Casino Jackpot Taxes in the Philippines

News hook: In May 2026, the Bureau of Internal Revenue issued Revenue Memorandum Circular No. 57-2026, formally clarifying that casino jackpot prizes and other gambling winnings are subject to final withholding tax — and that PAGCOR-licensed gaming operators act as withholding agents responsible for remitting the tax directly to the BIR before the prize is released to the winner.

Legal question

Are casino jackpots and gambling winnings taxable in the Philippines, who withholds the tax, at what rate, and does the winner need to do anything further?

Applicable laws and rules

Republic Act No. 8424 (National Internal Revenue Code of 1997 / Tax Reform Act), as amended — Section 24(B)(1): 20% final tax on prizes exceeding ₱10,000 and other winnings from Philippine sources
BIR Revenue Memorandum Circular No. 57-2026 — clarifies tax treatment of casino jackpots and gambling winnings; rates for resident and non-resident alien winners; gaming operators as withholding agents
NIRC Section 57 and related BIR regulations on withholding at source and remittance deadlines

Why this matters

Many casino winners assume a large payout is entirely theirs to keep. The NIRC has taxed prizes and winnings for decades, but the specific application to casino jackpots was not always clearly communicated at the point of payout. RMC 57-2026 changes that: it places the obligation squarely on the casino or gaming operator to withhold and remit the tax before the winner walks away with their prize. A winner who does not understand this risks either being surprised by a deduction they did not expect, or — if a gaming operator fails to withhold — potentially being pursued by the BIR for the unpaid tax later.

The legal frame

Under Section 24(B)(1) of the NIRC, prizes exceeding ₱10,000 and other winnings derived from sources within the Philippines are subject to a final tax of 20% for resident citizens and resident aliens. The tax is "final" — meaning it fully discharges the winner's income tax obligation on that amount; the winner does not need to include the winnings in their annual income tax return. Prizes of ₱10,000 or less are taxed as ordinary income at graduated rates instead.

RMC 57-2026 clarifies the rate structure for casino winnings specifically: 20% for resident individuals and domestic corporations; 25% for non-resident aliens not engaged in trade or business (NRA-NETB). The tax is computed on the gross amount of the jackpot or prize before any deductions. PAGCOR-licensed casino operators and other gaming establishments are designated as withholding agents — they must withhold the applicable tax from the gross prize at the time of payout and remit it to the BIR within the statutory deadline. Critically, Philippine Charity Sweepstakes Office (PCSO) winnings and Philippine Amusement and Gaming Corporation (PAGCOR) lotto winnings remain exempt from income tax under the NIRC; this exemption does not extend to private casino jackpots.

What winners should keep

Always request a Certificate of Final Tax Withheld at Source (BIR Form 2306) from the casino when you claim a prize. This document proves that the tax was already withheld, protects you if the BIR later audits the payout, and serves as proof of your net receipt. Keep also the payout slip or winner's certificate from the casino, a copy of your valid ID used for the claim, and any other document the operator requires you to sign. If the casino releases the full gross amount without withholding — which would be a compliance failure on their part — ask for written confirmation, and consult a tax professional about your own reporting obligations before filing your annual income tax return.

Ask PHLaw.AI

Try: "I won a jackpot at a PAGCOR-licensed casino. The cashier said tax was already deducted. What document should I ask for and do I still need to report this in my tax return?"

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