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SC to PAGCOR, PCSO: Remit funds to PSC

By J.Lo

“Philippine Amusement and Gaming Corporation is ordered to account and remit full amount of 5% of its gross income per annum, after deduction of its 5% franchise tax, from 1993 to present in favor of  Philippine Sports Commission,”  decision penned by Senior Associate Justice Marvic Leonen read  Supreme Court ordered gaming regulator PAGCOR and Philippine Charity Sweepstakes Office (PCSO) to give  portion of their income to fund  Philippine Sports Commission.

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

In  decision high court ruled in favor of Guiao. 

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

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

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

PCSO, meanwhile, argued commission’s allocations come from sweepstakes draws, not lotto games.  

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

“Without necessary and sufficient funding for  Commission, one cannot expect it to efficiently fulfill its functions…moreover, with insufficient funds, entire existence of  Commission is made futile and its role in sports development and nation-building rendered nugatory,”  high court said in its decision. 

Ruling  comes amid calls for stronger support for Filipino athletes following  historic medal haul in  2024 Paris Olympics. Gymnast Carlos Yulo won two gold medals, while Aira Villegas and Nesthy Petecio won one bronze medal each in women’s boxing.

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