Pagcor awaits final ruling on P33-B remittance to PSC

MANILA, Philippines — The Philippine Amusement and Gaming Corp. (Pagcor) said it was awaiting the final disposition of the Supreme Court (SC) on a case requiring it to remit a portion of its income to fund the Philippine Sports Commission (PSC), which is pegged at around P33 billion.

During the House appropriations committee hearing for the agency’s 2026 budget on Wednesday, Pagcor Chair Al Tengco said the gaming corporation has already filed a motion for reconsideration appealing the court’s February 2024 ruling compelling the agency, the Philippine Charity Sweepstakes Office and the Office of the President to remit funds to the PSC as mandated by Republic Act No. 6847. The ruling stems from a 1993 case filed by then House lawmaker Josseler Guiao who said the three agencies’ noncompliance with the law caused lack of funding for sports development programs. READ: SC orders PCSO, Pagcor to remit some earnings to fund PSC Tengco said Pagcor was still contesting the computation for the remitted funds. If the ruling is upheld, the agency would be compelled to remit five percent of its gross income since the case was filed – or “around P33 billion more or less as of December 2024,” he said. “So I understand where you are coming from but this would really have a huge impact on us especially now that there are demands to ban online gaming,” he told appropriations panel chair and Nueva Ecija Rep. Mikaela Suansing. “The Pagcor would not have the capacity to pay its debts.” “I just want to make it clear, however, that we have never lapsed in our remittances to PSC. We’re just contesting the interpretation,” he added. Based on its appeal, Pagcor believes that the commission was not entitled to the full 5 percent of the agency’s gross income and that the PSC’s share was still subject to deductions for the payment of 5% franchise tax, 50% share of the national government, and 10% subsidy to the National Power Corporation. “So for me, I will face the music when the decision is final and executory, but in the meantime, rest assured we continue to remit to the PSC based on how Pagcor interprets the law,” Tengco added. For 2024, Pagcor saw its income soar to around P111.72 billion, majority of which was allocated to nation-building and socio-civic projects, particularly the country’s universal health care program. Minus its operating expenses, this leaves Pagcor with a net income of P16.7 billion for 2024. Tengco and the agency so far are resistant to the idea of a total ban on online gaming, which constituted the bulk of its revenue for 2024 and even now for 2025.  /mr

TAGS: Pagcor, PSC