PAGCOR and PCSO ordered to fund Philippine Sports Commission

The Supreme Court found that sports has been “neglected for decades.”

The Philippines.- The Supreme Court has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) to allocate a portion of their income to support the Philippine Sports Commission as mandated by the Republic Act 6847, also known as The Philippine Sports Commission Act.

The decision follows a 2016 petition filed by former lawmaker Josseler Guiao, who said PAGCOR and PCSO were not complying with the law’s funding provisions for sports development. The court has directed PAGCOR to provide 5 per cent of its annual gross income, minus franchise tax, dating back to 1993. The PCSO is required to remit 30 per cent of the charity funds generated from lottery draws since 2006.

PAGCOR had claimed that the commission should not receive the full 5 per cent share due to deductions for the payment of a 5 per cent franchise tax, a 50 per cent share to the national government and a 10 per cent subsidy to the National Power Corporation. The PCSO argued that the commission’s allocations come from sweepstakes draws, not lotto games.

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