How to Franchise: PCSO Lotto Outlet in the Philippines
Do you want to know how to become a PCSO lotto agent and start operating your own lotto outlet in the Philippines?
You might find the jackpot in this business so read on to understand how to apply, how much the PCSO lotto outlet franchise fee is, and who to contact to be able to run your own PCSO lotto business.
Let’s play lotto!
About Lotto and the PCSO
The Philippine Charity Sweepstakes Office or PCSO is the charity arm of the Philippine government, providing funding for essential health and welfare activities. The PCSO’s primary earnings come from the public’s payment to enter sweepstakes or lotto draws sponsored by the agency.
Its Charter allows the PCSO to allot 30% of its net sales to the Charity Fund, while 55% is allotted to prizes, and the remaining 15% to operations.
Starting with just two beneficiaries – the Philippine Tuberculosis Society and Hospicio de San Jose – the PCSO now has a long list of beneficiaries that include the Red Cross, Blood Bank, National Mental Hospital, Boys’ Town in Marikina, Missionaries of Charity in Cebu, Golden Acres, Tala Leprosarium, Commission on Family Life in Laoag City, Bacolod Boys’ Home in Negros Occidental, Dominican Missionaries’ Stela Maris Nursery, Leprosarium in Zamboanga City, Daughter of Mary, Mother of the Church in Naga City, nutrition centers, rural health clinics, government hospitals, and many others — totaling more than 8,000 beneficiaries at present.
Main Products/Services Offered
- Lotto Games: Grand Lotto 6/55; Power Lotto; Super Lotto 6/49; Mega Lotto 6/45; Lotto 6/42; Lotto 6 Digit Game; Lotto 4D; SuerTres; EZ2 Lotto; Ultra Lotto 6/58
- Small Town Lottery
- Scratch It! Instant Tama!
How much is the franchise fee to own a PCSO lotto outlet? None, because there is NO franchise fee needed to operate your own lotto stand!
PCSO got its franchise from the Philippine Congress and those interested to operate their own outlets are called “lotto agents.” That doesn’t mean, though, that as lotto agents you won’t have to shell out money.
Approved lotto agents must pay P10,000 as installation fee which goes to the telecommunications carrier and a processing fee of P1,700 which goes to PCSO.
The agent also has to post a cash bond of P500,000 or pay a surety bond of P5,795.37 annually.
The fees include the bet slips and thermal rolls that will be provided regularly to the lotto agent.
How much do PCSO lotto outlets earn?
Lotto agents earn 5% commission per sale.
But the PCSO also requires lotto agents to reach a certain sales quota per month in order for the outlet to continue operating. In Metro Manila, the quota is said to be P300,000 to P600,000 every month depending on the location.
How to Apply to Become a Lotto Agent
1. The prospective lotto agent must be Filipino and at least 21 years old. Submit a letter of intent with a location map and photos of your proposed PCSO lotto outlet.
2. PCSO will then inspect the proposed location and evaluate potential sales and communication facilities. The site must have significant foot traffic, not prone to flooding, at least 100 meters away from schools, churches, and other lotto outlets, and at least 5 meters away from pawnshops.
3. Once approved, PCSO informs the applicant to construct the lotto booth, following the PCSO’s requirements, such as colors, floor space, etc. The terminal will then be installed.
4. The applicant pays the processing and installation fee. The surety bond is paid to a PCSO-accredited insurance firm.
5. Training to operate the lotto terminal is then provided to the outlet staff. The one-day training covers basic operations, validation, and selling and fraud prevention, among others.
6. Proceed to PCSO’s main office in Mandaluyong City for outlet provisions. Applicants outside the National Capital Region must pass requirements at their respective provincial district offices.
7. Sign the contract with the PCSO.
8. Wait for online activation.
1. Sketch or Location Map of the proposed site, showing location of existing lotto outlets, if any, in the area.
2. Photos of the proposed outlet/site including its vicinity.
3. Proof of Ownership of the location or Lease of Outlet. For owners of the venue, submit a copy of the Land Title or TCT. For lessees, submit a notarized copy of the Authority/Certification from Building Owner.
4a. Other requirements for Individual Applicants:
- Birth Certificate of Applicant
- Three (3) latest ID pictures (2×2) of applicant and spouse, if applicable
- Proof of Identification (any two valid IDs)
- Proof of Income. For employed individuals: Income Tax Return and Certificate of Employment. For self-employed applicants: Income Tax Return, Registration of Business (for existing business), and audited Financial Statements (if applicable)
- NBI Clearance
- Barangay Clearance (Personal Record)
4b. Other requirements for Corporate Applicants:
- Biodata of Officers and Directors
- Certified True Copy of SEC Registration, Articles of Incorporation, and By-Laws
- Secretary Certificate and or Board Resolution duly authorizing person/s to transact with PCSO for purpose of the operating a lotto outlet
- Three (3) latest ID pictures (2×2) of the authorized representative
- Representative’s Proof of Identification (any two (2) valid ID)
- Representative’s latest and original NBI Clearance
- Latest Audited Financial Statement of the corporation
- Corporation’s Income Tax Return for the immediate preceding year
Lotto Booth Requirements
1. As per PCSO Board Resolution No. 0097 (Series of 2011), the proposed site must meet the following distance requirements. The distance is to be measured from the door of the establishment proper to the proposed outlet and shall follow road directions and not the straight line or hypotenuse distance between the two points:
- Distance from pawnshop: At least 5 meters
- Distance from schools, churches, and other lotto outlets: At least 100 meters
2. Floor Space must be at least 2m x 2m. Business counters should measure at least 36” x 24”.
3. Must be in a dry floor space with proper ventilation.
4. Booth should have at least one (1) wireless or fixed landline telephone facility for hotline operation use.
5. For security reasons, all lotto outlets should be enclosed and must be facing the direction of human traffic/entry. Frontage must face the main hallway/corridor or to the direction of major traffic flow.
6. Outlets located within a commercial building or complexes, with 24-hour security, need not be enclosed.
PCSO Main Office: PICC Secretariat Bldg, CCP Complex, 1307 Roxas Blvd., Pasay City
Interested in other Philippine franchising opportunities? Check them out here: Complete list of Philippine companies available for Franchising
Information and Image Sources: PCSO website (www.pcso.gov.ph), Entrepreneur Philippines, Inquirer.net, Balita.com