IT Law Journal

administrator January 3rd, 2005

Gambling through SMS
by Mary Ann Ll. Reyes

The country’s biggest cellular phone service providers are opposing an application by the Philippine Amusement and Gaming Corp. (Pagcor) with the National Telecommunications Commission (NTC) for access codes to engage in text-based games of chance.

Pagcor told the NTC that it is applying for special access codes (777 and 888 for authorized play and 787 and 878 for customer support) in order to centralize and integrate existing text-based games of chance, protect the public by preventing illegal gambling and text scams and eliminating unregistered gaming providers, and raise additional revenues for government.

It is likewise asking NTC that it be furnished a list of all registered value-added service (VAS) licensees for purposes of regulating and integrating games of chance providers, even as Pagcor pointed out that telcos engaged in gaming activities under VAS are currently not regulated.

Globe Telecom senior vice president Rodolfo Salalima however accused Pagcor of trying to secure access codes from NTC not for the purpose of regulating existing games of chance but going into the business itself.

He likewise stressed that since there is no public service involved but a mere attempt of Pagcor to engage in text-based gambling, then Pagcor should not secure a special access code from NTC but instead get a line from Globe and enter into a commercial relationship with the latter.

“It is the policy of Globe not to engage in gambling or to lease its lines for gambling purposes. Gambling is not public service,” Salalima pointed out.

Smart Communications legal head Rogelio Quevedo for his part emphasized that they are opposing Pagcor’s application since Smart will not a llow its network to be used for gambling.

While Pagcor representatives maintained that its objective in applying for special access codes it to regulate text games and protect the consumers and that it is not its intention to introduce new text games but regulate and monitor existing ones, they nevertheless presented a proposed Pagcor prepaid card called ‘e-game’ with denominations of P500, P1000, and P5000. They said that the cards will only be sold to adults (21 years and above) and that the high card denominations aim to discourage those with limited disposable income from participating.

They said that all players will be required to register over the air through texting with Pagcor and that winners will personally have to claim their prizes by presenting valid government IDs indicating their age.

Pagcor said it is mandated under Presidential Decree no. 1869 to centralize and integrate the right and authority to operate and conduct games of chance. However, mobile operators and even the Department of Trade and Industry claimed that Pagcor is overexpanding its authority under the law since not all games of chance involve gambling.

“It is only when there is betting involved that there is gambling over which Pagcor has authority to regulate. Russian roulette is a game of chance. Does this mean that Pagcor will have to interfere with private lives. (Pagcor) is overexpanding its authority under the law but seeking to regulate all games of chance when not all promos and games of chance are gambling. Sales promos for instance are under the DTI while it is the NTC that has jurisdiction over telcos,” Salalima noted.

As planned by Pagcor, all third party application providers, games proponents, and TV games and interactive TV programs bef ore they can offer text-based gaming will have to seek the approval of Pagcor and pass through a Pagcor internet and mobile intermediation platform. Only Pagcor-approved games will then be able to use the lines of the telcos.

Salalima however emphasized that there is nothing for Pagcor to regulate since text-based gambling does not exist. “If Pagcor wants to regulate text-based gambling, then going into the business itself is not the solution,” he said.

He likewise castigated Pagcor for accusing telcos of engaging in gambling. “We are not engaged in gambling and never will. Convict us first instead of using us to get your access code. Do not use the telcos to get a line,” he said.

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