Uganda to Introduce Uniform 30% Tax on Gambling, Plus New Net Winnings Levy

(AsiaGameHub) –   The Ugandan government has put forward new plans to significantly increase the tax obligations for the gambling industry, affecting both companies and participants.

Legislators in Uganda recently proposed the Lotteries and Gaming (Amendment) Act 2026. This legislation, pending approval, would standardize the tax on betting to a 30% Gross Gaming Revenue (GGR) rate, aligning it with the existing tax for iGaming.

A separate piece of legislation, the Income Tax (Amendment) Bill 2026, was also introduced. This bill would impose a 15% withholding tax on the net winnings of individuals from betting and gaming.

Provided both bills are passed, they are scheduled to take effect starting July 1 of this year.

Harmonisation of gambling tax in Uganda

The current gambling tax structure in Uganda, governed by the Lotteries and Gaming (Amendment) Act 2023, operates on a two-tier system.

That previous legislation raised the tax rate on gaming activities, such as casinos, from 20% to 30%, based on the assessment that they pose a greater risk to players.

Betting, however, remains taxed at 20%, a rate set because it is considered a lower-margin business for operators.

The implementation of a unified 30% tax rate would place Uganda’s tax burden among the highest on the African continent.

Uganda is part of a broader trend in Africa where governments are adjusting gambling taxation, often shifting the cost to the players.

Last year, the neighboring Kenyan market enacted a 5% tax on betting wallet withdrawals, in addition to a 5% excise duty on deposits.

More recently, in February of this year, Lagos state in Nigeria introduced an immediate 5% withholding tax on all gambling winnings.

Performance of gambling in Uganda

Data from H2 Gambling Capital indicates that Uganda’s gambling market has experienced consistent growth over recent years.

The total interactive market achieved a gross win of $438.3 million in 2025, with projections suggesting this figure will rise to $995.5 million by 2029.

Sports betting is the most prominent segment in Uganda, representing $328 million of the total interactive gross win in 2025.

Despite this growth, the market faces challenges from illegal gambling. The offshore interactive sector generated a gross win of $114.8 million in 2025, accounting for more than 26% of the entire interactive market.