Is ‘Ghost Betting’ in E-Games Illegal in the Philippines?

Introduction

In the rapidly evolving landscape of gaming and gambling in the Philippines, the intersection of technology and betting has given rise to various practices, some of which tread the line between legality and prohibition. One such practice is "ghost betting" in electronic games (e-games), a term that generally refers to placing wagers on e-games through anonymous, proxy, or unauthorized means, often without the bettor's direct presence or identity verification. This could involve using third-party agents, fake accounts, or automated systems to participate in betting on electronic platforms, including online slots, virtual sports, or e-sports events.

The Philippines has a robust regulatory framework for gambling, primarily overseen by the Philippine Amusement and Gaming Corporation (PAGCOR), which licenses and monitors both land-based and online gaming operations. However, the rise of digital platforms has introduced complexities, particularly with offshore and unregulated entities. This article explores the legality of ghost betting in e-games within the Philippine context, examining relevant laws, definitions, enforcement mechanisms, potential penalties, and broader implications. It aims to provide a comprehensive overview based on established legal principles and regulatory practices.

Defining ‘Ghost Betting’ and E-Games in the Philippine Context

To assess legality, it is essential to clarify the terms involved. E-games in the Philippines typically encompass electronic gaming activities, including:

Electronic Gaming Machines (EGMs): These are slot machines or video poker terminals found in PAGCOR-licensed e-games outlets, often resembling arcade games but functioning as gambling devices.
Online E-Games: Digital platforms offering virtual casino games, such as online slots, roulette, or poker, accessible via the internet.
E-Sports Betting: Wagering on competitive video gaming events, which has gained popularity but remains a niche within the broader gambling sector.

"Ghost betting," while not explicitly defined in Philippine statutes, is commonly understood in gaming circles as a form of proxy or anonymous betting. It may involve:

Proxy Betting: Where an individual (the "ghost") places bets on behalf of another person, often to circumvent restrictions like age limits, geographical bans, or identity verification requirements.
Anonymous or Automated Betting: Using VPNs, fake identities, or bots to place wagers without revealing the true bettor's information.
Offshore Facilitation: Particularly in the context of Philippine Offshore Gaming Operators (POGOs), where foreign nationals (e.g., from countries where gambling is illegal) use local proxies to bet on e-games platforms.

This practice is distinct from legitimate online betting on PAGCOR-approved sites, where users must register with verified identities. Ghost betting often exploits loopholes in digital enforcement, raising concerns about money laundering, tax evasion, and fair play.

Relevant Philippine Laws and Regulations

The legality of ghost betting in e-games is governed by a patchwork of laws emphasizing licensed operations, consumer protection, and anti-illegal gambling measures. Key statutes and regulations include:

1. Presidential Decree No. 1869 (PAGCOR Charter)

PAGCOR holds the exclusive authority to regulate and license all forms of gambling in the Philippines, including e-games. Under this decree, any gambling activity not licensed by PAGCOR is considered illegal.
Ghost betting falls under unauthorized gambling if conducted outside licensed platforms. For instance, using proxies to access restricted offshore sites violates PAGCOR's monopoly on legal gaming.

2. Republic Act No. 9287 (Anti-Illegal Gambling Law)

This law increases penalties for illegal gambling, defining it as any betting activity without government authorization. Section 2 explicitly prohibits "illegal numbers games" and other unauthorized forms, which can extend to e-games if not properly licensed.
Ghost betting could be classified as illegal if it involves unauthorized agents or platforms, as it undermines the law's intent to curb unregulated wagering that leads to social harms like addiction and crime.

3. Republic Act No. 10175 (Cybercrime Prevention Act of 2012)

Online aspects of ghost betting, such as using fake accounts or hacking to facilitate bets, may constitute cybercrimes like identity theft (Section 4(b)(3)) or computer-related fraud (Section 4(b)(2)).
If ghost betting involves digital manipulation or unauthorized access to e-games platforms, it could trigger penalties under this act, including fines and imprisonment.

