THE Philippine Charity Sweepstakes Office (PCSO) was right all along in standing firm on its decision to terminate the Small-Town Lottery (STL) operations of Saturn Gaming Corporation in Southern Leyte and the Province of Cebu, after it was determined that the latter has violated the rules and regulations stipulated in the Agency Agreement.
This was confirmed after the Mandaluyong City Regional Trial Court Branch 209 granted the PCSO’s Omnibus Motion to reconsider an earlier order issued on May 19, 2023 allowing Saturn Gaming to operate, while also quashing the writ of preliminary injunction against the government’s charity arm dated June 8, 2023.
Furthermore, the court denied Saturn Gaming’s motion to cite PCSO in contempt of court which it also filed on May 31 this year.
Court records show that Saturn Gaming filed a motion to cite PCSO for contempt of court, after the latter reportedly insisted that the gaming operator’s right to operate has already been revoked several months earlier, despite the writ of preliminary injunction it obtained on May 19 this year.
Presiding Judge Monique Quisumbing-Ignacio of the Mandaluyong Trial Court Branch, 209, stated in her decision that the court found the PCSO’s Omnibus Motion to be meritorious based on several key points.
First, she emphasized that Saturn Gaming Corporation is merely an agent of the PCSO, thus binding the former to the Agency Agreement that can be terminated at PCSO’s discretion should the latter determined that the gaming operator has violated some of the key provisions of the said agreement.
The court further emphasized that Saturn Gaming Corporation does not possess any inherent rights but merely operates based on the privileges granted by the PCSO.
The court order also noted that “issuing a writ of preliminary injunction (by the court) 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 stated.
Moreover, the court referred to the Small-Town Lottery Implementing Rules and Regulations (STL-RIRR), which explicitly states that “PCSO can terminate the Agency Agreement automatically based on specified grounds”.
The decision also underscored the finality and executory nature of such termination notices, emphasizing the binding nature of the STL-RIRR.
PCSO General Manager Mel Robles welcomed the court’s decision, emphasizing his commitment to removing abusive STL operators who violate the terms and conditions of the AAC Agreement.
He warned other STL operators to take this as a warning that the PCSO is determined at cleansing their ranks and would not hesitate in severing the operations of those engaged in unlawful practices.
To recall, PCSO terminated the authority of Saturn Gaming to operate on March 8, 2023, citing multiple violations of the terms and conditions of the ACC Agreement, as outlined in Board Resolution No. 55 Series of 2023.
However, on May 26, 2023, Saturn Gaming Corporation informed the PCSO of its intention to resume STL operations in Southern Leyte and the province of Cebu, after purportedly obtaining a writ of preliminary injunction from Judge Aileen Saquing Agacita of Branch 213.
On June 2, 2023, RTC Branch 213 ordered the case be raffled off to a different judge.
Judge Agacita voluntarily recused herself from the case to dispel doubts of partiality and uphold the justice system’s integrity.
GM Robles emphasized that the successful outcome of this legal battle solidifies the authority and control the PCSO holds over the operation of small-town lotteries, and it likewise affirms its power to revoke and terminate contracts at their discretion in accordance with the applicable regulations.
