Social‑Media “Gambling” Raffles in the Philippines
A comprehensive legal primer (updated to July 2025)
1. Terminology and basic concepts
| Term | Core idea under Philippine law | Where it is defined/treated |
|---|---|---|
| Gambling | Any scheme that contains (a) consideration, (b) chance, and (c) prize. | Implied in Art. 195–199 Revised Penal Code; clarified in P.D. 1602 and R.A. 9287. |
| Lottery / Raffle | A species of gambling whose prize winners are chosen by random draw. | R.A. 1169 (PCSO Charter); Art. 195(3) RPC. |
| Sales Promotion | A scheme to increase sales or patronage (e.g., “like–share‑win” draws) where no additional payment is required beyond the promoted product/service. | DTI Sales Promotion Rules (BPS Administrative Order 02‑1993, as amended; consolidated in 2021). |
| Online gambling | Any gambling activity “using the internet or any form of ICT”. | R.A. 10175 (Cybercrime Prevention Act) §4(b)(3); PAGCOR and PCSO circulars. |
| Social‑media raffle | A raffle operated wholly or partly on platforms like Facebook, Instagram, TikTok or X. It may be: 1) a sales promotion (free entry), or 2) an online lottery (paid entry), depending on mechanics. | No single statute; analysis is by analogy to the laws above. |
2. The patchwork of regulators
| Regulator | Sphere | Typical role in raffles run on social media |
|---|---|---|
| DTI – Fair Trade Enforcement Bureau | Consumer protection / sales promotions | Issues Sales‑Promotion Permits for free‑entry promotional raffles by private businesses and influencers. |
| PCSO | Charitable sweepstakes & lotteries | May authorize ticket‑selling raffles only for charitable or public‑health causes. |
| PAGCOR | Commercial gaming | Licenses e‑Games/e‑Casino operations. Not usually invoked for small raffles, but any platform that sells “chance tickets” for a fee may be deemed illegal without PAGCOR authority. |
| LGUs | Local ordinances & business permits | Some cities (e.g., Quezon City, Cebu City) require separate clearance for prize draws with on‑site events. |
| NBI / PNP | Law enforcement | Conduct raids and cyber‑patrol for violations of P.D. 1602, R.A. 9287 and R.A. 10175. |
| National Privacy Commission (NPC) | Data privacy | Regulates collection of entrant data; privacy notices and data‑subject consent are mandatory. |
| BIR | Taxation | Collects final withholding tax on prizes and DST on tickets/certificates. |
3. When is a social‑media raffle legal?
| Scenario | Status | Why |
|---|---|---|
| “Like, share & win” promo; no payment; DTI permit secured | ✅ Lawful sales promotion | No consideration → not gambling; DTI has jurisdiction. |
| Paid “e‑raffle” (₱50 per entry) run by a private seller on Facebook; no PCSO authority | ❌ Illegal gambling | Has consideration, chance, prize → “lottery” under Art. 195; only PCSO/PAGCOR can run. |
| Charity raffle with printed tickets, FB used only for publicity; PCSO permit obtained | ✅ Lawful charitable lottery | Authorized by PCSO → exempt from P.D. 1602. |
| Instagram influencer gives away brand‑sponsored gadget; entry requires buying a product | ✅ if DTI‑permitted; ❌ if unpermitted | Purchase = consideration, but treated as sales promotion if permit + bond lodged. |
| Discord “crypto‑raffle” rewarding winners in USDT; organizer is offshore | ❌ Illegal unless PAGCOR offshore gaming license (POGO) | AMLA + PAGCOR rules + BSP/SEC intersection. |
4. Key statutory hooks
P.D. 1602 (1984) – Penalizes all forms of illegal gambling; imprisonment ranges from 30 days to 6 years depending on roles and recidivism.
R.A. 9287 (2004) – Stiffer penalties for illegal numbers games; penalty elevated one degree if the activity uses ICT.
R.A. 10175 (2012) – Cybercrime law; any offense committed through ICT is penalized one degree higher. Running an unlicensed online lottery thus escalates penalties.
R.A. 1169 (1954, as amended) – PCSO’s exclusive franchise to “hold and conduct lotteries and similar activities.” PCSO may delegate to qualified charitable organizations.
