Uganda approves unified 30% tax rate for betting and gaming, with 15% on winnings

(AsiaGameHub) –   Starting in July, both betting operators and their customers in Uganda will be subject to increased taxation following the passage of two bills by parliament last week.

Last Thursday, the Ugandan parliament approved the Lotteries and Gaming (Amendment) Bill 2026, which establishes a unified 30% tax rate across both betting and gaming sectors.

Furthermore, the newly ratified Income Tax (Amendment) Bill 2026 mandates a 15% withholding tax on net winnings derived from betting and gaming activities.

These legislative measures are part of the Ugandan government’s broader strategy to generate revenue to support the 2026-27 national budget.

With the bills now passed, the heightened tax obligations for both operators and players will take effect on 1 July.

Betting targeted in Uganda tax hike

Under the previous Lotteries and Gaming (Amendment) Act 2023, Uganda utilized a two-tier system for gambling taxes.

That legislation increased the tax on gaming, such as casinos, from 20% to 30%, based on the assessment that these activities carry a greater risk of player harm.

Conversely, betting was taxed at 20% due to its classification as a lower-margin sector for operators.

The implementation of this harmonized rate in July positions Uganda as having one of the most significant tax burdens in Africa.

However, the nation is not alone in adjusting its gambling tax framework.

In Kenya, authorities introduced a 5% levy on all betting wallet withdrawals last year, in addition to a 5% excise duty on deposits.

Meanwhile, Nigeria’s Lagos state began enforcing a 5% withholding tax on player winnings this past February.

Ugandan gambling on an upwards trajectory

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

The total interactive market reached a gross win of $435.3 million in 2025 and is forecasted to exceed $1 billion by the conclusion of 2029.

Betting remains the primary vertical, accounting for $341.2 million of the 2025 interactive gross win.

Nevertheless, the market continues to grapple with illegal operations, as the offshore interactive sector generated $114.6 million in gross win in 2025, representing over 26% of the total interactive market.