Land-based casinos in Uganda are now required to apply a 15% winnings tax to their customers, following a recent amendment to the country's Income Tax (Amendment) Bill 2026. This change stems from a proposal by President Yoweri Museveni, eliminating the previously existing exemption that allowed these casinos to forgo withholding taxes on winnings.
The new 15% withholding tax aligns with existing regulations affecting online betting and gaming, effectively closing the gap between these two sectors.
The government anticipates that this adjustment will boost tax revenues by Shs65 billion ($17.5 million). Maximus Ochai, the chairperson of Uganda’s Committee on Finance Planning and Economic Development, commented that removing the exemption for land-based casinos is essential to safeguard expected tax income. The committee supports the president's stance, citing concerns that the exemption could lead to opportunities for tax avoidance and revenue loss by allowing different tax treatments for similar gaming activities based on the platform.
Earlier this year, in April, Uganda enacted the Lotteries and Gaming (Amendment) Bill 2026, which established a unified tax rate of 30% for all betting and gaming activities. Before this amendment, betting was taxed at a rate of 20%, under the belief that it posed a lower risk to players compared to conventional gaming.
According to H2 Gambling Capital, Uganda's total interactive gaming sector reported a gross win of $435.3 million in 2025, with predictions indicating that it could exceed $1 billion annually by the end of 2029.
This trend towards enhancing gambling tax frameworks is not isolated to Uganda. Numerous jurisdictions across Africa are also revisiting their tax systems for gambling. For instance, in Kenya, a 5% levy was introduced last year on every withdrawal from a betting wallet, complemented by a 5% excise duty on deposits. Concurrently, Nigeria's Lagos state implemented a 5% withholding tax on player winnings as of February.
