PCSO Targets Blockchain and Other Firms for Illegal Lottery Operations in the Philippines

In a recent crackdown on illicit online lotteries, the Philippine Charity Sweepstakes Office (PCSO) has filed charges against four corporate entities. Led by General Manager Melquiades A. Robles and Director Retired Judge Felix P. Reyes, the charges were initiated on the grounds of unauthorized online lottery activities that resulted in considerable revenue loss for the government.

Robles, in an official statement, expressed concern about the significant revenue loss due to these unauthorized operations. “The malicious activities of these companies not only deprive the PCSO of revenues but also diminish public confidence in our legitimate games,” he remarked.

The companies facing charges include Eplayment Corp., Paymero Technologies Ltd., Global ComRCI International Inc., and Blockchain Smart-Tech Co. IT Consultancy. The charges were filed with the Mandaluyong Prosecutors Office, based on findings from an exhaustive investigation led by the National Bureau of Investigation.

These corporations were found to be the masterminds behind “Pakilotto” and “Surelotto”, two online lottery schemes that misappropriated the PCSO's brand, logo, and lottery games. Through unauthorized mobile applications and websites, these firms attracted and accepted public wagers.

One of the key pieces of evidence, as highlighted by Robles, leaves no ambiguity about their illicit operations. “The evidence gathered during the inquiry irrefutably demonstrates their illegal practices,” he asserted.

Furthermore, the probe uncovered that Eplayment Corp., through their now-defunct website “Pakilotto”, was overcharging customers. Lotto tickets, normally priced at P20, were being sold at P30, marking a staggering 50% increase. Similarly, the “Surelotto” mobile application was retailing tickets at P25, 25% above the regular rate.

Interestingly, winnings of lesser amounts were credited directly into the bank accounts of the winners. However, jackpot winners had to claim their prizes in person at the “Surelotto” office.

The investigation also unearthed collaborations between Global ComRCI, Blockchain Smart-Tech, and tech provider Paymero. Using Paymero's software, they processed payments and handled financial data. Even though Global ComRCI and Blockchain Smart-Tech were more of collaborators, they had set up a revenue-sharing agreement.

These companies, as revealed in the complaint-affidavit, are now under scrutiny for multiple violations, including Usurpation of Authority under Article 177 of the Revised Penal Code, and infractions of Republic Act (RA) 1169 and Presidential Decree 1602, in line with Executive Order 13 (series of 2017).

Closing his statement, Robles reiterated the PCSO's commitment to upholding the integrity and authenticity of its lottery games. He emphasized that such legal actions should be a clear warning to those involved in illicit operations. The PCSO, he assured, will persistently ensure that the lottery remains a trustworthy venture for all its participants.