The Philippines’ Bureau of Internal Revenue has confirmed that casino jackpot prizes and other gambling winnings are subject to final withholding tax under existing rules. The clarification was issued through Revenue Memorandum Circular No. 57-2026. It answers questions on whether fixed and progressive jackpots are taxable winnings.
BIR defines jackpot winnings
The circular covers jackpot prizes and similar winnings received by individuals from casino gaming and other gambling activities. It applies to both Filipino citizens and foreign players when the winnings fall under Philippine tax rules.
BIR also defined progressive jackpot prizes. These are jackpots that increase as more bets are placed across linked tables, electronic gaming machines or bingo games until a player wins. That definition is important for casino operators because progressive jackpots can be pooled across several games or machines. The circular makes clear that those prizes still fall under the term “winnings.”
Tax applies above threshold
Casino jackpot winnings above PHP10,000 are subject to 20% final withholding tax. Operators are required to withhold and pay the tax to BIR under existing revenue rules.
PAGCOR’s casino regulatory manual also requires licensed land-based casinos to withhold final tax on jackpot prizes from electronic gaming machines when winnings exceed PHP10,000. Licensees may choose to shoulder the tax, but payment must still follow BIR rules.
The clarification means winners should expect tax to be deducted before payout unless the operator shoulders the amount. Operators must also keep records showing that required tax has been withheld and paid.
Casino sector faces wider tax focus
The clarification comes as the Philippines continues to tighten oversight of gambling revenue. PAGCOR-licensed operators already pay taxes and regulatory fees, while electronic gaming has become a larger part of the market.
The government has also been reviewing how online gambling growth affects public revenue, consumer protection and responsible gambling. Recent policy discussions have included tighter rules on player incentives, advertising and access to e-games.
Operators must document jackpot payouts
Casino operators must keep payout and withholding records for jackpot prizes covered by the tax rule.
Those records help show whether the correct amount was deducted and paid to BIR.
The requirement is especially relevant for progressive jackpots, where prize pools can build across linked machines or games. Clear records help operators separate jackpot payouts from other casino transactions.
