Illegal Gambling DURUGIN! SA STL BAYAN ANG PANALO!
PCSO SMALL TOWN LOTTERY (STL) INFORMATION Republic Act No. 1169 (as amended), established the Philippine Charity Sweepstakes Office (PCSO) as the principal government agency for raising and providing funds for health programs, medical assistance and services and charities of national character. It also expressly authorizes PCSO to hold and conduct lotteries and other similar activities in such frequency and manner in accordance with the rules and regulations determined by its Board of Directors. In pursuit of its mandate and directives of the President of the Philippines, the PCSO Board of Directors conducted the experimental test runs for the Small Town Lottery (STL) Operations, and thereafter evaluated its feasibility. Through Board Resolution No. 2433, Series of 2009, approved on 18 December 2009, STL was declared as one of the regular products of the PCSO. Further, Board Resolution No. 019, Series of 2016, approved the expansion of STL operations in other provinces and cities. FREQUENTLY ASKED QUESTIONS What is STL and what is the legal authority of PCSO STL operations?
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To provide an alternative to illegal continuously calls for the assistance from the PNP numbers games/operations and to and if necessary, from the AFP and other law enaide their eradication; and, forcement agencies to curb the illegal gambling activities. PCSO is the only Agency mandated to 4. To provide additional opportunities conduct the legal numbers games in the country for employment. and revenues from these legal games will be used to fund the various health and charitable projects of the government, including those being impleWhat is an Authorized mented in the local government units. This is purAgent Corporation (AAC)? suant to the Memorandum of Agreement with the This refers to a corporation or a cooperative PNP to aid the PCSO’s anti-illegal gambling camduly registered with the Securities and Ex- paign and conduct of “crackdowns” by police auchange Commission (SEC) or with the Coop- thorities on known areas where competing illegal erative Development Authority (CDA), respec- games proliferate.
tively that has applied, been duly qualified and expressly authorized by the PCSO to conduct Laws against illegal gambling: • PD 1602: Prescribing Stiffer Penalties on IlSTL in a particular area. legal Gambling (Provisions of Art. 195-199 of the Revised Penal Code, as amended, RA What are the factors being considered in the 3063, PD 483, 449, 510 and 1306, letters of selection of areas where STL shall be coninstructions, laws, executive orders, rules ducted? & regulations, city & municipal ordinances which are inconsistent with the Decree were repealed) 1. The projected viability of an STL op• RA 9287:An Act Increasing the Penalties for eration in the area; and, 2.
Previous existence and/or operation of illegal numbers games in the locality.
The Small Town Lottery (STL) is a regular game of the Philippine Charity Sweepstakes Office authorized by the national government thru Section 1 of R.A. 1169, as amended. Autho- What are the qualifications to become an STL AAC? rized Agent Corporations (AACs) are engaged to assist the agency in the implementation of 1. Must be a corporation/cooperative the STL and are considered mere extensions whose primary or main purpose is of PCSO. Local Government units (LGUs) are conduct STL operations; encouraged to support the STL operations to help raise revenues for the government. The 2. Must have in its employ the necessary STL shall be implemented locally all over the personnel complement to efficiently country through Authorized Agent Corporaundertake STL in the area applied for, tions (AACs) , taking into consideration the as determined by the STL Supervising manpower of the PCSO and other relevant facand Monitoring Group (STL SMG); tors, as may be determined by the PCSO Board 3. Must be 100% Filipino-owned; of Directors. It shall be the only legal and authorized numbers game nationwide, and the 4. Must have a minimum authorized PCSO AACs are the only entities or persons capital stock of P50M, with minimum authorized to operate and conduct STL in their paid-up capital of P15M; areas of operation. 5. Must possess the necessary compeWhat are the objectives of STL operations? tence, expertise and credibility to undertake STL operations. 1.
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To raise additional funds for PCSO’s Why does PCSO give shares of its STL Charity health programs, medical assistance Fund to the PNP and CIDG? and services, and charities of national character; PCSO gives fixed shares to PNP and CIDG since they are the Agency’s partners in enforcing laws To provide funds for various local against illegal numbers games, pursuant to RA government units for their health 9287, s. 2004, in relation to RA 1169, as amended. programs and medical assistance and PCSO is not a law enforcement Agency, thus it services;
promulgated by the Board in accordance with Republic Act No. 309: xxx The horse races and the sale of tickets in the said sweepstakes shall be exempted from all taxes, xxx (emphasis supplied) PD 771, Aug. 20, 1975 - revokes all powers and authority of local government to grant franchise, license or permit and regulate wagers or betting by the public on horse and dog races, jai-alai or basque pelota, and other forms of gambling DOJ Opinion No. 71, s. 1995 - The PCSO and its lottery ticket sellers, including lotto sales agents, are not required to secure business permits licenses from the province, city or municipality where they may operate. Jurisprudence: • “PD 771 is loud and clear only the national government has the power to issue ‘licenses or permits’ for the operation of gambling (quoting Baco vs. PAGCOR, 97 SCRA 53), thereby encompassing the lotto operation by the PCSO.” (Nicasio Jaca versus Hon. Loreto de la Victoria [CA-GR SP No. 43322]). The aforementioned case stemmed from a complaint of Nicasio Jaca (a lotto agent) after Mayor Alvin Garcia had issued a ‘closure
How much do the LGUs receive from STL operations? Particulars
Effective 2nd quarter of 2017 (pursuant to PCSO Board Resolution 063, s. 2017)
Actual Releases 2016
City/Municipality Share
3.00%
343,090,639.56
Congressional District Share
0.75%
44,134,792.45
Philippine National Police Share
2.50%
180,210,307.71
Provincial Government Share
1.00%
76,446,316.64
TOTAL STL Shares (PNP, LGUs, Provincial & Congressional)
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Illegal Numbers Games, Amending Certain Provisions of Presidential Decree No. 1602 and for Other Purpose DILG MC No. 2004-146: Subject: Implementation of Republic Act No. 9287, directs all Governors, City and Municipal Mayors and Barangay Chairmen, together with all PNP Regional, Provincial and City Directors, and Municipal Chiefs of Police are encouraged to enhance/cultivate community involvement and strictly implement the provisions of RA 9287
What are the bases of PCSO’s exemption from business/Mayor’s permit for its gaming operations? PCSO Charter (RA 1169, as amended by Batas Pambansa Blg. 42), particularly Section 4 thereof, provides “The Office shall hold charity horse race sweepstakes under such regulations as shall be
7.25%
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P 643,882,056.36
order’ directed at his lotto outlet for failure to secure a business permit from the City of Cebu. Note: The above decision of the court of appeals was affirmed by the Supreme Court for lack of showing that a reversible error was committed by the appellate court (Resolution No. July 6, 1998) The exemption of PCSO from the requirement of business permits inures to the benefit of its lotto agents as the latter performs functions vested in the PCSO, namely, the sale of lotto tickets (Andres C. Rivas, Jr. vs. Hon. Alvin B. Garcia et.al. [CA-G.R. SP No. 41878 dated February 13, 1998]) LGU cannot prohibit the operation of lotto through the requirement of business/mayor’s permit. (Hon. Jose D. Lina, Sangguniang Lalawigan ng Laguna and Hon. Calixto Cataquiz vs. Hon. Francisco Paño and Tony Calvento; G.R. 129093)