Philippine Supreme Court orders PAGCOR and PCSO to release long-delayed sports funding

Final ruling reinforces statutory revenue-sharing obligations and clarifies remittance rules for state-run gaming operators.

The Philippines.- The Philippine Supreme Court has issued a final and executory ruling directing the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) to fully comply with their statutory obligations to fund the Philippine Sports Commission (PSC), ending a legal dispute that has spanned more than a decade.

The High Court denied motions for reconsideration filed by both state-run gaming agencies and affirmed that funding for the PSC is mandatory under the Constitution and Republic Act No. 6847, the law that established the commission. The ruling requires PAGCOR and PCSO to submit a full accounting of past remittances and outstanding balances and to release funds that have been delayed for years.

Under the decision, PAGCOR must remit five per cent of its gross income from 1993 onward. The Court rejected arguments that the obligation should apply only prospectively, stating that the statute clearly defines the remittance base and does not allow deductions before computation. The justices also noted that PAGCOR had previously supported an incorrect interpretation of the law, weakening claims of good faith.

PCSO, meanwhile, is required to remit 30 per cent of the net proceeds from six sweepstakes or lottery draws per year, including lotto operations, covering the period from 2006 to the present. The Court dismissed PCSO’s position that lotto revenues should be excluded, ruling that the law does not distinguish between sweepstakes and lottery draws in a way that would justify such an exemption.

While acknowledging that accumulated obligations could be substantial, the Supreme Court allowed for the possibility that any arrears may be settled over a period of up to ten years. Estimates cited in local media suggest that full implementation of the ruling could result in up to PHP25bn (US$420m) being released to the PSC.

The Court emphasised the role of the PSC in supporting athlete development, grassroots programmes, and international competition, and underscored that state gaming agencies cannot decline legally mandated remittances based on administrative or financial concerns.

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Final ruling reinforces statutory revenue-sharing obligations and clarifies remittance rules for state-run gaming operators. The Philippines.- The Philippine Supreme Court has issued a final and executory ruling directing the Philippine…