Legal fight brewing between PCSO, STL operator over canceled license

A bettor places his bets with Diamond Millenium Corporation STL outlet in Cagayan de Oro City. | PHOTO: Bobby Lagsa/Inquirer Mindanao

CAGAYAN DE ORO CITY — A local operator of small-town lottery (STL) outlets in this city and Misamis Oriental province has fought back against the Philippine Charity Sweepstakes Office (PCSO) which cancelled its license last year.

PCSO general manager Melquiades Robles cancelled the authority to operate of Diamond Millenium Corporation (DMC) in July 13 last year saying the company failed to inform it about a change of its stockholders.

Two weeks after the cancellation, PCSO began accepting applicants for STL operator in the city and Misamis Oriental, and awarded Hexaprime, Inc. as its sole authorized agent by Oct. 2023.

DMC legal counsel Katrina Mordeno denied that the company kept the PCSO in the dark about having a new stockholder as this change was communicated back in 2019. Hence it launched a legal challenge against the PCSO.

Last Jan. 8, DMC secured a status quo ante order from the Supreme Court which, according to Mordeno, sets back the legal situation prior to Robles’ July 13, 2023 cancellation order.

READ: Run after STL operators in P5-B shortfall, PCSO told

The high court’s order reverses the PCSO’s termination of DMC’s authority to operate STL outlets, explained Mordeno.

It also enjoined Robles and other PCSO officials from implementing the termination letter.

On the basis of the Jan. 8 court order, DMC reopened its 40 outlets. However, its tellers were being arrested starting on Jan. 18 by police for supposedly operating an illegal numbers game.

Mordeno called the arrests illegal as the Supreme Court order allowed the operations of DMC.

She said the police regional office, no less, was already furnished a copy of the Jan. 8 order of the high court hence she is confident the law enforcers will respect and follow it.