Gambling tax policies across Africa have been marked by a repetitive cycle of implementation and subsequent challenges. Initially introduced as tools for revenue generation and harm reduction, these taxes often meet hurdles in enforcement, face pushback from the gambling industry, and raise fears that elevated tax rates drive players towards unregulated or offshore gambling avenues. As a result, numerous governments have retracted, narrowed, or revamped their taxes on winnings once the pressures of implementation as compared to anticipated revenue gains became clear.
Ghana stands out as a prominent example of this shift. The Income Tax (Amendment) Act 2023 instituted a 10% withholding tax on betting and lottery winnings, combined with a 20% gross gaming revenue (GGR) tax on operators. However, within a mere two years, the Ghanaian parliament repealed the 10% tax in response to enforcement difficulties, with President John Dramani Mahama officially approving the change on April 2, 2025, finalizing it as Act 1129. Finance minister-designate Cassiel Ato Forson stated in January 2025 that the betting tax was a failure and reiterated this viewpoint in his first budget speech.
Estimates from the Ghana Revenue Authority had projected the tax package would generate approximately GH¢268.75 million (around $23.3 million), while actual collections before the repeal were reported at roughly GH¢80 million—revealing a nearly 70% shortfall. Government spokesperson Felix Kwakye Ofosu articulated that the tax disproportionately impacted low-income bettors, suggesting that taxing small wins during economic hardship exacerbated existing challenges. He remarked, "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?" Political dynamics and mounting industry pressure were evident, leading to the repeal as part of a larger retreat from politically charged measures like the E-Levy.
In Uganda, the scenario contrasts with a reinstated 15% tax on net winnings beginning July 1, 2026, as outlined in the Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026. This tax is part of a broader 30% tax on gross gambling revenue. To increase compliance, operators must settle any overdue gaming tax debts by June 30 to benefit from waivers on penalties. Yet, casino operators have expressed difficulties in implementing this tax, particularly for continuous play environments. Bob Kabonero, of the Uganda Gaming Operators Association, articulated the complexities of collecting taxes amid simultaneous play by multiple customers—a stark contrast to the tracking capabilities available in online gaming.
Zimbabwe's recent tax increases exemplify a more aggressive stance. As of January 1, 2026, the withholding tax on winnings surged from 10% to 25%, alongside a rise in bookmakers' tax from 3% to 20%. Authorities had projected the earlier 10% tax would yield about $15 million annually, but the jump to 25% signals a strict push for compliance that critics suggest may displace many into the black market. The Portfolio Committee on Budget, Finance and Investment Promotion indicated that this significant tax burden could be detrimental to both operators and gamblers, echoing concerns raised by the Confederation of Zimbabwe Retailers about the regressive nature of such taxes.
In parallel, Kenya has adjusted its approach after experiencing fluctuations in its winners' tax mechanic. From the 20% withholding tax on winnings previously implemented, the 2025 Finance Act shifted the focus to a 5% tax on deposits and withdrawals from betting wallets, with a more recent reinstatement of a 20% tax now strictly on lottery payouts. Parliament's Finance Committee chair Kimani Ichung’wah linked the redefinition of the tax to social concerns, emphasizing the need to include lottery earnings in the tax framework.
Lagos, Nigeria, meanwhile, has opted for a more moderate tax environment with a new 5% withholding tax on net winnings, aimed at promoting compliance through identity verification of bettors, linking winnings to broader income tax profiles as a credit. This approach presents a potential case study in balancing moderate taxation with enhanced oversight to maintain market integrity.
In a notable divergence, South Africa is considering a national operator-level tax rather than taxing individual winnings. A proposal by the National Treasury awaits feedback until February 27, 2026, with ambitions to impose a 20% national tax on GGR, supplementing provincial taxes and potentially leading to a combined rate of up to 29%. Proponents suggest this model offers better compliance prospects by targeting operator revenues rather than individual payouts.
These diverse cases illustrate the structural fragility of winners' taxes across African gaming markets. Governments from Ghana to Uganda have experimented with various tax structures while facing revenue expectations, compliance obstacles, and fears of market migration. The examples from Ghana, Zimbabwe, Uganda, Kenya, and Nigeria reflect ongoing tensions between revenue aspirations and the operational realities of gambling practices, with many jurisdictions finding that taxes set at levels that significantly impact payouts frequently lead to concerns over the movement of activity away from licensed systems. This trend underscores a broader shift towards favoring GGR-based and transaction-based taxation models as countries seek stable revenue streams amidst these persistent challenges.
