The state-run Philippine Statistics Office said over the weekend it will expand the operations of the small town lottery program to other cities and provinces to raise additional revenues.
The PCSO board said the ticket sales of STL had the capacity for further expansion, as they merely accounted for about 12 percent of the charity office’s annual gaming income. Lotto is the main source of PCSO’s revenues.
The PCSO board in 2014 passed a resolution expanding STL operations nationwide on the recommendations of its gaming, product development and marketing sector and branch operations.
But despite the board resolution, PCSO chairman Erineo Maliksi wanted to revoke the authority of all STL operators in the country and give it exclusively to a maximum of two nationwide.
A source said Maliksi also wanted PCSO to renege on its obligation to remit dividends to the national government, despite Republic Act 7656 that mandated it.
The source said Maliksi believed his proposal to eliminate all STL operators from the game would increase the revenues of PCSO.
Maliksi, according to the source, wanted “to amend pertinent laws to abolish PCSO’s mandatory contributions to various government agencies.”
There are 15 laws that mandate PCSO to share a small portion of its revenues to government agencies.
These are Commission on Higher Education, National Shelter Program, Crop Insurance Program, Government Information System on Migration under the Department of Foreign Affairs and Quirino Memorial Medical Center.
PCSO also contributes to the National Commission on Indigenous Peoples for the Ancestral Domain Fund, Museum Endowment Fund, Dangerous Drug Board and Standby Fund for the financial requirement to combat Severe Acute Respiratory Syndrome.
The agency contributes to the Philippine Drug Enforcement Agency, the fight again avian influenza or bird flu virus and the lotto share of local government units.
The law created PCSO to generate funds for health programs and charities through sweepstakes, races, lotteries and other similar activities.
PCSO had total assets of P19.37 billion based on its 2014 unaudited financial statement.
Total retail receipts amounted to P32.32 billion in 2014, with sweepstakes sales amounting to P50 million; Keno, P2.75 billion and lotto sales, P29.52 billion.
About 55 percent of the net receipts are allocated for prize fund; 30 percent for charity fund and 15 percent for operating fund.