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Republic of the Philippines eA\
HOUSE OF REPRESENTATIVES RECEIVED 2
Quezon City %
‘TWENTIETH CONGRESS
First Regular Session

House amino. __3944_

Introduced by: Hon. Iris Marie D. Montes

AN ACT
PROHIBITING THE PROMOTION AND ADVERTISEME! OF GAMBLING AND
(GAMBLING-RELATED ACTIVITIES AND PRESCRIBING TIES THEREFOR.

EXPLANATORY NOTE

The World Health Organization has classified pathological gambling as a
disease. Accordingly, “Serious problem gambling, referred to as pathological
gambling, was first included in the DSM-III in 1980. In the DSM-V it was renamed
gambling disorder and placed in the new ‘Addictions and Related Disorders’
category. It is the only non-substance addiction included.”*

The WHO has consistently wamed that addictive behaviors, like gambling,
have devastating effects on individuals, families and thelr communities and have
enormous socioeconomic impacts at national and global levels.

The Baylor University’s 2011 study shows that the social costs for each
pathological gambler is $9,393 per year or almost half a million pesos if the
expenses to solve the crimes, adjudication, lost job productivity, unemployment
insurance, therapy and treatment fees, suicide, social services costs, and others are
considered.”

Easier access to gambling through online platforms has only exacerbated this
problem. Instead of promoting financial success, gambling has destroyed lives,
families, and communities.

While the government is able to gain a few billions of revenues per year,
thousands of our countrymen, many of whom are poor, spend trillions of pesos on
gambling.

Apart from financial harm, there is a growing body of research linking
gambling to mental health problems, particularly to higher rates of depression,
* The epidemiology and impact of gambling disorder and other gambling-related harm
(https:/Awww.who .int/docs/default-source/substance-use/the-epidemiology-and-impact-of-
gambling-disorder-and-other-gambling-relate-harm.pdf)

2 The Hidden Social Costs of Gambling. The Gambling Culture at pp. 19-28. Available at
https:/Awww.bavior.edu/content/services/document. php/145417.pdf (date last accessed: January
24, 2023)



increased risk of suicide ideation and attempts, and higher anxiety. The gambling-
related burden of harm was 2.5 times more than diabetes and 3.0 times more than
drug use disorder.

In addition, studies have shown strong associations between gambling and
substance use: at-risk and problem gamblers had higher rates of tobacco, alcohol,
and drug use. Gambling is statistically significantly associated with elevated rates of
crime. It can be penetrated by criminal organizations, and in the case of gambling
addiction, can provoke criminal activity. As access to money becomes more limited,
gamblers often resort to crime in order to pay debts, appease debtors, maintain
appearances, and garner more money to gamble.

Because both media and marketing significantly influence gambling
behavior, particularly through advertising and social media content, this bill
seeks to prohibit the promotion and advertisement of whatever form of gambling
in any media form in order to preserve good order and public morals and
suppress the harmful effects of gambling that can lead to serious health
problems, financial stress, relationship breakdown, family violence, mental
illness and even suicide.

In view thereof, approval of this bill is earnestly sought.

Kababaihan Kabalikatan para sa Kapakanan
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘TWENTIETH CONGRESS
First Regular Session

3944

[HOUSE BILL NO.

Introduced by: Hon. Iris Marie D. Montes

(AN ACT
PROHIBITING THE PROMOTION AND ADVERTISEMENT OF GAMBLING AND
GAMBLING-RELATED ACTIVITIES AND PRESCRIBING PENALTIES THEREFOR

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Gambling
Promotion and Advertisement Prohibition Act”.

SEC. 2. Declaration of Policy. - It is the policy of the State to protect its
people from all matters affecting the security of its social order, particularly the
preservation of good order and public morals. It is also the policy of the State to
promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies
that provide adequate social services, promote full employment, a rising
standard of living, and an improved quality of life for all.

Consistent thereto, the State adopts measures to suppress the harmful
effects of gambling, which has been a notorious social menace impairing family
relationships, finances, and values, as it undermines the value of an individual’s
dignified work by allowing reckless and risky expenditures at the possibility of
instant monetary gain, which have led many Filipinos to experience dire financial
situations. Towards this end, it shall prohibit the promotion and advertisement of
gambling and gambling-related activities in whatever nature or manner.

SEC. 3. Definition of Terms. - As used in this Act, the following terms shall
mean:

(a) “Advertisement” refers to the business of conceptualizing, presenting,
making available and communicating to the public, through any form of mass
media, any fact, data or information about the attributes, features, quality or
availability of consumer products, services or credit. For the purpose of this Act,
advertising shall be understood as Gambling and Gambling-related activities
advertising and shall not include non-promotional communication intended for
informational purposes only;

(b) “Gambling” refers to any game scheme, regardless of whether winning
thereat is dependent upon chance or skill or both, wherein wagers consisting of
money, articles of value or representative of value are at stake or made;


(c) "Gambling-related activities” refer to any activities, services, or content
that directly or indirectly support, promote, encourage, facilitate, or profit from
gambling behavior or are associated with gambling, including but not limited to
advertising, endorsements, affiliate marketing, tutorials, streaming or recording
gambling sessions, providing access to gambling platforms, or any activity that
encourages users to participate in gambling, whether online or offline;

(d) “Promotion” refers to an event or activity with the aim of endorsing or
promoting gambling through techniques intended for broad consumer
participation which contain promises of gain such as prizes, in cash or in kind, as
reward for a gambling activity and which utilize mass media or other widespread
media of information. It also means techniques purely intended to increase the
patronage for gambling activities;

SEC. 4. Prohibiting the Promotion and Advertisement of Gambling and
Gambling-Related Activities. - It shall be unlawful to promote, endorse,
encourage, facilitate or advertise gambling or any gambling-related activities.

This shall specifically refer to any communication, messages and images
promoting gambling or offering gambling-related products and services, sharing
information on how to place, receive or transmit bets through gambling websites
or apps, and promoting gambling activities online or to the general public.

SEC. 5. Ban on Sponsorships. - Licensees, operators, and service
providers of gambling platforms and services are prohibited from sponsoring any
sport, concert, cultural or art event, as well as individual and team athletes,
artists, or performers where such sponsorship shall require or involve the
advertisement, marketing or promotion of any online gambling platform or
service.

SEC. 6. Penalties. - Any person, entity, or gambling operator found
violating any provision of this Act shall be subject to the following penalties to be
imposed by the PAGCOR after due notice and hearing:

(a) First Offense - a fine of not less than Twenty Million Pesos
(Php20,000,000.00) and suspension of license for six (6) months;

(b) Second Offense - a fine of not less than Fifty Million Pesos
(50,000,000.00) or a suspension of license for one (1) year; and

(c) Third and Succeeding Offenses - aside from the administrative
penalties of a fine of mot less than One Hundred Million Pesos
(Phpl00,000,000.00) and permanent revocation of license or permit to operate
that PAGCOR may impose, the offender may be subjected to criminal
prosecution under this Act, and the Chief Operating Officer or President of the
company, including Directors, Managers, or Managing Partners, shall be
penalized with imprisonment of not more than six (6) years by the court.

SEC. 7. Implementing Rules and Regulations. - The Philippine Amusement
and Gaming Corporation (PAGCOR), in coordination with the Department of
Information and Communications Technology (DICT), and the Department of


Justice (DOJ), shall formulate and issue the necessary implementing rules and
regulations within ninety (90) days from the effectivity of this Act.

SEC. 8. Separability Clause. — If any provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected, shall
remain in full force and effect.

SEC. 9. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provisions of this Act is repealed, modified or
amended accordingly.

SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,