Lawmakers from the province of Isabela led by Isabela 6th District Rep. Inno Dy and the League of Provinces of the Philippines (LPP) represented by LPP National President and Marinduque Gov. Presbitero Velasco Jr. on Tuesday scored small town lottery (STL) operations in the provinces.
At a joint hearing of the House committees of Games and Amusement and Good Government and Public Accountability, the solons and local executives also stressed that these operations in the provinces conducted by authorized agent corporations (AAC) are illegal.
“It is very clear, and there is no equivocation here that it is only the PCSO which is authorized under the law to conduct and hold lotteries––and STL is a lottery.”
According to Dy––who, together with other Isabela solons filed House Resolution No. 1472 urging the House to conduct an inquiry into the 2020 STL revised implementing rules and regulations (RIRR)––“after thoroughly examining the 2020 RIRR, the Agency Agreement between the AACs and the PCSO (Philippine Charity Sweepstakes Office) to conduct STL operations is clearly illegal.”
Dy pointed out that in Kilosbayan vs. Guingona, the Supreme Court (SC) ruled that Section 1 of Republic Act 1169 as amended by Batas Pambansa Blg. 42, prohibits the PCSO from holding and conducting lotteries “in collaboration, association, or joint venture with any person, association, company or entity, whether domestic and foreign.”
The SC decision quoted by Dy states that “the language of the section is indisputably clear that with respect to its franchise or privilege ‘to hold and conduct charity sweepstakes races, lotteries and other similar activities,’ the PCSO cannot exercise it ‘in collaboration, association or joint venture’ with any other party.”
“Clearly then, the PCSO cannot share its franchise by way of collaboration, association and joint venture with Sahara Games and Amusement Philippines Corporation, its accredited AAC operating in the Province of Isabela. This is evidently clear in their 2020 RIRR which repeatedly mentions that the AACs are given the authority to operate and conduct STL operations,” stressed the solon.
The same argument was echoed by Velasco, who shared the LPP’s position on the current STL operations.
“We maintain that the operations of the AACs are in clear and blatant violation of Section 1 of Republic Act 1169,” said the retired SC justice.
“Clearly then, the PCSO cannot share its franchise by way of collaboration, association and joint venture with Sahara Games and Amusement Philippines Corporation, its accredited AAC operating in the Province of Isabela.”
The Marinduque governor explained that Section 1 is very clear that the PCSO alone is mandated to “hold and conduct charity sweepstakes, races, lotteries, and other similar activities.”
“It is very clear, and there is no equivocation here that it is only the PCSO which is authorized under the law to conduct and hold lotteries––and STL is a lottery,” said the former jurist.
The governor added that the PCSO’s practice of giving permits and licenses to AACs is a clear violation of RA 1169, and emphasized “nobody can dispute this: the AACs are private entities or corporations; that’s why they are registered with the Securities and Exchange Commission––and since PCSO is only authorized to hold and conduct lotteries by itself, then it cannot go into any arrangement or joint venture agreement with the AACs.”