Taxation on gambling winnings in Africa faces significant hurdles, cycling through attempts at implementation, enforcement difficulties, industry pushback, and concerns regarding migration to untaxed gambling options. This has led many governments to repeal or revise these taxes when anticipated revenue doesn’t materialize.
In Ghana, the situation has been particularly stark. The Income Tax (Amendment) Act 2023 introduced a 10% withholding tax on winnings and a 20% tax on gross gaming revenue (GGR) for operators. However, just two years later, Parliament swiftly repealed the 10% tax, with President John Dramani Mahama signing off on the repeal on April 2, 2025, cementing the change as Act 1129. Finance minister-designate Cassiel Ato Forson emphasized the need to abolish the tax, highlighting its failure to deliver the expected revenue, with the Ghana Revenue Authority forecasting collections of around GH¢268.75 million ($23.3 million) compared to the actual receipts of roughly GH¢80 million before the repeal, revealing a significant shortfall. A government spokesperson argued that taxing small wins during tough economic times exacerbates issues for low-income bettors.
In contrast, Uganda introduced a 15% withholding tax on net winnings effective July 1, 2026, as part of the Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026. This time around, stricter compliance measures accompany the winners’ tax. Operators have until June 30, 2026, to settle outstanding tax debts, after which new rules take full effect. However, challenges persist, as industry representatives warn that collecting the tax from continuous play at cash tables is a logistical nightmare.
Zimbabwe has taken a bolder step, raising the withholding tax on winnings from 10% to 25% starting January 1, 2026, while also increasing the bookmaker’s tax from 3% to 20%. Government officials have positioned this hefty levy as both a revenue tool and a measure to reduce gambling harm. However, concerns have been raised by industry stakeholders about the heavy burden this tax imposes on operators and bettors alike, warning that such rates may push gambling into illegal channels.
Meanwhile, Kenya is refining its taxation strategy. After previously imposing a 20% winners’ withholding tax, the focus shifted in 2025 to levying 5% on deposits and withdrawals from betting wallets instead. Recently, the Finance Act 2026 reintroduced a 20% tax, but limited it to winnings from lotteries and prizes, leaving other forms of gambling unaffected.
In Lagos, Nigeria, the Lagos State Lotteries and Gaming Authority has implemented a 5% tax on net winnings, initiating identity verification through National Identification Numbers for bettors to ensure the tax is accurately linked to their income tax profiles. This approach aims to balance reasonable taxation levels with effective enforcement to deter migration to unregulated operators.
Lastly, South Africa, the continent's largest regulated gambling market, is exploring a different route with a proposal for a national 20% tax on GGR from online betting, moving away from taxing player winnings. This shift suggests a growing consensus that taxing operators might yield better compliance and revenue collection.
Overall, these developments illustrate the fragile state of winners’ taxes across Africa. Governments have struggled to align tax expectations with actual revenue generation while managing compliance challenges and maintaining market integrity. Recent trends indicate a preference for alternative tax models, such as GGR and transaction-based levies, which appear more sustainable than taxing individual winnings directly. As the situation evolves, the long-term viability of winners’ taxes remains in question, with many jurisdictions rethinking their strategies in the face of persistent challenges.
