The Supreme Court has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) to pay the Philippine Sports Commission (PSC) three decades’ worth of remittances. The court made the decision public on Thursday through its official website.
According to the ruling, PAGCOR must remit the full amount of 5 percent of its gross income per year. This applies after deducting its 5 percent franchise tax. The ruling covers the years from 1993 up to the present.
The directive directly benefits the PSC. The agency had long sought proper funding to support national athletes and sports programs.
The Supreme Court’s judgment emphasized that the Philippine Sports Commission had been “neglected for decades.” Consequently, the court not only ruled in favor of the PSC. It also reinforced the need for immediate and consistent financial support for sports development in the country.
In a separate directive, the court also ordered the Philippine Charity Sweepstakes Office (PCSO) to remit its corresponding dues to the sports commission. These payments should cover the years 2006 to the present.
The case stemmed from a petition filed by former lawmaker Josseler “Yeng” Guiao. He served as a member of the House of Representatives and its Committee on Youth and Sports Development. Guiao pushed for accountability from both PAGCOR and PCSO regarding their obligations to the PSC.
During the proceedings, PAGCOR claimed that the PSC was not entitled to the full 5 percent share. The agency argued that it had to deduct not only the 5 percent franchise tax. It also cited a 50 percent share to the national government and a 10 percent subsidy to the National Power Corporation.
PAGCOR insisted that after these deductions, only 2.1375 percent of its gross income remained payable to the PSC.
However, the Supreme Court rejected this interpretation. The justices maintained that the law clearly entitled the PSC to 5 percent of PAGCOR’s gross income annually. This applies after the franchise tax.
This clarification now obligates PAGCOR to release long-overdue funds. The ruling could significantly boost support for Filipino athletes.
In the first half of 2024, PAGCOR reported over PHP51.76 billion in total income. The majority of this revenue came from its gaming operations.
It also recorded a net income of PHP6.57 billion. This marked a 121.5 percent increase compared to the previous year.
Meanwhile, the Philippines achieved a record performance in the Paris 2024 Olympic Games. Filipino athletes tied with Hong Kong at 37th place in the medal tally.
They brought home two golds and two bronze medals. This marks a historic haul for the country.
This success highlights the increasing potential of Filipino athletes. It also underscores the importance of sufficient government funding.
Moving forward, this ruling could set a precedent for how gaming revenues support national sports development. With stronger financial backing, Filipino athletes stand a better chance of excelling on the world stage.
