Mr. Vicente A. Galang

October 30, 1990 Mr. Vicente A. Galang Presidential Staff Director Malacaang, Manila S i r : This relates to your 1st Indorsement dated September 28, 1990, referring to us the letter of Mr. Salvador P. Malbarosa dated September 18, 1990 inquiring whether there are legal impediments to the incorporation of a "poker club" which will cater to its members and their guests. llcd Presidential Decree No. 1602 which amends the Revised Penal Code prescribing stiffer penalties on illegal gambling provides: "SECTION 1. . . . (a) The penalty of . . . shall be imposed upon: 1. Any person other than those referred to in the succeeding subsections who in any manner, shall directly or indirectly take part in any illegal or unauthorized activities or games of cock-fighting, jueteng, jai-alai or horse racing to include bookies operations and game-fixing, numbers, bingo, and other forms of lotteries; cara y cruz, pompiang and the like; 7-11 and any game using dice; blackjack, lucky nine, poker, and its derivatives, monte, baccarat, cuajo, pangguinge and other card games; . . .." (Emphasis supplied) It is clear that under said Decree, "Poker" is considered illegal and a crime against public morals. However, there are instances wherein "poker" game may not be considered illegal, such as when it is exclusively intended for parlor games or for home entertainment. LOI No. 816 provides thus: ". . . the games of domino, bingo, poker when not played with five cards stud , cuajo, pangguinge and mahjong, provided that they are played as parlor games or for home entertainment ; and provided, further, that they are not played in places habitually used for gambling and the betting is not disguised to defeat the intent of Presidential Decree No. 1602, are hereby exempted ." (Emphasis supplied) It appears from the foregoing that a "poker club" which will cater to members and guests does not fall within the above-exception, hence, the same is considered illegal. In this connection, the Corporation Code expressly provides that the purpose or purposes for which a corporation is organized must be lawful. The Law provides: "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 a lawful purpose or purposes . . .." (Emphasis supplied) Thus, articles of incorporation which will provide for the above-mentioned illegal purpose shall be rejected by the Commission pursuant to Sec. 17 of the Corporation Code quoted hereunder: "SECTION 17. Grounds when articles of incorporation or amendment may be rejected or disapproved. . . . The following are grounds for such rejection or disapproval: 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) However, considering that the issue raised herein also falls within the jurisdiction of the Games and Amusements Board, it is suggested that you seek confirmation from that Office on the above findings. LexLib (SGD.) RODOLFO L. SAMARISTA Associate Commissioner