Where do PCSO revenues go?

Police post a "closed" sign on a lotto outlet on Saturday, July 27, 2019, a day after President Rodrigo Duterte ordered the suspension of operations of all gaming schemes granted by the Philippine Charity Sweepstakes Office due to "massive corruption."
The STAR/Boy Santos

MANILA, Philippines — The Philippine government would have to look for other sources of funding for charities after President Rodrigo Duterte ordered the revocation of gaming franchises issued by the Philippine Charity Sweepstakes Office.

The chief executive cited "massive" corruption in the agency for ordering the closure of the games, including the lotto.

Presidential spokesperson Salvador Panelo said needy patients might still be referred to other agencies providing health assistance.

Principal agency raising funds for health programs

The PCSO serves as the principal government agency raising funds for health programs and charities of national character through charity sweepstakes races, lotteries and other similar activities.

In 2018 alone, the PCSO gained P63.56 billion from all its game products, where P18.69 billion or 30% was allocated to the charity fund. This total revenue came from lotto, keno, small town lottery, traditional sweepsstakes and instant sweepstakes.

Under Republic Act 1169 or the PCSO Charter, the agency's net receipts would be divided into 55% for prize fund for payment of prizes, 55% for charity fund for health programs, medical assistance and services and charities of national character and 15% operating fund for day-to-day operating, maintenance and capital expenditures.

In its 2018 accomplishment report, the PCSO reported that P1.27 billion or 2% went to printing cost, P34.26 billion or 55% went to prize fund and P9.34 billion or 15% went to the operating fund.

Last year, 528,190 individuals benefitted from the Individual Medical Assistance Program, the PCSO's flagship charity program. This is 27% higher than the 415,465 beneficiaries PCSO served in 2017 as the agency also generated higher revenues.

RELATED: Isko Moreno revokes licenses, permits for PCSO gaming in Manila

Aside from the flagship charity program, the agency also served 9,231 patients through its medical and dental mission program, where the agency spent P626,249.

Under the out-patient consultation program, the PCSO provided medical and health services worth P1.9 million to 13,929 patients at the PCSO extension office at the Lung Center of the Philippines.

The agency also granted 3,625 patients under the health-capability building for informal dwellers program, where P259,060 was allocated.

A total of 53 government hospitals also benefitted under the endowment fund program worth P155 million.

A total of P35.47 million for 20 beneficiary institutions under the institutional partnership program was granted and while 212 requests were approved for medicines worth P5.19 million.

The PCSO also allocated a total of P86.29 million for areas struck by calamities in 2018, such as those affected by typhoons, monsoons, landslides, volcano eruption and fire.

The agency fulfilled its duty of remitting taxes and duties worth P17.29 billion to the government in 2018.

STL beneficiaries include LGUs, law enforcement

Small town lotteries generated P1.39 billion last year and these were given to cities and municipalities (40%), provinces (15%), congressional districts (9%), the Philippine National Police (29%), Criminal Investigation and Detection Group (6%) and the National Bureau of Investigation (1%) as shares.

At the end of its 2018 accomplishment report, the PCSO maintained its commitment to delivering efficient and timely charitable services.

The agency was looking forward to acquire a nationwide online lottery system, a PCSO corporate center, wide area network and the rollout of ISO certification to branch offices.

Its target was to be present in 81 provinces of the country by 2022 but this now hangs in the balance as Duterte has announced the revocation of all of the sweepstakes office's gaming franchises.

As of Sunday, the Philippine National Police reported that 23,654 outlets have been closed nationwide. These include 7,768 outlets, 13,320 small town lottery kiosks, 2,194 Peryahan ng Bayan ooutlets and 472 Keno shops. — Infographic by Jonathan Asuncion

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