PHILIPPINE CHARITY SWEEPSTAKES

OFFICE1

UPDATE ON

PHILIPPINE LOTTERY

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The Philippine Charity Sweepstakes Office (PCSO) is the only charitable Government-Owned or Controlled

Corporation (GOCC) in the Philippines that engages in mass-based lottery

games, as authorized by law.

MISSIONMISSIONMISSIONMISSION

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To generate funds for health

programs and charities of

national character through charity

sweepstakes races, lotteries, and

other similar activities.

VISIONVISIONVISIONVISION

To generate an annual gross income

of Php 100 billion and provide

timely and responsive health and

welfare-related assistance in every

municipality by 2016.

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ALLOCATION OF ALLOCATION OF ALLOCATION OF ALLOCATION OF

NET RECEIPTSNET RECEIPTSNET RECEIPTSNET RECEIPTS

(Under Republic Act 1169)(Under Republic Act 1169)(Under Republic Act 1169)(Under Republic Act 1169)

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55%55%55%55% is aside as a Prize Fund Prize Fund Prize Fund Prize Fund for the payment of

prizes, including those for the owners, jockeys of

running horses and sellers of winning tickets.

Prizes not claimed by the public within one year

from date of draw is considered forfeited forms

part of the Charity Fund.

30%30%30%30% is allocated as contributions to the Charity Fund Charity Fund Charity Fund Charity Fund which used exclusively to

finance and support health programs, medical assistance and services and/or

charities of national character.

15151515%%%% goes to the OperatingOperatingOperatingOperating FundFundFundFund which is used to support the day-to-day

operations of PCSO.

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BOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORS

Hon. MARGARITA P. JUICOMARGARITA P. JUICOMARGARITA P. JUICOMARGARITA P. JUICO

Chairperson

Atty. MABEL V. MAMBAMABEL V. MAMBAMABEL V. MAMBAMABEL V. MAMBA

Member, Board of Directors

Hon. BETTY B. NANTESBETTY B. NANTESBETTY B. NANTESBETTY B. NANTES

Member, Board of Directors

Atty. FRANCISCO G. JOAQUIN IIIFRANCISCO G. JOAQUIN IIIFRANCISCO G. JOAQUIN IIIFRANCISCO G. JOAQUIN III

Member, Board of Directors

Atty. JOSE FERDINAND M. ROJAS IIJOSE FERDINAND M. ROJAS IIJOSE FERDINAND M. ROJAS IIJOSE FERDINAND M. ROJAS II

Vice-Chairman and General Manager

Atty. MA. ALETA L. TOLENTINOMA. ALETA L. TOLENTINOMA. ALETA L. TOLENTINOMA. ALETA L. TOLENTINO

Member, Board of Directors

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Isabela

Pangasinan

Existing Branch Offices (34) Northern and Central Luzon

1.Isabela

2.Pangasinan

3.Tarlac

4.Nueva Ecija

5.Pampanga

6.Bataan

7.Bulacan

8.Cagayan

9.Zambales

10. Benguet

11. La Union

Southern Tagalog and Bicol Region (STBR)

1. Rizal

2. Laguna

3. Batangas

4. Cavite

5. Quezon

6. Camarines Norte

7. Camarines Sur

8. Sorsogon

9. Albay

10. Palawan

Visayas and Mindanao (VisMin)

1.Cebu 7. Zamboanga

2.Iloilo 8. South Cotabato

3.Leyte 9. Bohol

4.Agusan Del Norte 10. Samar

5.Misamis Oriental 11. Negros Occidental

6.Davao 12. Negros Oriental

13. Bukidnon

Nueva Ecija

Tarlac

Pampanga

Bulacan

PCSO, Main OfficeBataan Rizal

LagunaCavite

BatangasQuezon

Camarines Norte

Camarines Sur

Albay

Sorsogon

PalawanCebu

IloiloLeyte

Agusan Del Norte

Misamis Oriental

Zamboanga Del NorteDavao

South Cotabato

Bukidnon

Cagayan

Zambales

Benguet

Samar

Bohol

Negros Occidental

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La Union

Negros Oriental

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1833

Empresa de Reales Loteria Espanolas de Filipinas

Dr. Jose P. Rizal won Php 6,200.00

1930’s

Lottery games were revived

1932

First Sweepstakes draw conducted by the government

HISTORY OF PCSO AND ON-LINE LOTTERY

IN THE PHILIPPINES

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National Charity Sweepstakes

