This is something that is often discussed. Often, players don’t declare their gambling income and, therefore, don’t pay taxes. However, if audited, there could be legal problems. In the Philippines, there is the common misconception that lower gambling winnings amounts require no tax to be paid. Unfortunately, the information in the Philippine Tax Code is pretty vague too. Theoretically, anyone winning less than PHP 10,000 should pay 10%. On the other hand, anything above PHP 10,001 should be taxed at 20%. That said, there have not been any reports of people being found guilty of tax evasion.