The Philippine gaming regulator is preparing to reopen a funding stream it scaled back decades ago. The Philippine Amusement and Gaming Corporation (PAGCOR) will resume a monthly remittance equal to 5% of its gross revenue to the Philippine Sports Commission (PSC). This follows a final ruling by the Supreme Court of the Philippines.
The decision restores a long-standing statutory requirement and forces PAGCOR to make significant catch-up payments after years of reduced transfers.
PHP 37 Billion in Arrears to Be Paid Over 10 Years
According to reports, unpaid and underpaid remittances total approximately PHP 37 billion (around US$633 million). The Supreme Court has ordered these arrears to be settled over a 10-year period. As a result, there will be a substantial, recurring financial obligation for PAGCOR.
Spread evenly, the repayments would amount to roughly PHP 3.7 billion per year, or about US$63.3 million annually. This is in addition to ongoing current-year remittances.
1990 Law Reinstated After Executive Order Rolled Back
The remittance requirement originates from Republic Act No. 6847, passed in 1990. This law mandates that PAGCOR remit 5% of its gross revenue to the PSC.
However, an executive order in the 1990s effectively reduced the remittance rate. The Supreme Court has now overturned that reduction. As a result, the Court has fully restored the 5% mandate and ordered retroactive payments dating back to 1993.
PAGCOR and PSC Finalising Payment Structure
Philippine Sports Commission chairman Patrick Gregorio confirmed that discussions are underway with PAGCOR chairman and CEO Alejandro H. Tengco to finalise the structure of the payments.
While the legal obligation is now settled, the focus has shifted to implementation. This includes payment schedules, documentation, and monthly transfer mechanisms. These steps will ensure the remittances are consistent and enforceable.
Wider Impact Includes PCSO and Sports Funding
The ruling also affects the Philippine Charity Sweepstakes Office (PCSO), with authorities reviewing potential back payments tied to lottery and sweepstakes revenues.
PAGCOR reported gross earnings of PHP 106 billion (about US$1.81 billion) last year. Under a strict 5% rule, this would imply annual remittances of around PHP 5.3 billion. By comparison, the PSC reportedly received PHP 2.26 billion last year. This highlights the scale of the funding gap now being corrected.
PSC officials say the increased funding will support facility upgrades, athlete benefits, and sports tourism initiatives. This will position gambling-linked revenue as a key driver of national sports development.