Sweepstakes was institutionalized

March 1935

President Manuel L. Quezon approved Act 4130 -

the law passed by the Philippine Legislature in

October 30, 1934 creating the Philippine Charity

Sweepstakes Office.

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September 8, 1935

First Sweepstakes draw of PCSO

June 18,1954

Republic Act 1169 was enacted into law providing

for charity sweepstakes and lotteries in the

Philippines by PCSO.

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1995

The PCSO launched the very first On-Line lottery

in the Philippines, better known as the LOTTO.

There were oppositions from certain sectors, but

the Supreme Court ruled that the new lottery was

legal.

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ONLINE ONLINE ONLINE ONLINE

GAME GAME GAME GAME

PRODUCTSPRODUCTSPRODUCTSPRODUCTS

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Keno is drawn electronically using the Random

Number Generator starting from 12:00nn to 12:00mn

with a 10 minute-draw interval.

The Bingo-Milyonaryo was recently launched

in May of 2013 on a one-year test-run basis.

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Traditional Sweepstakes Traditional Sweepstakes Traditional Sweepstakes Traditional Sweepstakes is an original product of PCSO since 1935.

ScratchIt SweepstakesScratchIt SweepstakesScratchIt SweepstakesScratchIt Sweepstakes and KasCash KasCash KasCash KasCash are played by scratching a latex

portion of the ticket revealing a winning symbol or pattern equivalent

to a predetermined cash prize.

Small Town Lottery (STL)Small Town Lottery (STL)Small Town Lottery (STL)Small Town Lottery (STL) was adopted by PCSO to replace illegal

number games in the provinces where they can place bets of Php1.00 per

combination which can win Php800.00.

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MAJOR MAJOR MAJOR MAJOR

PARTNERSPARTNERSPARTNERSPARTNERS

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RETAILERSRETAILERSRETAILERSRETAILERS

These are PCSO’s business partners in the

distribution of its lottery gaming products. As

of September 30, 2013, there are more than

6,700 lottery agents nationwide helping the

agency to bring the lottery gaming products to

the customers.

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Philippine Gaming Management Philippine Gaming Management Philippine Gaming Management Philippine Gaming Management

Corporation (PGMC)Corporation (PGMC)Corporation (PGMC)Corporation (PGMC)

Pacific Online Systems Pacific Online Systems Pacific Online Systems Pacific Online Systems

Corporation (POSC)Corporation (POSC)Corporation (POSC)Corporation (POSC)

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TMA Group of CompaniesTMA Group of CompaniesTMA Group of CompaniesTMA Group of Companies

Trojan ComputersTrojan ComputersTrojan ComputersTrojan Computers

Consolidated Products and Consolidated Products and Consolidated Products and Consolidated Products and

Printing IncorporatedPrinting IncorporatedPrinting IncorporatedPrinting Incorporated

LAMMCO Paper ProductsLAMMCO Paper ProductsLAMMCO Paper ProductsLAMMCO Paper Products

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The annual lottery sales have a consistent upward trend

over a period of seventeen (17) years from 1995 – 2012.

