THE CONTENTIOUS interpretation on how much the Philippine Amusement and Gaming Corporation (Pagcor) must remit to the Philippine Sports Commission under the law has finally been settled.
The Supreme Court decision penned by Senior Associate Justice Marvic Leonen ordered Pagcor to remit the full amount of five percent of gross income to the PSC from 1993 to the present, as indicated in Section 26 of the PSC Law under Republic Act 6847.
The landmark SC ruling was in response to a petition filed by then-Pampanga First District Rep. Yeng Guiao back in 2016 for Pagcor to remit the proper amount as interpreted in Section 26 of the PSC Law or Republic Act 6847.
READ Yeng Guiao petitions Supreme Court to order Pagcor to remit proper contribution to PSC
“Long overdue justice for our athletes and sports grassroots programs,” said the multi-titled coach on Thursday in a statement issued to SPIN.ph.
The SC also ordered the Philippine Charity Sweepstakes Office to account and remit 30 percent of the charity fund of the proceeds of six sweepstakes or lottery draw per annum, as also indicated in Republic Act 6847, from 2006 to present.
Guiao was the lone petitioner in the case.
For years, Pagcor interpreted the law that created the PSC differently, remitting five percent of its net income (or 2.5 percent of its gross income) to the government sports agency, citing a Pagcor memorandum dated November 5, 1993 and February 20, 1995.
The memorandum has been declared void by Supreme Court as part of the order.
As per RA 6847 that created the PSC Act of 1990, PAGCOR is mandated to remit five percent of its gross income to the government sports agency, while PCSO is supposed to remit 30 percent of earnings from six sweepstakes or lottery draws per annum.
But beginning 1993, PAGCOR has unilaterally brought down its contribution to just 2.1375 percent of its gross income, on the strength of an executive order from the Office of the President handed down during the time of President Ramos.
In a press statement, the Supreme Court said the remittance required under RA 6847 is unqualified, as the law does not state that the allocation to PSC is subject to deductions.
As for the PCSO, the Supreme Court said "that 'lottery' has three elements: consideration, prize, and chance. Based on this definition, lottery as stated in the law covers the lotto draws conducted by the PCSO."
Multi-billion boost to PSC
Following the SC ruling, the PSC is now entitled to receive double the amount it has been receiving from Pagcor since 1993, which could amount to billions of pesos for sports development.
Back in 2016, Guiao already estimated the back remittances from 2010 to 2015 to reach P4 billion.
In January of 2023 alone, the PSC received P256.38 million from Pagcor representing its share in its income for the months of November 2022 worth P124.45 million, and December 2022 worth P131.93 million.
The figures are based on a statement issued by Pagcor to the media.
Get more of the latest sports news & updates on SPIN.ph
NOTICE ON UNAUTHORIZED AND UNLAWFUL USE, PUBLICATION, AND/OR DISSEMINATION OF SPIN.PH CONTENT: Please be notified that any unauthorized and unlawful use, publication, and/or dissemination of Spin.ph’s content and/or materials is a direct violation of its legal and exclusive rights to the same, and shall be subject to appropriate legal action/s.
