The authorities in the Philippines are considering boosting small-town lottery operations (STL) which in turn may harm some bigger establishments’ business. Red Subay Gaming Corp, a franchise of the Phillippines Charity Sweepstakes Office might be completely driven out of business because of the new terms to stay in operation proclaimed by the authorities.
It seems that fees required for operators to pay to stay in business are simply too high. Iloilo City councilor, Rommel Duron, who also acts as a legal counselor for Red Subay Group, explained that fees have become too difficult to keep up with. If they want to operate further, Red Subay Group must pay PHP 111 million ($2.13 million) as a cash bond plus they need to deposit PHP 333 million ($6.39 million) in order to stay in business. Also, the federal government requires them to pay additional PHP 390 million ($7.47 million) for the receipts.
All of this is based on the government’s calculation of Red Subay Gaming Corp’s operations. They based this off a PHP2.5 peso expectation, multiplied by the province’s registered voters.
Duron says that this calculation makes no sense. He said that Davao, a province similar to Iloilo (where Red Subay Group operates) has much smaller fees to pay.
It looks like that Davao, the home province of the President Rodrigo Duterte, is getting special treatment while Iloilo and Red Subay Gaming Corp will suffer in return. Duron explains that 2,000 employees will end up on the street if Red Subay Group is forced to close their business.
Many people and observers suspect that government’s “attack” on Red Subay Group is just a government’s ploy to close the operators out of favor to replace them with some “friendlier” establishment.