P.D. 1869 as amended by R.A. 9487 – PAGCOR charter; empowers PAGCOR to regulate games of chance, cards and numbers whether land‑based or online.
Consumer Act (R.A. 7394) + DTI Sales‑Promotion Rules – Require a permit, surety bond (minimum 20 % of total prize value), and approved mechanics for promos.
Data Privacy Act (R.A. 10173) – Personal information of entrants (names, mobile numbers) must be processed under a documented privacy policy and stored securely.
Anti‑Money Laundering Act (R.A. 9160) as amended by R.A. 10927 – Casinos (including online) are covered persons; suspicious online raffle proceeds could be frozen.
Tax Code –
- §24(B)(1) imposes 20 % final tax on raffle prizes exceeding ₱10 000 (withheld by the organizer).
- Documentary Stamp Tax: ₱0.20 per ₱200 face value on raffle tickets if tickets are issued.
5. The DTI Sales‑Promotion Permit in practice
| Step | What the organizer must do | Practical tips |
|---|---|---|
| 1. Timeline | File at least 30 calendar days before the promo starts (10 days for purely online promos under 2021 guidelines). | Upload via the DTI e‑Promotion Portal; rush processing (₱1 000 fee) cuts lead‑time to 5 days. |
| 2. Submit mechanics | Clear description of entry method, draw date, venue (may be virtual), prizes, claiming period. | DTI will disallow “must share publicly” clauses that force entrants’ profiles public. |
| 3. Post a bond | Surety bond = 20 % of total prize value (cash/ non‑cash). | Bond may be waived if total prize ≤ ₱50 000 and organizer is MSME with good record. |
| 4. Pay filing fee | ₱500 +₱100/region; add ₱100 per additional calendar month of promo. | Pay via GCash / LandBank Link.Biz; keep the e‑OR. |
| 5. Draw proper | DTI representative must witness physically or via video‑conferencing. | Record the draw and keep for 12 months. |
| 6. Winner announcement | Post on the same social‑media channel within 2 weeks; send registered mail. | Tagging winners alone is not enough. |
| 7. Post‑promo report | Within 60 days after end: list of winners, proof of prize delivery, unused tickets. | Non‑submission blocks future permits. |
Administrative penalties for running or advertising a promo without permit: ₱300 000 or 30 % of promo cost (whichever is higher) per violation, plus confiscation of prizes and a possible perpetual permit ban.
6. Consequences of illegal paid social‑media raffles
| Violation | Penal exposure | Typical enforcement trend |
|---|---|---|
| Paid online raffle without PCSO / PAGCOR authority | P.D. 1602 basic penalty: arresto mayor (1 mo–6 mo) + fine; plus Cybercrime aggravation (next higher degree) | NBI Cybercrime Division regularly mounts “entrapment buys” and arrests live‑streaming sellers. |
| Organizer acting as maintainer of an illegal numbers game (e‑raffle with serial numbers) | R.A. 9287: Prison mayor (6 yr–8 yr) to reclusion temporal; assets can be frozen under AMLA. | Since 2022, courts have issued AMLC freeze orders on GCash/PayMaya wallets used in these raffles. |
| Failure to withhold 20 % final tax on prizes > ₱10 000 | BIR assessment + 25 % surcharge + interest; criminal charge under §255 NIRC. | BIR audits FB pages flagged by DTI for unpermitted promos. |
7. Data‑privacy and consumer‑protection pitfalls
- Consent – Mechanics must contain an explicit data‑privacy notice; “by joining you agree…” is insufficient if it lumps multiple uses together.
- Minors – DTI requires parental consent if participants < 18. FB separately bars “gambling” promotion to minors.
- Truth‑in‑Advertising – Using headline prizes then later substituting cheaper variants is deceptive, actionable under Art. 110, R.A. 7394; fines up to ₱300 000 and imprisonment up to 6 months.
- Platform rules – Facebook, Instagram, TikTok and X all prohibit “promotions that require payment for chance” unless the organizer demonstrates local licensing. Pages can be taken down summarily.
