Uganda seeks tax harmonization to boost iGaming economy

(AsiaGameHub) –   Legislators in Uganda have proposed aligning tax duties across various betting sectors as the administration aims to capitalize on the rapidly expanding gambling industry.

Finance Minister Matia Kasaija introduced the Lotteries and Gaming (Amendment) Act 2026 to parliament. Should it be enacted, this legislation would align the tax on betting gross gaming revenue (GGR) with the 30% rate applied to casinos.

Under the Lotteries and Gaming (Amendment) Act 2023, betting was previously subject to a 20% tax rate, having been considered less detrimental than casino gaming.

Upon parliamentary approval, the revised 30% tax framework is scheduled to take effect on July 1, positioning Uganda among the nations with the steepest tax rates in the area.

In addition to targeting operators, Ugandan officials are looking to enhance tax revenue by placing a heavier financial load on players.

The tax proposals for the 2026/27 fiscal year also include a 15% withholding tax on net winnings from betting and gaming. Although this levy was eliminated during the 2023 tax reforms, it is now being reintroduced.

This return to taxing players aligns with comparable moves throughout Africa and coincides with appeals from the East African Community (EAC) for complete regional tax harmonization.

In December, Zimbabwe verified a hike in taxes on player winnings, raising it from 10% to 25%. Simultaneously, in Kenya, players face a 5% tax on deposits and an additional 5% on withdrawals.

Uganda celebrates surge in revenue collection

Earlier this year, Ugandan authorities commended a fresh regulatory strategy for driving increased revenue from the gambling sector.

The National Lotteries and Gaming Regulatory Board (NLGRB) disclosed an almost eightfold rise in non-tax revenue from the gaming industry, climbing from Sh 1.14bn (£232,945) in the 2019/20 fiscal year to Sh 8.79bn (£1.8m) in FY 2024/25.

Bernard Winyi, the acting Executive Director of the gaming board, attributed the success to the deployment of a National Central Electronic Monitoring System. He noted that this system, along with updated fee structures, has enhanced transparency regarding operators and industry activities.

Reflecting broader African patterns driven by rising mobile usage and the growing appeal of remote gaming among younger audiences, Uganda’s gaming market has seen robust expansion in recent years.

According to the NLGRB, total annual revenue collection has surged from Sh 17.4bn (£3.6m) in FY 15/16 to Sh 323bn (£66m) in FY 24/25, highlighting the market’s persistent trajectory of substantial growth.