Social‑Media‑Based Gambling & Raffles in the Philippines
A comprehensive legal analysis (as of 15 July 2025)
1. Key Concepts and Definitions
| Term | Core Elements under Philippine Law | Principal Legal Source(s) |
|---|---|---|
| Gambling | ▸ Consideration (stake) ▸ Chance ▸ Prize / Profit | • Revised Penal Code arts. 195‑197 (lotteries) • P.D. 1602 (stiffer penalties for illegal gambling) • Special charters (e.g., PAGCOR Charter, P.D. 1869 as amended) |
| Raffle | A form of lottery where numbered tickets/wagers are drawn for prizes; always a game of chance. | • R.A. 1169 (PCSO Charter) for charitable raffles • R.A. 7394 & DTI DAO 10‑2019 for sales‑promotion raffles |
| Sales Promotion | Any scheme to increase sales (purchase required or not) over a limited period (e.g., “Like‑Share‑Tag” mechanics). | • R.A. 7394 (Consumer Act) • DTI DAO 02‑2008 & 10‑2019 |
| Online / Social‑Media Gambling | Conducted wholly or partly through electronic systems; Facebook/ TikTok/ Instagram “pay‑in‑GCash, watch the live draw” schemes. | • R.A. 10175 (Cybercrime Prevention Act) • P.D. 1602 (still the penal provision) |
| e‑Sabong / e‑Games | Specific PAGCOR‑licensed internet wagering products. | • PAGCOR regulations & board resolutions; PAGCOR Offshore Gaming License (POGO) rules (2016, 2018, 2019) |
2. Regulatory & Supervisory Architecture
| Regulator | Statutory Mandate | Typical Permit/Approval |
|---|---|---|
| PAGCOR | Franchised operator and primary regulator of “games of chance” not reserved to others; may license electronic/online wagering (excluding sweepstakes & charitable raffles). | • Gaming Site/ e‑Games license • Offshore Gaming (POGO) license (*) |
| PCSO | Exclusive authority over charitable lotteries and raffles nationwide. | • Authority to conduct/permit raffles for charitable fundraising |
| Department of Trade & Industry (DTI) | Oversight of promotional raffles, contests & game promotions (Consumer Act). | • Sales‑promotion Permit (₱ 200.00 filing fee + surety bond ≥ 20 % of total prize value) |
| Local Government Units (LGU) | May issue Mayor’s/ Business Permit; cannot legalize gambling absent national authority. | • Local business permit (ancillary only) |
| Anti‑Money Laundering Council (AMLC) | Applies AMLA to licensed casinos and, since 2021, to PAGCOR e‑Games/POGOs. | • AMLC registration; reporting obligations |
| National Privacy Commission (NPC) | Data‑privacy compliance for collection of players’ personal data online. | • Data‑privacy Impact Assessment; privacy notice |
* All internet‑based gambling—even if the operator is offshore—falls within PAGCOR or Cagayan Economic Zone Authority (CEZA) jurisdiction when the service targets persons in the Philippines.
3. Legal Pathways for a Raffle (Philippine Residents)
| Type | Example | Who Issues the Permit? | Notes on Social‑Media Deployment |
|---|---|---|---|
| Charitable Raffle | NGO raises funds via online ticket sales for medical mission. | PCSO | • PCSO retains 1 % of total prize & 5 % documentary tax. • Social‑media marketing allowed after PCSO approval; stream draw live with PCSO auditor present. |
| Sales‑Promotion Raffle | Retailer gives away iPhone for “Follow + Share” plus purchase of product. | DTI | • Must file promo mechanics ≥ 30 days before launch. • DTI representative may inspect live draw (including Facebook Live). |
| Pure‑Chance Online Lottery / Paid Raffle | Influencer sells ₱100 “slots” via GCash; draws via randomizer in FB Live. | Illegal unless licensed by PCSO (charitable) or PAGCOR (gaming). | • If no permit, an offence under P.D. 1602; Cybercrime Act aggravates penalty if conducted online. |
4. Compliance Checklist for Legitimate Social‑Media Raffles
Secure the Correct Authority Charitable: PCSO “Authority to Conduct Raffle” (submit NGO papers, beneficiary program, prize schedule). Promotional: DTI Sales‑Promotion Permit (form, surety bond, mechanics).
Ensure Payment Channel Legitimacy ‑ Use verified e‑wallet (GCash/ Maya); match account name with permit holder. ‑ Disable “friends‑only” privacy; transparency is mandatory.
Publish Mandatory Disclosures (DTI DAO 10‑2019 §4): ‑ Permit number (DTI / PCSO). ‑ Start & end dates, drawing date/time & platform. ‑ Eligibility (age ≥ 18, PH residents).
Record & Audit Requirements ‑ Keep list of entries (Excel/ Google Sheet) for at least 120 days post‑draw. ‑ Retain video of live draw; cannot delete for 30 days.
Prize Taxation & Reporting ‑ Prizes > ₱ 10,000 subject to 20 % final withholding tax (NIRC §24(B)). ‑ File BIR Form 1601‑F/Q.
Data‑Privacy ‑ Post privacy notice for collection of names, contact details. ‑ Do not publicly post full mobile numbers of winners.
AML/CFT (if casino‑type online game) ‑ Full KYC, suspicious‑transaction reporting, cash‑transaction report for ≥ ₱ 5 million single‑transaction (casino rule).
