Uganda Casino Operators Call for Review of 15% Winnings Tax
Uganda – 12 November 2026 – www.zonadeazar.com The Uganda Gaming Operators Association (UGOA) has urged the Ugandan Government to reconsider the 15% withholding tax on players’ winnings, arguing that its implementation presents significant operational difficulties for land-based casinos.
The association proposes retaining the existing 30% gross gaming revenue (GGR) tax, supported by stronger fiscal controls and regulatory oversight.
Operators warn that the additional compliance costs could threaten more than 2,500 jobs and undermine the competitiveness of licensed establishments.
Tax in Force Since July 2026
The 15% withholding tax on gambling winnings came into effect on 1 July 2026, following amendments to Uganda’s income tax legislation.
The Uganda Revenue Authority (URA) updated its guidance on 2 November, establishing specific procedures for different gambling activities.
The tax applies to players’ net winnings, calculated as the positive difference between their payout and the amount staked.
It covers sports betting, online casinos, table games, slot machines and major prizes.
Casinos Challenge the Collection System
UGOA argues that monitoring individual player winnings is significantly more complicated in physical casinos than on digital platforms.
At land-based venues, customers may purchase chips repeatedly, exchange them and participate in several games during a single visit.
Robert Kabonero, Chairman of UGOA, explained that these activities make it difficult to determine precisely when a player has generated taxable winnings.
The association provided an example involving a customer who purchases UGX1 million in chips and subsequently cashes out UGX700,000.
Despite receiving money, the player has incurred a net loss of UGX300,000 and should therefore have no taxable winnings.
How Gambling Winnings Must Be Calculated
The official tax guidance establishes different withholding procedures:
- Sports betting: tax must be deducted before winnings are paid or credited.
- Online casinos: withholding applies to net gains at each withdrawal.
- Table games: tax is calculated on the difference between chips cashed out and purchased during each visit.
- Slot machines: the taxable amount is based on cash-out less cash-in per visit.
- Jackpots and major prizes: withholding applies when prizes are paid or made available.
Operators must also disclose the tax to customers, retain records for five years and submit monthly returns containing daily player information.
More Than 2,500 Jobs Could Be Affected
The association warned that implementing the system would require additional investment in customer identification, transaction monitoring, financial reconciliation and staffing.
UGOA estimates that licensed casinos directly employ more than 2,500 people, including dealers, cashiers, security personnel, cleaners and hospitality workers.
The industry also supports businesses providing food, transport, maintenance and other services.
According to Kabonero, rising operating costs could undermine the sustainability of some establishments and encourage customers to move towards illegal gambling operators.
Operators Propose Retaining the 30% GGR Tax
UGOA believes the existing 30% tax on gross gaming revenue provides a more practical mechanism for collecting government revenue.
GGR is calculated by subtracting winnings paid from the total amount wagered with an operator.
The association argues that this approach allows tax obligations to be determined through consolidated business records without reconstructing every individual player transaction.
It therefore recommends maintaining the existing framework for land-based casinos, accompanied by stronger enforcement and oversight.
Projected Revenue of UGX65 Billion
Authorities expect the 15% withholding tax to generate approximately UGX65 billion during the 2026–2027 financial year.
However, UGOA has requested a detailed breakdown distinguishing expected revenue from sports betting, online gaming and physical casinos.
The association argues that policymakers should assess whether additional collections would outweigh potential losses involving employment, business activity and existing tax revenue.
Similar concerns were previously raised during an April hearing before Parliament’s Finance Committee.
Industry Proposes Additional Safeguards
To address potential tax avoidance, UGOA has proposed several measures:
- Separate licences for land-based and online casinos.
- Independent financial records for each operating model.
- Clearer classification of gambling transactions.
- Independent financial audits.
- Penalties for deliberate misclassification.
- A joint technical working group involving regulators and operators.
The Private Sector Foundation Uganda (PSFU) will assess the measure’s potential impact on businesses, employment and household incomes before preparing a policy paper for the Government.
Industry Impact and Next Steps
The dispute highlights the difficulties of applying a single taxation framework to gambling activities with different operational characteristics.
While online platforms can automatically record individual transactions, physical casinos must manage continuous movements of cash and gaming chips.
UGOA is calling for a review of the withholding mechanism and the development of a workable collection system for land-based establishments.
Uganda’s gambling tax debate highlights the challenge of increasing government revenue while preserving licensed casino operations, protecting employment and preventing the expansion of illegal gambling.
Editó: @fonta
