Pago Pago, AMERICAN SAMOA — The ASG Department of Treasury hereby is notifying all organizations, nonprofit groups, and raffle sponsors that effective today, Monday, November 9, 2026, the ASG Tax Office will begin active enforcement of existing tax withholding and reporting requirements for raffle winnings. 

Under applicable tax laws, raffle winnings are subject to withholding and reporting requirements. These obligations apply to qualifying cash prizes, vehicles, and other non-cash prizes, including those awarded through nonprofit and charitable raffles. All organizations conducting raffles are required to comply with the following: 

• Withhold and remit applicable taxes on qualifying raffle winnings. 
• Obtain the winner's valid Social Security Number (SSN) or Taxpayer Identification Number (TIN). 
• Complete and submit the required Form W-2G to the ASG Tax Office and provide a copy to the winner, where required. 
• Ensure applicable withholding taxes are paid before releasing qualifying non-cash prizes. Maintain proper records of raffle winnings and tax payments.

Beginning November 9, 2026, the ASG Tax Office, Compliance Division, will conduct compliance checks and enforce these requirements. Organizations found in violation may be subject to applicable tax liabilities and penalties. All organizations and raffle sponsors are expected to take immediate steps to ensure compliance. These are existing tax obligations, and enforcement will proceed accordingly. 

Tax Withholding and Reporting Requirements for Raffle Winnings Raffle winnings are considered gambling winnings and may be subject to applicable tax withholding and reporting requirements. 

1. TAXABLE RAFFLE WINNINGS

— Raffle winnings exceeding $5,000, after deducting the cost of the winning ticket, are subject to a 28% regular withholding tax. 
— If the winner does not provide a valid Social Security Number (SSN), a 31% backup withholding tax may apply to qualifying winnings that are not already subject to regular withholding. 
— Form W-2G must be issued to winners as required by applicable tax laws. 

2. VEHICLES AND OTHER NON-CASH PRIZES 

— If a vehicle or other non-cash prize has a fair market value exceeding $5,000, after deducting the cost of the winning ticket, the winner must pay the applicable 28% withholding tax before receiving the prize. 
— If the organization elects to pay the withholding tax on behalf of the winner, the withholding rate increases to 38.88% of the applicable prize value. 

3. RESPONSIBILITIES OF RAFFLE SPONSORS 

Organizations conducting raffles are responsible for: 
— Obtaining the winner's valid SSN or Taxpayer Identification Number (TIN). 
— Completing and submitting Form W-2G to the ASG Tax Office, Compliance Division, as required. 
— Providing the winner with a copy of Form W-2G. 
— Ensuring all applicable withholding taxes are collected and remitted. 
— Maintaining appropriate records of raffle winnings and tax payments. 

4. COMPLIANCE REQUIREMENTS 

Organizations must account for applicable tax obligations when conducting raffles and inform winners of withholding requirements before releasing qualifying prizes. 
Failure to comply may result in applicable tax liabilities or penalties. 
For questions regarding withholding requirements, reporting procedures, or compliance, please contact the ASG Tax Office, Compliance Division. 
For questions contact the ASG Dept. of Treasury

EDITOR’S NOTE:

The ASG Tax Department has in the past tried to establish protocol that taxes raffle and bingo winnings. 

For example, Tax officials were present at bingo games for a time, and Tax Form W-2G were issued to each winner. Later, the responsibility of issuing the Form was given to bingo operators. Some raffle, as well as football pool operators were also given the responsibility. 

The practice eventually stopped with no public notice or explanation.

Notably, gambling is illegal in American Samoa, and therefore the raffle and bingo games are generally held by religious groups that are not taxed. However, they must legally file a tax form before a permit to hold such an event. Whether that practice has been done is unknown. The permit is for a set fee charged by the government, and must be done before any such event can be held.

It is also unknown if fundraisers, which include golf tournament and raffle activities are also subject to this Treasury Dept. attempt to tax winners. It is unknown if such fundraisers must also get an ASG permit to be held.

And then there are those fundraisers that are held by organizations on the side of the road — car washes and waves. It should be noted that such fundraisers are supposedly illegal due to traffic concerns. And also noted is whether or not a permit is needed to hold these types of fundraising, including those that sell food plates.