PCSO takes more active role in re-designed lottery

In a renewed attempt at stamping out illegal numbers games in the country, the Philippine Charity Sweepstakes Office has decided to take a more hands-on approach to the redesigned small-town lottery, now called "PCSO Loterya ng Bayan (PLB)." Based on the PLB's Implementing Rules and Regulations, a copy of which was given to GMANews.TV, all draws will now be conducted by PCSO personnel inside PCSO branch offices nationwide. It will be the operator's job to record the date and time of each local draw on a weekly basis. The records will also have to be transmitted to the PCSO every week. Draws shall be broadcast live on local television and/or reported on national or local radio stations and print media. Operators are also required to disseminate the results "through its sales force verbally and broadcast the same through local radio." Operators must submit to the PCSO, a certification from the broadcast station that the results were indeed aired, accompanied with the recorded material. The PLB, dubbed as an improved version of the STL, is scheduled to start nationwide in May. To prevent operators from under-reporting their income, the PCSO has devised a “presumptive monthly revenue receipts" (PMRR) system for PLB, wherein operators are bound by a quota based on intelligence reports about what the operators could actually earn. On one hand, failure to reach the PMRR requirements could result in the cancellation of an operator's franchise. On the other, an operator that breaches the monthly PMRR requirement will be entitled to a bonus. To further ensure that the PLB will not be open to any other forms of abuse, the PCSO has formed a Supervision and Monitoring Group to strictly monitor its operations. Among other functions, the group will be responsible for accommodating, evaluating, and processing applications of companies wishing to become PLB operators. The group will also "undertake all relevant and necessary activities authorized by PCSO for the proper supervision and monitoring of operations of and collections from operators to ensure the successful implementation of the PLB," the agency said. Games The PLB has three main types of games, namely: 1. EZ2 - a bettor bets a series of two (2) numbers chosen between 1 to 31; bettors win if the series they chose correspond, in exact order, to the subsequently-drawn numbers. Pay-out: PhP5:PhP2000 2. Suer3 - a bettor bets a series of three (3) numbers, each number ranging from 0-9; the winner is that who chose the subsequently drawn numbers in exact order - Pay-out: PhP5:PhP2250 3. Pares - a bettor bets a series of two (2) numbers, each number ranging from 1 to 38; the winner is that who chose the subsequently drawn numbers in exact order - PhP5:PhP4000 Other variations or games with other designs and features may be requested by the operator and authorized by the PCSO Board of Directors, according to the PCSO. Operators' qualifications The PCSO has also decided to implement stricter qualifications for companies applying to become PLB operators. Among other requirements, the corporation or cooperative wanting to become operators must have the PLB as their primary business operation. The company must also be 100-percent Filipino and must have a minimum authorized capital stock of P50 million, with a minimum paid-up capital of P10 million. Aside from having enough manpower to operate the games, "[the operator] must possess the necessary competence, expertise and credibility to undertake PLB," according to Article IV, Section 9 of the IRR. Employees of the operators are also required to wear while on duty PCSO-prescribed uniforms and identification cards. For better accounting, operators are required to keep proper book of accounts of their operations. "Said books and other records and documents in support thereof must be kept at its principal office for PLB operations, and must be made readily available for inspection by PCSO or its authorized representatives and the Commission on Audit at anytime during office hours," according to the IRR. Cancellation Operators are required to remit PCSO's daily share in the Charity and Operating funds within the first banking day following the daily date of sales. Under the IRR, the PCSO gets 8.5 percent of retail receipts, while the local government unit and the local police will get a 12.5-percent share of the retail receipts. Any delay of remittance will be subject to a penalty of one-tenth of one percent of the amount due. Several instances of delay will result in the cancellation of the PBL agreement with the operator. An operator must also start its PLB draws within 30 days from the date of the approval of its PLB contract, or risk losing their franchise. Unauthorized suspension of lottery operations for more than three days will also become grounds for the suspension, cancellation, or termination of the PBL agreement. Transition Quoting the PCSO, earlier reports said the agency has already revoked the franchises of the 34 STL operators that have been authorized to conduct the numbers game since it started in 2005. In order to continue with their businesses, STL operators must signify their intentions to convert their operations on or before February 15 and comply with mandatory requirements. These same operators must likewise execute the PBL agreement on or before February 28. "All converting STL operators shall immediately commence the conversion of their STL operations to the PLB and be given until 30 April 2011 to be fully compliant therewith," read the IRR's Article XI. Operations of STL operators that would fail to convert before the given deadlines shall be considered illegal. The PCSO hopes to generate around P12 billion in revenues in its first year of operation. That would be around P8 billion more than the P3 billion annual revenue generated by the STL in 2007. The PCSO is the principal government agency tasked to raise and provide funds for health programs, medical assistance and services, and charities of national character through lotteries, among other sources of revenue. — LBG, GMA News Online