Uganda's land-based casinos are now subject to a 15% winnings tax, following changes proposed in the Income Tax (Amendment) Bill 2026. President Yoweri Museveni advocated for this amendment, leading the government to eliminate the previous exemption that allowed these casinos to omit a 15% withholding tax on winnings from their financial obligations.
This new tax structure aligns land-based casinos with online betting, which already adheres to the same 15% withholding tax on net winnings. The passage of Museveni’s proposal aims to mitigate the gap between the tax treatments of online and land-based gaming.
Projected tax income is expected to rise to Shs65 billion ($17.5 million) due to this amendment. Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, noted that the removal of the exemption would safeguard anticipated tax revenues by harmonizing various tax rates related to betting and gaming.
Ochai stated, "The committee examined the Income Tax (Amendment) Bill and the president’s request and agrees with the president that the exemption granted to land-based casinos will create unnecessary opportunities for tax avoidance and revenue leakage since it establishes different tax treatment for substantially similar gaming activities solely on the platform through which they are conducted."
In April, Uganda also approved the Lotteries and Gaming (Amendment) Bill 2026, which established a uniform 30% tax rate for both betting and gaming. Previously, betting activities were taxed at a lower rate of 20% due to the belief that they posed less risk to players compared to gaming operations.
According to H2 Gambling Capital, Uganda’s interactive segment generated $435.3 million in gross win in 2025, with expectations that the sector will exceed $1 billion in annual gross win by 2029. Other countries in Africa are also reforming their gambling tax structures. For instance, Kenya introduced a 5% levy on withdrawals from betting wallets and a 5% excise duty on deposits last year. Furthermore, Lagos State in Nigeria implemented a 5% withholding tax on player winnings in February of this year.
