Land-based casinos in Uganda will now be subject to a 15% tax on winnings after the Ugandan government approved a proposal to amend the Income Tax (Amendment) Bill 2026. This change follows President Yoweri Museveni's initiative to remove the previous exemption that allowed these casinos to bypass withholding taxes on winnings.
The newly imposed 15% withholding tax will align with existing regulations for online betting and gaming, thereby eliminating the discrepancy between the two forms of gambling.
The government anticipates this adjustment will boost tax revenue, projecting an increase to Shs65 billion ($17.5 million).
Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, noted the necessity of this change to prevent tax avoidance and revenue loss. He explained that the exemption granted to land-based casinos created an unequal tax treatment for similar gaming activities based solely on their operational platform.
Earlier this year, Uganda had already enacted the Lotteries and Gaming (Amendment) Bill 2026, which established a uniform tax rate of 30% for both betting and gaming, correcting a previous 20% tax on betting activities perceived as less risky than gaming.
According to H2 Gambling Capital, Uganda's interactive gaming sector achieved a gross win of $435.3 million in 2025, with expectations to exceed $1 billion annually by 2029.
Other jurisdictions in Africa are also modifying their gambling tax structures. In Kenya, a 5% levy on withdrawals from betting wallets and a 5% duty on deposits was imposed last year. Simultaneously, Lagos state in Nigeria implemented a 5% withholding tax on player winnings in February.
