Tuesday, April 08, 2008 Poker club gets CH nod as long as it pays taxes
THE Cebu City Council finally agreed to allow the establishment of a poker club in the city, but reminded the operator to obey the guidelines, like keeping it away from schools, and to pay taxes.
The Philippine Amusement and Gaming Corporation (Pagcor) has given Straightflush Corp. franchise and authority to operate poker gaming in Cebu City, specifically along Salinas Drive in Barangay Lahug.
But Pagcor also required Straightflush to secure a City Council resolution consenting to the company’s operations.
Company president Michael Co had told the council last year that “under existing law and jurisprudence, Pagcor and its agents are not under the regulatory and taxing powers of the local government units (LGUs).”
“However, as a matter of courtesy and respect for the duly constituted authority of the LGU concerned, Pagcor solicits the endorsement and consent of the LGU,” he said.
He also said the City stands to earn additional revenue through income taxes resulting from Straightflush’s operations.
Other requirements
But the council initially took exception to Co’s statements, with the committee on laws saying that contrary to Straightflush’s claim, Pagcor and other Government Operated and Controlled Corporations “are not actually exempt from all forms of taxes” of local governments like Cebu City.
The council had also said Straightflush still has to comply with other requirements.
The council acknowledged that Straightflush can legally operate a game of chance whether it (council) agrees or not.
The company knows this, but Pagcor required a City Council endorsement “as a matter of courtesy and respect for the duly constituted authority of the LGU concerned.”
Before approving City Councilor Augustus Pe’s resolution endorsing Straight-flush’s application last Wednesday, the council, through committee on laws chairman Edgardo Labella, reminded the company to obey all requirements.
“It should not be in a residential area, and must observe the 100-meter border from schools, churches, and other structures,” Labella said.
“For as long as they have a (Pagcor) franchise, then that franchise will prevail (over LGU authority), but for as long as they pay taxes,” he added.
It will not be the first time that City Hall will gain revenues from gaming operations here.
The City receives P5.5 million each month as its share of state-sponsored gambling funds from Pagcor. (RHM)