LOTTO SALES REVENUELOTTO SALES REVENUELOTTO SALES REVENUELOTTO SALES REVENUE

Php 30,000,000.00

25,000,000.00

20,000,000.00

15,000,000.00

10,000,000.00

5,000,000.00

1995 2000 2005 2010 2012

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KENO SALES REVENUEKENO SALES REVENUEKENO SALES REVENUEKENO SALES REVENUE

-

200,000,000.00

400,000,000.00

600,000,000.00

800,000,000.00

1,000,000,000.00

1,200,000,000.00

1,400,000,000.00

2006 2007 2008 2009 2010 2011 2012 Jan-Sept2013

Since its introduction in 2006, KENO sales have

consistently grown stronger each year.

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STL REMITTANCESSTL REMITTANCESSTL REMITTANCESSTL REMITTANCES

Since its introduction in 2006, STL remittances

noticeably increased every year.

-

1,000,000,000.00

2,000,000,000.00

3,000,000,000.00

4,000,000,000.00

5,000,000,000.00

6,000,000,000.00

2006 2008 2010 2012

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EXISTING OUTLET LOCATIONS: # OF LOTTO OUTLETS:

MALLS 392

CONVENIENCE STORES 127

PUBLIC MARKET 638

GROCERY STORES 179

SMALL COMM. & BUS. CENTERS 3,449

RESIDENTIAL AREA 1,102

PAWN SHOPS 11

DRUG STORES 9

SINGLE ESTABLISHMENTS 68

MONEY CHANGER 2

BOUTIQUE 4

TRANSPORT TERMINALS 17

GASOLINE STATIONS 14

COCKPIT ARENA 1

TOTAL 7,082

WHERE ARE WE NOW?WHERE ARE WE NOW?WHERE ARE WE NOW?WHERE ARE WE NOW?

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NEW MARKET CHANNELSNEW MARKET CHANNELSNEW MARKET CHANNELSNEW MARKET CHANNELS(NON(NON(NON(NON----TRADITIONAL CHANNELS)TRADITIONAL CHANNELS)TRADITIONAL CHANNELS)TRADITIONAL CHANNELS)

LOCATIONS: NUMBER OF POSSIBLE

SITES

GASOLINE STATIONS 5,521

TRANSPORT TERMINALS 80

AIRPORTS 44

REMITTANCE/PAWNSHOP

S

12,906

CONVENIENCE STORES 1,252

DRUG STORES 3,245

GOVERNMENT

AGENCIES

74

TOTAL 23,122

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COMPARISONCOMPARISONCOMPARISONCOMPARISON

LOCATIONS EXISTING OUTLET CHANNELS

PROPOSEDSITES

GAP DIFFERENCE

GASOLINE

STATIONS14 5,521 5,507

CONVENIENC

E STORES127 1,252 1,125

PAWNSHOP/

REMITTANCE11 12,906 12,895

TRANSPORT

TERMINALS17 80 63

DRUG

STORES9 3,245 3,236

AIRPORTS 0 44 44

GOVT.

AGENCIES0 74 74

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GAMING INDUSTRY SALES FOR Y2012GAMING INDUSTRY SALES FOR Y2012GAMING INDUSTRY SALES FOR Y2012GAMING INDUSTRY SALES FOR Y2012

18.68%

23.6%

0.05%

23.07%

34.61%

Philippine CharitySweepstakes Office (PCSO)

Philippine Amusement andGaming Corporation(PAGCOR)

Philippine RacingCommission (Philracom)

Cockfighting (approx.)

Illegal Numbers Game(approx.)

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COMPARATIVE SALES 2009 COMPARATIVE SALES 2009 COMPARATIVE SALES 2009 COMPARATIVE SALES 2009 ---- 2012201220122012

Philippine Gaming IndustryPhilippine Gaming IndustryPhilippine Gaming IndustryPhilippine Gaming Industry

-

5,000,000,000.00

10,000,000,000.00

15,000,000,000.00

20,000,000,000.00

25,000,000,000.00

30,000,000,000.00

35,000,000,000.00

40,000,000,000.00

45,000,000,000.00

2009 2010 2011 2012

PAGCOR

PCSO

PHILRACOM

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