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Magtajas V. Pryce Properties Facts

1) The ordinances enacted by the Sangguniang Panlungsod of Cagayan de Oro City prohibiting casinos in the city were deemed invalid by the Court of Appeals. 2) The Supreme Court affirmed this ruling, finding that the ordinances contravened Presidential Decree 1869, which granted PAGCOR the authority to regulate gambling, including operating casinos, throughout the Philippines. 3) While local governments have the power to regulate gambling under the Local Government Code, P.D. 1869's grant of authority to PAGCOR to operate casinos supersedes this, and the ordinances were therefore deemed ultra vires.

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41 views2 pages

Magtajas V. Pryce Properties Facts

1) The ordinances enacted by the Sangguniang Panlungsod of Cagayan de Oro City prohibiting casinos in the city were deemed invalid by the Court of Appeals. 2) The Supreme Court affirmed this ruling, finding that the ordinances contravened Presidential Decree 1869, which granted PAGCOR the authority to regulate gambling, including operating casinos, throughout the Philippines. 3) While local governments have the power to regulate gambling under the Local Government Code, P.D. 1869's grant of authority to PAGCOR to operate casinos supersedes this, and the ordinances were therefore deemed ultra vires.

Uploaded by

Ronellie Marie Tinaja
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MAGTAJAS V.

PRYCE PROPERTIES
2. The tests of a valid ordinance are well established. A long line of
Facts: decisions has held to be valid, an ordinance must conform to the
following substantive requirements:
 PAGCOR in its capacity as a corporation created directly by P.D. 1869
to help centralize and regulate all games of chance, including casinos on 1) It must not contravene the constitution or any statute.
land and sea within the territorial jurisdiction of the Philippines decided
to expand its operations to Cagayan De Oro City and leased a portion of 2) It must not be unfair or oppressive.
a building belonging to Pryce Properties Corporation Inc.
3) It must not be partial or discriminatory.
 Civic organization, religious sectors ans women and youth groups
angrily denounced the project. 4) It must not prohibit but may regulate trade.
 The reaction of the Sangguniang Panlungsod of Cagayan de Oro City
was swift and hostile. It enacted Ordinance No. 3353 (An Ordinance 5) It must be general and consistent with public policy.
Prohibiting The Issuance Of Business Permit And Cancelling Existing
Business Permit To Any Establishment For The Using And Allowing To 6) It must not be unreasonable.
Be Used Its Premises Or Portion Thereof For The Operation Of Casino)
The Court understands and admires the concern of the petitioners for the
and Ordinance No. 3375-93 (An Ordinance Prohibiting The Operation
welfare of their constituents and their apprehensions that the welfare of
Of Casino And Providing Penalty For Violation Therefor).
Cagayan de Oro City will be endangered by the opening of the casino.
 Pryce, assailed the ordinances before the Court of Appeals, where it was
But, the apparent flaw in the ordinances in question is that they
joined by PAGCOR as intervenor and supplemental petitioner. Their contravene P.D. 1869 and the public policy embodied therein insofar as
challenge succeeded and the CA declared the ordinances as invalid. they prevent PAGCOR from exercising the power conferred on it to the
Issues: operate a casino in Cagayan de Oro City. The Court held that the power
of PAGCOR to centralize and regulate all games of chance, including
1. Whether the phrase "gambling and other prohibited games of chance" casinos on land and sea within the territorial jurisdiction of the
found in Sec. 458, par. (a), sub-par. (1) — (v) of R.A. 7160 could only Philippines, remains unimpaired. P.D. 1869 has not been modified by
mean "illegal gambling." the Local Government Code, which empowers the local government
2. Whether questioned Ordinance No. 3355 and Ordinance No. 3375-93 units to prevent or suppress only those forms of gambling prohibited by
are valid law.

Ruling: Casino gambling is authorized by P.D. 1869. This decree has the status
of a statute that cannot be amended or nullified by a mere ordinance.
1. The morality of gambling is not a justiciable issue. Gambling is not Hence, it was not competent for the Sangguniang Panlungsod of
illegal per se. While it is generally considered inimical to the interests of Cagayan de Oro City to enact Ordinance No. 3353 prohibiting the use of
the people, there is nothing in the Constitution categorically proscribing buildings for the operation of a casino and Ordinance No. 3375-93
or penalizing gambling or, for that matter, even mentioning it at all. It is prohibiting the operation of casinos. For all their praiseworthy motives,
left to Congress to deal with the activity as it sees fit. In the exercise of these ordinances are contrary to P.D. 1869 and the public policy
its own discretion, the legislature may prohibit gambling altogether or announced therein and are therefore ultra vires and void.
allow it without limitation or it may prohibit some forms of gambling
and allow others for whatever reasons it may consider sufficient.

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