CASE DIGEST
DE LIMA V. COURT OF
APPEALS
G.R. Nos. 199972 & 206118, [August 15,
2022]
SECOND, LOPEZ, M.V
Gambling licenses; Games and Amusement Board Regulatory Powers
The Supreme Court ruled that Games and Amusements Board (GAB) had regulatory authority over Meridien's jai alai activities but clarified that it lacked authority within the Cagayan Special Economic Zone and Freeport (CSEZFP). Any enforcement of GAB’s powers and functions inside CSEZFP are enjoined as it were beyond their territorial jurisdiction.
Meridien Vista Gaming Corporation (Meridien) was granted a license by the Cagayan Economic Zone Authority (CEZA) to conduct gaming operations, including jai alai, within the Cagayan Special Economic Zone and Freeport (CSEZFP). However, the Office of the Government Corporate Counsel (OGCC) informed CEZA that it lacked the power to authorize jai alai operations without an express legislative franchise. CEZA later revoked the license, citing the absence of an express legislative franchise to authorize jai alai. Meanwhile, Games and Amusements Board (GAB) initiated an investigation into Meridien's jai alai betting stations outside CSEZFP without GAB permits. It discovered Meridien is operating jai alai off-frontons without a permit and issued a Cease-and-Desist Order (CDO). Meridien filed a Complaint for Injunction against the CDO, arguing that GAB had has no regulatory authority over them as they operate under a CEZA-given license.
Whether or not GAB has regulatory
authority over Meridien's gaming operations under the CEZA-given authority.
The Supreme Court ruled that Games and
Amusements Board (GAB) had regulatory authority over Meridien's jai alai
activities but clarified that it lacked authority within the Cagayan Special
Economic Zone and Freeport (CSEZFP). This meant that GAB’s Cease and Desist Order
against Meridiens is only valid against its Jai-Alai off-fronton betting
stations within Metro Manila and in certain parts of Rizal Province, and no
such enforcement is to be validly implemented in Meridien's operations inside
the CSEZFP. Any enforcement of GAB’s powers and functions inside CSEZFP are
enjoined as it were beyond their territorial jurisdiction.
Examining the text of the assailed CDO,
it covers only off-fronton betting stations of Meridien and evidently not the
actual conduct and operation of jai alai games inside the CSEZFP. Clearly it
was issued for the sole purpose of regulating the off-fronton betting stations
outside the economic zone. In accordance
with the purpose of its issuance, the CDO remains to be intended only against
off-frontons, was never directed against the holding of Jai Alai games in the
CSEZFP. Therefore, CDO is valid.
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