ONLINE REAL PROPERTY RAFFLES IN THE PHILIPPINES All the key legal requirements, step-by-step
1. Why real-property raffles are special
Giving away a house, lot, or condominium unit by chance triggers three overlapping legal regimes:
| Regime | Core Law | What it regulates | Key agency |
|---|---|---|---|
| Sales-promotion (free entry or purchase-linked draw) | Consumer Act (R.A. 7394) + DTI Admin. Orders 2-93, 10-02 | Any promotional raffle that boosts sales or goodwill | DTI–Fair-Trade Enforcement Bureau (FTEB) (Fair Trade Enforcement Bureau) |
| Lotteries / charitable raffles (tickets sold, fundraising, or gaming) | PCSO Charter (R.A. 1169, as amended) | Lotteries, sweepstakes, or charity raffles where participants pay consideration | PCSO (Respicio & Co.) |
| Real-estate advertising & sale | P.D. 957, DHSUD rules, MemCirc 15-01 | Licensing, ads, and title transfer of subdivision/condo projects | DHSUD |
Running an online property raffle therefore always needs a permit from at least one central agency (DTI or PCSO) plus real-estate clearances if the prize is land or a condo.
2. Is your raffle promotional or a lottery?
- Promotional raffle – no separate ticket price, entry is free or incidental to buying a product/service. Needs only a DTI Sales-Promotion Permit. (Respicio & Co.)
- Lottery/charity raffle – participants buy tickets or “donations” for the chance to win. Private lotteries are illegal unless authorized by PCSO; unlicensed schemes fall under P.D. 1602 on illegal gambling. (Respicio & Co., HR Library)
- Hybrid online games tied to broader gaming platforms may also require a PAGCOR e-gaming license. (RESPICIO & CO.)
When in doubt, treat any payment-based draw as a PCSO matter.
3. DTI SALES-PROMOTION PERMIT – full checklist
| Requirement | Details |
|---|---|
| Timing | File online via IREGIS at least 30 days before launch. (Fair Trade Enforcement Bureau) |
| Application file | ✓ Accomplished form (Raffle & Contest) ✓ Promo mechanics ✓ Proof of prizes (TCT/CCT & tax clearances for real property) ✓ Notarised undertaking & bond equal to 100 % of total prize value. |
| Fees | Base filing fee ₱1,000 (nation-wide) plus prize-value fee (₱5,000 if prizes > ₱1 M). (Fair Trade Enforcement Bureau) |
| Advertising rules | “DTI Fair-Trade Permit No. FTEB-____ Series ___” must appear in all online materials. |
| Draw supervision | Transparent raffle drum or RNG certified by an IT auditor, in the presence of a DTI representative (virtual attendance allowed post-pandemic). (Respicio & Co.) |
| Post-draw duties | Publish winners within 2 weeks; give at least 60 days to claim; keep promo file 2 years. |
| Data-privacy | Delete or anonymise unused personal data 1 year after promo closure (DAO 10-02). |
Failure to secure the permit or follow the mechanics exposes the organiser to administrative fines up to ₱300,000 per violation and suspension of business name. (Fair Trade Enforcement Bureau)
4. PCSO PERMIT FOR LOTTERIES / CHARITY RAFFLES
| Step | Key point |
|---|---|
| Apply | File “Permit to Conduct Raffles and Draws” with PCSO Charity Assistance Dept.; online submission allowed for web-based draws. (PCSO, Respicio & Co.) |
| Bond & fees | Refundable cash bond (10 % of gross receipts) plus 1 % regulatory fee. |
| Transparency | Physical or RNG draw must be live-streamed; PCSO observer signs Minutes. (Respicio & Co.) |
| Beneficiary report | Within 30 days after draw, submit audited statement showing net proceeds remitted to the stated beneficiary. |
Unlicensed ticket-selling is prosecutable under P.D. 1602 and Article 195 of the Revised Penal Code. (HR Library, Legal Resource Library)
5. REAL-ESTATE OVERLAY (DHSUD)
License to Sell (LTS). The developer/owner must hold a valid LTS for the project; otherwise raffling the unit or lot is illegal under P.D. 957.
