Supreme Court to PAGCOR, PCSO: Remit funds to Philippine Sports Commission

MANILA, Philippines — The Supreme Court ordered gaming regulator PAGCOR and the Philippine Charity Sweepstakes Office (PCSO) to give a portion of their income to fund the Philippine Sports Commission.

The highest court of the land ruled on a petition for mandamus filed by former lawmaker Josseler Guiao in 2016, which would compel PAGCOR, PCSO and the Office of the President to remit funds to the PSC, as mandated by the Republic Act 6847 or the "The Philippine Sports Commission Act."   

In a decision released on Thursday evening, the high court ruled in favor of Guiao. 

“The Philippine Amusement and Gaming Corporation is ordered to account and remit the full amount of 5% of its gross income per annum, after deduction of its 5% franchise tax, from 1993 to present in favor of the Philippine Sports Commission,” the decision penned by Senior Associate Justice Marvic Leonen read. 

“Respondent Philippine Charity Sweepstakes Office is ordered to account and remit to the Philippine Sports Commission the 30% representing the charity fund of the proceeds of six sweepstakes or lottery draw per annum, including its lotto draws, for the years 2006 to present,” the decision added. 

Guiao accused PAGCOR of not complying with the law’s funding requirements. Section 26 states that a portion of the PCSO’s draws, as well as the PAGCOR’s income, would go to supporting athletes in international competitions like the Asian Games, the Southeast Asian Games and the Olympics.

The PAGCOR argued, however, that the sports commission is not entitled to the full 5%, since this share is subject to deductions for the payment of 5% franchise tax, 50% share of the national government, and 10% subsidy to the National Power Corporation.     

The PCSO, meanwhile, argued that the commission's allocations come from sweepstakes draws, not lotto games.  

However, the Supreme Court found that the sports commission has been “neglected for decades.” 

“Without the necessary and sufficient funding for the Commission, one cannot expect it to efficiently fulfill its functions. Moreover, with insufficient funds, the entire existence of the Commission is made futile and its role in sports development and