The Philippine Charity Sweepstakes Office (PCSO) was correct all along in standing fast on its decision to shut down Saturn Gaming Corporation's Small-Town Lottery (STL) activities in Southern Leyte and Cebu province, after it was determined that the latter had breached the agency agreement's rules and regulations.
This was confirmed after the Mandaluyong City Regional Trial Court (RTC) Branch 209 granted the PCSO's Omnibus Motion to reconsider an earlier order issued on May 19, 2023, allowing Saturn Gaming's STL to operate, as well as quashing the writ of preliminary injunction issued on June 8, 2023, against the government's charity arm.
In addition, the court denied Saturn Gaming's attempt to cite PCSO for contempt of court, which it also filed on May 31 this year.
According to court records, Saturn Gambling filed a motion to summon PCSO for contempt of court after the latter allegedly argued that the gambling operator's license had previously been canceled many times despite the order of preliminary injunction issued on May 19 of this year.
In her judgment, Mandaluyong Branch 209 presiding judge Quisumbing-Ignacio said that based on numerous significant issues, the court determined that the PCSO's Omnibus Motion was meritorious.
First, she stated that Saturn Gaming Corporation is only an agent of the PCSO, which binds the latter to the Agency Agreement and can be terminated at the discretion of the latter if the latter determines that the gaming operator has broken some of the main elements of the said agreement.
Ignacio also said that Saturn Gaming Corporation does not have any inherent rights and operates only on the privileges granted by the PCSO.
She further said that "the court's issuance of a writ of preliminary injunction would create a new contract or alter the Agency Agreement.
"The court rightly recognized that it has no authority to modify or create new agreements," the same order read.
Furthermore, the court cited the Small-Town Lottery Implementing Rules and Regulations (STL-RIRR), which expressly provides that "PCSO may terminate the Agency Agreement automatically based on a breach of the Agency Agreement."
The decision further emphasized the finality and executory nature of such termination notices, highlighting the STL-RIRR's binding nature.
PCSO General Manager Mel Robles hailed the court's judgment, reiterating his commitment to eliminating abusive STL operators who breach the AAC Agreement's terms and conditions.
He urged other STL operators to take this as a message that the PCSO is determined to clean up their ranks and will not hesitate to shut down anyone who engages in illegal actions.
To recall, on March 8, 2023, PCSO terminated Saturn Gaming's operating authority, citing several violations of the terms and conditions of the ACC Agreement, as described in Board Resolution No. 55 Series of 2023.
Saturn Gaming Corporation, on the other hand, informed the PCSO on May 26, 2023, of its plan to begin STL activities in Southern Leyte and the province of Cebu, allegedly after getting a writ of preliminary injunction from Judge Aileen Saguing Agacita of Branch 213.
RTC Branch 213 ordered the case to be raffled off to a different judge on June 2, 2023. Judge Agacita voluntarily recused herself from the case to remove any suspicions of bias and to protect the integrity of the legal system.
The successful outcome of this legal battle, according to GM Robles, solidifies the PCSO's authority and control over the operation of small-town lotteries, as well as its power to revoke and terminate contracts at their discretion in accordance with the applicable regulations.
