Justice Secretary Leila de Lima on Tuesday declared illegal the operation of jai alai betting centers outside the Cagayan Economic Zone Authority (Ceza), and ordered the arrest of the operators of off-fronton stations and those collecting bets for them.
De Lima said a Department of Justice (DoJ) legal study showed that the franchise granted to Meridien Vista Gaming Corp. (MVGC) allowed the firm to operate jai alai and collect bets outside the 54,000-hectare free port 鈥渙nly if it鈥檚 allowed by law.鈥�
She said the DoJ was 鈥渟till looking into鈥� reports that Charlie 鈥淎tong鈥� Ang, a former gambling buddy of former President Joseph Estrada, owned Meridien.
鈥淭hat issue is not important or relevant to this legal issue. But it鈥檚 widely known that Meridien is Atong Ang,鈥� she said.
A joint memorandum issued by De Lima and Interior Secretary Jesse Robredo ordered the Philippine National Police and other law enforcement agencies 鈥渢o proceed with the search and seizure of off-fronton betting stations 鈥� as well as effect the arrest and prosecution of operators and maintainers.鈥�
Harassment cases
According to De Lima, she ordered a review of the legal issues pertaining to Meridien鈥檚 operations upon the request of Robredo and law enforcement units.
She said members of the PNP had been complaining of 鈥渉arassment cases鈥� filed against them by Meridien whenever they arrested its bet collectors.
In their joint memorandum, De Lima and Robredo ordered the PNP and the National Bureau of Investigation to lead the crackdown on all jai alai betting joints outside the Cagayan free port.
She said Meridien employees caught collecting bets could be arrested even without warrants since they were caught 鈥渋n flagrante delicto,鈥� or while committing the crime.
鈥楯ueteng鈥� lords
Meridien, in a statement, said De Lima might have been fed false information by those threatened by jai alai, such as the 鈥渏ueteng鈥� (illegal numbers racket) lords. The gaming firm warned it might file a countersuit.
Speaking to reporters, De Lima said Meridien could not invoke earlier rulings by the Aparri Regional Trial Court and the Court of Appeals to justify the establishment of betting joints in Metro Manila and other provinces.
鈥淲e found out that whatever authority given to (Meridien) by those court rulings, as well as by Ceza, is qualified by the very important phrase 鈥榓s may be allowed by law,鈥欌�� De Lima said.
鈥淪o even if (Meridien) has a license in its favor that it may set up wagering stations within and outside the free port, there鈥檚 a qualifying phrase 鈥� and we found out that there鈥檚 no such law allowing jai alai operations outside the (Ceza),鈥� she added.
Old law
De Lima also said police operations ordered by Robredo showed that some jai alai bet collectors had been actually collecting bets for jueteng.
She said Republic Act No. 954 (An Act to Prohibit Certain Activities in Connection with Horse Races and Basque Pelota Games) explicitly outlawed the collection of bets outside the places where jai alai is played.
鈥淭his is an old law, which has not been repealed, that prohibits off-fronton betting stations for jai alai,鈥� she said.
De Lima said RA 954 clearly 鈥渄eclared鈥� that setting up off-fronton betting stations was a 鈥渃riminal act and penalized under Section 5鈥� of the law.
鈥淚t is clear that the (court rulings were) silent on the legality of the operation of off-fronton betting stations by (Meridien),鈥� she said.
In a judicial interpretation of the law creating Ceza, both the Aparri RTC and the appellate court ruled that Ceza had the authority to operate or license jai alai.
Expedite cases
De Lima and Robredo directed local government units to revoke all business permits and licenses issued to Meridien鈥檚 off-fronton centers.
De Lima also ordered public prosecutors to expedite the cases filed against those arrested for operating off-fronton bets and not to use the Aparri RTC rulings in dismissing the complaints.
鈥淐riminal cases filed or to be filed by (Meridien) 鈥� against local executives and law enforcement officials 鈥� to effect the closure and seizure of off-fronton betting stations 鈥� are to be considered harassment cases,鈥� she said.
Meridien insisted the operation of its off-site betting joints was consistent with the law and that De Lima might have 鈥渏ust fallen for wrong information fed to her by jueteng lords who continue to operate with impunity.鈥�
The company said De Lima鈥檚 claim that collecting bets outside Ceza was unlawful 鈥渋s obviously borne out of complete disregard of the facts and the law.鈥�
鈥淪he is 鈥� entitled to her own wrong opinion which was based on the 1953 law already superseded by many other laws. There is a clear conspiracy to divert attention away from continued jueteng operations,鈥� Meridien said.
Just in time
The company also claimed that De Lima鈥檚 legal opinion might have been issued in time for the launch of the government鈥檚 Loterya ng Bayan in August.
鈥淲e firmly believe that our operation could be a threat to Loterya ng Bayan which system of operation (is) similar to Small Town Lottery. And this Loterya ng Bayan could be also used as front for jueteng,鈥� Meridien claimed.
The firm鈥檚 spokesperson, Raul Banderas, said on the phone that De Lima could not stop Meridien鈥檚 off-fronton operations because the legal controversy remained pending in the Supreme Court.
He said Meridien would be compelled to continue filing charges against policemen and NBI agents who would raid its betting stations and arrest its personnel.
In October last year, Sen. Mirian Defensor-Santiago said the return of jai alai had sparked a resurgence of 鈥渕asiao鈥� in the Visayas and Mindanao.
Masiao is an illegal numbers racket based on the three-number winning combination of the special llave in jai alai.
The special llave is televised nationwide, enabling gamblers to monitor the result of the jai alai event. With a report from Melvin Gascon, Inquirer Northern Luzon