Ad Approval. Any online promotional material showing floor plans, unit prices, or project name needs DHSUD Advertisement Approval (acted on within 5 working days).
Foreign ownership limits.
- Land: foreigners cannot own. Provide an alternative cash prize or long-term lease.
- Condominium: foreigners may win only if total foreign ownership in the project stays ≤ 40 %.
6. TRANSFER OF TITLE & TAXES
| Item | Who pays | Rate / form |
|---|---|---|
| 20 % final tax on prizes > ₱10k | Organiser (withheld & remitted) | BIR Form 2306 / 1601F. (Bureau of Internal Revenue) |
| Capital-gains or Donor’s tax | Usually 6 % CGT on the zonal/fair-market value if the property is transferred as a “prize”; BIR may treat it as a donation if no consideration. | |
| Documentary-stamp tax | 1.5 % of the higher of zonal or selling price. | |
| LGU transfer tax + registration fees | Varies (up to 0.75 % of FMV). | |
| eCAR & TCT/CCT transfer | Submit Deed of Assignment, tax receipts, and DTI/PCSO permit to the Registry of Deeds; e-notarisation acceptable under 2020 Supreme Court VRS rules. |
Tip: build the expected tax outlay into the promo budget; DTI will look for proof that the organiser can shoulder all taxes before approving the permit.
7. DATA-PRIVACY & CYBER RULES
- Collect only data needed to run the draw; avoid posting full names publicly—NPC Bulletin No. 18 recommends pseudonymous entry codes.
- Adopt layered privacy notices, secure storage, and purge data after retention period (see DAO 10-02 requirement above).
- Online payments must use PCI-DSS-compliant gateways; transactions ≥ ₱1 M trigger AMLA covered-transaction reporting. (Respicio & Co.)
- Provide age-gate; minors (< 18) cannot join gambling-type raffles. (lightweightsolutions.co)
8. LOCAL GOVERNMENT & OTHER PERMITS
Some cities require a Mayor’s Permit for public promo events or ticket selling and may ask for a surety bond. Always check the local tax ordinance where the property sits and where the online platform is registered. (Respicio & Co.)
9. ENFORCEMENT & PENALTIES SUMMARY
| Violation | Penalty |
|---|---|
| No DTI permit (promo raffle) | Fine up to ₱300 k + suspension/closure; forfeiture of bond. (Fair Trade Enforcement Bureau) |
| Unlicensed lottery / ticket selling | Arresto mayor + fine under P.D. 1602; criminal prosecution. (HR Library) |
| Misleading real-estate ads / no LTS | Cease & desist, ₱50 k-₱1 M fine, and/or revocation of project permit (DHSUD). |
| Privacy breach | NPC compliance order, up to ₱5 M fine + damages under R.A. 10173. |
10. PRACTICAL 10-STEP CHECKLIST
- Classify the raffle (promo vs lottery).
- Secure title docs and confirm LTS/LGU tax clearances.
- Draft mechanics (entry, draw, claim, privacy clause).
- Apply for DTI or PCSO permit (30 days lead time).
- Post the required bond and pay filing fees.
- Obtain DHSUD Ad Approval for all creatives.
- Set up RNG / draw venue; line up auditor & livestream.
- Launch – always display permit number on every post.
- Conduct draw with agency rep; sign Minutes; publish winners.
- File taxes & transfer title; keep promo file for 2 years, purge personal data after 1 year.
11. Recent digital updates (2023-2025)
- DTI IREGIS now issues e-permits within 3 working days for complete applications. (Fair Trade Enforcement Bureau)
- PCSO web-based betting platform pilot launched May 2025; online charity raffles may soon integrate its RNG backend. (PCSO)
- DHSUD “E-Services” portal accepts electronic ad approvals and LTS renewals nationwide.
12. Take-away
Running an online raffle for a Philippine house, lot, or condo is perfectly legal if—and only if—you layer the permits correctly (DTI/PCSO + DHSUD) and budget for the taxes. Treat the raffle like a full-blown real-estate transaction wrapped inside a promotions or lottery framework: transparency, data-privacy, and prompt title transfer are what the regulators look for first.
(This overview is for general information only and is not a substitute for personalised legal advice.)