Uganda Proposes Unified 30% Gaming Tax and New 15% Levy on Player Winnings

Uganda’s government is moving forward with plans to overhaul its gambling tax framework, with proposals that would standardize operator taxes and introduce a new levy on player winnings.

The initiative comes through a bill submitted on 31 March by Finance, Planning and Economic Development Minister Matia Kasaija, aimed at amending the country’s Lotteries and Gaming Act.

Under the current legal framework—originally enacted in 2016 and most recently updated in 2023—gaming operators are subject to a 30% tax on gross gaming revenue (GGR).

However, the system is divided into two tiers, with betting activities taxed at a lower rate of 20%. The proposed amendment seeks to eliminate this distinction by introducing a single, harmonised 30% GGR tax across all gambling activities, simplifying the existing structure.

Beyond operator taxation, the government is also considering increasing the tax burden on players. A separate provision in the Income Tax Amendment Bill 2026 proposes a 15% withholding tax on net winnings. This measure would apply uniformly to both betting and gaming, marking a significant shift in how player earnings are taxed.

If approved by Parliament, both the harmonised operator tax and the new withholding tax on winnings would take effect from 1 July 2026.

The move aligns with broader trends across Africa, where governments are reassessing gambling taxation models. In Kenya, for example, authorities introduced a 5% tax on all player deposits and withdrawals in 2025. This replaced a previous system that imposed a 20% tax solely on net winnings, signaling a shift toward broader-based taxation.

Despite regulatory challenges—particularly from offshore operators—Uganda’s gambling sector has experienced strong growth in recent years. Denis Mudene, CEO of the National Lotteries and Gaming Regulatory Board (NLGRB), recently highlighted the difficulties posed by unregulated international competition, stating: “The main obstacle to effective player channelisation in Uganda’s gaming industry remains the borderless nature of online advertising.”

The presence of offshore operators continues to hinder the government’s ability to fully capture tax revenues. Nevertheless, official figures indicate substantial progress. According to data presented to Parliament by NLGRB acting executive director Bernard Winyi, the country generated 323 billion Ugandan shillings (approximately $87 million) in gaming tax revenue during the 2024/25 financial year.

This represents a dramatic increase—nearly 19 times higher—compared to the 2015/16 period.

Much of this growth has been attributed to regulatory reforms, including the implementation of the National Central Electronic Monitoring System. This system has improved transparency, oversight, and accountability within the sector, helping authorities better track and regulate gambling activities.

Whether the proposed tax increases will sustain this upward trajectory or hinder industry expansion remains uncertain. The debate reflects a broader global conversation on gambling taxation, where policymakers must balance revenue generation with maintaining a competitive and regulated market environment.

By fLEXI tEAM