Your Complete Guide to Gambling Taxes in the Philippines
Gambling in the Philippines is a popular pastime, drawing local and international players to casinos, online platforms, and betting sites. However, while many are focused on winnings, the aspect of taxes on gambling earnings is an important consideration. Understanding how gambling taxes work in the Philippines ensures compliance with local laws and helps players manage their finances better.
Overview of Gambling in the Philippines
The Philippines has a well-regulated gambling industry overseen by the Philippine Amusement and Gaming Corporation (PAGCOR). It includes land-based casinos, sports betting, online casinos, and sweepstakes. With the growth of online gambling, particularly since the pandemic, the government has put in place more stringent measures to regulate the industry, ensuring tax compliance for operators and players alike.
Are Gambling Winnings Taxed?
In the Philippines, gambling winnings from legitimate and authorized sources are subject to taxation. While players may not always feel the impact of taxes immediately, it’s important to know how winnings are treated.
Winnings from PAGCOR-regulated games
PAGCOR oversees a significant portion of gambling activities in the country, and winnings from PAGCOR-regulated games, such as casinos and certain betting operations, are exempt from income tax. However, this exemption applies only to local players. Foreign players are subject to a 25% final withholding tax on their gambling winnings.
Winnings from Sweepstakes and Lotto
The Philippine Charity Sweepstakes Office (PCSO) operates national lotteries and sweepstakes. Winnings over ₱10,000 are subject to a 20% final withholding tax, deducted automatically before the payout. No tax is applied to winnings below this amount.
Winnings from Cockfighting and Horse Racing
Cockfighting, locally known as “sabong,” and horse racing are subject to local regulations. Winnings from these activities are generally taxed based on the winnings’ amount and where the event occurs. The typical withholding tax rate is 20%.
Taxes on Online Gambling Winnings
Online gambling in the Philippines has seen a significant rise, especially through offshore gaming operators (POGOs). While the government’s main focus is on regulating and taxing operators, players who win substantial amounts are not entirely exempt. For local players participating in locally licensed online casinos, no specific tax has been imposed directly on the players. However, it’s crucial to verify if the operator is PAGCOR-licensed to avoid legal complications.
For international players gambling via POGOs, a 25% withholding tax is applied on winnings.
Gambling Taxes for Professional Players
Professional gamblers—those who engage in gambling as their main source of income—are subject to income tax under the same guidelines as any other profession. Their gambling activities are viewed as a business, and earnings are taxed accordingly. Professional gamblers must declare their earnings on their annual tax returns and pay the applicable income tax rates based on the country’s progressive income tax system.
Taxes for Operators
While taxes on player winnings may not be steep, gambling operators face more stringent tax regulations. PAGCOR and other regulatory bodies impose various taxes on the operators themselves, including franchise taxes, income taxes, and specific fees related to the operation of their business.
Franchise Tax
PAGCOR-licensed casinos and other operators are required to pay a franchise tax, which is 5% of their gross gaming revenues.
POGOs
Offshore operators must pay a 5% franchise tax on their revenues, plus withholding taxes on wages paid to foreign employees and the 25% tax on foreign players’ winnings.
Filing Taxes on Gambling Winnings
While gambling winnings from PAGCOR-regulated games are tax-exempt for local players, it’s always advisable to consult with a tax professional, especially if you’re a professional gambler or if you’ve won significant amounts. Taxes on other types of winnings, such as sweepstakes, cockfighting, and horse racing, are automatically withheld by the operator, so players generally do not need to file additional tax forms related to these winnings.
However, if you have multiple sources of income or participate in gambling activities abroad, you may need to declare your earnings and pay taxes accordingly. The Bureau of Internal Revenue (BIR) enforces compliance, and failure to declare earnings can result in penalties.
How to Stay Compliant on Gambling Taxes
The gambling industry in the Philippines is heavily regulated, and tax laws can change as the government continues to refine the framework. Here’s how to ensure compliance:
Understand the tax structure
Whether you’re playing at a casino, betting online, or participating in sweepstakes, understanding the tax implications helps you stay compliant.
Consult a tax professional
For those earning significant amounts or gambling professionally, working with a tax advisor is essential to avoid any legal complications and ensure that all income is correctly declared.
Play on regulated platforms
Ensure that the casinos or gambling platforms you engage with are licensed by PAGCOR or recognized by local authorities. This protects you from fraudulent activities and ensures that gambling taxes, if applicable, are properly handled.
Final Thoughts on Gambling Taxes in the Philippines

Gambling in the Philippines can be an enjoyable and lucrative pastime, but understanding the tax obligations is crucial for staying compliant with the law. Whether you’re betting at a local casino, playing online, or participating in sweepstakes, you must be aware of the taxes that may apply to your winnings. With proper planning and compliance, you can focus more on the game and less on legal or financial issues.

Hristo (Christo to his friends) is a seasoned iGaming professional with 18 years experience building iGaming & Fintech products – Casino, Sportbook, Poker, Bingo, Social gaming and Fintech products gathered throughout his career in PokerStars, Winner.com, Playtech, Reflex Gaming. Strong knowledge and expertise in Marketing, Operations, Strategy building and business relationship management.