PHFUN and Gambling Winnings Tax Philippines Rules
Section 24(B)(1) of the National Internal Revenue Code, as amended by RA 10963, sets a 20 percent final tax on prizes and other winnings from Philippine sources.
- PHFUN and the BSP Online Gambling Memorandum M-2025-029
- BSP online gambling policy in 2025 was Memorandum M-2025-029: BSP-supervised institutions had 48 hours to remove links that give in-app gambling access from their mobile payment apps and websites.
- PHFUN on the Online Gambling Ban Philippines Players Ask About
- The online gambling ban Philippines headlines describe is Executive Order No. 74 of 5 November 2024, which banned offshore gaming operations offered to players outside the country.
Gambling winnings tax Philippines rules start in one place: Section 24(B)(1) of the National Internal Revenue Code. The text, as amended by Republic Act No. 10963 (the TRAIN law, approved 19 December 2017, effective 1 January 2018), fits in a paragraph, and this page reads it with you. It names a rate, two PHP 10,000 lines and a source-of-income test, which is what you need before you ask the BIR anything.
For the licence side, see how PAGCOR’s registered casino list works.
What Section 24(B)(1) says about winnings
The section is headed “Interests, Royalties, Prizes, and Other Winnings”. Its wording on prizes and winnings, quoted from RA 10963, is a final tax at the rate of 20 percent on prizes and other winnings derived from sources within the Philippines, with these exceptions.
| Type | Treatment in the text |
|---|---|
| Prizes of PHP 10,000 or less | Taxed under Subsection (A) of Section 24 |
| Prizes above PHP 10,000 | 20 percent final tax |
| Winnings of PHP 10,000 or less from PCSO and Lotto | Exempt |
| Other winnings from Philippine sources | 20 percent final tax |
A final tax means the rate is the tax on that income, not an amount added to your other income.
A worked reading of the 20 percent rate
Arithmetic makes the rate concrete. These figures apply the 20 percent from the text to round amounts and are examples, not a payout you should expect.
| Amount won | 20 percent of it | Left after that rate |
|---|---|---|
| PHP 10,000 | PHP 2,000 | PHP 8,000 |
| PHP 25,000 | PHP 5,000 | PHP 20,000 |
| PHP 100,000 | PHP 20,000 | PHP 80,000 |
The PHP 10,000 prize line sends small prizes to the ordinary Subsection (A) treatment instead. That line is stated for prizes, and the exempt line is stated for PCSO and Lotto winnings.
Online casino tax Philippines: what to ask the BIR
The code text does not use the phrase online casino. It says prizes and other winnings from sources within the Philippines, so the practical question is how the BIR treats your particular payout and its source. Ask that question in writing and ask it before you file.
- Write down the date, the amount and the brand of the win.
- Copy the exact domain from your address bar, then check it against PAGCOR’s list as described on the PAGCOR registered casino page.
- Keep a screenshot of the cashier or betting history that shows the amount.
- Open the current National Internal Revenue Code text on the BIR or Lawphil site, since later laws amend the code, and read Section 24(B)(1) as it now stands.
- Ask the BIR, or a tax practitioner you trust, to apply it to your record.
Records and limits worth keeping
Tax is one reason to keep records, and your budget is another. A single log of stakes, wins and dates shows you what play costs you over a month. Pair it with the limits on the responsible play page.
| Log column | Example entry |
|---|---|
| Date | The day of the win |
| Amount | The peso figure shown in the cashier |
| Brand and domain | Copied from the address bar |
| Proof | A screenshot of the history screen |
Winnings from offshore-facing operators are a separate matter, covered on the online gambling ban page. Play only when you are 21+.
FAQ
What is the tax rate on gambling winnings in the Philippines?
Section 24(B)(1) of the NIRC, as amended by Republic Act No. 10963, imposes a final tax of 20 percent on prizes and other winnings derived from sources within the Philippines, with the PHP 10,000 exceptions described on this page.
Are Lotto winnings taxed?
The same section exempts winnings of PHP 10,000 or less from the Philippine Charity Sweepstakes and Lotto. Other winnings fall under the 20 percent final tax.
Do I pay tax on online casino winnings?
The code names prizes and other winnings from sources within the Philippines. Ask the BIR how it treats your particular payout, and bring a dated record of the win.
Anong records ang dapat kong itago?
Itago ang petsa, halaga, pangalan ng brand, ang eksaktong domain at screenshot ng cashier o betting record para sa bawat panalo.