NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodi

4825

EXPLANATORY NOTE

House No.

Currently the Lotto Games are played online at lotto outlets nationwide. The Lotto
Outlets are operated by Lotto Agents duly qualified and authorized by the Philippine Charity
‘Sweepstakes Office (PCSO). The Lotto Agents are small entrepreneurs, retirees, seniors,
PWDs, former OFWs, among others, who are trying to make a living for themselves and their
dependents, including their tellers and families.

The PCSO is embarking on a project which is App-based betting. The reasons
advanced for digitalization of lotto games are to make it convenient to the betting public as
betting will be App-based and to increase revenue for the government. While it may be true
that App-based betting may result to convenience to the betting public, there are
disadvantages to doing the same, among which are:

1. App-based betting will open betting to our youth, Even children who have mobile
phones will be able to access the games.

2. Digitalization or on-line betting may not result to increased revenue generation.
Security and safeguards to on-line transactions in the country is not yet fully guaranteed. Even
banks with sophisticated digital programs are not exempted to scammers. PCSO may be
surprised that sales have not increased because sales were diverted to other on-line
channels.

3. This will kill the existence of the Lotto Agents, the partners of PCSO over the years.
Lotto Outlets will become useless and irrelevant.

‘One of the primary reasons why the revenue generation efforts of PCSO is wanting is
because of the existence of illegal gambling. To increase revenue, all lottery games should
only be played at the lotto outlets. Outside of the lotto outlets are illegal numbers game which
can be the focus of the law enforcement agencies.

App-based digitalization of lotto games is not the answer to revenue generation.

In view of the foregoing, immediate approval of this measure is earnestly requested.

RUF! }. ROBRIGUEZ


NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No.
AN ACT
PROHIBITING THE ONLINE PLACING OF BETS FOR ALL LOTTO GAMES AND ALL
INSTANT PAPER GAMES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. The placing of all bets for all Lottery Games, including digit games, Small Town
Lottery (STL) and other Instant Paper Games as defined by the PCSO 2022 Revised Rules
and Regulations shall only be done physically and only in authorized Lotto Outlets.

The online placing of bets thru mobile phones, laptops, tablets, PCs and other similar
gadgets, for all lottery games and all Instant Paper Games are prohibited.

SEC 2. Any changes in the system and procedures to play all Lottery Games which have
impact on revenue generation, livelihood of the lotto agents, and the charity mandate of PCSO,
shall be made public to affected stakeholders and subject to the approval of the Office of the
President.

SEC 3. Repealing Clause. — All laws, decrees, executive orders, rules and regulations,
issuance or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly

SEC 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,