Casino Closures: LGU Code vs PD 1869

It’s election time. Does that color decisions that are usually left to the judiciary to sort out?

Here’s some news from Manila Bulletin on PGMA nixing a planned casino in the Sta. Lucia East Grand Mall after opposition from the Marikina local government and church leaders in Rizal province.  

The President issued her order to Ephraim Genuino, Pagcor chairman, upon the appeal of the residents and members of multi-sectoral groups led by Bishop Gabriel Reyes of the diocese of Antipolo, Rizal Gov. Casimiro Ynares, provincial board members and other leaders of the province.

Meanwhile, another casino in Rizal province, the Fiesta Casino in EastBay Resorts in Binangonan, is under the gun. A local court had ordered the casino’s closure; Pagcor has asked the Court of Appeals to overturn the lower court. The article quotes Bishop Reyes as saying President Arroyo will “find a way to close” the casino in EastBay. 

Pagcor’s main argument in saying that it has the right to operate the casino in the municipality is its enabling law, Presidential Decree 1869: 

Citing PD 1869, Pagcor likewise stated that the casinos and other franchisees nationwide are exempted from such obligations such as securing mayor’s and business permits.

The counter argument is that the Local Government Code enshrines the principle that local governments, rather than the national government, have the final say when it comes to businesses operating in their jurisdiction.   

Binangonan Mayor [Cesar] Ynares assailed Pagcor for “belittling” the local government code through its continued defiance of its provisions, which give powers to the host local government unit on matters pertaining to any private operation, which may directly or indirectly affect the locality.