People v. Mindac, decided December 14, 1992.
ELEMENTS: 1 consideration
2. chance
3. prize or some advantage or inequality in amount or value which is in the nature of a prize.
No lottery where there is full value of money (criminal case-Olsen), but if inducement to win prize is reason for purchase/subscription/others then even if full value for money is received – still lottery (Administrative Code, postal law-El Debate)
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Proof that game took place or is about to takeplace is not necessary; burden of evidence is shifted to accused to show that his possession is lawful or is not connected with jueteng game; but proof to the contrary is necessary when jueteng lists pertain to games played on other dates 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.
Q: When are promo sales or advertising schemes considered lottery/gambling? ( This refers to the practice of advertising goods for sale offering the purchasers a chance to win a prize by giving them coupons to be drawn later )
A: The scheme is considered a lottery or gambling if : (1) the public pays more than the price of the article because the excess is used to defray or cover the cost of the prize or (2) the article is not saleable without the prize and it becomes saleable only because of the prize.
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Presidential Decree No. 1602 (Prescribing StifferPenalties On Illegal Gambling)
PENALTY ACTS PUNISHED
prison correccional, medium or fine ranging from P1,000 to P6,000 in case of recidivism: prision mayor, medium or fine ranging from P5,000 to P10,000
1. Any person who shall directly or indirectly take part in any illegal or unauthorized activities or games of: (1) cockfighting, jueteng, jai alai or horse racing to include bookie operations and game fixing, numbers, bingo and other forms of lotteries;
(2) cara y cruz, pompiang and the like; (3) 7-11 and any game using dice;
(4) black jack, lucky nine, poker and its derivatives, monte, baccarat, cuajao, pangguingue and other card games;
(5) paik que, high and low, mahjong, domino and other games using plastic tiles and the likes;
(6) slot machines, roulette, pinball and other mechanical contraptions and devices;
(7) dog racing, boat racing, car racing and other forms of races; (8) basketball, boxing, volleyball, bowling, pingpong and other forms of individual or team contests to include game fixing, point shaving and other machinations;
(9) banking or percentage game, or
any other game scheme, whether upon chance or skill, wherein wagers consisting of money, articles of value or representative of value are at stake or made;
2. Any person who shall knowingly permit any form of gambling in inhabited or uninhabited place or in any building, vessel or other means of transportation owned or controlled by him. prision correccional,
maximum, fine of P6,000
1.gambling in place with reputation of a
gambling place, frequent gambling place, gov‘t bldg or brgy hall
2. maintainer or conductor of the above gambling schemes. prision mayor, medium with temporary absolute disqualification or fine of P6,000 if the maintainer, conductor or banker of said gambling schemes is a government official, or where such
government official is the player, promoter, referee, umpire, judge or coach in case of game fixing, point shaving and machination. prision correccional, medium or fine ranging from P400 to P2,000
any person who, knowingly and without lawful purpose, possess any lottery list, paper or other matter containing letters, figures, signs or symbols pertaining to or in any manner used in the games of jueteng, jai-alai or horse racing bookies, and similar games of lotteries and numbers which have taken place or about to take place.
Temporary absolute
disqualification barangay official who, with knowledge of the existence of a gambling house or place in his jurisdiction fails to abate the same or take
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actionprision correccional maximum or fine ranging from P500 to P2,000
security officer, security guard, watchman, private or house detective of hotels, villages, buildings, enclosures and the like which have the reputation of a gambling place or where gambling
activities are being held. Informer's reward. Any person who shall disclose
information that will lead to the arrest and final conviction of the malefactor shall be rewarded twenty percent of the cash money or articles of value confiscated or forfeited in favor of the government.
Playing for money is not a necessary element. The law‘s purpose is to prohibit absolutely those games
Any other games if with wager of money, articles, or value are at stake or made
Individual/team contests: game-fixing, point shaving, other machinations
Spectators are not liable: must directly or indirectly take part; the law does not make it an offense to be present in a gambling house.
A game or scheme is punishable even if winning depends upon skill as long as wagers (consisting of money, articles of value or representative of value) are at stake or made
Maintainer – person who sets up and furnishes means to carry on gambling or scheme
Conductor- person who manages or carries on gambling game or scheme
Article 196. Importation, Sale and Possession of Lottery Tickets or Advertisements
ACTS PUNISHED RELATIVE TO LOTTERY