The PCSO Lotto is for real!

The Philippine Charity Sweepstakes Office (PCSO) has pursued humanitarian goals and objectives by raising funds through sweepstakes and lotteries since its establishment in 1935.

Because they’re mandated to provide assistance to various health and social welfare programs, the PCSO has been one of the country’s symbols of life and hope for the marginalized sector of the population. However, the integrity of this prestigious organization is being challenged by a smear campaign aimed at its lotto operations.

An e-mail, which explicitly (but wrongly) describes the modus operandi of the alleged Lotto scam, is circulating in the Internet.

The perpetuator of the letter is supposedly a World Bank analyst who said that we Filipinos are getting fried in our own fat as there is absolutely no chance for the public to win the jackpot because it is rigged. He notes that “…all bet combinations are being entered into PCSO’s main data base as it is online. Therefore, it is easy to determine which combinations are not betted upon. If they want to raise big money, no winners will be declared until the jackpot reaches sky high because they could dictate the outcome at will.

One insider told the investigators that actually the “drawn balls,” six to be exact, are the only set which could fit into the transparent tube which sucks the balls up. All others are slightly bigger than the diameter of the tube which could not be distinguished by the viewers so there’s no way they could be drawn.

 This e-mail has landed in my Inbox and because everyone I know plays the lotto, I decided to pursue the truth of the matter and do my own investigation. Lest the truth be buried in a quagmire of doubt, suspicion, and hearsay, I ventured forth and made an appointment with the powers that be at the PCSO.

PCSO’s dynamic chairman Sergio Osmeña Valencia was not at all surprised when I handed him the printed e-mail about the lotto scam and after browsing through it, he said: “Because of the success of the lotto, there will always be detractors and malicious individuals who will put us down. But we invite everybody who doubt our lotto operations to observe and witness our draw operations and see for themselves the procedures being conducted, as well as scrutinize the balls and the machines we are using for the draws. Rest assured we have put in place strict security measures to ensure the transparency, integrity, and credibility of the draws that PCSO conducts every day.”

He then endorsed me to the man in charge of the lotto’s online operations Conrado Zabella to give me a comprehensive report on the lotto.

Says Zabella, “PCSO’s lotto system was established in the Philippines 14 years ago and is the same system being used in other countries worldwide, i.e., USA, Europe, Canada, Australia, Malaysia, etc. where there has never been any incident of computer hacking that has influenced the results of the draw.

PCSO is a member of the World Lottery Association, the biggest and most prestigious association of the gaming business from different countries and cultures whose common objectives are to maintain operational excellence, highest standards of integrity, and continuous technology improvement. On the issue that “all bet combinations are being entered into PCSO’s main data base as they are online, therefore, it is easy to determine which combinations were not betted on,” we assure the general public that PCSO has employed strict security measures and procedures at the Main Computer Center (MCC) of the PCSO on-line lottery.

The MCC is where data pertaining to all lottery transactions are recorded. Prior to the actual “live” draw at 9 p.m., the online lottery system will disable or stop the selling of tickets for all games at all betting terminals at exactly 8:30 p.m. After which, the computer system consolidates all sales transactions and prize pools earned per game for the “live” draw to be held at 9 p.m. The report is verified and certified by a number of official representatives from PCSO and Commission on Audit, an independent government body, which is the watchdog of all government institutions. Moreover, with a window of only 30 minutes to process the millions of bet combinations placed, there is not enough time for anyone to look into all the combinations played by the bettors and look for combinations that were not placed by any of the lotto players. It is impossible for anybody to place a bet or purchase a lotto ticket after 8:30 p.m.

Zabella asserts, “As we have consistently informed the public, terminal selling facility is allowed between 7 a.m. and 8:30 p.m. Thus, no one is capable of controlling the process to insert additional winners during and after the 9 p.m. live draws are held.”

He then brought me to the Lotto Draw Court where the live draws are held.

He made me watch the pre-draw procedures to prove that everything was above par.

The first thing I witnessed was the turning over of the draw machines and other paraphernalia from the Philippine Gaming Management Corporation (supplier of the lotto machines) Draw Team to the PCSO Draw Team. Then, they weighed the draw balls in the presence of Commission on Audit, PCSO Internal Audit, and on-line lottery sector reps.

This was recorded by a video camera of both PCSO and PGMC.

All the balls have to weigh exactly the same — average weight of 2.6 grams with 0.2 gram variance and has a standard size of 38 mm. in diameter. The draw machines’ display and vacuum tubes, where the balls pass through, have a standard diameter of 40 mm. There is no way that a ball with a larger diameter can be placed inside the draw mixing chamber since these balls will not be able to fit or pass through the display tubes. There was a panel of judges invited to witness the draw procedures. There are five persons coming from different places in Metro Manila and other provinces. One is designated as chairman of the draw.

They will then test the draw machines to be used by using unnumbered test balls. In every game, there are three sets of draw balls weighed, each set is placed inside the Draw Balls Case which is labeled alphabetically A, B, and C. There are selection plates placed inside a sealed brown envelope which correspond to the alphabet labeling of the Draw Balls Case to be opened for the draw game. No one knows till the last minute which case (A, B or C) the designated chairman will randomly pick.

It is the chairman who loads the balls into the designated draw machine in preparation for the draw proper. During the live draw at 9 p.m., the winning numbers will be video taped in the presence of the members of the Commission on Audit, officials of the Internal Auditing and on-line lottery sector representatives of PCSO, PCSO Draw Team, designated host, and other invited guests from the audience.

The five hours I spent at the PCSO investigating the lotto operations was time well spent.

Now, I can sincerely endorse the Philippine Lotto as one of the most legitimate and honest gaming operations in the world.

And what is truly noteworthy is the wide scope of charity work that it encompasses. Fact is, 55 percent of the net receipts go to the Prize Fund, 30-percent go to their charity fund, and 15 percent go to their operating fund.

From the 30-percent charity fund, PCSO continues to support various medical institutions and other health related programs and projects, as well as philanthropic endeavors like Gawad Kalinga, Zonta, Child House Project (which provides temporary shelter for indigent children with cancer and other illnesses), and many other charities.

Without a doubt, the Philippine Lottery is indeed improving the lives of millions of Filipinos. So keep playing the lotto — not only do you have a chance to be a millionaire but you are giving to charity as well.