Across Africa, gambling winnings taxes are caught in a recurring pattern. Initially instituted as measures to generate revenue and reduce harm, these taxes often encounter enforcement difficulties, opposition from the industry, and worries that elevated rates push gamblers towards untaxed or offshore alternatives. As a result, numerous governments have opted to repeal, limit, or modify these taxes when the pressures outweigh anticipated fiscal benefits.
In Ghana, the most significant reversal occurred with the Income Tax (Amendment) Act 2023, which imposed a 10% withholding tax on betting and lottery winnings alongside a 20% gross gaming revenue (GGR) tax on operators. However, less than two years later, parliament repealed the 10% tax under a certificate of urgency. President John Dramani Mahama signed the measure on April 2, 2025, officially marking the repeal as Act 1129.
The finance minister-designate, Cassiel Ato Forson, indicated to his appointments committee in January 2025 that the betting tax “must be abolished” due to its failure, reiterating this in his inaugural budget speech. Ghana Revenue Authority estimates had predicted collections from this tax arrangement to reach around GH¢268.75 million ($23.3 million), far surpassing the GH¢80 million reported prior to the repeal, representing a 70% shortfall.
Spokesperson Felix Kwakye Ofosu highlighted that the tax impacted low-income gamblers, emphasizing that taxing small winnings during economic hardship exacerbated struggles for those already facing difficulties. He asked, “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?” This stance reinforced the decision to eliminate the winners’ tax.
In Uganda, the scenario has shifted slightly. The Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026, effective July 1, introduced a 15% withholding tax on net winnings (payouts minus stakes) along with a unified 30% tax on gross gambling revenue for operators. Lawmakers are pairing the winners’ tax with stricter compliance requirements, offering operators until June 30 to settle tax arrears in exchange for penalties being waived.
However, local casino operators have raised concerns about the practicality of collecting the 15% tax at the point of payout, as Bob Kabonero from the Uganda Gaming Operators Association noted the complexities of real-time casino play versus online betting. “It is practically impossible to collect,” he stated.
Zimbabwe’s approach is notably aggressive, increasing the withholding tax on winnings from 10% to 25% starting January 1, 2026, while raising the bookmaker tax on gross receipts from 3% to 20%. The government hopes to mobilize revenue while acknowledging the tax might burden both operators and gamblers. This steep hike sparked strong resistance from industry stakeholders, with critics asserting that the tax could drive betting underground, counteracting revenue goals.
In Kenya, the tax strategy evolved to mitigate past challenges. After implementing a 20% winners’ tax and witnessing operators exit the market, the Finance Act 2025 introduced a 5% levy on deposits and withdrawals instead. The subsequent Finance Act 2026 reinstated a 20% tax but limited it to lotteries and competition winnings, distancing itself from taxing everyday betting wins. Finance Committee chair Kimani Ichung’wah stated that this change aimed to ensure lotteries and substantial giveaways are also taxed, linking this to social concerns regarding youth gambling.
Meanwhile, Lagos in Nigeria has adopted a gentler 5% withholding tax on net winnings across licensed betting and gaming platforms. This tax strategy requires bettors to provide their National Identification Number, permitting winnings to be associated with broader income tax profiles—the hope being to create a more transparent ecosystem.
South Africa diverges from taxing players, exploring a 20% national tax on operators’ GGR as outlined in a November 2025 proposal from the National Treasury, which aims to address social costs related to online gambling growth. This proposal has completed its public comment phase, with stakeholders noting it may ease enforcement compared to taxing individual winnings.
These cases collectively illustrate the fragility of winners’ taxes in Africa. Since Kampala to Nairobi, administrations have grappled for over a decade with these taxes while navigating compliance challenges and revenue expectations. The ongoing evolution—from Ghana’s outright repeal to Zimbabwe’s steep increase and Kenya’s careful adjustments—demonstrates the nuanced landscape of gambling taxation. As countries like South Africa explore operator-side levies, the viability of direct taxes on winnings continues to be under scrutiny as operators and players alike assess their options in an ever-changing market.
