by: Mickey Ingles (originally posted on Spin.ph)

YENG Guiao is one of the winningest coaches in the basketball court.

He’s also 1-0 in the Supreme Court. And his latest win is a big victory for Philippine athletes that will have wide repercussions in the battle for government funding moving forward.

In Joseller M. Guiao v. PAGCOR, PSCO, and the Office of the President (G.R. No. 223845, 28 May 2024), Coach Yeng faced an uphill 1-on-2 battle against government giants, the Philippine Amusement Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) and beat them convincingly.

Way back in 2016, while Coach Yeng served as a member of Congress, he filed a petition with the Supreme Court questioning why PAGCOR had not been remitting 5% of its gross income to the Philippine Sports Commission (PSC) for the National Sports Development Fund (NSDF). By way of background, Section 26 of the Philippine Sports Commission Act (Republic Act No. 6847) mandated this 5% remittance to improve funding for Philippine sports.

As proof, Coach Yeng showed two mid-1990s Memoranda from PAGCOR that allowed PAGCOR to remit just a little over 2% of its earnings to PSC — well below the 5% requirement under the law. Then President Fidel V. Ramos approved these Memoranda.

Coach Yeng also questioned why PCSO was not remitting its own mandated share to the PSC. Under the same Section 26, the PSC was supposed to receive 30% representing the charity fund of the proceeds of six sweepstakes of lottery draws per year from the PCSO.

In its defense, PAGCOR argued that it did not have to remit the entire 5% of its gross income. Instead, it argued that any remittance to the PSC was subject to deductions for the payment of PAGCOR’s 5% franchise tax and the 50% share of the national government. 

PCSO claimed that its remittances to the PSC should only be sourced from sweepstakes draws and not from other PCSO lottery games. PCSO went the route of semantics and claimed that its lotto games did not fall within the definition of “lottery draws” under Section 26.

The Supreme Court dispensed these arguments as easily as a Luka Dončić stepback trey.

It found that the PAGCOR’s obligation was to remit the entire 5% of its gross income to the PSC, as the law made no qualifications or deductions as to the amount — contrary to PAGCOR’s arguments.

It also ruled against PCSO. The Supreme Court stated that the three legal elements of what a lottery is — consideration, prize, and chance — applied squarely to PCSO lotto draws and games Hence, PCSO lotto games and any other future games that fall within the definition of “lottery” will be subject to contributions to the PSC and the NSDF.

PAGCOR was ordered to account and remit the full amount of 5% of its gross income per year from 1993 up to the present.

PCSO was ordered to account and remit to the PSC the 30% representing the charity fund of the proceeds of six sweepstakes or lottery draws 

Supreme Court’s reminder to PSC

While PAGCOR and PCSO were at the receiving end of the loss, the Supreme Court also had a strong reminder for the PSC. Noting that it was the PSC — and not Coach Yeng —that should have filed the case, the Supreme Court said that the PSC had “turned a blind eye to its own mandate and has instead allowed PAGCOR and PCSO to remit however which way they desire, despite the words in the law.” The Supreme Court even went on to say that it “will not sit idly by as the PSC sleeps on its rights and duties” because in the end, it is the “Filipino athletes and youth that lose the most.”

While it had reminded PSC of its mandate, the Court also recognized that the PSC could not be expected to fulfill its duties without the proper funding — hence, the need to resolve Coach Yeng’s petition against PAGCOR and PCSO.

We all know Coach Yeng is adept at winning on the court, but this win — in the highest Court of the land — hits different. And the timing couldn’t be better. In the afterglow of our successful Paris 2024 campaign, sports funding — or the lack of it — has made its way to the headlines again.

The Supreme Court echoed this concern for sports funding in the final words of its decision, putting into legal jurisprudence the words that all Filipino sports fans have been saying on social media, family gatherings, and sports bars. It said, “funding directly affects the advancement of the nation’s sports programs, our athletes’ ability to progress in the international forum, and the development of our youth.”

While this is Coach Yeng’s biggest win yet, it can’t be denied that it’s also a gold medal for Philippine sports moving forward. 

Salamat, Coach Yeng!

Mickey Ingles is the editor-in-chief of Batas Sportiva.