It’s difficult to live in the Philippines not hearing of the Philippine Charity Sweepstakes Office (PCSO). The only people who are exempt are those who live off the grid and have never purchased a lottery ticket in their lives.
To provide for permanent and continuing sources of income for its programs, the PCSO holds and conducts charity sweepstakes, races, and lotteries, as well as invests in health and welfare-related projects, and activities. It also engages in additional efforts in order to improve and grow such fund-raising operations, as well as the agency’s fund-management capabilities.
The PCSO’s primary products are sweepstakes and lottery games. The Sweepstakes game has continually evolved over time in order to keep up with changing times, to make the game exciting for all Sweepstakes aficionados, and, perhaps, to attract new clients, and to keep a variety of Sweepstakes items readily available on the market. Various game types have been launched, and new game concepts are continually being developed, especially for classic and scratch-and-match games, as well as the Small Town Lottery (STL).

What is Philippine Charity Sweepstake Office (PCSO)?
PCSO is a government body tasked with raising funds for health and medical aid programs, as well as charity causes. The selling of lottery tickets is used to achieve these objectives. Each drawing generates a share of the proceeds, which is donated to charities that benefit the entire Philippine society.
The PCSO was founded in 1934. Its functions are under the direct supervision of the Philippine President’s Office. According to national legislation, 55 percent of the money raised from ticket sales goes toward PCSO lottery prizes, 30 percent goes to charity purposes, and the rest is used to meet PCSO organizational and capital expenses.
In the Philippines, lotteries have a long and illustrious history. Such games have existed since the early 1830s, although they were held under the auspices of private businesses. PCSO is the result of a national initiative intended at regulating the sector and raising enough funds for health and charity programs.
The government owns and controls the PCSO completely. The Philippines has specialized legislation that governs the distribution of lotteries and the gathering of donations for charity purposes.
On September 8, 1935, reports say the PCSO held its inaugural sweepstakes draw. It was so successful that the company was able to repay a government loan within two months of starting operations.
Regulatory adjustments occurred several times in the decades after that. One of the most significant legal changes was the increase in the frequency of PCSO lottery draws. In addition, PCSO began holding special drawings with additional rewards for significant national occasions, a move that sparked even more interest in PCSO lotteries.

Sweepstakes have been PCSO’s single and principal source of financing for nearly 50 years. Things changed eventually, and additional lotteries were added to the portfolio. Many new games were developed in the 1990s, and a few more were developed in the 2000s. PCSO has been able to raise funds as a result of these improvements.
PCSO turnover financial assistance and mandatory contributions
The PCSO recently turned over a total of P52 million in financial support to the Philippine National Police (PNP), National Bureau of Investigation (NBI), and Commission on Higher Education (CHED), according to the national daily Philippine Star.
PCSO general manager Royina Garma said checks of P22.5 million and P8.8 million were sent to the PNP and NBI, respectively. For the second quarter of the year, the cash aid reflected the law enforcement agencies’ share of the PCSO’s small-town lottery winnings.
Garma commended the PNP and NBI for their contributions to the government’s anti-illegal gaming program.
In accordance with Republic Act 7722, or the Higher Education Act of 1994, the PCSO also presented CHED with a cheque for P21.4 million as the charity agency’s mandated financial contribution to higher learning institutions.
Garma urged the people to continue to play the lottery and other PCSO games to help fund the government’s healthcare programs and medical aid for the poor.
The PCSO distributed P32 million in financial aid to 13 local government units in Metro Manila, and has released over P190.5 million in medical assistance to a total of 21,593 eligible beneficiaries nationwide in October 2021.
PCSO charity funds focus on non-COVID 19 cases
The Philippine Charity Sweepstakes Office says persons who are stricken with severe diseases other than the 2019 coronavirus disease (COVID-19) require prompt aid from its charity funds.

