In Uganda, a significant regulatory change has taken place as President Yoweri Museveni has approved an amendment to the country’s Income Tax (Amendment) Bill 2026, effectively eliminating the exemption that land-based casinos previously enjoyed from the 15% winnings tax. This adjustment aligns the taxation of physical casinos with that of online betting and gaming, which have been subject to the same tax rate on net winnings. This move, finalized in August 2026, is intended to close a taxation disparity and is projected to boost government revenue by approximately Shs65 billion ($17.5 million).
The legislative amendment was backed by Maximus Ochai, the chairperson of Uganda’s Committee on Finance Planning and Economic Development. Ochai highlighted that maintaining different tax treatments for similar gaming activities, distinguished only by the medium through which they are conducted, could lead to tax avoidance and revenue leakage. The harmonization of tax rates, he asserted, is a crucial step toward a more equitable and efficient taxation system within the country’s gambling industry.
Earlier in the year, Uganda had already taken steps to streamline its gambling tax regime. The approval of the Lotteries and Gaming (Amendment) Bill 2026 established a uniform 30% tax rate for both betting and gaming activities, replacing the previous system where betting was taxed at a lower rate of 20% due to perceived lower risks associated with it. This overhaul is part of a broader effort to create a cohesive regulatory framework that ensures fair competition and maximizes tax revenue from the gambling sector.
According to data from H2 Gambling Capital, Uganda’s interactive gambling segment recorded a gross win of $435.3 million in 2025, with expectations that the sector could exceed $1 billion in annual gross win by the close of 2029. This growth underscores the significance of a robust regulatory environment that can adapt to the expanding market and its evolving dynamics.
Uganda’s move is part of a wider trend across Africa where several jurisdictions are revising their gambling tax regulations. In Kenya, for instance, the government introduced a 5% levy on each withdrawal from a betting wallet, coupled with an additional 5% excise duty on deposits. Similarly, Nigeria’s Lagos state has implemented a 5% withholding tax on player winnings, effective since February this year. These measures indicate a regional shift towards more stringent taxation policies in the gambling sector.
The removal of the tax exemption for Uganda’s land-based casinos is likely to have various implications for operators and players alike. For casino operators, this change could mean a reassessment of their business models to accommodate the additional tax burden. This might lead to adjustments in pricing strategies or promotional offers to maintain competitiveness in a now level playing field with their online counterparts.
For players, the introduction of the 15% winnings tax on land-based casino earnings might influence gambling habits, possibly encouraging a shift towards online platforms where operational costs are typically lower for operators, potentially resulting in better odds or promotions for players. However, this shift remains speculative and will depend heavily on how operators and players respond to the new tax landscape.
Despite these changes, the Ugandan government is keen on ensuring the gambling industry remains a viable and lucrative sector within its economy. This regulatory shift is aimed at bolstering public finances while attempting to mitigate any negative socioeconomic impacts associated with gambling.
Looking forward, the Ugandan authorities will be closely monitoring the implementation of this tax regulation to gauge its effectiveness and ensure compliance across the sector. Continuous evaluation and potential adjustments to the tax policy may be necessary to maintain the intended balance between maximizing revenue and sustaining industry growth. As the market responds, further regulatory reviews might be undertaken to address any emerging issues or unintended consequences stemming from this alignment in tax treatment.
Topics: Kenya · Nigeria · Payments · Land-Based Casinos · Gambling Taxes · Financial Results
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