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BY MAE SINGUAY
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Friday, February 24, 2017
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BACOLOD City – Small Town Lottery (STL) is legal in the city, according to the Philippine Charity Sweepstakes Office (PCSO).
Super Lucky Beagler, Inc. is an “authorized agent corporation” for STL operating in Negros Occidental, including this city, a certification issued by PCSO general manager Alexander Balutan showed.
The PCSO also clarified that the STL operator need not secure a business permit from the Bacolod City government.
PCSO-Negros Occidental acting branch manager Jose Manuel Villagracia furnished Panay News a copy of the certification to clarify some local officials’ non-categorical comments on the legality of STL here.
“Its (operator) authority (to operate STL) is renewed from Feb. 1, 2017 to February 2020,” the certification stated.
Villagracia also handed Panay News a copy of a 1998 Court of Appeals (CA) 13th Division decision, which the PCSO uses as basis in insisting there is no need for the STL operator to get a business permit.
“The sale of lotto tickets is expressly exempted from regulation and control, and all forms of taxation by the LGUs (local government units),” stated the CA decision signed by associate justices Romeo Callejo Sr., Angelina Gutierrez and Oman Amin.
“LGUs are no longer authorized to issue any permit, whether to any government unit or private individual or entities, or require said permit for the establishment, operation and maintenance of gambling, which includes that of lotto, and the sales of lotto tickets are exempt from all kinds of taxes, including local taxes,” part of the decision read.
Stemming from a case filed against Cebu City officials and the PCSO, the CA decision cited Makati City, which on July 5, 1995 “required all lotto operations within its jurisdiction to secure business permits and pay business license fees.”
“Some PCSO sales agents did not comply with the said directive, resulting in the closure of their outlets or terminals,” the decision read. “As a consequence, the PCSO sought the legal opinion of the Department of Justice on…whether [LGUs] may levy and/or collect taxes and fees from PCSO appointed sales agents.”
On July 26, 1995, the Justice department issued Opinion No. 71, which stated that, “In the light of the foregoing, we are of the opinion that the PCSO and its lottery ticket sellers, including lotto sales agents, are not required to secure business permits/licenses from the province, city or municipality where they may operate, and are also exempt from the authority of the LGUs to impose taxes, fees or charges on PCSO lotto ticket outlets,” read the decision.
The CA ruling also cited Presidential Decree 771, which revoked LGU authority to regulate betting by the public on gambling, and Republic Act 1169, or the Act providing for charity sweepstakes, horse races and lotteries. “The verbiage of [these laws] is clear and unambiguous,” it said.
Earlier Senior Superintendent Jack Wanky, city police chief, claimed STL is legal in Bacolod but only authorized representatives and bet collectors with proper documents may be allowed to operate.
On the other hand, Permits and Licensing Division head Stela Rose Rayos said she cannot categorically say if Super Lucky Beagler, Inc. must secure a business permit from the local government.
But any person or entity engaged in moneymaking activities here must have a business permit — and sanitation and fire permits, too, if they use local facilities — said the city government official.
While based in Sagay City, Negros Occidental, the STL operator has an outlet in Barangay Sum-ag, Bacolod City.
For his part, Councilor Wilson Gamboa claimed an STL franchisee may be allowed to operate in an LGU if it has a franchise to operate, from either the PCSO or Congress; a business permit, since the LGU gets a revenue share; and a Sangguniang Panlungsod resolution of no objection, which is “regulatory in nature.”/PN
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