Pagcor Awaits Supreme Court Decision on P33B Remittance
The Philippine Amusement and Gaming Corporation (Pagcor) is currently awaiting the final Supreme Court ruling regarding the remittance of approximately P33 billion to the Philippine Sports Commission (PSC). This amount represents a mandated portion of Pagcor’s income intended to support sports development programs nationwide.
During a recent House appropriations committee hearing on the agency’s 2026 budget, Pagcor Chair Al Tengco revealed that the corporation has filed a motion for reconsideration. This appeal challenges the February 2024 Supreme Court ruling that ordered Pagcor, alongside the Philippine Charity Sweepstakes Office and the Office of the President, to remit funds to the PSC under Republic Act No. 6847.
Background of the Supreme Court Case
The case dates back to 1993, when then House lawmaker Josseler Guiao filed a petition citing the three agencies’ failure to comply with the law. This noncompliance allegedly resulted in insufficient funding for the country’s sports development initiatives.
Pagcor is contesting not only the ruling itself but also the calculations related to the remittance amount. If the Supreme Court upholds the decision, Pagcor will be required to remit five percent of its gross income since the case was filed—estimated to be around P33 billion as of December 2024.
Pagcor’s Financial Concerns and Legal Standpoint
“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,” Tengco told the appropriations panel chair, Nueva Ecija Representative Mikaela Suansing. He warned that such obligations could severely limit Pagcor’s ability to pay its debts.
Despite this, Tengco emphasized, “I just want to make it clear, however, that we have never lapsed in our remittances to PSC. We’re just contesting the interpretation.”
Pagcor’s appeal argues that the PSC should not receive the full five percent of gross income. The agency maintains that this share should be adjusted by deductions for a five percent franchise tax, a 50 percent share allocated to the national government, and a 10 percent 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.
Pagcor’s Financial Performance and Online Gaming Concerns
For 2024, Pagcor expects its income to reach around P111.72 billion. A significant portion of these funds supports nation-building and socio-civic projects, notably the country’s universal health care program.
After deducting operating expenses, Pagcor projects a net income of P16.7 billion for the year. Despite pressures, the agency remains opposed to a total ban on online gaming, which continues to be a major revenue source for both 2024 and 2025.
Officials and community members closely watch the Supreme Court’s final ruling, understanding its potential impact on Pagcor’s financial stability and contributions to national programs.
For more news and updates on Philippine Amusement and Gaming Corporation, visit Filipinokami.com.
