Across Africa, the approach to taxing gambling winnings has experienced notable fluctuations. Originally established as strategies for revenue generation and to reduce gambling-related harm, these taxes have often faced enforcement problems, pushback from the industry, and worries that higher tax rates push bettors towards untaxed or offshore gambling options. Consequently, several governments have opted to repeal, narrow, or restructure these taxes, particularly when the challenges of enforcement overshadow anticipated fiscal benefits.
Ghana has taken a significant step back, becoming the foremost example. The Income Tax (Amendment) Act 2023 had introduced a 10% withholding tax on betting and lottery winnings, alongside a 20% gross gaming revenue (GGR) tax for operators, capturing both sides of the betting spectrum. However, less than two years later, this withholding tax was repealed by parliament under a certificate of urgency, with President John Dramani Mahama finalizing the repeal on April 2, 2025, as Act 1129.
Cassiel Ato Forson, the finance minister-designate, stated during his January 2025 appointments committee testimony that the betting tax “must be abolished” due to its ineffectiveness, reiterating this commitment in his initial budget speech. The Ghana Revenue Authority had projected that collections from the betting tax would yield around GH¢268.75 million (approximately $23.3 million). However, reported revenues before the repeal had only reached about GH¢80 million, reflecting a shortfall of nearly 70%.
Additionally, government spokesperson Felix Kwakye Ofosu highlighted that the tax burden disproportionately affected low-income bettors, emphasizing that taxing modest winnings during economic downturns exacerbated financial hardship. He expressed concern over creating further difficulties for young individuals who turned to gambling to cope with tough economic conditions, arguing for the removal of the tax.
Industry representatives noted the inherent difficulties in administering the winners' tax, pointing out uneven enforcement. Its repeal was also part of a larger rollback of politically sensitive financial measures, demonstrating how quickly winners' taxes can face pressure when they fail to meet revenue expectations.
In Uganda, on the other hand, the government has reintroduced a 15% withholding tax on net winnings through the Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026, effective July 1, which also includes a new 30% tax on gross gambling revenue for both betting and gaming. This time, the government has linked the winners' levy to stricter compliance measures, allowing operators until June 30 to settle tax arrears in exchange for interest and penalty waivers.
Casino owners have voiced concerns about the practicality of collecting the 15% tax during continuous gameplay. Bob Kabonero from the Uganda Gaming Operators Association explained that the nature of land-based casinos complicates immediate tax collection, contrasting it with online betting where every transaction is traceable. He described the complexity of managing real-time cash transactions in a busy casino environment.
In Zimbabwe, the situation has escalated further with plans to increase the withholding tax on winnings from 10% to 25% starting January 1, 2026, while the bookmaker tax on gross takings is set to rise from 3% to 20%. These changes are described under the Finance Act and require betting firms, casinos, and lottery operators to withhold 25% from a player's gross winnings directly at payout, remitting this to the Zimbabwe Revenue Authority (ZIMRA) on a strict schedule.
Government officials have presented the increased tax as a dual-purpose measure aimed at raising revenue while also addressing the social implications of gambling. However, this proposal has encountered substantial backlash from lawmakers and industry stakeholders. In December 2025, the Portfolio Committee on Budget, Finance, and Investment Promotion cautioned that such a tax could significantly burden both operators and gamblers, warning that the steep increase could push businesses and players out of the formal system.
The Confederation of Zimbabwe Retailers has called for the betting tax and other similar levies to be scrapped, claiming that these measures disproportionately impact the poor. Analysts have expressed concerns that increasing the tax to 25% might drive betting activities underground, ultimately affecting overall revenue.
Conversely, Kenya has refined its approach by eliminating the previous 20% tax on individual winnings, a change made after operators exited the market due to harsh taxation between 2018 and 2020. Starting in 2025, the Finance Act shifted focus towards imposing a 5% tax on deposits into betting wallets and another 5% on withdrawals. The 2026 Finance Act reintroduced a 20% tax but limited it to winnings from lotteries and prize competitions, leaving the deposit-based structure intact for general betting and gaming.
In Lagos, Nigeria, the taxation approach remains moderate with a 5% withholding tax on net winnings introduced as of February 2026. Licensed betting and gaming operators are required to collect this tax at payout and remit it to the Lagos State Internal Revenue Service, while bettors must provide their National Identification Number to connect their winnings to broader income tax profiles. This strategy aims to promote transparency without overwhelming participants with financial burdens, allowing for the tax to be recognized as a credit toward overall income tax obligations.
South Africa represents a contrasting direction by focusing on taxing operators rather than players. A proposal from the National Treasury suggests a 20% national tax on online betting and interactive gambling GGR, accumulating on top of existing provincial rates. This move is intended to address social costs associated with the rapid growth of online gambling while securing additional revenue. The proposal, which closed for public comments on February 27, 2026, reflects a strategic shift away from taxing winnings at the player level and towards a centralized operational tax model.
These varying strategies highlight the challenges faced by African nations in establishing sustainable taxation for gambling winnings. Governments have grappled with issues of compliance, revenue expectations, and the danger of driving businesses and players toward lower-tax or unlicensed options. Recent actions across Uganda, Zimbabwe, Nigeria, and Kenya exemplify ongoing adjustments as countries seek to reconcile tax systems with market behaviors and revenue goals.
