The Supreme Court has ordered the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) to remit a portion of their income for the funding of the Philippine Sports Commission (PSC). 

In a decision promulgated on May 28, 2024, the en banc granted the petition for mandamus filed by former congressman Josseler Guiao as the vice chairperson of the Committee on Youth and Sports Development to compel PAGCOR, PCSO and the Office of the President to remit funds to the PSC under Republic Act No. 6847, the law that created the PSC.

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Guiao claimed that PAGCOR failed to automatically remit of 5 percent of its gross income to the PSC for the National Sports Development Fund.

He also claimed that the PCSO failed to remit 30 percent representing the charity fund of the proceeds of six sweepstakes or lottery draws per year since 2006.

“Given the significant role of sports in nation-building, petitioner's direct resort to this court through this instant petition for mandamus is justified,” the SC said in the decision penned by Senior Associate Justice Marvic Leonen.

The high court noted that PAGCOR argued that the PSC is not entitled to the full five percent of PAGCOR’s gross income as PSC’s share is still subject to deductions for the payment of 5 percent franchise tax, 50 percent share of the national government, and 10 percent subsidy to the National Power Corporation.

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PCSO claimed that PSC’s allocations are sourced from sweepstakes draws, not from lotto games.

“Given both respondents' patent violations of Section 26 of Republic Act No. 6847 to the detriment of all athletes and even the youth of our country, this court finds it proper to grant the instant petition for mandamus,” the SC said.