Across Africa, the implementation of taxes on gambling winnings has faced significant hurdles, leading to a pattern of introduction and repeal. Initially designed as tools to raise revenue and mitigate gambling-related harm, these taxes often struggle due to enforcement difficulties, pushback from the industry, and the risk of bettors moving to untaxed or offshore gambling options. As a result, many governments are now reconsidering or restructuring their tax approaches as concerns about fiscal benefits mount.
In Ghana, a notable reversal occurred when the Income Tax (Amendment) Act 2023 imposed a 10% withholding tax on betting and lottery winnings, along with a 20% gross gaming revenue (GGR) tax for operators. Nevertheless, less than two years later, the Ghanaian parliament revoked the 10% tax under a certificate of urgency, with President John Dramani Mahama signing the repeal on April 2, 2025, formalizing it as Act 1129. Finance minister-designate Cassiel Ato Forson highlighted the tax's ineffectiveness in a January 2025 committee session, reiterating his promise to abolish it in his first budget speech. The Ghana Revenue Authority had initially projected tax collections of around GH¢268.75 million ($23.3 million) from the package but reported receipts of only GH¢80 million prior to repeal, revealing a shortfall of nearly 70%.
Government spokesman Felix Kwakye Ofosu portrayed the betting tax as particularly burdensome for low-income gamblers, noting that taxing modest winnings during economic hardships further complicated their financial struggles. “Do you create difficulty for them by going to tax their meagre winnings when you have not been able to give them employment?” he asked.
In Uganda, a different approach has emerged. The Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026 will introduce a 15% withholding tax on net winnings, effective July 1, 2026, while a unified 30% tax on gross gambling revenue for operators will also be implemented. This time, the Ugandan government has mandated stricter compliance measures, giving operators a deadline until July 30 to settle outstanding gaming tax arrears, or face the full force of the new regime. However, operators have voiced concerns regarding the practical aspects of collecting the 15% at payout in a continuous gaming environment.
Zimbabwe has taken an even more aggressive approach by raising the withholding tax on winnings from 10% to 25% starting January 1, 2026. While the initial 10% was expected to generate around $15 million annually based on gross winnings estimates of $150 million, the government hopes that the increase will mobilize significant revenue. However, industry and retail representatives have expressed worry that such a sharp hike could drive businesses and gamblers into the unregulated market. Stakeholders, including the Confederation of Zimbabwe Retailers, have argued that the tax unfairly targets low-income individuals and could ultimately hinder revenue growth.
Meanwhile, Kenya has seen a shift in focus, transitioning away from taxing individual winnings to applying a 5% levy on deposits and withdrawals into betting wallets in its Finance Act 2025. The 2026 Finance Act reintroduced a 20% tax specifically on lottery winnings, while withdrawing taxes on other forms of betting, marking a strategic narrowing of the tax base.
In Lagos, Nigeria, a more lenient 5% withholding tax on winnings was instituted in February 2026, with additional identity verification measures in place to connect the tax with broader income profiles. This approach posits that there might be little resistance from players due to the relatively low burden, although the success of this model will depend on whether operators can maintain compliance without pushing bettors towards unregulated alternatives.
South Africa is exploring a different pathway by considering a national tax on operators rather than on player winnings. A proposed 20% tax on GGR would be added to existing provincial taxes, potentially raising the total burden to between 26% and 29%. Treasury officials argue that this model will simplify compliance for operators and enhance predictability for revenue collection. Public comments on the proposal closed on February 27, 2026, indicating a decisive shift in tax strategy.
The mixed outcomes across Africa demonstrate the volatility surrounding winners’ taxes in the gambling sector. Governments from Kampala to Nairobi have struggled to balance revenue generation with the risks of pushing activity into unregulated markets, as seen in Ghana's repeal of its winners' tax and the challenges Zimbabwe faces with its newly instituted high rate. These developments highlight the need for a thoughtful approach toward taxation structures in the gaming industry, especially as many countries seem to be converging on the idea that taxes on operators and revenue might be more sustainable than levies on individual winnings.
