From the gross receipts generated from the sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or other similar activities, the printing cost of such tickets is deducted to arrive at the net receipts.
Pursuant to Section 6, Republic Act No. 1169, as amended (PCSO Charter), the net receipts shall be divided into 55% (Prize Fund), 30% (Charity Fund) and 15% (Operating Fund):
The Prize Fund is used for the payment of prizes, including those for owners and jockeys of running horses and sellers of winning tickets. This is a trust liability account. Unclaimed prizes or balances in Prize Fund reverts and forms part of the Charity Fund after one (1) year.
The Charity Fund is also a trust and liability account and is used exclusively to finance and support health programs, medical assistance and services and/or charities of national character. Presently, any disbursements from the Charity Fund must not only be authorized by the PCSO Board of Directors but must also be approved by the Office of the President, regardless of the amount thereof.
The Operating Fund forms 15% of the revenue allocation, which is used to support the day-to-day operating/maintenance and capital expenditures of the PCSO. If there is a balance on the Operating Fund at the end of the fiscal year, it reverts and forms part of the Charity Fund.