Pragmatic solution

With the scarcity in public resources that we face, it would be an opportune time for our government to review whether there is a need for so many agencies managing lottery and gaming in this country.

We, of course, have the Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corp. (PAGCOR). Republic Act 1169 creating PCSO authorized it to hold and conduct charity sweepstakes races, lotteries, and other activities that will enhance its fund generation operations and fund management capabilities. PCSO is supposed to be the principal government agency for raising and providing funds for health programs, medical assistance and services, and charities of national character.

PAGCOR, meanwhile, was created by virtue of PD 1869. Under RA 9487 amending its charter, PAGCOR’s franchise was extended for another 25 years beginning last 2008, granting it the authority to operate and license gambling casinos, gaming clubs and other similar recreation or amusement places, gaming pools except jai alai, and to license and regulate games of chance, games of cards and games of numbers, except those regulated by local government units (such as cockfighting) and other regulatory bodies.

PAGCOR has been breaking revenue records almost every month and has been increasing its contributions to government, opening up new revenue sources such POGO which has been contributing billions of pesos.

According to PAGCOR, its 2018 gross gaming revenue in the casino business in the Philippines has grown to P200 billion, compared to 2017 which registered revenues of P152.5 billion. PAGCOR chairman Andrea Domingo has said that for this year, they expect revenues of P217 billion.

Sadly, it has been a whole different story for PCSO. Media reports talk about allegations of corruption in handing out small-town lottery (STL) franchises and massive revenue leaks related to jueteng and other illegal gambling activities. Even in the case of lotto, sales have been dropping.

February 2019 revenues from lotto declined by 39 percent to P1.58 billion as against P2.6 billion the year before. For January, the collection was also lower by 30 percent, hitting only P1.9 billion for lotto and digit games.

As a consequence, charity assistance has declined by almost 60 percent. According to PCSO general manager Alexander Balutan, charity assistance in October 2018 was only P181.95 million compared to P416.6 million in the same period in 2017.

Just recently, President Duterte issued Executive Order No. 13 strengthening the fight against illegal gambling and clarifying the jurisdiction and authority of concerned agencies in the regulation and licensing of gambling and online gaming facilities.

This is because aside from PAGCOR, the Cagayan Economic Zone Authority (under RA 7922), Aurora Pacific Economic Zone and Freeport Authority (RA 9490), Authority of the Freeport Area of Bataan (under RA 9728) are authorized to operate on their own or license tourism-related activities including gambling casinos. According to the President, confusion with regard to jurisdiction and scope of authority of the different gambling regulators contributes to the proliferation of illegal gambling. PCSO was not included in the EO. But why?

Wouldn’t it be more pragmatic for all these agencies to be supervised by a more professionally run and more successful office like Pagcor?

True public servant

Last January, the Philippine STAR featured in its front page the story of a promising young lawyer who could have been a big-shot legal practitioner either here or abroad. After all, having been editor of the Harvard Law and Policy Review and the Harvard International Law Journal while taking his Master of Laws degree at Harvard is no small feat and a rare distinction.

Instead, he chose to provide free legal assistance to the poor.

According to the STAR report, lawyer Juan Fidel Felipe Nograles, after earning his LLM from Harvard in 2016, opted to use his knowledge to help the less privileged instead of pursuing a career in major law firms in the country so that rather than joining other lawyers in board room meetings, he prefers to spend time with the poor in the towns of Rodriguez and San Mateo, helping them with their legal problems.

A holder of a Juris Doctor degree at the Ateneo de Manila University, he became Rizal assistant provincial administrator. He now spends his time providing free legal assistance to the poor who are unaware of the processes to resolve problems such as domestic violence against women and children, land grabbing and family disputes, the STAR report said. Fidel has sought the help of other lawyers, law students and members of legal organizations for his pro-poor programs. They went to the barangays and set up a legal clinic where the residents went to seek help.

He graduated from the Ateneo Law School in 2012 where he finished second honors. He earned his AB Management Economics Degree cum laude, also from Ateneo in 2008.

Prior to his work as Rizal assistant provincial administrator, Fidel was assistant secretary at the Office of the Chief Presidential Council and also previously worked as a lawyer at the office of Supreme Court Justice Martin Villarama. He also teaches law at the De La Salle University College of Law. For a year, he also worked as associate lawyer at Quisumbing Torres Law Firm.

From the grapevine

At the March 25 general shareholders meeting of the Tokyo-based gaming giant and largest pachi-slot machine manufacturer Universal Entertainment, Kazuo Okada who used to head the group found himself not welcome.

The Universal Entertainment Group operates Okada Manila, an integrated resort in the Philippines.

This was not the first time, however, that the elder Okada was refused entry. At a similar meeting in June 2017, the reception staff also did not allow him to attend.

In the recent meeting, Okada was told that since he is no longer a stockholder, he cannot attend. He insisted and asked the reception desk to write down the reason for not letting me in and then he will leave. But the staff would not budge and the argument continued for nearly an hour. Okada was left with no choice but to leave.

The elder Okada started manufacturing gaming machines and made Universal Entertainment a 100 billion yen company, but was later removed as president over suspicions of fund misappropriation.

Okada took legal action over his dismissal, lodging a lawsuit in Japan and Hong Kong and insisting that the resolution of the family company is illegal. On the other hand, a protracted legal battle initiated by UE over Okada’s diverted funds continues to this day.

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