Gambling debt is a big problem, and the laws in the Philippines about how to collect it are very complicated. The legality of the debt depends solely on whether the gambling activity was legitimate. This difference is very important since it decides if a debt collector or casino can legally go after the money due.
The Legal Line Between Bets and Debts
The Rule of Legality
The legislation in the Philippines makes a clear distinction between debts from legal and illicit gambling. This difference determines if a debt can be legally enforced.
The Civil Code of the Philippines says that you can’t legitimately collect a debt from an illegal or unapproved game of chance. This means that if the gambling happened on an unregulated web site the law won’t protect the winner who is trying to collect. Both sides could be charged with a crime for taking part in illegal gambling. If the gambling took place at a PAGCOR-licensed casino or other legal place, nevertheless, the debt is still valid. Just like any other contract, the casino can then use the law to collect.
Debtors and Creditors will Face Consequences
The law has a big effect on everyone concerned, from the ways debts are collected to the possible legal actions that might be taken.
If someone owes a lawful gambling debt, casinos can take them to court to get the money back. This could lead to legal lawsuits, and if the debt is big enough, it could mean losing property or having wages taken out of your paycheck. There is basically no way to get your money back for debts from illicit gaming. This has caused the growth of illegal, informal, and often unscrupulous ways of collecting debts. If someone who owes money for unlawful gambling used lies to get the money, they could even be charged with crimes like estafa.
Endnotes
It’s evident that gambling debt collection in the Philippines has legal consequences: the debt is only valid if the game is legal.12 For licensed gaming venues, debt is a legitimate obligation that can be enforced.13 For games that are against the law, it is a claim that can’t be acted on. Both players and creditors need to understand this framework because it tells them what their rights and duties are and what legal actions they could face.