G.R. No. 207118 , April 22, 2025
Philippine Amusement and Gaming Corporation (PAGCOR) vs. Liga ng mga Barangay sa Pilipinas, et al.

FACTS

The case concerns the legality of “Bingo sa Barangay,” a fund-raising activity conducted by barangays. The ponencia (majority opinion) ruled that such activity is outside PAGCOR’s jurisdiction. It relied on Section 10 of P.D. No. 1869 (the PAGCOR Charter), as amended, which excludes from PAGCOR’s authority games of chance “authorized, licensed and regulated by local government units.” The ponencia cited Section 391(11) of the Local Government Code (LGC), which empowers sangguniang barangays to “hold fund-raising activities for barangay projects without the need of securing permits from any national or local office or agency,” as the legal basis authorizing barangays to conduct bingo.
Justice Inting, in this dissenting opinion, respectfully disagrees with the ponencia’s conclusion. He argues that the power to conduct fund-raising activities under the LGC does not inherently include the authority to operate games of chance like bingo without specific authorization. The dissent emphasizes the State’s policy to centralize and strictly regulate all games of chance through PAGCOR, as declared in its charter.

ISSUE

Whether a barangay can legally conduct “Bingo sa Barangay” as a fund-raising activity under Section 391(11) of the Local Government Code without prior authorization from PAGCOR.

RULING

No. The dissenting opinion argues that “Bingo sa Barangay” cannot be conducted without PAGCOR’s authorization. The legal logic proceeds from the principle that exceptions to a general rule must be strictly construed. The general rule, established under P.D. No. 1869, is that PAGCOR has the exclusive authority to operate and authorize games of chance, including bingo. Section 10 of the PAGCOR Charter provides only specific exceptions to this rule.
The dissent contends that the exception for games “authorized, licensed and regulated by local government units” must be interpreted strictly and reasonably. This exception applies only where the law expressly grants an LGU the power to authorize, license, and regulate a specific game of chance. The LGC provides such express authority only for cockfighting, granted to the sangguniang bayan and panlungsod under Sections 447 and 458. In contrast, Section 391(11) of the LGC, which applies to barangays, is a general provision on fund-raising activities. It does not specifically authorize, license, or regulate games of chance. Therefore, it cannot be considered a valid exception to PAGCOR’s exclusive regulatory authority. Allowing barangays to conduct bingo under this general fund-raising power would improperly expand the statutory exception by implication, contravening the rule of strict construction. Consequently, any bingo operation without PAGCOR’s authorization remains illegal under pertinent laws.