In a landmark decision, the Philippine Supreme Court has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) to remit 30 years’ worth of payments to the Philippine Sports Commission. This ruling, made public on Thursday, August 22, mandates that PAGCOR must “remit the full amount of 5 percent of its gross income per annum, after deduction of its 5 percent franchise tax, from 1993 to [the] present in favour of the Philippine Sports Commission.”

Philippine Supreme Court Rules on PAGCOR’s dues:

The court’s decision highlights the longstanding financial obligation PAGCOR owes to the sports commission, which had been neglected for decades. The ruling is a significant development in the ongoing efforts to secure proper funding for the country’s sports programs, which have long been underfunded and overlooked.

PAGCOR, the national casino regulator, has reported substantial earnings from its gaming operations in recent years. In the first half of 2024, PAGCOR’s total income exceeded PHP51.76 billion (approximately US$921.7 million), with a net income of nearly PHP6.57 billion, marking a 121.5 percent increase from the previous year. Despite these robust financial figures, PAGCOR has been required by the court to ensure that a portion of its earnings, specifically 5 percent of its gross income after the franchise tax, is allocated to the Philippine Sports Commission.

The Philippine Charity Sweepstakes Office, another government body, was also implicated in the ruling, being ordered to make similar payments to the sports commission for the years 2006 to the present. This broadens the scope of the ruling and emphasizes the court’s commitment to rectifying financial neglect in the sports sector.

Contentions and compliance:

PAGCOR had previously contested the obligation, arguing that the sports commission was not entitled to the full 5 percent share. The gaming regulator claimed that after accounting for the 5 percent franchise tax, a 50 percent share to the national government, and a 10 percent subsidy to the National Power Corporation, the sports commission would only be entitled to a residue of 2.1375 percent of PAGCOR’s gross income. However, the Supreme Court dismissed this argument, reaffirming the sports commission’s right to the full 5 percent share.

As GGRAsia reports, the petition that led to this ruling was filed by Josseler Guiao, a former member of the House of Representatives and of its Committee on Youth and Sports Development. His efforts have culminated in a decision that could significantly enhance the financial resources available to the Philippine Sports Commission, enabling it to better support athletes and sports programs across the country.

This ruling also comes in the wake of the Philippines’ performance at the Paris 2024 Olympic Games, where the nation secured two gold and two bronze medals, tying with Hong Kong in the medal standings. This achievement has been hailed as a record haul for the Philippines, underscoring the importance of sustained financial support for the country’s athletes.