SC to PAGCOR, PCSO: Remit funds to PH Sports Commission 

The Supreme Court (SC) has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PSCO) to remit a portion of their income to fund the Philippine Sports Commission (PSC). 

The SC En Banc granted the petition for mandamus filed by former lawmaker and basketball commissioner Joseller “Yeng” Guiao compelling the PAGCOR and the PSCO to remit funds to the PSC as provided by the Republic Act No. 6847 or the law creating the PSC. 

“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,” according to the 24-page decision promulgated in May 2028, but was made public on August 22. 

“Moreover, 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,” it added. 

The petition stemmed from Guiao’s argument that the government agencies involved “grossly violated their duty to implement the law, thereby causing a lack of funding for sports development projects.” 

However, PAGCOR responded that the PSC is not entitled to the full 5% of its gross income as the commission’s share is still subject to deductions for the payment of 5% franchise tax and 50% share of the national government. 

Meanwhile, the PSCO claimed that the PSC’s allocation would be sourced from the sweepstakes draws, and not from its other lottery games. 

The SC, however, ruled that both the PAGCOR and the PSCO violated Section 26 of RA No. 6847 which provides that to finance the country’s sports programs, “thirty percent (30%) representing the charity fund and proceeds of six (6) sweepstakes of lottery draws per annum, taxes on horse races during special holidays, five percent (5%) of the gross income of the Philippine Amusement and Gaming Corporation….shall be automatically remitted directly to the Commission.” 

“The Philippine Sports Commission’s funding directly affects the advancement of the nation’s sports programs, our athletes’ ability to progress in the international forum, and the development of our youth,” the SC said. “Given the significant role of sports in nation-building, the petitioner's direct resort to this Court through this instant Petition for Mandamus is justified.” 

GMA News Online has reached out to PAGCOR and PCSO for comments. —LDF, GMA Integrated News