8. Illustrative jurisprudence and regulatory rulings
| Case / Ruling | Lesson for social‑media raffles |
|---|---|
| People v. Dizon (CA‑G.R. CR No. 27149, 2016) | Selling raffle tickets without PCSO authority is illegal gambling even if for “charity”; intent is irrelevant. |
| DTI Adjudication Decision No. 21‑029 (2021) – “Influencer K” Gadget Giveaway | A Facebook‑only promo was fined ₱500 000 for lack of permit; “electronic consideration” found in the form of forced page likes (“patronage”) even without money. |
| NBI‑Cybercrime Op “Pa‑Bekis” (2020) | Demonstrated that accepting GCash transfers for raffle slots converts the activity to gambling subject to Cybercrime Act aggravation. |
| AMLC ex‑parte Freeze Order vs. Online Raffle Wallets (CTA E.B. No. 2335, 2023) | All raffle proceeds were traced as “unlawful activity” under AMLA; freeze upheld because no PAGCOR/PCSO authorization. |
9. Compliance checklist for would‑be organizers
Decide: Free‑entry promo vs. paid lottery.
If free‑entry:
- Secure DTI permit; lodge bond; publish mechanics prominently.
If paid entry for charity:
- Partner with or get authorization from PCSO; print serially numbered tickets; remit charity share.
If commercial paid entry:
- Effectively impossible without PAGCOR e‑games license (capital ₱1 billion+, stringent controls).
Draft clear mechanics (dates, eligibility, odds, verification).
Embed privacy notice & obtain NPC registration if processing > 1 000 data subjects annually.
Withhold and remit taxes on high‑value prizes; issue BIR Form 2306 to winners.
Announce winners, deliver prizes, file post‑promo report.
Maintain records for 3 years for DTI/BIR inspection.
10. Practical tips & emerging trends (2024–2025)
- Live‑stream raffles on TikTok Shop and FB Live are the current enforcement focus; the NBI uses screen‑scraping bots to flag pages advertising paid “slot‑based” draws.
- Cryptocurrency‑settled raffles fall squarely under AMLC monitoring; exchanges now auto‑freeze suspicious wallets on “online loto” keywords.
- AI‑generated “randomizers” must still be transparent; DTI has begun requiring submission of the randomization code or a notarized certification of its fairness.
- Cross‑border giveaways: If the promo is visible in the Philippines, DTI asserts jurisdiction. Brands run dual‑track approvals (PH + foreign) or geo‑block the post.
- Bond‑waiver pilot for MSMEs (DTI Memo Circular 22‑06) allows zero‑bond for prizes ≤ ₱10 000 total, encouraging small businesses to legalize promos.
11. Penalties recap (quick view)
| Governing law | Fine range | Imprisonment | Notes |
|---|---|---|---|
| DTI (Sales‑Promo without permit) | ₱300 000 or 30 % of promo cost (whichever is higher) | — | Administrative; plus confiscation of prizes. |
| P.D. 1602 (illegal gambling) | ₱500 – ₱6 000 | 1 mo 1 day – 6 yr | Higher for financiers/recidivists. |
| R.A. 9287 (numbers games) | ₱100 000 – ₱5 000 000 | 6 yr 1 day – 20 yr | Covers “online swertres” style raffles. |
| R.A. 10175 aggravation | — | Next higher penalty | Applies when ICT is used. |
| Tax Code §§255/256 | 25 % surcharge + interest | 2 yr – 4 yr | For failure to withhold/remit taxes. |
12. Bottom line
Running a “raffle” on Facebook, Instagram, TikTok or any other social‑media channel is perfectly legal in the Philippines only if it is either (a) a free‑entry sales promotion with a DTI permit, or (b) a charitable lottery expressly authorized by PCSO. The moment you ask entrants to pay—or even to buy a product solely to obtain a chance—you cross into “gambling” territory that, under Philippine law, is the exclusive franchise of PCSO and PAGCOR. Penalties are stiff, and enforcement has intensified since 2020, riding on cyber‑crime and anti‑money‑laundering powers.
Checklist mantra: Permit, Bond, Tax, Privacy. Nail these four pillars and a social‑media raffle can be a powerful (and lawful) marketing tool; ignore them and it becomes an easily traceable crime.