Mr. Eduardo L. Rayo

July 10, 1989 Mr. Eduardo L. Rayo Lot 25, Block 6 Atherton Street North Fairview Quezon City Sir : This refers to your letter, dated April 12, 1989, requesting the opinion of this Commission on the legality of forming a corporation with the following primary purposes: "To engage in the business of gambling as a bettor only in any and all kinds and types of games of chance authorized by the government such as, but not limited to the following: games of chance authorized, operated and/or conducted by the government-authorized casinos, sweepstakes and lotteries, horse-racing, cockfights and such others which are now, or which may in the future be allowed, licensed and/or otherwise authorized by the government or any of its agencies or instrumentalities." The Corporation Code expressly provides that the purpose or purposes for which a corporation is organized must be lawful. The law provides, thus: "SECTION 10. . . . Any number of natural persons not less than five (5) but not more than fifteen (15) all of legal age and a majority of whom are residents of the Philippines, may form a private corporation for lawful purpose or purposes . . . (emphasis supplied) It is to be noted that under the Revised Penal Code (Title VI), as amended by Presidential Decree Nos. 483 and 1602, "betting" is considered as a crime against public morals, P.D. No. 483 provides thus: "SECTION 2. Betting, game-fixing, point shaving as or game machination unlawful , Game-fixing, point shaving game machination, as defined in the preceding section, in connection with the games of basketball, volleyball, softball, baseball, chess, boxing bouts, "jai-alai", "sipa", "pelota" and all other sports contests, games or races; as well as betting therein except as may be authorized by law, is hereby declared unlawful ". (emphasis supplied). In view thereof, the articles of incorporation providing for the above-mentioned purpose shall be rejected pursuant to Section 17 of the Corporation Code which provides: "SECTION 17. Grounds when articles of incorporation or amendment may be rejected or disapproved . . . . The following are grounds for such rejection or disapproval: LexLib xxx xxx xxx 2. That the purpose or purposes of the corporation are patently unconstitutional, illegal, immoral , or contrary to government rules and regulations. . . . (emphasis supplied). Please be advised accordingly. Very truly yours, (SGD.) RODOLFO L. SAMARISTA Associate Commissioner