Lottery Corruption in Philippines Rampant; New Gambling Law Soon?

Despite limiting the number of those in the country who may provide gambling services, several lottery operators in the Philippines are finding ways to cheat the government – and those in need – of valuable income.

Retired archbishop Oscar Cruz yesterday testified before the Philippines House of Representatives that he knew of seven Small Town Lottery operators who had misreported gross sales to the governing body, the Philippine Charity Sweepstakes Office (PCSO). Said Cruz, “The PCSO has been duped to the high heavens, so to speak.”

Saying that “there is something very, very wrong” about this corruption, Cruz cited two examples of province lottery operators who had declared just 25% to 50% of their earnings to the PCSO, thereby depriving the body of about $5.68 million in the first six months of 2010 alone.

Currently, the PCSO offers one lottery game called “Small Town Lottery,” but the great majority of gambling is done on a similarly-styled game called “jueteng” and most lotto distributors are suspected to be operating jueteng games of dubious fairness.

As with the situation regarding online casinos in the Philippines, the house of representatives there is now currently considering the registration and licensure of jeuteng gaming providers – can an overhaul to Philippine gambling laws be far behind?