Uganda proposes dual gambling tax hike
Table of contents
- Uganda has tabled legislation to raise betting tax from 20% to 30% of gross gaming revenue, harmonising it with the existing rate on casino and gaming activities.
- A companion bill would introduce a 15% withholding tax on net player winnings from all betting and gaming activity.
- Both measures are at committee stage in parliament and, if passed, would take effect on July 1, 2026.
Uganda’s government has tabled two bills that would significantly raise the tax burden on gambling operators and players, as the country seeks to expand domestic revenues from a fast-growing but unevenly taxed sector.
The Lotteries and Gaming (Amendment) Bill 2026, published in the Uganda Gazette on March 27, would impose a uniform 30% GGR rate (gross gaming revenue, defined as total stakes minus player payouts) across betting, casinos, and all other gaming activities.
The bill’s memorandum, signed by Finance Minister Matia Kasaija, states its object is to “harmonise the gaming tax rate… to thirty percent of the total amount of money staked less the payouts.”
A companion piece of legislation, the Income Tax (Amendment) Bill 2026, introduces a 15% withholding tax on net gaming winnings and was tabled in parliament on April 1 by Minister of State for Finance Henry Musasizi.
Both bills will undergo committee scrutiny before debate and possible passage. If approved, both take effect on July 1.
Tax harmonisation
Uganda currently operates a two-tier gambling tax structure under the Lotteries and Gaming (Amendment) Act 2023, which set gaming activities, including casino, at 30% GGR, with betting taxed at 20% given its lower margins for operators.
The new bill introduces a clearer definition of taxable revenue and could improve compliance and reduce disputes between operators and tax authorities, particularly as regulators intensify oversight of digital betting platforms.
If the new 30% rate is implemented, Uganda’s operator levy will be one of the highest on the continent.
Uganda is not alone in tightening the fiscal framework around gambling across Africa. South Africa is weighing a 20% national online GGR tax.
Kenya restructured its betting tax regime under the Finance Act 2025, signed on June 26, replacing a 20% levy on net winnings with a 5% withholding tax on wallet withdrawals and shifting excise duty to deposits at a reduced rate of 5%.
In February 2026, Lagos enforced an immediate 5% withholding tax on gaming winnings across all licensed platforms in the state.
Market context
According to data from H2 Gambling Capital, Uganda’s interactive market reached a gross win of $438.3m in 2025, with sports betting accounting for $328m of that total.
The market is projected to reach $995.5m by 2029, though it faces competition from an offshore sector that generated an estimated $114.8m in 2025, more than a quarter of the total interactive figure.
The reform comes as the government seeks to expand domestic revenue mobilisation to fund infrastructure and social spending without increasing public debt.
Uganda has in recent years strengthened monitoring of telecom and mobile money transactions, giving authorities greater visibility into betting flows, which are largely digital.
Industry observers have flagged concerns about the combined operator and player tax burden. Analysts have warned that operators facing both the 30% GGR levy and a 15% withholding obligation on winnings would face a potentially severe impact on profitability and competitiveness.
Industry players have previously argued that excessive taxation could push smaller firms out of business or drive consumers toward informal or offshore platforms.
The outcome will have direct implications for product margins, compliance infrastructure, and the pace of a market that remains one of Africa’s fastest-growing.
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