MANILA, Aug. 3 — The Philippine Charity Sweepstakes Office (PCSO) on Thursday lauded the support expressed by lawmakers to its efforts on expanding small-town lottery operations (STL) in a bid to eradicate illegal numbers game in the country.
“There might be illegal activities on the ground, but with our efforts to strengthen and expand STL — lawmakers can be assured that we are gaining ground against the illegal gambling and numbers operations which deprive the government of its much-needed revenue,” PCSO General Manager Alexander F. Balutan said in a statement.
“We appreciate the efforts and the inputs provided by the House Committee on Appropriations for us to further improve our operations, particularly in STL — which is instrumental in killing jueteng and other forms of illegal numbers game in the country,” he added.
During a hearing conducted by the House of Representatives’ Committee on appropriations on the proposed PHP3.7-trillion national budget for 2018, PCSO chairperson Jose Jorge Corpuz told lawmakers that the expansion of STL operations was intended to turn illegal gambling lords into “gaming lords.”
The government expects PHP18.32 billion in 2017 in revenues from 92 STL operators, or 183 percent higher from PHP6.46 billion last year.
Among those discussed by PCSO officials to lawmakers for the STL’s further improvement include: placing restrictions to stop the operations of other illegal number games, reviewing the law mandating PCSO to provide for contributions to at least 27 republic acts, and the centralization and computerization of STL operations.
Balutan likewise stressed that for the agency to fully realize its responsibility to eradicate all forms of illegal numbers in the country, law enforcement agencies should also do its part in protecting STL operations and its Authorized Agent Corporations (AACs) based on a Memorandum of Agreement (MOA) with the PCSO.
From the previous figure of 18, the PCSO has now accredited 92 STL operators to help in its revenue generation efforts, which has led to the projected 183-percent increase of STL proceeds to PHP18.32 billion in 2017, from PHP6.46 billion last year.
The PCSO’s total retail receipts are projected to increase by 31 percent or PHP51.88 billion in 2017 from the PHP39.56 billion in 2016. The projected net receipts for 2018 is PHP60.9 billion.
Based on its budget presentation, the PCSO said lotto continues to account for the bulk of PCSO revenues. However, it decreased by 1 percent to PHP28.59 billion in 2017, from PHP28.77 billion in 2016.
But for 2018, it is projected to increase by 8 percent to PHP30.9 billion.
Another PCSO game is Keno, which is expected to earn PHP4.95 billion in 2017 and P5.6 billion for 2018.
The PCSO’s sweepstakes’ revenue is expected at P17.5 million this year and PHP1 billion next year.
The PCSO Charter provides that 55 percent of net receipts shall be allocated to the payment of prizes, 30 percent to charity and social programs and 15 percent of operating expenses and capital expenditure.
During the public hearing on the proposed 2018 national budget on Wednesday, House Appropriations Committee chair Karlo Nograles stressed the need to impose stricter rules and regulations on the operation of the STL.
Nograles said the present set-up of the STL operations could only become fronts of illegal gambling lords to legitimize their operations.
“The STL operations were allowed by law to eliminate illegal gambling. Sad to say, it has become a convenient front for the proliferation of illegal gambling like jueteng,” Nograles said.
Nograles warned that the government is still losing a lot of potential revenues because some of these STL franchise holders are the very people who used to run illegal gambling operations like “jueteng”.
“The PCSO chairman (Jose Jorge Corpuz) admitted during our second day open public hearing on the 2018 national budget that in some areas, some STL operators are raking in PHP400 million daily but only declare PHP100 million,” he said.
Nograles stressed the need to review the PCSO charter including the guidelines covering the grant of franchises for STL.
“There is the need to review the PCSO charter, its rules and regulations relative to the grant and operation of franchises to pinpoint legal loopholes that are used by concerned parties to cover their illegal gambling activities that deprive government of much needed funds to fuel the government,” he said.
“We need to dig deeper and sanitize the rules and procedures in the operation of STL. We need to ensure that these so-called gaming lords are no longer doubling as gambling lords,” Nograles said.
Corpuz said there are now 92 STL operators that have been accredited from the original figure of 18.
STL retail receipts for the first semester this year is PHP6.17 billion as compared to last year’s PHP2.47 billion. (Christopher Lloyd T. Caliwan/PNA)
