Philippine Charity Sweepstakes Office
|Type||State Lottery Company|
|P/CSupt. Anselmo Simeon P. Pinili (Ret.)|
|MGen. Alexander F. Balutan (Ret.)|
The Philippine Charity Sweepstakes Office (PCSO) is a government-owned and controlled corporation of the Philippines under direct supervision of the Office of the President of the Philippines. It is mandated to do fund raising and provide funds for health programs, medical assistance and services, and charities of national character. The raised collections goes to the President's Presidential Social Fund to improve the country's social welfare.
Sources of Revenue
- Sweepstakes Draw
- National Lotteries (Lotto)
- Small Town Lotteries (to compete with jueteng, an illegal gambling practice)
- Horse Racing
Allocation of Net Receipts
- Fifty-five percent (55%) shall be set aside as a prize fund for the payment of prizes, including those for the owners, jockeys of running horses, and sellers of winning tickets. Prizes not claimed within one (1) year from date of draw shall be considered forfeited, and shall form part of the charity fund for disposition.
- Thirty percent (30%) shall be set aside as contributions to the charity/ social fund of the Office of the President.
- Fifteen (15%) percent shall be set aside as contributions to the operating expenses and capital expenditures of the PCSO.
- All balances of any funds in the Philippine Charity Sweepstakes Office shall revert to and form part of the charity fund.
The disbursements of these allocations are subject to state auditing rules and regulations.
Lotteries have been in existence in the Philippines as early as 1833. Under the auspices of private enterprises called the Empresa de Reales Loterias Españolas de Filipinas, the Spanish Government conducted loterias to generate revenues. Dr. Jose Rizal won ₱6,200.00 in the draw of 1892, while on exile in Dapitan. He donated his winnings to an educational project.
In 1932, the first Sweepstakes draw after the last loteria was conducted by the American Insular government to raise funds to support sports projects for the Filipino youth through the Philippine Amateur Athletic Federation (PAAF) – the beneficiary of the first draw. After the success of the PAAF Sweepstakes, the government decided to conduct more draws for the benefit of the Philippine Anti-Tuberculosis Society, now the Philippine Tuberculosis Society (PTS). The draws were held under the auspices of an organization called the National Charity Sweepstakes.
On March 1935, then President Manuel L. Quezon approved Act No. 301 – the law passed by the Philippine Legislature in October 30, 1934 creating the Philippine Charity Sweepstakes, replacing the then National Charity Sweepstakes. Under this law, the new organization was authorized to secure from the National Treasury a loan amounting to ₱250,000.00, the minimum amount required for organizing the office and printing the tickets for the draw. On September 8, 1935, the new agency held its first Sweepstakes draw. The loan was paid back in less than two months and shortly after the note was signed, proceeds from the sales started coming in.
Among its beneficiaries then were the Philippine Amateur Athletic Federation (PAAF; today the Philippine Olympic Committee), the Philippine Tuberculosis Society (PTS), the National Federation of Women’s Clubs, the Asociación de Damas de Filipinas, the Gota de Leche, the Associate of Manila and the Provinces, the Philippine Islands Council of the Boy Scouts of America, the Asilo para Invalidos de los Veteranos de la Revolución, the Child Welfare Center and other institutions and organizations engaged in charitable and health work, or work for the improvement of the conditions of the indigent Filipino masses.
Its corporate charter was enacted into law under Republic Act No. 1169 on June 18, 1954 by Ramon Magsaysay. It repealed Act No. 430, as amended by Commonwealth Act Nos. 301 and 546 and by Republic Acts Nos. 72 and 574. In September 1979, Batas Pambansa Blg. 42 was enacted to raise the fund allocation for the agency’s Charity Fund and for the use of unclaimed prizes.
On January 1995, during the incumbency of then Chairman Manuel Morato, the PCSO launched the very first online lottery in the Philippines known as Lotto. Similar to the U.S., Europe and Australia, the automated gaming, initially the Lotto 6/42, the player chooses any set of 6 numbers from 1 to 42 and wins when these numbers are drawn in any sequence during the draw date. An equipment lease was signed with Malaysia's Berjaya Sports Toto Berhad.
On March 20, 2006, through the advise of then President Gloria Macapagal Arroyo, the PCSO launched the small-town lottery (STL). It is intended to compete with jueteng, a popular but illegal numbers game that is criticized as a major source of corruption in local government units.