FRANCHISING SERIES: Starting a Lotto Outlet
The Philippine lottery system is a non-profit organisation that allows many people the opportunity to try their luck and win millions of pesos to change their lives. Those who are business-minded can likewise turn to opening a lotto outlet by becoming an agent for the Philippine Charity Sweepstakes Office (PCSO).
PCSO technically does not offer franchise opportunities. But entrepreneurs can become agents of PCSO and earn a living from it much like owning a franchise. What are the advantages and disadvantages of becoming a PCSO lotto agent?
Advantages
A lotto outlet is very lucrative because it attracts customers regardless of gender, age and economic standing. Lottery tickets are also relatively cheap; for customers, the stakes are very low and this encourages them to continue to buy them. Many people have also turned lotto into a habit that cannot be broken; some even placing more than one bet at a time.
Disadvantages
While owning a lotto outlet can mean having a long-term consistent source of income, getting one is very difficult. PCSO has very strict requirements about the applicant, the location, security measures and devices that will be evaluated on-site by representatives of the organisation. It may take a while for entrepreneurs to be able to fulfill the requirements: time, effort and initial capital are needed before applicants become approved agents of PCSO.
Requirements
The basic requirements are as follows:
Individual applicants must be:
- Filipino citizens
- At least 21 years old
Corporations must be:
- Registered under Philippine laws
- 100% Filipino-owned
If the applicant fits these descriptions, then other documents to prepare for submission include:
Individual applicants:
- Three recent 2×2 ID pictures
- Two valid IDs
- Proof of income:
- Employed
i. Income tax return
ii. Certificate of employment
- Self-employed
i. Income tax return
ii. Business registration for existing business
- Latest NBI clearance
- Latest barangay clearance
Corporations:
- Biodata of directors and officers
- Certified true copy of SEC Registration, Articles of Incorporation and By-laws
- Secretary Certificate or Board Resolution authorising representatives of the company
- Three recent 2×2 ID pictures of the representative
- Two valid IDs
- Latest NBI clearance
- Income tax return
An application fee of Php2,500 should also be paid to the PCSO Treasury Department or Cashier.
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