Revenue Allocation

In accordance to its Charter, the PCSO generates its revenues from the sale of sweepstakes and lotto tickets. To arrive at the amount of net receipts, the printing cost which shall not exceed two percent (2%) of the gross receipts, is deducted from the gross receipts generated from the sales of sweepstakes and lotto tickets. Section 6 of RA 1169, as amended, specifically allocates the resulting net receipts or revenues of the PCSO.

In other words, out of every one peso (Php1.00) revenue, approximately 0.55, 0.30, 0.15 centavos go to the Prize, Charity and Operating Funds, respectively. Each allocation has its own specific purpose and usage, so that diversion or inter-fund transfers are illegal and in violation of the PCSO Charter.

The Prize Fund is used for the payment of prizes, including those for owners and jockeys of running horses and sellers of winning tickets. This is a trust liability account. Unclaimed prizes or balances in Prize Fund reverts and forms part of the Charity Fund after one (1) year.

The Charity Fund is also a trust and liability account and is used exclusively to finance and support health programs, medical assistance and services and/or charities of national character. Presently, any disbursements from the Charity Fund must not only be authorized by the PCSO Board of Directors but must also be approved by the Office of the President, regardless of the amount thereof.

The PCSO is also extending financial assistance and contributions to certain national programs created as a result of various legislative enactments.

The Operating Fund forms 15% of the revenue allocation, which is used to support the day-to-day operating/maintenance and capital expenditures of the PCSO. If there is a balance on the Operating Fund at the end of the fiscal year, it reverts and forms part of the Charity Fund.