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MAGTAJAS V. PRYCE PROPERTIES - CASE DIGEST -
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MAGTAJAS V. PRYCE PROPERTIES                     G.R. No. 111097 July 20, 1994

FACTS:

PAGCOR is a corporation created directly by P.D. 1869 to help centralize and regulate all games of chance,
including casinos on land and sea within the territorial jurisdiction of the Philippines.

PAGCOR decided to expand its operations to Cagayan de Oro City. It leased a portion of a building belonging
to Pryce Properties Corporations, Inc., renovated & equipped the same, and prepared to inaugurate its casino
during the Christmas season.

Then Mayor Magtajas together with the city legislators and civil organizations of the City of Cagayan de Oro
denounced such project.

In reaction to this project, the Sangguniang Panlungsod of Cagayan de Oro City enacted two (2) ordinances
prohibiting the issuance of a business permit and canceling existing business permit to establishment for the
operation of casino (ORDINANCE NO. 3353) and an ordinance prohibiting the operation of casino and
providing penalty for its violation. (ORDINANCE NO. 3375-93).

Pryce assailed the ordinances before the Court of Appeals, where it was joined by PAGCOR as intervenor and
supplemental petitioner.

Court of Appeals declared the ordinances invalid and issued the writ prayed for to prohibit their enforcement. 1
Reconsideration of this decision was denied against petitioners.

Hence, this petition for review under Rule 45.

ISSUE:

WON Ordinance No. 3353 and Ordinance No. 3375-93 are a valid exercise of police power.

HELD:

NO. The ordinances enacted are invalid. Ordinances should not contravene a statute. Municipal governments are
merely agents of the National Government. Local Councils exercise only delegated powers conferred by
Congress. The delegate cannot be superior to the principal powers higher than those of the latter. PD 1869
authorized casino gambling. As a statute, it cannot be amended/nullified by a mere ordinance. Blog Archive

▼ 2018 (96)
As to petitioners attack on gambling as harmful and immoral, the Court stressed that the morality of gambling is
not a justiciable issue. Gambling is not illegal per se. While it is generally considered inimical to the interests of ► June (1)
the people, there is nothing in the Constitution categorically proscribing or penalizing gambling or, for that ► March (9)
matter, even mentioning it at all. It is left to Congress to deal with the activity as it sees fit. In the exercise of its
own discretion, the legislature may prohibit gambling altogether or allow it without limitation or it may prohibit ▼ February (75)
some forms of gambling and allow others for whatever reasons it may consider sufficient. Thus, it has PEOPLE V. AMINUDDIN -
prohibited  jueteng and monte  but permits lotteries, cockfighting, and horse-racing. In making such choices, CASE DIGEST -
Congress has consulted its own wisdom, which this Court has no authority to review, much less reverse. Well CONSTITUTIONAL...
has it been said that courts do not sit to resolve the merits of conflicting theories. That is the prerogative of the PEOPLE V. MENGOTE -
political departments. It is settled that questions regarding the wisdom, morality, or practicability of statutes are CASE DIGEST -
not addressed to the judiciary but may be resolved only by the legislative and executive departments, to which CONSTITUTIONAL L...
the function belongs in our scheme of government. That function is exclusive. Whichever way these branches
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decide, they are answerable only to their own conscience and the constituents who will ultimately judge their POSADAS V. CA - CASE
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