Franchising PCSO Lotto Outlet in the Philippines

Rain or shine, Filipinos flock to lotto outlets to take the game of chance in the dreams of becoming future millionaires. This becomes more evident when the prize money has reached hundreds of millions.

It’s also easy to see that a lotto outlet could be the most stable business yet and if you are like many who want to learn how to franchise a lotto outlet, read on.

More reasons why a lotto outlet franchise could be the best business yet

According to PCSO, their sales remain stable even during economic hardships. Therefore it’s safe to say that even during dire times, you will still have customers placing their bets. This is excluding your future patrons who will place their bets daily without fail.

When the cash prize shoots up, sales double or even triple. Even people who don’t play lotto will be swayed with the dreams of winning big and buy tickets.

According to experts, investing in a lotto outlet franchise offers great returns and with very minimal risks. A single lottery outlet attracts an average of 70 people per week and this can vary depending on the location of your outlet or stall.

There is no franchising fee to start a lotto outlet

Your application to operate a lotto outlet is not really a franchise, therefore, you won’t pay for costly franchising fees. Instead, this is called an agency and you as the owner will be called a lotto agent.

As a lotto agent, you will be given rights to operate your own lotto outlet. PCSO will provide training and equipment as well.  

How to start a lotto outlet?

To start a lotto outlet business, you need the following

  1. You or the lotto agent must be at least 21 years old.
  2. You must submit a letter of intent to become a lotto agent. Included in the letter is the map of the location of your lotto outlet as well as photos of the site where the outlet will be set up.
  3. Your location site must pass inspection from a PCSO representative. The rep will approve the site according to:
  4. significant customer traffic
  5. should not be prone to flooding
  6. should be at least 100 meters away from churches, schools and from other lotto outlets
  7. Should be at least 5 meters away from pawnshops
  8. After passing inspection, the PCSO will tell you to start constructing your lotto outlet booth. The specifications and other requirements will be according to PCSO’s design.
  9. As soon as the booth is ready, a rep will install the terminal or the computer system to be used in the booth. The terminal is composed of the computer system, printers, monitors and the modem.
  10. You will be required to pay for the processing fee and the installation fee of the terminal. You will also be asked to pay a surety bond to an insurance firm accredited by PCSO. The fees and the surety bond amount will be discussed later.
  11. After the appropriate fees are paid, training of the lotto personnel will be scheduled. This is a one-day training that will cover the basic lotto outlet operations, the validation, and selling of bets and about fraud prevention.
  12. You will be asked to get outlet provisions including the bet slips, rolls of thermal paper and so on.
  13. Sign contract as a lotto outlet agent with the PCSO
  14. Wait until your booth is activated online    

There are specific lotto outlet application requirements for provincial agents. You must visit the provincial PCSO office to find out about these special requirements.

What are the fees to set up your lotto franchise?

As soon as your lotto outlet application is approved, you may now pay the different fees:

  • Php 10,000 installation fee.  This fee is for the telecommunications carrier.
  • Php 1,700 processing fee. This fee goes to the PCSO.
  • Php 500,000 cash bond or a surety bond of Php 5,795.87 which is deposited to an accredited insurance company. The surety bond is renewed annually.

The duties of a PCSO lotto agent

Now that you are a registered PCSO lotto agent, you are now required to establish sales. This is for the initial six months. If your lotto outlet is located in the National Capital Region, you must have a sales quota of Php 300,000 – Php 600,000 per month.

As an agent, you will be earning 5% per sale. Some lotto outlet owners disclose that they can have sales up to Php 50,000 a day or maybe even higher especially when the cash prize is in the hundreds of millions. You can get 5% of this sale.

Tips on where you must set up your lotto outlet

The most common question that lotto agents ask is what is the best location or area where you can get the best sales? A few suggestions include the mall, where people come in and out non-stop. When your location is inside a mall, you may probably get instant approval from PCSO however, you will have to lease the space and this is going to be expensive.

How about in a bus terminal? This is a good idea especially because a lot of people frequent bus terminals and transportation hubs. People will be lining up to place their bets before they ride a bus or immediately after they come off the bus. Lease rates may be reasonably-priced when you set up your outlet in a bus terminal.

How about in front of your house? You don’t have to pay for any rental fees if you construct a lotto booth in front of your property. However, it still depends on the amount of customer traffic and if your property is near schools and churches and if your area is prone to flooding. If your location is approved then you’ll have a good chance of earning more.

There is no right or wrong time to invest in a lotto outlet. This may be your ticket to earn millions.

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