Administration and Personnel
- A General Manager directs and controls the Office's operations, except those reserved for the Board.
- The General Manager appoints all personnel, subject to Board approval, except for the Auditor and staff appointed by the Auditor General.
Funding and Expenses
- The Office’s operating expenses are covered from its own receipts.
Regulation of Sweepstakes Horse Races
- The PCSO holds charity horse race sweepstakes under regulations aligned with Republic Act No. 309.
- In exceptional circumstances such as war or calamities, the Board may determine alternative procedures for prize distribution.
- Sweepstakes tickets and horse races are exempt from all taxes except for a twelve-centavo internal revenue stamp per ticket.
- A 1.5% deduction from the total prize fund is paid to the Bureau of Internal Revenue, replacing income tax on prize winnings.
- After this deduction, prizes from the fund are exempt from income tax.
- Sweepstakes tickets are government-printed and considered government securities to prevent forgery or alteration.
Classification and Registration of Race Entries
- Horse races under the Act are categorized by horse height in five classes.
- Only native horses may participate.
- Horses must be registered with the municipal treasurer within 30 days of birth and reinspected within one year for identification details.
- Three years post-effectivity, only registered horses may race.
- Horses must be unranked in prior Philippine races to qualify.
- Entries must be registered with the PCSO at least 30 days before races.
- Each horse owner may register only one entry per race.
Allocation of Gross Receipts from Ticket Sales
- 10% of gross receipts fund operating expenses.
- A reserve fund, not exceeding one million pesos, is created for assets and contingencies.
- 58.5% allocated to prizes for winning horses and jockeys, with 10% of main horse prize portions matching the same percentage of ticket winnings.
- 6.5% distributed to provinces and cities (excluding Manila) for health, social welfare, and charitable activities.
- Remaining 25%, alongside proceeds from races and lotteries, distributed to charitable institutions under Board and Presidential approval.
- Charitable organizations must comply with Board regulations and have legal charters; properties acquired under the fund must revert to the government if the organization dissolves.
- Funds must be used solely for Board-approved purposes.
Reporting Requirements
- The Board must submit an annual report in July to the President and both Houses of Congress detailing the Office’s activities.
Penal Provisions
- Unauthorized sale of sweepstakes tickets or sale of counterfeit tickets punishable by 1 month to 3 years imprisonment.
- Selling tickets above the official price is also punishable.
- Misuse of funds by officers/employees of recipient institutions for unauthorized purposes is penalized.
Authorization and Regulation of Lotteries
- PCSO authorized to conduct lotteries once monthly in months without sweepstakes draws or races.
- The Board, with Presidential approval, promulgates rules for lotteries, including ticket quantity, pricing, prizes, sales closure, and drawing schedule and locations.
Repeal of Inconsistent Laws
- Previous laws inconsistent with this Act are repealed, excluding certain specified Commonwealth and Republic Acts.
Effectivity
- The Act takes effect immediately upon approval on June 18, 1954.