PCSO officials also strongly urged Congress to help ease its charity funds of a number of tax impositions and mandatory contributions for non-health programs at the resumption of the budget briefing in the House of Representatives on Aug. 27, citing a sharp drop in earnings due to the COVID-19 pandemic.
Anselmo Simeon Pinili, Chairman of the PCSO, and Asst. Officials stated the state-owned lottery corporation feels it should focus its charity fund on persons suffering from non-COVID ailments, according to General Manager Dr. Larry Cedro.
“Masyado po tayo nag-focus sa COVID 19 pero sa NEDA report, nasabi na hindi COVID 19 ang (We focused too much on COVID 19 but in a NEDA report, it was disclosed that COVID 19 is not the number one cause of fatalities,” said lawyer Gay Albor during the PCSO presentation of programs and accomplishments.
She stated that a large number of Filipinos require immediate assistance for “dialysis and chemotherapy treatments, as well as surgeries and other medical needs.”
The ongoing pandemic, which has resulted in a lockdown and other quarantine restrictions, has had a negative impact on PCSO finances, according to Albor.
PCSO revenues declined from P44.02 billion in 2019 to P19.61 billion as of June 30, 2021. The lowest earnings in the last three years were recorded in 2020 when P18.62 billion was earned. Earnings are expected to be P46 billion in 2021.
In order for the firm to raise its charity donations, the PCSO requested that the 20 percent documentary stamp tax (DST) be decreased to merely 10 percent.
Officials revealed that as of August 2021, the government had received P3.21 billion in DST from the PCSO’s charity fund of P5.77 billion. In fact, the DST was over P2 billion more than the PCSO’s allocation for medical assistance and service program, which was only P888.32 million, according to Albor. They also want to be exempt from paying mandatory contributions for programs that aren’t related to health, such as sports development, dangerous drugs, the national museum, higher education, and local government assistance.
“We have at least 17 special laws requiring funding support,” she said.
The PCSO is one of two government-run gaming companies that collect money for charity and other social activities. The Philippine Gaming Corporation is the other.
Officials from the two state-owned companies testified before the House of Representatives about their contributions to the national income as the house began hearings on the 2022 budget.
Grassroots support through the Indigenous Peoples
The Philippine Charity Sweepstakes Office (PCSO), in collaboration with the Philippine Coconut Authority (PCA) and the Philippine National Police (PNP), distributed coconut seedlings to 12 sitios in Barangay Megcuayan, Calinan, Davao City, benefiting approximately 2,700 indigenous peoples (IP) families.
During the event, former PCA director Roque Quimpan said that if the 20,000 coconut seedlings were properly cared for, they might yield around P14 million in annual income for the beneficiaries and that one coconut tree could provide a farmer with around P70.
“Ang bunot pa lang mudagan na og P60 karong panahona kay naay mga nagapalit ana para i-manufacture (The coco husk alone could be sold for P60 during this time since there are those who buy coco husk to be manufactured.),” he said.

The PCA was there, represented by Regional Manager Juvy Alayon, to share their technical expertise, particularly on how to properly care for newly planted coconut seedlings and to educate IPs on other coconut by-products that are highly valued in the market today, such as coco vinegar and coconut chips.
Alayon believes that in order for coconut farmers’ livelihoods to be sustainable, they must learn how to value-add or create goods from the coconut.
“Dili lang ta magsalig sa usa ka produkto sa lubi, kung sauna atong ibaligya ang tibuok bunga, karon daghan na ta’g mahibaluan mga mamahimong produktong gama sa lubi nga mas mahal pa kaysa ibaligya ang tibuok bunga (We should not depend on one coconut product alone. Before, we sell the whole coconut fruit. This time, we are more knowledgeable about several products made from coconut that are more expensive than selling the whole fruit.),” Alayon said.
One of the beneficiaries, Paulo Bayanban, a member of the Ata tribe, stated that the coconut seedlings are extremely beneficial to their economy.
“Naa na man mi mga tanom, pero kulang pa gyud. Maong dako kaayo among pasalamat ini nga gidalitan mi’g mga seedlings sa lubi aron madugang sa among pananom, makadugang sa among pangita,” Bayanban shared.
Punong Barangay Diomedes Dela Cruz of Barangay Megcuayan expressed his gratitude on behalf of his constituents and the beneficiaries, who are largely surrenderees. Meanwhile, PCSO General Manager Royina Garma stated that the IPs are one of the most vulnerable groups that the PCSO wishes to assist.
“Kayo kasi yung most vulnerable at napabayaan,” Garma said, attributing to the fact that urban poor can easily ask for help as offices of organizations and government agencies, especially concerning social welfare, can be found in the city’s center.
The Indigenous Peoples in the far-flung areas can hardly reach these offices to air their concerns or ask for assistance.