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Cebu City Councilor Sylvan “Jack” Jakosalem said the stand of the casino operator at the Cebu Rajah Park Hotel, which sued Mayor Tomas Osmeña, had no basis after the Philippine Amusement and Gaming Corporation (Pagcor) Charter was amended by the Congress in June 2007.
Jakosalem, chairman of the committee on games, amusements and sports, said the new Pagcor Charter otherwise known as Republic Act 9487 as amended requires the operator of slots machines to ask the permission of the city mayor of the local government unit where they intend to establish, even if it is already licensed by Pagcor to operate.
“With this, I don't think the mayor will have a problem. It's very clear in the law. There is actually a law just in case they (complainants) don't know,” Jakosalem said.
Waz Lian Management Philippines, Inc. (WLMPI) and Myall Group Ltd. (MGL) filed a civil suit against the mayor, demanding P2.3 million in damages, when Osmeña ordered the closure of the VIP Club inside the Rajah Park Hotel along Fuente Osmeña.
According to the casino investor, they do not need a business permit because they were already licensed by the Pagcor to operate.
But according to the mayor, their Pagcor license has expired.
Before the amendment, casino investors were just required to put up the slot machines and notify the mayor.
The new charter also requires that the operation of slot machines should not be accessible to the general public unless it is operated in a three-star hotel and resort.
The establishments should also be accredited by the Department of Tourism.
Mayor Osmeña had the club closed because he said it was not attracting tourists. It was earning money from the local residents.
The hotel also lacked parking space causing traffic along the Fuente Osmeña circle.
