The Ugandan government is proposing significant tax reforms for the gambling industry, targeting both operators and players with a unified tax rate of 30%. This move is part of a broader strategy to regulate and increase revenue from gaming activities.
The Ugandan government has laid out ambitious proposals that could reshape the landscape of betting and gaming within the country. Aiming to consolidate the tax structure, the new measures would impose a uniform tax rate of 30% on gross gaming revenue (GGR) for all gambling activities.
Last week, local lawmakers introduced the Lotteries and Gaming (Amendment) Act 2026, which, if passed, would align the tax rate for both operators and players with that of the iGaming sector. In addition, the Income Tax (Amendment) Bill 2026 was presented, proposing a 15% withholding tax on net winnings derived from gambling activities.
If these bills gain approval, they are set to take effect on July 1 of this year, marking a significant shift in Uganda's approach to gambling taxation.
Currently, Uganda's gambling tax structure is divided into two distinct tiers as outlined in the Lotteries and Gaming (Amendment) Act 2023. This earlier legislation raised the tax on gaming activities, including casinos, from 20% to 30%, categorizing them as more harmful to players. In contrast, betting is taxed at a lower rate of 20%, reflecting its status as a lower-margin venture for operators.
Should the proposed 30% tax rate be implemented, it would position Uganda among the nations with the highest gambling tax burdens on the continent. This trend isn't isolated to Uganda; several African countries are also looking to adjust taxation policies related to gambling, often shifting the financial load onto players.
For instance, Kenya introduced a 5% tax on every withdrawal from betting wallets last year, along with a similar excise duty on deposits. Meanwhile, in February, Lagos State in Nigeria enacted a 5% withholding tax on winnings, reflecting a growing regional pattern.
Data from H2 Gambling Capital indicates that Uganda's gambling market has experienced a positive trajectory in recent years. The interactive gambling sector achieved a gross win of $438.3 million in 2025, with projections suggesting this figure could rise to $995.5 million by the end of 2029.
Sports betting remains the leading segment in Uganda, contributing $328 million to the overall interactive gross win in 2025. However, the market faces challenges from illegal gambling activities. Notably, the offshore interactive market accounted for $114.8 million in gross win during the same year, representing over 26% of the total interactive revenue.
Kyle has been part of the Clarion team since December 2023, transitioning from sports journalism to become a senior reporter focused on the Latin American market for iGB.
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