In Africa, the taxation of gambling winnings is experiencing a turbulent cycle marked by attempts at revenue generation and harm reduction, often met with enforcement issues, resistance from the industry, and fears of encouraging a shift to untaxed gambling options. Consequently, many governments have had to rethink or abandon these taxes when pressures outpaced anticipated financial gains.
Ghana has recently seen a notable reversal. The Income Tax (Amendment) Act 2023 enacted a 10% withholding tax on betting and lottery winnings and a 20% gross gaming revenue (GGR) tax on operators. However, less than two years later, Ghana's parliament repealed the 10% tax, with President John Dramani Mahama signing the change into law on April 2, 2025. The finance minister-designate, Cassiel Ato Forson, stated that the betting tax "must be abolished" due to its failure, echoing this commitment during his initial budget speech.
The Ghana Revenue Authority projected that the betting tax would yield approximately GH¢268.75 million ($23.3 million), while actual receipts prior to its repeal were around GH¢80 million, indicating nearly a 70% shortfall. Government spokesperson Felix Kwakye Ofosu characterized the tax as detrimental to low-income gamblers, asserting that taxing small winnings amid economic hardship further exacerbated difficulties for those trying to make ends meet. He argued, "Do you create difficulty for them by going to tax their meagre winnings when you have not been able to give them employment and they are struggling to find their feet?" He emphasized the importance of abolishing this tax.
Stakeholders in the industry noted that administering the winners' component was challenging and inconsistently enforced. Its revocation is part of a broader retreat from politically sensitive measures like the E-Levy, showcasing how quickly such taxes can fall from favor when they do not deliver expected revenue.
In Uganda, tax legislation has seen the reintroduction of a 15% withholding tax on net winnings, effective from July 1, 2026. This tax is paired with a 30% tax on gross gambling revenue, aiming for better compliance. Betting operators were given a deadline to address tax arrears by June 30, 2026, in exchange for waivers on interest and penalties. However, casino owners have expressed difficulties in collecting this levy, particularly during continuous play where tracking individual winnings becomes complex. Bob Kabonero from the Uganda Gaming Operators Association remarked, “Land-based casinos are different from real-time casinos or online betting. Because on online, every single player has an account, and you can log in and trace the transaction. But when you have 100 people playing at the same time… it is practically impossible to collect.”
Zimbabwe is experiencing further escalation with its winners' tax. Originally, a 10% tax was expected to bring in around $15 million annually based on gross winnings of around $150 million. From January 1, 2026, the tax jumped to 25%, while bookmakers’ tax increased from 3% to 20%. Operators must now withhold 25% from a player’s winnings at the time of payout and remit this to the Zimbabwe Revenue Authority (ZIMRA). Ministers have marketed the increased levy as a tool for revenue generation and responsible gambling, amid intense pushback from industry entities concerned over its impacts. The Portfolio Committee on Budget, Finance and Investment Promotion warned that this burden could lead operators and gamblers to seek lower cost alternatives outside the formal market, a sentiment echoed by the Confederation of Zimbabwe Retailers and analysts who raised alarms about the tax's implications for overall revenue.
Kenya has taken steps back regarding its winners’ tax. After previously imposing a 20% tax on winnings, which led operators to exit the market, tax strategies evolved. Since 2025, the government focused on a 5% tax on deposits and withdrawals, rather than taxing winnings from betting. Recently, a new 20% tax on lotteries and prize winnings was introduced, which is seen as an effort to address social harm, particularly affecting youth.
Nigeria's Lagos State has adopted a different approach with a 5% withholding tax on net winnings, introduced by the Lagos State Lotteries and Gaming Authority in February 2026. This tax requires bettors to provide their National Identification Number to allow winnings to be linked to wider income tax profiles. The goal is to integrate the tax system with existing income taxation rather than impose separate taxes.
In contrast, South Africa is exploring a national tax on gross revenues from gambling operators, moving away from taxing player winnings. The National Treasury's recent proposal suggests a 20% national tax on GGR, designed to address both the social burdens associated with online gambling's growth and to increase revenue significantly.
These examples illustrate the fragility of winners’ taxes in African markets. Countries have oscillated between various tax models, confronting challenges such as revenue expectations, compliance, and the temptation for operators or bettors to explore less taxed or unregulated gambling options. As seen in regions like Uganda, Zimbabwe, and Kenya, the balance between taxing winnings and ensuring compliance remains precarious. In several cases, governments have retracted or modified winners' taxes in favor of alternative strategies, such as GGR taxes, which are deemed more sustainable for long-term revenue generation.
