of PAGCOR in regulation.

REFERENCES:

Presidential Decree No. 1869, s. 1983 | GOVPH. (1983, July 11). Official Gazette of
the Republic of the Philippines.
https://www.officialgazette.gov.ph/1983/07/11/presidential-decree-no-1869-s-
1983/

THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES – ARTICLE

III | GOVPH. (n.d.). Official Gazette of the Republic of the Philippines.
https://www.officialgazette.gov.ph/constitutions/the-1987-constitution-of-the-
republic-of-the-philippines/the-1987-constitution-of-the-republic-of-the-
philippines-article-iii/

THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES – ARTICLE

V | GOVPH. (n.d.). Official Gazette of the Republic of the Philippines.
https://www.officialgazette.gov.ph/constitutions/the-1987-constitution-of-the-
republic-of-the-philippines/the-1987-constitution-of-the-republic-of-the-
philippines-article-v/