The Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corporation (PAGCOR) continue to push for lower taxes on casino and lotto winnings. The proposed Passive Income and Financial Intermediary Taxation Act (PIFITA), now under review by the Senate Committee on Ways and Means, seeks to standardize the tax rate on passive income at 15 percent to improve compliance.
During the second public hearing on the bill, PCSO Chairman Junie Cua urged lawmakers to reduce the tax on lotto winnings from 20 percent to 10 percent. He argued that this move would benefit financially struggling bettors, many of whom wager using what little remains from their daily earnings.
PCSO also advocates for slashing its documentary stamp tax (DST) obligations from 20 percent to 10 percent. Atty. Kat Contacto, representing the agency, explained that even though PCSO collected P18.3 billion for its charity fund last year, DST absorbed P12.2 billion—or 67 percent of that amount. Contacto recalled how the agency attempted to pass on DST costs to bettors in 2018, which triggered a sales decline in 2019. PCSO eventually chose to absorb the cost to keep tickets affordable.
Since DST continues to heavily reduce available charity funds, PCSO could only allocate P2 billion—just 11 percent of last year’s total—for its Medical Access Program in 2023. The agency expects to pay P14 billion in DST in 2024, which would leave just P1.68 billion for medical beneficiaries. However, if Congress approves the tax cuts, PCSO estimates it could direct an additional P3 billion to the program, raising available support to P4.9 billion.
PCSO officials urged the Senate to support their appeal, stressing that charity remains the core mission of the agency and that its income plays a critical role in delivering public services.
Meanwhile, PAGCOR Corporate Services Department Assistant Vice President Atty. Arnold Salvosa proposed exempting casino winnings from taxes altogether. He argued that regulators should treat these payouts as windfalls, similar to practices in neighboring gaming hubs like Singapore and Macau. Salvosa also referenced U.S. policies, suggesting that authorities tax winnings only if individuals use them as a regular income source or in business operations.
By calling for lower taxes on player winnings, PCSO and PAGCOR aim to keep the Philippine gaming industry competitive with other jurisdictions across Asia. These efforts could improve player retention, boost acquisition, and create a win-win scenario for the government, operators, and players alike.
