Uganda Applies 15% Winnings Tax to Land-Based Casinos
Uganda.- 11 August 2026 | www.zonadeazar.com Uganda has removed the tax exemption previously enjoyed by land-based casinos and introduced a 15% withholding tax on players’ net winnings, bringing their fiscal treatment into line with the country’s online betting and gaming sector.
The change follows approval of a proposal by President Yoweri Museveni to amend the Income Tax (Amendment) Bill 2026.
News Details
Until now, land-based casinos were exempt from applying the 15% withholding tax to customer winnings.
Following the approved amendment, that exemption has been removed and retail casino operators will be required to apply the same levy already imposed on net winnings from online betting and gaming.
The government aims to eliminate different tax treatment for substantially similar gambling activities based solely on whether they are conducted online or at a physical venue.
Authorities expect the broader harmonisation of gambling taxes to help increase revenue to approximately UGX65 billion, equivalent to US$17.5 million.
Industry Context
The measure forms part of a wider reform of Uganda’s gambling taxation framework during 2026.
In April, Uganda approved the Lotteries and Gaming (Amendment) Bill 2026, establishing a harmonised 30% tax rate for both betting and gaming activities.
Betting had previously been taxed at 20%, reflecting its earlier classification as presenting a lower level of player risk than gaming.
Uganda’s digital gambling market also has considerable growth potential. Industry estimates put interactive gross win at US$435.3 million in 2025, with the market projected to exceed US$1 billion annually by the end of 2029.
Statements
Maximus Ochai, Chairperson of Uganda’s Committee on Finance, Planning and Economic Development, supported the removal of the land-based casino exemption.
He argued that maintaining different tax treatment for retail and online gaming could create unnecessary opportunities for tax avoidance and revenue leakage.
Ochai also stressed that the underlying gaming activities are substantially similar, making different taxation based solely on distribution channel difficult to justify.
Next Steps or Impact
Land-based casinos will need to adjust their tax procedures to account for the 15% withholding levy on customers’ net winnings.
The measure moves Uganda towards a more uniform gambling taxation system while increasing the fiscal obligations placed on retail casino operators.
At the same time, authorities expect the reform to protect government revenue and reduce opportunities for tax arbitrage between different gambling verticals.
Editó: @fonta
