Across Africa, taxes on gambling winnings are following a familiar cycle. Introduced as revenue-raising and harm-reduction measures, they have frequently encountered enforcement challenges, industry opposition and concerns that higher rates encourage migration towards untaxed or offshore gambling channels. In response, several governments have repealed, narrowed or restructured winners’ taxes once those pressures outweighed the expected fiscal gains.
Ghana abandons its short‑lived WHT
Ghana has delivered the clearest reversal so far. The Income Tax (Amendment) Act 2023 introduced a 10% withholding tax on betting and lottery winnings alongside a 20% GGR tax on operators, extending the tax net to both sides of the market. Less than two years later, parliament repealed the 10% tax under a certificate of urgency, with President John Dramani Mahama assenting on 2 April 2025 and formalising the change as Act 1129.
Finance minister‑designate Cassiel Ato Forson told his appointments committee in January 2025 that the betting tax “must be abolished” because it had failed, and repeated the pledge in his first budget speech.
Ghana Revenue Authority estimates put expected collections from the betting tax package at around GH¢268.75 million ($23.3 million), compared with reported receipts of roughly GH¢80 million before repeal – a gap of close to 70%.
Government spokesperson Felix Kwakye Ofosu framed the levy as a hit to low‑income bettors, arguing that taxing modest wins in a downturn compounded hardship. “We find that there were many youth who were driven into that activity because of hardship and the need for them to find something to do to make ends meet.
“Do you create difficulty for them by going to tax their meagre winnings when you have not been able to give them employment and they are struggling to find their feet?” he said. “We believe that it is important to remove that particular tax on winnings.”
Industry stakeholders added that the winners’ component was difficult to administer and unevenly enforced. Its repeal formed part of a broader rollback of politically sensitive measures such as the E‑Levy, and highlighted how quickly winners’ taxes come under pressure when they under‑deliver on revenue.
Uganda reinstates a 15% levy
In Uganda, the Income Tax (Amendment) Act 2026 and the Lotteries and Gaming (Amendment) Act 2026, both effective from 1 July, lock in a 15% withholding tax on net winnings, defined as payouts minus stake, alongside a unified 30% tax on gross gambling revenue across betting and gaming.
This time around, lawmakers are pairing the winners’ levy with tighter compliance. Operators were given until 30 June to clear qualifying gaming tax arrears in return for waivers on interest and penalties, after which the new 30%/15% regime and associated monthly reporting obligations will apply in full.
Casino owners have already told parliament and local media that collecting 15% at the point of payout on continuous play is difficult. In April Bob Kabonero from the Uganda Gaming Operators Association told a meeting of operators and accountants that: “Land‑based casinos are different from real‑time casinos or online betting. Because on online, every single player has an account, and you can log in and trace the transaction.
“But when you have 100 people playing at the same time, different games, there is cash on the tables, cashing out, cashing in using the same money, it is practically impossible to collect,” Kabonero said.
Zimbabwe pushes to 25%
Zimbabwe represents the sharp end of the winners’ tax trend. Authorities originally projected around $15 million a year from the earlier 10% withholding tax, based on estimated gross winnings of about $150 million, and early Zimbabwe Revenue Authority (ZIMRA) data credited the levy with helping revenue slightly exceed its Q1 2025 target.
From 1 January 2026, however, the withholding tax on punters’ winnings jumped from 10% to 25%, while bookmakers’ tax on gross takings rose from 3% to 20% under the Finance Act. Betting firms, casinos and lottery operators must now withhold 25% of a player’s gross winnings at payout and remit this directly to ZIMRA under a strict monthly return and payment schedule.
Government ministers have presented the 25% levy as both a revenue‑mobilisation tool and a harm‑reduction measure, and part of a broader push to tighten compliance and curb under‑declaration. Lawmakers, industry and retail bodies have pushed back hard.
Winners’ tax could place ‘heavy burden’ on operators
During the December 2025 budget process, the Portfolio Committee on Budget, Finance and Investment Promotion warned MPs that the tax could place a heavy burden on operators and gamblers and cautioned that the sharp increase, alongside a higher cash withdrawal levy, risked pushing operators, lotteries, casinos and punters out of the formal system.
The Confederation of Zimbabwe Retailers told the National Assembly in December 2024 that the betting tax along with others should be scrapped on the grounds it “targets the poor”, while analysts warned in November 2025 that a jump to 25% would drive betting underground and ultimately reduce net revenue.
The government has countered that the taxes are easy to collect and will boost revenue – a familiar argument across the region. However Zimbabwe’s 25% rate is now emerging as an early test of how far winners’ taxation can be pushed before higher rates begin to shift activity out of the regulated market.
Kenya narrows winners’ tax to lotteries
Kenya offers one of the clearest illustrations of the winners’ tax cycle in full, having already gone through a 20% winners’ withholding regime and subsequent roll‑back in 2018–2020 as operators left the market and parliament eased stake‑level taxes. <…