The first monthly remittance of 5 percent of gross revenue from the Philippine Amusement and Gaming Corporation (PAGCOR) to the Philippine Sports Commission (PSC) is expected in the coming days, following a final ruling by the Supreme Court of the Philippines, according to local media outlet Philstar.
The payment marks the start of PAGCOR’s settlement of overdue remittances totaling PHP37 billion ($633 million), which the court ordered to be paid over 10 years. Under the ruling, PAGCOR is required to remit approximately PHP3.7 billion ($63.3 million) annually if paid in equal installments.
The report also indicated that the Philippine Charity Sweepstakes Office (PCSO) remitted PHP1.49 million ($25,500) to the PSC last year, though the figure remains under review. Authorities are also assessing potential back payments dating to 2006 to ensure compliance with legal requirements.
The ruling enforces Republic Act No. 6847 of 1990, which mandates PAGCOR remit 5 percent of its gross revenue to the PSC. The allocation was reduced to about 2.13 percent in 1993 through an executive order. In 2016, then-Representative Yeng Guiao filed a petition seeking to restore the original rate, which the court upheld last year.
In addition to reinstating the 5 percent allocation, the court ordered PAGCOR to pay back under-remitted funds dating to 1993. It also directed the PCSO to remit 30 percent of gross earnings from six sweepstakes starting in 2006.
PSC Chairman Patrick Gregorio said he has met with PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco to finalize payment terms. He added that discussions with the PCSO are ongoing to reconcile outstanding obligations.
Last year, PAGCOR reported gross earnings of PHP106 billion ($1.81 billion). The PSC received PHP2.26 billion ($41 million), while PHP95.08 million ($1.71 million) was allocated as cash incentives for athletes and coaches who won in international competitions.
This indicates that PAGCOR remitted an average of about PHP188 million ($3.22 million) per month to the PSC. Under the restored rate, the monthly contribution should have been around PHP440 million ($7.53 million).
Gregorio said the additional funding will support facility upgrades in Rizal, PhilSports, and Baguio, enhance athlete benefits, and promote sports tourism. “The PAGCOR funds will transform our best dreams for Philippine sports and tourism into reality,” he said.
PAGCOR reported total contributions to nation-building of PHP66.95 billion ($1.21 billion) last year. Of this, PHP45.19 billion ($813 million) went to the National Treasury as the government’s 50 percent share, including PAGCOR’s annual PHP60 million ($1.08 million) contribution to the Dangerous Drugs Board.
PAGCOR also remitted PHP4.76 billion ($86 million) in franchise taxes and PHP907 million ($16 million) in corporate income taxes to the Bureau of Internal Revenue.
