Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 956)
The National Gaming Commission is an agency created by Presidential Decree No. 956 to supervise and control all forms of authorized gaming in the Philippines. It is composed of a Chairman and two members appointed by the President, serving full-time and holding office at the President's pleasure.
The Commission grants and revokes permits for gaming operations, supervises and regulates authorized gaming including casinos and cockfighting, authorizes gaming equipment, prohibits improper devices, issues necessary rules and regulations, and manages its personnel and budget.
All forms of authorized gaming, such as casino gambling, horse racing, jai alai, and cockfighting, except sweepstakes races and lotteries (which are under the Philippine Charity Sweepstakes Office) and boxing, wrestling, and professional basketball (under the Games and Amusement Board).
An initial permit fee of P1,000,000, an annual permit fee between P50,000 and P200,000, a weekly fixed tax per game table ranging from P2,000 to P5,000, and a weekly tax per slot machine from P300 to P500 as determined by the Commission.
A tax equivalent to five percent of the value of chips sold by the casino operator to players is imposed. This tax serves as a substitute for income tax on the player's winnings. Chips must only be purchased from the cashier's box and not on the gaming table or borrowed from other players.
Casino managers and pit bosses pay an annual license fee of P75, dealers and other similar employees pay P50, and players who enter and participate in gambling games pay an annual fee of P500, with certain income and nationality qualifications for players.
Foreign tourists are allowed to enter and play in the casino without having to meet the income qualification or other requirements for player licenses, provided they present a valid passport.
Violators face fines from P2,000 to P5,000 and imprisonment from one to three years. If the offender is a juridical person, responsible officers are penalized. Aliens face deportation after serving their fines and sentences.
Casino operators must file true and complete returns and pay taxes to the Bureau of Internal Revenue by specified deadlines — weekly for certain taxes and annually for others. Late payments incur a 25% increase plus 14% annual interest, with additional surcharges for fraudulent or neglected filings.
Importation is not generally allowed except when made by the grantee for exclusive casino use, authorized by the Commission. Such items are subject to a 100% ad valorem tariff duty and 70% compensating tax regardless of other existing laws.