Uganda Removes Land-Based Casino Exemption: 15% Winnings Tax Now Applies to All Gambling
Uganda Removes Land-Based Casino Exemption: 15% Winnings Tax Now Applies to All Gambling
Land-based casinos in Uganda will now be required to impose a 15% withholding tax on customer winnings, following a presidential proposal to amend the country’s Income Tax (Amendment) Bill 2026. President Yoweri Museveni’s initiative has led the Ugandan government to revoke the previous exemption that allowed land-based casinos to avoid including this tax in their bills.
Details of the 15% Withholding Tax on Net Winnings
The 15% withholding tax will apply to net winnings, aligning land-based casinos with the existing rules for online betting and gaming. Previously, only digital operators were subject to this tax, creating an uneven playing field. Museveni’s proposal has now eliminated that disparity, ensuring uniform treatment across all gambling platforms.
The government expects this change to boost tax revenue by Shs65 billion ($17.5 million).
Official Justification: Closing Tax Avoidance Loopholes
Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, explained why the exemption was removed:
“The committee examined the Income Tax (Amendment) Bill and the president’s request and agrees with the president that the exemption granted to land-based casinos will create unnecessary opportunities for tax avoidance and revenue leakage since it establishes different tax treatment for substantially similar gaming activities solely on the platform through which they are conducted.”
In short, treating the same activity differently based solely on whether it happens online or in a physical venue creates a clear loophole for tax avoidance.
Harmonisation of Gambling Taxes in Uganda
This move is part of a broader effort to standardise Uganda’s gambling tax regime. In April, the country approved the Lotteries and Gaming (Amendment) Bill 2026, which introduced a harmonised 30% tax rate for both betting and gaming. Previously, betting was taxed at 20%, reflecting a view that it posed lower risks to players than gaming.
According to H2 Gambling Capital, