G.R. No.

111097 July 20, 1994

MAYOR PABLO P. MAGTAJAS & THE CITY OF CAGAYAN DE ORO, petitioners,

vs.
PRYCE PROPERTIES CORPORATION, INC. & PHILIPPINE AMUSEMENT AND GAMING
CORPORATION, respondents.

Facts:
In 1992, PAGCOR decided to expand its operations to Cagayan de Oro City due to its enormous
success in its operations across the country. It decided to lease a portion of a building owned by
Pryce Properties Corp., one of the respondents herein, which was renovated to serve as a Casino,
which was set to be inaugurated during the Christmas season.
Various civic, youth, women’s and religious organizations furiously denounced the project.
Demonstrations were led as form of their objections towards the said project which was even led by
the city mayor and its legislators, declaring it as inimical to the welfare of the city.
On December 7, 1992, the city’s Sangguniang Panglungsod reacted swiftly by enacting Ordinance
3353, an ordinance prohibiting the issuance of business permits and cancelling existing ones to any
establishments used in any forms of Casino operations and Ordinance No. 3375-93 prohibiting
casino operations.
Respondents assailed the said ordinances before the Court of Appeals, invoking P.D. 1869 which
created PAGCOR to regulate and centralize all games of chance, gambling, including casinos
operating within the Philippine Jurisdiction. The C.A. ruled in favor of the respondents declaring the
assailed ordinances as invalid and issued a writ which prohibits their enforcement. The petitioners
filed for petition for review in the Supreme Court.
ISSUES:
Whether or not the assailed ordinances are valid
RULING:
The Supreme Court declared both Ordinance No. 3375-93 and Ordinance 3353 as invalid. While it is
true that local governments are empowered to enact ordinances for the purposes indicated and
according to their authority provided by the Local Government Code, such ordinances must not
contravene the constitution or a statute for it to be valid. Casino gambling is authorized by P.D.
1869. Such statute cannot be amended or nullified by a mere ordinance.