G.R. No. 19982, December 29, 1922
“EL DEBATE,” INC., petitioner, vs. JOSE TOPACIO, Director of Posts, respondent.

FACTS

The newspaper “El Debate” published an advertisement for two contests offering prizes totaling P18,000. To participate, one had to pay for a subscription in advance, which would entitle the subscriber to coupons for the contests. Participants had to submit an estimate or guess (a “cálculo”) regarding the total number of votes for Carnival Queen candidates, accompanied by a brief explanatory statement. The prizes would be awarded to those with the nearest approximate guesses. The Director of Posts, upon advice of the Attorney-General, refused to admit the issues containing this advertisement to the mails, deeming it non-mailable matter under the Administrative Code as it pertained to a lottery or similar scheme depending on chance.

ISSUE

Whether the guessing contest advertised by “El Debate” constitutes a lottery or gift enterprise depending on lot or chance, making it non-mailable under the Postal Law.

RULING

Yes. The Supreme Court ruled that the contest was a lottery. A lottery exists where there is consideration, chance, and a prize. Here, the consideration was the payment for a subscription; the prize was the monetary award; and the element of chance was present because winning depended on making the nearest guess, which involved uncertainty and hazard, notwithstanding the requirement of an explanatory statement. The Court emphasized that the law seeks to prevent the pernicious tendencies of gambling, and such schemes, however ingeniously conceived, fall within the prohibition. The Director of Posts did not err in refusing the use of the mails. The demurrer was sustained, and the petitioner was given time to amend the complaint.