Presidential Decree No.

1602 (Simplifying and Providing Stiffer Penalties for Violations

of Philippine Gambling Laws)

Section 1. Violations and Penalties. The penalty of prision mayor in its medium
degree or a fine ranging from Five Hundred Pesos to Two Thousand Pesos and in case of
recidivism the penalty of prision correccional in its medium degree or a fine of ranging from
One Thousand Pesos to Six Thousand Pesos shall be imposed upon:

(a) Any person other than those referred to in the succeeding subsection who in any
manner, shall directly or indirectly take part in any game of cockfighting, jueteng, bookies
(jai- alai or horse racing to include game fixing) and other lotteries, cara y cruz or pompiang
and the like, black jack, lucky nine, pusoy or Russian Poker, monte, baccarat and other card
games, palk que, domino, mahjong, high and low, slot machines, roulette, pinball and other
mechanical inventories or devices, dog racing, boat racing, car raising and other races,
basketball, volleyball, boxing, seven-eleven dice games and the like and other contests to
include game fixing, point shaving and other machinations banking or percentage game, or
any other game or scheme, whether upon chance or skill, which do not have a franchise from
the national government, wherein wagers consisting of money, articles of value of
representative of value are made;

(b) Any person who shall knowingly permit any form of gambling referred to in the
preceding subdivision to be carried on in inhabited or uninhabited places or any building,
vessel or other means of transportation owned or controlled by him. If the place where
gambling is carried on has a reputation of a gambling place or that prohibited gambling is
frequently carried on therein or the place is a public or government building or barangay hall,
the culprit shall be punished by the penalty provided for in its maximum period and a fine of
Six Thousand Pesos.

The penalty of prision correccional in its maximum degree and a fine of Six Thousand
Pesos shall be imposed upon the maintainer, conductor of the above gambling schemes.

The penalty of prision mayor in its medium degree and temporary absolute
disqualification and a fine of Six Thousand Pesos shall be imposed if the maintainer,
conductor or banker is a government official, or if a player, promoter, referee, umpire, judge
or coach in cases of game-fixing, point-shaving and other game machination.

The penalty of prision correccional in its medium degree and a fine ranging from Five
Hundred pesos to Two Thousand Pesos shall be imposed upon any person who shall
knowingly and without lawful purpose in any hour of any day shall have in his possession
any lottery list, paper, or other matter containing letter, figures, signs or symbols which
pertain to or in any manner used in the game of jueteng, jai-alai or horse racing bookies and
similar game or lottery which has taken place or about to take place.

Section 2. Barangay Official. Any barangay official in whose jurisdiction such
gambling house is found and which house has the reputation of a gambling place shall suffer
the penalty of prision correccional in its medium period and a fine ranging from Five
Hundred to Two Thousand Pesos and temporary absolute disqualifications.

While the acts under the Revised Penal Code are still punished under the new law, yet
the concept of gambling under it has been changed by the new gambling law.

Before, the Revised Penal Code considered the skill of the player in classifying
whether a game is gambling or not. But under the new gambling law, the skill of the players
is immaterial.

Any game is considered gambling where there are bets or wagers placed with the
hope to win a prize therefrom.

Under this law, even sports contents like boxing, would be gambling insofar as those
who are betting therein are concerned. Under the old penal code, if the skill of the player
outweighs the chance or hazard involved in winning the game, the game is not considered
gambling but a sport. It was because of this that betting in boxing and basketball games
proliferated.

Unless authorized by a franchise, any form of gambling is illegal. So said the court
in the recent resolution of the case against the operation of jai-alai.

There are so-called parlor games which have been exempted from the operation of the
decree like when the games are played during a wake to keep the mourners awake at night.
Pursuant to a memorandum circular issued by the Executive Branch, the offshoot of the
exemption is the intentional prolonging of the wake of the dead by gambling lords.

As a general rule, betting or wagering determines whether a game is gambling or not.
Exceptions: These are games which are expressly prohibited even without bets. Monte,
jueteng or any form of lottery; dog races; slot machines; these are habit-forming and
addictive to players, bringing about the pernicious effects to the family and economic life of
the players.

Mere possession of lottery tickets or lottery lists is a crime punished also as part of
gambling. However, it is necessary to make a distinction whether a ticket or list refers to a
past date or to a future date.

Illustration:

X was accused one night and found in his possession was a list of jueteng. If the date therein
refers to the past, X cannot be convicted of gambling or illegal possession of lottery list
without proving that such game was indeed played on the date stated. Mere possession is not
enough. If the date refers to the future, X can be convicted by the mere possession with intent
to use. This will already bring about criminal liability and there is no need to prove that the
game was played on the date stated. If the possessor was caught, chances are he will not go
on with it anymore.

There are two criteria as to when the lottery is in fact becomes a gambling game:
1. If the public is made to pay not only for the merchandise that he is buying, but also
for the chance to win a prize out of the lottery, lottery becomes a gambling game. Public is
made to pay a higher price.
2. If the merchandise is not saleable because of its inferior quality, so that the public
actually does not buy them, but with the lottery the public starts patronizing such
merchandise. In effect, the public is paying for the lottery and not for the merchandise, and
therefore the lottery is a gambling game. Public is not made to pay a higher price.

Illustrations:

(1) A certain supermarket wanted to increase its sales and sponsored a lottery where valuable
prices are offered at stake. To defray the cost of the prices offered in the lottery, the
management increased their prices of the merchandise by 10 cents each. Whenever
someone buys from that supermarket, he pays 10 cents more for each merchandise and
for his purchase; he gets a coupon which is to be dropped at designated drop boxes to be
raffled on a certain period.

The increase of the price is to answer for the cost of the valuable prices that will be
covered at stake. The increase in the price is the consideration for the chance to win in the
lottery and that makes the lottery a gambling game.

But if the increase in prices of the articles or commodities was not general, but only on
certain items and the increase in prices is not the same, the fact that a lottery is sponsored
does not appear to be tied up with the increase in prices, therefore not illegal.
Also, in case of manufacturers, you have to determine whether the increase in the price
was due to the lottery or brought about by the normal price increase. If the increase in
price is brought about by the normal price increase [economic factor] that even without
the lottery the price would be like that, there is no consideration in favor of the lottery and
the lottery would not amount to a gambling game.

If the increase in the price is due particularly to the lottery, then the lottery is a gambling
game. And the sponsors thereof may be prosecuted for illegal gambling under
Presidential Decree No. 1602.
(2) The merchandise is not really saleable because of its inferior quality. A certain
manufacturer, Bhey Company, manufacture cigarettes which is not saleable because the
same is irritating to the throat, sponsored a lottery and a coupon is inserted in every pack
of cigarette so that one who buys it shall have a chance to participate. Due to the coupons,
the public started buying the cigarette. Although there was no price increase in the
cigarettes, the lottery can be considered a gambling game because the buyers were really
after the coupons not the low quality cigarettes.

If without the lottery or raffle, the public does not patronize the product and starts to
patronize them only after the lottery or raffle, in effect the public is paying for the price
not the product.

Under this decree, a barangay captain who is responsible for the existence of gambling dens
in their own locality will be held liable and disqualified from office if he fails to prosecute
these gamblers. But this is not being implemented.

Gambling, of course, is legal when authorized by law.

Fund-raising campaigns are not gambling. They are for charitable purposes but they have to
obtain a permit from Department of Social Welfare and Development. This includes concerts
for causes, Christmas caroling, and the like.