SC tells PAGCOR to pay 30 years worth of payments to PSC

The country’s Supreme Court has ordered the Philippine Amusement and Gaming Corp (PAGCOR) to make 30 years worth of payments to the Philippine Sports Commission.

A ruling made public on Thursday on the court’s website stated that PAGCOR must remit “the full amount of 5 percent of its gross income per annum, after deducting its 5 percent franchise tax, from 1993 to the present” in favor of the Philippine Sports Commission.

In the first half of this year, PAGCOR reported a total income of just over PHP51.76 billion, mostly from gaming operations. The regulator also reported a net income of just under PHP6.57 billion for the first six months of 2024, reflecting a 121.5 percent increase from the previous year.

The ruling also ordered another body, the Philippine Charity Sweepstakes Office, to make payments to the sports commission “for the years 2006 to the present.”

The petition was brought by Josseler Guiao, a former member of the House of Representatives and its Committee on Youth and Sports Development. The Supreme Court ruling noted that the sports commission had been “neglected for decades.”

According to the judgment, PAGCOR had argued that the sports commission was not entitled to the full 5 percent. The gaming regulator contended that the share claimed by the sports commission should be subject to deductions for the payment by PAGCOR of not only the 5 percent franchise tax from its gross income but also a 50 percent share to the national government and a 10 percent subsidy to the National Power Corporation. PAGCOR stated that this would leave a residue of 2.1375 percent payable to the sports commission.

In the Paris 2024 Olympic Games, the Philippines tied with Hong Kong in 37th place in the medal standings, securing two golds and two bronze medals—a record haul for the Philippines. Philippine athletes really need the funding and support in order to compete better in the international level.

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