Cebu gambling ad ban faces Pagcor exemption, online enforcement hurdle
CEBU CITY, Philippines — The proposed ban on gambling advertisements here may face two major enforcement questions: whether ads authorized under national law and regulated by the Philippine Amusement and Gaming Corp. (Pagcor) would remain exempt, and how the city could police gambling promotions on online platforms beyond its jurisdiction.
The issues surfaced during the council’s public hearing on August 11 on a proposed ordinance by Councilor Joel Garganera that seeks to ban and penalize all forms of gambling advertisements within the city.
The Business Permit and Licensing Office (BPLO) backed the measure’s intent to protect public morals, minors, and other vulnerable sectors, but acknowledged that the city may struggle to enforce the proposed ban against digital and online platforms.
BPLO Legal Officer Atty. Cherry Cutillar told councilors that the office could enforce the measure against physical advertisements, but online platforms would present a different challenge.
“For the digital online platforms, sir, the BPLO will have difficulty in enforcing that one since some online platforms are not originated within Cebu City,” Cutillar said.
She said the office would need assistance from agencies with broader enforcement capabilities, citing the Department of Information and Communications Technology (DICT) and the Philippine National Police (PNP).
Pagcor seeks exemption for authorized gambling ads
Pagcor, meanwhile, asked the City Council to limit the proposed ban to gambling advertisements physically displayed, published, conducted or otherwise situated within Cebu City.
In its position paper, which Casino Filipino Cebu representative Ingrid Victoria Espiritu presented during the hearing, Pagcor said regulating online gambling advertisements raises jurisdictional issues because such promotions operate on platforms that cross territorial boundaries.
“Pagcor respectfully recommends that the proposed ordinance be limited to gambling advertisements that are physically displayed, published, conducted, or otherwise situated within the territorial jurisdiction of Cebu City,” the agency said.
Pagcor also backed the inclusion of a savings clause that would exempt gambling advertisements “expressly authorized by national law or regulatory agencies like Pagcor.”
The agency said such an exemption would allow Cebu City to exercise its police power while avoiding conflicts with national regulatory authority.
Furthermore, Pagcor reiterated its support for responsible gaming and responsible advertising, saying it would continue working with local governments within the existing legal framework.
The position raised questions from Garganera, particularly on advertisements linked to the Small Town Lottery (STL).
Garganera asked whether gambling advertisements covered by Pagcor’s regulatory authority could still face removal under the proposed ordinance if the measure becomes law.
Espiritu, however, said she could not provide a definitive answer because she represented Pagcor’s Casino Filipino Cebu branch and not the agency’s Gaming Licensing and Development Department, which handles such regulatory questions.
She referred the matter to the department for an official response.
What happens to gambling ads already allowed by national law
The issue goes to the heart of the proposed ordinance: whether the city can prohibit an advertisement that national law or a national regulatory agency already allows.
The CLO had previously recommended that the ordinance align its definitions and restrictions with existing national laws and Pagcor regulations to reduce the risk of conflict with national regulatory authority.
The legal office also warned that the ordinance, as initially drafted, could reach online content regardless of the location of the server or principal office.
It recommended limiting restrictions on digital advertisements to paid commercial gambling promotions on platforms operated by entities based in Cebu City or otherwise subject to the city’s direct regulatory authority.
The CLO also supported the proposed administrative sanctions but called for due process safeguards, including written notices of violations, an opportunity for affected parties to respond, and written decisions explaining the factual and legal basis for penalties.
BPLO proposes fines and permit sanctions
The BPLO proposed specific enforcement mechanisms to make the ordinance workable if the council approves it.
Cutillar said advertising agencies, outdoor sign operators, and event organizers should secure a mandatory clearance or submit an undertaking during business permit registration or renewal, certifying that they would not display or host gambling advertisements in Cebu City.
The office also proposed a 30 to 60-day transition period for operators to remove existing physical billboards and outdoor gambling advertisements after the ordinance takes effect.
Under the proposed enforcement structure, the BPLO or its joint inspection team would monitor physical premises and billboards and verify business permits, while the Cebu City Transportation Office would monitor gambling advertisements placed on public utility vehicles.
The BPLO also proposed graduated administrative penalties:
- First offense:Notice of violation, removal or takedown within 24 hours, and a P1,000 administrative fine
- Second offense:Removal of the gambling advertisement, a P3,000 fine, and temporary suspension of the billboard or advertising permit
- Third offense: Removal of the gambling advertisement, a P5,000 fine, revocation of the business permit, and permanent closure of the affected advertising structure or facility
Cutillar said the BPLO could enforce the ordinance once enacted, provided the final measure establishes clear operational guidelines, task force responsibilities, and realistic enforcement boundaries.
Council questions whether Bingo counts as gambling
The hearing also exposed another unresolved issue: the ordinance’s definition of gambling.
Vice Mayor Tomas Osmeña, the presiding officer, asked whether Bingo, including Bingo Plus, would fall under the proposed ban, particularly when the game involves cash prizes.
Garganera acknowledged that the council still needed to settle the definition.
He said he did not want to assume that he knew whether every form of Bingo qualified as gambling and called for the council’s collective consideration in drafting the definition.
Councilor Philip Zafra argued that Bingo could fall within the ordinary definition of gambling because winning depends on chance.
“Game of chance man na,” Zafra said. (That is a game of chance.)
He explained that a participant wins when the number drawn matches the participant’s number, making the outcome dependent on chance.
Councilor Sisinio Andales, however, raised a distinction for Bingo conducted as a fundraising activity for charitable purposes.
He said the council should examine whether a Bingo game organized for charity, even when participants pay for tickets and prizes involve money or property, should fall under the definition of gambling.
Zafra challenged the distinction that people organizing cockfighting or other gambling activities could similarly claim charitable purposes.
The exchange prompted Osmeña to call for a clearer legal interpretation.
He said the council needed to determine whether Bingo constitutes gambling and whether an advertisement for such an activity, including one displayed on a school bulletin board, could violate the proposed ordinance.
Osmeña also cautioned against creating an ordinance that could become a tool for harassment, particularly against legitimate charitable activities organized by churches, civic organizations, or groups such as the Rotary Club.
Ordinance still needs clearer boundaries
The proposed ordinance seeks to prohibit gambling advertisements within Cebu City and impose administrative penalties on violators.
But the August 11 hearing showed that the council still needs to resolve several questions before the measure can become an enforceable city policy.
These include the extent of the city’s authority over online advertisements, the treatment of gambling promotions authorized under national law or by Pagcor, and the precise definition of gambling and gambling advertisements.
The council must also determine how the city would coordinate with national agencies when an alleged violation involves an online platform or an operator outside Cebu City.
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