The Philippine Sports Commission (PSC) is set to receive a substantial increase in monthly remittances from the Philippine Amusement and Gaming Corporation (PAGCOR), following the Supreme Court’s final ruling reinstating the full 5% share mandated under Republic Act 6847. As reported by The Philippine Star, the first adjusted remittance is expected to arrive within days.
Since 1993, PAGCOR’s allocation to the PSC had been reduced to 2.1375% through an Executive Order. In 2016, former congressman Yeng Guiao petitioned to restore the original 5%, and the Supreme Court ruled in his favour last year. The decision not only reinstates the mandated rate but also requires PAGCOR to pay back arrears dating back more than three decades.
PSC chairman Patrick Gregorio confirmed that he has met with PAGCOR chairman and CEO Al Tengco to discuss the payment mechanics. PAGCOR’s overdue remittances are estimated at PHP 37bn, which the Court ordered to be settled in equal instalments over 10 years. This will translate into an additional PHP 3.7bn annually for the PSC.
Last year, PAGCOR remitted roughly PHP 180m a month. Based on its gross earnings of PHP 106bn, the PSC should have received closer to PHP 440m monthly under the proper 5% allocation.
The Supreme Court also directed the Philippine Charity Sweepstakes Office (PCSO) to remit 30% of earnings from six sweepstakes starting 2006. PCSO remitted PHP 1.49m to the PSC last year, though the figure is now under review to determine compliance with the law and calculate arrears.
Gregorio said the restored funding stream will significantly enhance national sports development, including facility upgrades at Rizal, PhilSports and Baguio, expanded athlete benefits and new sports tourism initiatives. “The PAGCOR funds will transform our best dreams for Philippine sports and tourism into reality,” he said.
The ruling stems from a petition filed in 2016 by former Representative Yeng Guiao
