1602 Gambling

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The Philippines’ gambling laws are usually either order by the sitting President or passed through the Philippine legislature. Two regulatory agencies, PAGCOR and CEZA, oversee all of the Philippines’ gambling activities, including lotteries, casinos, betting, and more. This Philippine gambling laws guide will describe the most critical gaming laws which make up the structure of the country’s gambling framework.

This Act plugged holes left by Presidential Decree No. 1602 which addressed video Karera machines only, the Act increased penalties for those involved in illegal numbers games and made no change to the penalties of those involved in other illegal gambling activities. PD 1602 states that any bangary official whose jurisdiction is found to have a gambling house and is known to have a reputation for a gambling house shall face a penalty of prison and a fine of 500 to 2,000 pesos and will be temporarily suspended from his post.

Presidential Decree No.1067-a

In 1975, this presidential decree made by then-Philippine President Ferdinand Marcos became the nation’s first gambling law which established a government regulator, PAGCOR - the Philippine Amusement and Gaming Corporation. This Philippine gambling law also clarified which gambling activities would be authorized to participate in within the Philippines. PD 1067-a also gave PAGCOR regulatory authority over Philippine gaming. The legislation also required profit sharing with the government, as well as set rules and businesses standards for PAGCOR to follow.

Presidential Decree No. 1602

In 1978, Presidential Decree No. 1602 became the Philippines second gambling law made by the President which details penalties for illegal gambling. The law essentially also says that legal forms of gambling like sports betting, slots, poker, horse race betting, and more are only authorized if adequately licensed by a credible Philippine regulator. PD 1602 created an imprisonment punishment with a fine for gambling on unlicensed illegal games.

Presidential Decree No. 1869

In 1983, the President enforced his third gambling law. This law established a more specific guideline for PAGCOR to regulate the gambling industry. PD 1869, provides PAGCOR with a line by line guide on how to license, monitor, and authorize Philippine gambling. This law became particularly handy once PAGCOR started licensing corporations.

Republic Act 7922

In 1994, the Republic Act 7922 allowed for the Cagayan Valley to act as an exclusive economic zone to host gaming. This zone includes islands and the city of Freeport under its allowance as an economic zone. This Act created the Philippine government regulatory agency CEZA, or the Cagayan Economic Zone Authority; this government regulator oversees gambling within the special economic zone. PAGCOR has no authority over this zone as CEZA maintains exclusive powers.

Executive Order No. 13

President Rodrigo Duterte authorized Executive Order No. 13 in 2017 and defined illegal gambling as any activity not licensed by a Philippine regulator. This Executive Order led agencies to fight illicit numbers games, restricted access to domestic online casinos and sportsbooks and cracked down on unlawful operations via raids.

Republic Act 10927

In 2017, the AMLC of the Philippines, also known as the Anti-Money Laundering Council, requested this gambling law be enforceable. The Republic Act 10927 became law and requires online and brick and mortar casinos to implement risk management policies and record their players’ activities for a minimum of 5 years. Philippine casinos must comply with AMLC’s investigations and requests once a case is open, along with more robust information filing on players upon account registration such as real name, addresses, income probes, and so on. The law also imposed fines for noncompliance.

How Do These Laws Affect Online Gambling In The Philippines?

None of the laws mentioned above directly prohibit domestic access by Filipino players to legally licensed offshore online casinos. It is recommended to only use legally sanctioned Philippine online casinos to enjoy the best features, deposit methods, security protocols, and bonuses lawfully available for PH players. Current Philippine gambling laws target illegal operators based within the Philippine who are not licensed by PAGCOR or have a POGO license.

Most Philippine gambling laws target operators and define illegal gambling activities. PD 1067-a, PD 1602, and PD 1869 have all been important gambling legislation which has defined and clarified authorized and unlawful gambling acts within the Philippines.

Title Six, Crimes Against Public Morals


1602 Illegal Gambling


A. Introduction

The law on gambling exemplifies the adage that what is legal is not necessarily moral. Although gambling is under the title Crimes Against Morals, the law on gambling does not take morality into consideration. It does not punish gambling per se because they adversely affect public morals, but that it punishes are gambling games which are not covered by a franchise or permit from the government.

B. The applicable laws are:

(1) Presidential Decree No.1602 : (Simplifying and Providing Stiffer Penalties for Violations of Gambling Laws) and (2). R.A. No. 9287 ( An Act Increasing the Penalties for Illegal Numbers Games, Amending Certain provisions of P.D. 1602 and for Other Purposes).

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C. Meaning and coverage of Gambling :

Illegal

Pd 1602 Gambling


1. Gambling games refer to any game or scheme whether upon chance or skill, wherein wagers consisting of money, articles or vale or representatives of value, are made.
2. It is the fact that bets are made which makes the game a gambling game. The game may be decided purely on chance, purely on skill, or both.
It becomes illegal and therefore prohibited if it is not authorized by a franchise.
3. However parlor games are exempted such as those during wakes , unless it clearly appears that the wake is unnecessarily prolonged as to be a cover excuse to conduct illegal gambling

D. Basis for Liability:

Gambling

A mere spectator is not liable. An accused must participate in an illegal gambling game in any of the following manner:
1. Participating as a bettor
2. Acting as a personnel or staff: such as being the guard or look-out; usher, cook, washer or entertainer
3. Allowing one’s vehicle, house, building, or land, to be used in the operation of an illegal gambling game
4. Acting as a collector or agent
5. Acting as coordinator, controller or supervisor
6. Acting as a maintainer, manager, operator
7. Acting as a financier or capitalist
8. Acting as a protector coddler
9. Possession of Gambling paraphernalia or materials
10. Failing to abate or to take action or tolerating, by a public official, of a gambling game within his jurisdiction
11. Any parent, Guardian, or persons exercising moral authority or ascendancy over a minor, ward or incapacitated person who induces or causes the latter to participate in an illegal numbers game

E. Penalties:

If the foregoing pertains to any numbers game the penalties are specifically those provided for in R.A. 8287

F. Lottery:

A form of gambling whereby prizes are distributed among persons who have paid, or agreed to pay, a valuable consideration for the chance to obtain a prize. It requires (i) a consideration (ii) chance or hazard and (iii) prize. Examples are raffle games.
1. Question:

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When are promo sales or advertising schemes considered lottery/gambling? ( This refers to the practice of advertising goods for sale offering the purchasers a chance to win a prize by giving them coupons to be drawn later )
Answer: The scheme is considered a lottery or gambling if : (1) the public pays more than the price of the article because the excess is used to defray or cover the cost of the prize or (2) the article is not saleable without the prize and it becomes saleable only because of the prize.