Philippines Confirms Tax on Casino Jackpot Winnings: What Operators Need to Know
May 29, 2026
Philippines Confirms Tax on Casino Jackpot Winnings: What Operators Need to Know
Implications for Land‑Based Casinos Under BIR Memorandum Circular No. 57‑2026
The Philippine Bureau of Internal Revenue (BIR) has formally clarified that all casino jackpot winnings—including fixed jackpots, progressive jackpots, electronic gaming wins, and bingo jackpots—are now subject to final withholding tax, following the release of Memorandum Circular No. 57‑2026 on May 26, 2026.
This clarification comes amid rapid expansion of the country’s gaming sector under PAGCOR, CEZA, and APECO, where higher-value jackpots have become increasingly common. The BIR states that the circular aims to ensure uniform tax treatment, eliminate confusion, and strengthen compliance across all licensed operators.
🎰 How the Tax Works in Practice
1. Applicable Tax Rates
Under the circular:
- Philippine residents: 20% final withholding tax on jackpot winnings
- Non‑resident individuals: 25% final withholding tax
- Tax is applied to the gross jackpot amount, with no deductions for service charges, administrative fees, or commissions.
This applies to winnings from:
- Slot machines
- Electronic gaming machines
- Bingo
- Fixed and progressive table-game jackpots
- Linked progressive systems across tables or EGMs
🧾 2. What Happens When a Player Wins?
Slot Machines & EGMs
- Machine locks up and displays the jackpot.
- Slot attendants and supervisors verify the win.
- Surveillance confirms the event.
- Casino calculates and withholds the tax before payout.
- Player signs jackpot and tax documentation.
- Casino remits the withheld tax to the BIR.