4. Executive Order No. 13 (2017) and Related Issuances on POGOs

Issued under former President Duterte, this order aimed to regulate POGOs, which often host e-games for foreign markets. However, proxy betting—where locals act as "ghosts" for offshore clients—has been a point of contention.
In 2022, amid controversies involving human trafficking and illegal operations, the government cracked down on unlicensed POGOs. Ghost betting in this context is often linked to violations, as it facilitates betting by prohibited nationalities (e.g., Chinese citizens bypassing their country's gambling bans).

5. Anti-Money Laundering Act (Republic Act No. 9160, as amended)

Ghost betting raises red flags for money laundering, as anonymous transactions can obscure fund sources. The Anti-Money Laundering Council (AMLC) monitors gambling activities, and unlicensed e-games betting is reportable as a suspicious transaction.
Casinos and e-games operators must implement Know-Your-Customer (KYC) protocols; bypassing these through ghost methods constitutes a violation.

Additionally, local government units (LGUs) may impose ordinances prohibiting certain gambling forms, further complicating e-games operations.

Is Ghost Betting Illegal? A Legal Analysis

Based on the above framework, ghost betting in e-games is generally illegal in the Philippines for several reasons:

Lack of Authorization: If not conducted on a PAGCOR-licensed platform with proper verification, it qualifies as illegal gambling under RA 9287. Legitimate e-games require direct participation by verified users; proxies or anonymity defeat this purpose.
Violation of Licensing Requirements: PAGCOR mandates that all e-games operators ensure fair play and identity verification. Ghost betting circumvents these, potentially leading to charges of operating or participating in unauthorized games.
Cyber and Fraud Elements: In online e-games, using ghosts often involves deceptive practices, implicating the Cybercrime Law. For example, creating fake profiles to bet on e-sports events could be seen as online fraud.
Specific Contexts:
- In POGOs: Proxy betting was rampant in POGOs, leading to raids and closures. While licensed POGOs are allowed to offer e-games to foreigners, using local ghosts to facilitate bets for restricted users is prohibited and has resulted in deportations and fines.
- E-Sabong Connection: Although e-sabong (online cockfighting) is distinct from e-games, its 2022 ban under Presidential Directive highlights the government's stance against unregulated online betting. Similar logic applies to ghost betting in virtual sports or slots.
- E-Sports Betting: Betting on e-sports is emerging but must be through licensed bookmakers. Ghost methods, like using bots for automated wagers, could violate fair competition rules set by international bodies like the International Esports Federation, though enforced locally via PAGCOR.

Exceptions exist: If ghost betting is interpreted as mere assistance in legitimate, licensed betting (e.g., a family member placing a bet for another verified user), it might not be illegal. However, this is rare and requires case-by-case assessment.

Enforcement and Penalties

Enforcement is handled by PAGCOR, the Philippine National Police (PNP), and the National Bureau of Investigation (NBI), often through raids on illegal operations.

Penalties under RA 9287: For participants, fines range from PHP 1,000 to PHP 6,000 and/or imprisonment of 30 days to 3 years. Operators face harsher penalties: up to PHP 100,000 fines and 6-12 years imprisonment.
Cybercrime Penalties: Fines start at PHP 200,000, with imprisonment from 6 years to 12 years for fraud-related offenses.
AMLC Sanctions: Freezing of assets and civil forfeiture for money laundering links.

Notable cases include the 2023 POGO raids in Clark and Manila, where ghost betting setups were dismantled, leading to arrests of over 1,000 individuals involved in proxy operations for e-games.

Broader Implications and Recommendations

Ghost betting exacerbates issues like gambling addiction, which affects an estimated 1-3% of Filipinos, per health studies. It also contributes to economic losses, as unlicensed activities evade taxes that fund government programs.

For stakeholders:

Operators: Ensure robust KYC and anti-proxy measures to comply with PAGCOR.
Bettors: Stick to licensed platforms like those under PAGCOR or Cagayan Economic Zone Authority (CEZA) for offshore.
Policymakers: There is a push for updated laws to address digital innovations, potentially including a comprehensive Online Gambling Act.

In conclusion, while e-games offer entertainment and revenue, ghost betting undermines regulatory integrity and is predominantly illegal under Philippine law. Individuals should consult legal experts or PAGCOR for specific guidance, as enforcement evolves with technology.