Tuesday, March 13, 2007 Malig: NBI v. Internet gambling By Jun A. Malig Cognition
GOING after alleged operators of Internet casinos seemed easy enough for the National Bureau of Investigation (NBI). But in the real world, where law enforcement and investigative tasks ought to be conducted "by the book," such is one hard thing to do.
Here's some background on the NBI's raid and filing of illegal gambling case against an alleged Internet gambling operator in Clark Field:
On September 22 last year, the NBI Special Action Unit received a letter from the Philippine Amusement and Gaming Corp. requesting for an investigation on www.dsl.168bets.com, a suspected Internet gambling operation in Clark Field.
The request prompted the NBI to conduct surveillance operations on operators of the alleged Internet casino.
On October 17 last year, NBI agents were able to secure a search warrant from Regional Trial Court Branch 57 Presiding Judge Omar Viola and raided the premises of British Grand Vision International Company, Inc. and Transglobal Pacific Airways, Inc., at Hangar 7260 at the Civil Aviation Complex.
Chinese and Filipino employees and dealers were allegedly found manning casino tables and "in the act of dealing" playing cards with video cameras and computer monitors in front of them.
The NBI, through lawyer and senior agent Renato Marcuap, filed charges of illegal gambling (violation of Presidential Decree 1602) against several Taiwanese officials and 33 Filipino online dealers of the two companies.
On November 17 last year, Second Assistant City Prosecutor Oliver Garcia dismissed the case "for lack of merit." He said a law that specifically prohibits gambling over the Internet is necessary in order to indict or prosecute alleged Internet-based gambling operators, since it is not covered by PD 1602.
He stressed that the absence of real players in the alleged Internet gambling casino -- which means there were no dealer and bettor to constitute an "illegal gambling activity," as stated by PD 1602 -- was enough reason to dismiss the case. He said "one could not charge the dealer alone without indicting the supposed bettor."
The NBI has filed a Petition for Review on the case, which is pending at the Department of Justice. The investigation agency maintains that although there were "no live players," there were actual online players who bet money on games that depend wholly or chiefly upon chance or hazard -- which is outlawed by PD 1602 and Article 195 of the Revised Penal Code.
On November 27 last year, the respondents, through lawyers Jackson Yabut and Sheryl Santos, filed a Motion to Quash or invalidate the search warrant used by the NBI in raiding the alleged Internet casino at the Civil Aviation Complex.
On December 28 last year, Judge Viola granted the respondents' motion and ordered the immediate release of the casino tables, playing cards, computer sets, webcams, network and video servers, and other equipment seized by the NBI during the raid.
On January 15, the NBI filed a motion for reconsideration, maintaining that the search warrant was valid.
On February 20, Judge Viola ordered the respondents to submit within 10 days "without extension" their comment to the NBI's motion for reconsideration. The court has yet to decide on the NBI's motion.
Law enforcement agencies, anti-gambling crusaders, and operators of online gambling sites all over the world have been waiting with anticipation the final outcome of the NBI's case against the British Grand Vision International Company, Inc. and Transglobal Pacific Airways, which is pending before the Department of Justice.
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In the US, the House of Representatives and the Senate have passed the Unlawful Internet Gambling Enforcement Act.
The measure, which makes it illegal for banks, credit card companies and other financial institutions to transfer funds to Internet gambling sites, has been integrated with the SAFE Port Act of 2006 that was signed into law by President George W. Bush on October 13 last year.
The new law, which was initiated in the House of Representatives by Congressmen Jim Leach and Robert Goodlatte and at the Senate by Senators Bill Frist and Jon Kyl, is considered as a big blow against the US$12 billion a year Internet gambling business in the US. Several prominent Internet gambling sites like Pacific Poker, Paradise Poker, Party Poker, Hollywood Poker and Poker Room have stopped accepting customers from the US after the signing of the law.
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In February 2006, then Clark Development Corp. president Antonio Ng welcomed the British Grand Vision International Company, Inc. as a new information technology firm that will infuse P200 million for computer technology data, website design and maintenance center in Clark Field. Newspaper reports quoted Ng as saying that the company will be "among the biggest IT firms in Clark."
Represented by its president, Steve Jing Chen Huang, who is among the respondents in the illegal gambling case filed by the NBI, the company made a pronouncement that it would employ 150 computer-skilled workers during its first year of operation.
The firm, a partner of the Transglobal Pacific Airways, Inc., was said to be developing a "gaming simulation and human interface technology with animation solution" for the international market.
Huang was even quoted as saying that "the development of interactive Internet gaming software and hardware solutions will be the first in the country."
