Land-based casinos in Uganda are now required to charge a 15% winnings tax to their customers after a recent amendment to the country’s Income Tax (Amendment) Bill 2026. This change comes at the request of President Yoweri Museveni, who proposed the removal of an exemption that previously allowed land-based casinos to forgo including a withholding tax on winnings.
The new 15% withholding tax is set to apply to net winnings, aligning the tax treatment for land-based casinos with that of online betting and gaming, thereby eliminating the previous inconsistency.
Officials expect that this tax adjustment will bolster government revenue, projecting an income increase to Shs65 billion ($17.5 million). Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, emphasized that removing the exemption for land-based casinos will help safeguard this projected revenue by addressing potential tax avoidance and revenue loss.
Ochai remarked, "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."
The harmonization of gambling tax structures in Uganda is not new; earlier this year, the country passed the Lotteries and Gaming (Amendment) Bill 2026, setting a unified tax rate of 30% for both betting and gaming activities. Previously, betting activities were taxed at 20%, reflecting a belief that they posed a lower risk to players than gaming.
According to H2 Gambling Capital, Uganda's interactive gambling segment earned $435.3 million in gross winnings in 2025, with expectations to exceed $1 billion by 2029.
Other African nations are also reforming their gambling tax policies. In Kenya, a 5% levy was introduced on every withdrawal from betting wallets and a similar duty on deposits last year. Similarly, Nigeria's Lagos state implemented a 5% withholding tax on player winnings as of February this year.
