Land-based casinos in Uganda will now be subject to a 15% winnings tax, following a proposal to modify the country’s Income Tax (Amendment) Bill 2026. This amendment stems from President Yoweri Museveni's initiative, which removes the previous exemption that allowed land-based casinos to exclude this withholding tax from their earnings.
The 15% tax will apply to net winnings, aligning it with existing regulations for online betting and gaming, thus erasing the previous distinction between these two sectors.
This shift in tax policy is projected to enhance tax revenue by Shs65 billion ($17.5 million). Maximus Ochai, the chairperson of Uganda’s Committee on Finance Planning and Economic Development, emphasized that removing the land-based casinos' exemption would mitigate potential avenues for tax avoidance and revenue loss. He stated that this amendment rectifies inconsistent tax treatment among similar gaming activities based merely on the platform used for their operation.
In April, Uganda enacted the Lotteries and Gaming (Amendment) Bill 2026, which established a unified 30% tax rate applicable to both betting and gaming activities. Previously, betting was taxed at a lower rate of 20%, reflecting a belief in its lower risk profile compared to gaming.
According to H2 Gambling Capital, Uganda's interactive gaming sector reported a gross win of $435.3 million in 2025, with expectations that it will exceed $1 billion annually by the end of 2029.
Similar changes to gambling tax regulations are emerging in other African regions. In Kenya, a 5% tax was implemented on all withdrawals from betting accounts, along with a 5% excise duty on deposits last year. Concurrently, the Lagos state in Nigeria introduced a 5% withholding tax on player winnings in February.
