MANILA — The Philippine Charity Sweepstakes Office (PCSO) will study the possibility of regulating off-cockpit and in-cockpit betting to help cover revenue losses from President Ferdinand Marcos Jr.’s ban on Philippine Offshore Gaming Operations (POGO).

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PCSO chairperson Felix Reyes issued the commitment in response to the request of House Deputy Speaker and Quezon 2nd District Representative David Suarez during the agency's budget briefing before the House Committee on Appropriations on Tuesday. 

"It’s a billion-dollar industry, when it comes to feeds, veterinary, and equipment, when it comes to the breeders and the jobs they produce. It’s an opportunity, I think, that we can look into, just to define which agency can properly manage and monitor. Because one thing that we need to accept, number one, it is happening. But the problem is government is not earning, because they are operating illegally,” Suarez said.

Reyes said a provision in the cockfighting law may allow it for charity purposes. 

 "Sa aking natatandaan, sa ilalim ng PD 449, ‘yung Cockfighting Law of 1974, mayroon doong provision na cockfighting for charity purposes. Only it is on a local scope. Pero siguro kung mapapag-aralan, baka pwedeng cockfight, magiging charity cockfights,” Reyes replied.

 Suarez asked the PCSO to determine the potential government revenues if off-cockpit and in-cockpit betting are regulated.

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 “From the numbers that I have received, mukhang worldwide na silang nagpapalabas at nagpo-produce. Ang masama pa raw rito, ‘yung iba raw na ipinapalabas nila ay mga replay. So hindi pala live. Akala ng manonood it’s happening actual, but in fact those are fights that have happened already and done with… Because there’s no proper regulation, no proper monitoring, no proper policies being implemented,” Suarez said.

 “On the assumption na ‘yan ay ipamamahala sa PCSO, gagawa kami ng feasibility study tungkol diyan,” Reyes replied.

The study, however, will not cover online cockfighting or “e-sabong” operations, which was suspended by former President Rodrigo Duterte. Marcos continued the policy when he took office in 2022.

The government is expected to lose some P40 billion in annual revenues with the implementation of the ban on POGOs. This figure includes the estimated P7-billion collection of PAGCOR, and the P14 billion collection of the Bureau of Internal Revenue from the sector. The POGO ban is also expected to affect 40,000 workers.

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PCSO assured lawmakers that it has plans to increase its revenues, which include adding betting platforms and launching another variant of lotto, called “Lotto Bilyunaryo”. 

Its revenue target for 2024 is P65 billion, higher than last year’s total revenue of P61.4 billion. For the first half of 2024, PCSO earned around P31 billion. 

“Nito lang nakaraang aming board meeting inaprubahan namin ang corporate-owned chain of business. Hahanap kami ng mga kumpanya na maraming chain of business. Halimbawa ‘yung mga Palawan, Padala Center. Parang isa lang siya sa aming kausap. At lahat ng kanilang outlet ay lalagyan ng lotto outlet sa pamamagitan ng POS o gadget,” Reyes said. 

“Ganoon din ay aming ilulunsad ang another variant of lotto. Ito ay ang ating Lotto Bilyunaryo. Ito naman ay makakapaghatid ng karagdagang sales sa aming ahensya,” he added.

 NO TO PRIVATIZATION

 The PCSO has no plans of privatizing the operations of its lottery and other games, according to Reyes. 

“Marami sa atin naniniwala na sana ang gobyerno hindi nag-o-operate ng sugal. Pero ang PCSO parang may konting sugal din. May plano ba kayong i-privatize ang operation at kunin na lang natin ang share ng gobyerno, para hindi gobyerno mismo ang nag-ooperate ng gaming?” House Minority Leader Marcelino Libanan asked.

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“Sa ngayon po ay walang plano ang PCSO patungo sa privatization nito,” Reyes replied. 

Libanan also asked about the continued illegal gambling operations despite the existence of Small Town Lottery, which was implemented to combat jueteng and other illegal numbers game. 

“May mga operation tayo ng STL. Ang purpose natin ay patayin ang iligalista. Syempre maraming makakalaban ang PCSO. Kamusta naman ang security measures? Maraming natatamaan dyan na iligalista,” the lawmaker said. 

 “Itinayo ang small town lottery sa layuning ieradicate ang illegal gambling. Pero alam naman nating lahat ang kahirapan… Pero patuloy ang aming pagsisikap. Ang aming board ay patuloy na nag iisip ng paraan para kahit paano ay mabawasan ang proliferation ng illegal gambling, lalu sa STL,” Reyes responded. 

House Committee on Appropriations Vice Chairperson and Marikina 2nd District Representative Stella Quimbo inquired about PCSO’s measures to prevent minors from betting in its online games.  

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Reyes said registration is required before a person is allowed to place a bet online, and PCSO’s know-your-client procedures seek to ensure that no minor will be able to register.

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