5. Illegal Social‑Media Gambling: Enforcement Pattern
| Modus Operandi | Common Platform | Statutory Violation | Penalties |
|---|---|---|---|
| Pay‑for‑Slot “Budol Raffle” | Facebook Groups, TikTok Live | P.D. 1602 + Art. 195; Cybercrime Act §6 (computer use) | Prisión correccional in its maximum (up to 6 yrs) + fine ₱ 20,000‑200,000; devices forfeited. |
| e‑Sabong (After April 2023 ban) | Private FB pages, streaming apps | EO 9 (2023) banning e‑Sabong; P.D. 1602 | Similar criminal penalties; administrative closure of pages. |
| “Lucky Color”, “Virtual Bingo” | Messenger rooms | Unlicensed online wagering (PAGCOR) | Same; plus potential AMLA case if proceeds ≥ ₱ 500,000. |
Recent trends (2024‑2025):
- PNP Anti‑Cybercrime Group raids “Facebook Live Bingo” operators; first conviction under P.D. 1602 + Cybercrime Act secured October 2024 (Taguig RTC).
- Meta reported cooperating with PCSO to remove ~900 pages in 2024.
6. Jurisprudence and Administrative Rulings
| Case / Ruling | Gist | Precedent Set |
|---|---|---|
| People v. Dimaala (CA‑G.R. CR‑HC 10420, 2021) | Conviction for Facebook‑based “pay‑to‑spin” wheel. | Court held “raffle conducted through FB Live is still a lottery under Art. 195”. |
| DTI AdJud No. 20‑05‑07 (2020) | Penalized influencer for unpermitted “Like‑Tag‑Win” promo. | Clarified that absence of purchase does not exempt a raffle from DTI permit. |
| AMLC Resolution 48‑2022 | Directed freeze on GCash accounts of illegal online “Color Game”. | Demonstrated AMLA reach to social‑media gambling proceeds. |
7. Interaction with Other Statutes
- E‑Commerce Act (R.A. 8792) – electronic contracts for ticket sales valid but cannot legalize gambling absent substantive permit.
- Internet Transactions Act (R.A. 11967, 2023) – requires online merchant registration; DTI can order takedown of illicit gambling pages.
- Consumer Act – deceptive advertising liability if raffle odds misrepresented.
- Civil Code – wagers are generally unlawful contracts (§ 2014‑2015) unless authorized; hence prizes from illegal raffles are not recoverable in court.
8. Tax Treatment & Government Share
| Situation | Tax / Government Share |
|---|---|
| PCSO‑licensed charitable raffle | 1 % PCSO share + 5 % documentary stamp tax on prize fund; donors’ tax exemption if proceeds to charity. |
| DTI‑permitted sales promo | Prizes part of marketing expense; subject to 20 % withholding tax on winners for prizes > ₱ 10k. |
| Illegal raffle | Entire stake subject to confiscation; BIR may still assess income tax on operator (taxation is separate from illegality). |
9. Practical Red‑Flag Indicators for Consumers
- Entry fee collected via personal GCash number, no permit number displayed.
- Live draw scheduled within a few hours of launch (“flash raffle”).
- Operator blocks comments or deletes previous raffle videos.
- Prize list lacks serial numbers / IMEI for gadgets.
10. Forthcoming Reforms & Legislative Proposals (as of mid‑2025)
- “Online Wagering Regulation Act” (House Bill 9612) – would consolidate PAGCOR, PCSO & CEZA oversight into a new Philippine Gambling Authority; includes explicit social‑media clause.
- Amendments to P.D. 1602 – Senate Bill 2430 proposes graduated penalties to distinguish between low‑stakes community raffles and syndicated online gambling.
- NPC Advisory Draft (June 2025) – privacy‑by‑design guidelines for livestream promotions and raffles.
11. Checklist for Influencers & Brands Before Launching a Social‑Media Raffle
- Identify purpose: charitable, sales‑promotion, or gaming.
- Apply for PCSO / DTI approval ≥ 30 days in advance.
- Post full mechanics & permit number in caption and in first comment.
- Use a business‑verified e‑wallet or bank account.
- Schedule draw at least 7 days after last entry acceptance.
- Invite a DTI or PCSO representative (virtual attendance acceptable).
- Archive livestream recording; announce winners on same platform within 24 h.
- File post‑activity report (PCSO / DTI) within 30 days.
- Remit taxes and prepare BIR forms.
- Delete or rectify misleading posts; keep records 2 years for audit.
Conclusion
Social‑media raffles sit at the intersection of multiple Philippine regulatory regimes: gambling suppression, consumer‑sales promotion, data privacy, anti‑money laundering and taxation. The legality hinges not on the platform used (Facebook, TikTok, Instagram, YouTube) but on proper licensing and full regulatory compliance. Without it, even a seemingly harmless “₱20‑per‑slot” live raffle constitutes illegal gambling, exposing organizers to criminal penalties up to six years’ imprisonment, asset forfeiture, and administrative takedowns.
Operators, influencers, and brands therefore must (1) determine the true nature of the activity, (2) secure the appropriate PCSO or DTI permit, (3) conduct transparent, properly audited online draws, and (4) fulfil tax and privacy obligations. Consumers, for their part, should look for permit numbers and other red‑flag indicators before staking any amount online.
With robust enforcement since 2024 and pending legislative reforms in Congress, the compliance bar for social‑media‑based raffles is set to rise further—making early adoption of best‑practice frameworks essential for any lawful Philippine promotion or fundraising campaign conducted through social networks.