Gambling Winnings Taxes Lose Ground Across Africa

Africa.- 17 July 2026 www.zonadeazar.com Several African markets are reconsidering taxes imposed directly on player winnings amid weak revenue performance, enforcement difficulties and concerns that high deductions may push customers towards illegal or offshore platforms. Ghana has abolished its levy, while Uganda, Zimbabwe, Kenya and Lagos are pursuing different models.

News Details

Ghana has delivered the clearest reversal. A 10% withholding tax on winnings was introduced in 2023 alongside a 20% gross gaming revenue tax on operators. However, the player levy was repealed in April 2025 after generating approximately GHS 80 million, compared with projected revenue of around GHS 268.75 million.

In Uganda, reforms effective from 1 July 2026 introduced a 15% withholding tax on net winnings, defined as the payout minus the stake, together with a unified 30% gross gaming revenue tax. Operators are also subject to monthly reporting and remittance obligations.

Zimbabwe increased its winnings tax from 10% to 25% in January, while raising the bookmakers’ tax on gross takings from 3% to 20%. The measure has attracted criticism over the risk of driving both customers and businesses outside the formal market.

In Kenya, policy has shifted away from a broad tax on individual betting wins. The 2025 reform introduced 5% levies on betting-wallet deposits and withdrawals. The 2026 legislation restored a 20% winnings tax, but limited it to lottery and prize competition payouts rather than applying it generally to betting and gaming.

The Nigerian state of Lagos has opted for a lower 5% withholding tax on net winnings, supported by identity controls linking payouts and deductions to each player’s National Identification Number.

Industry Context

Regional experience suggests that withholding tax at the point of payout is particularly difficult to administer in land-based casinos and continuous-play environments, where repeated wagering and the constant movement of cash or chips complicate the calculation of each player’s net winnings.

Material deductions can also weaken the competitiveness of licensed operators. As a result, some jurisdictions are shifting towards taxes on operator revenue or transaction-based levies on deposits and withdrawals, which can be captured more consistently through regular filings and audits.

Statements

Ghana government spokesperson Felix Kwakye Ofosu defended the repeal of the player levy and said:

“Do you create difficulty for them by taxing their meagre winnings when you have not been able to give them employment and they are struggling to find their feet?”

He added:

“We believe that it is important to remove that particular tax on winnings.”

Bob Kabonero of the Uganda Gaming Operators Association described the challenges facing land-based businesses:

“When you have 100 people playing at the same time, different games, with cash moving on and off the tables, it is practically impossible to collect.”

Next Steps or Impact

Uganda and Zimbabwe will test whether high player-facing rates can be sustained, while Ghana and Kenya provide examples of repeal or redesign. The outcome may strengthen the regional shift towards gross gaming revenue taxation and transaction-based levies rather than direct deductions from player winnings.

Edited by: @_fonta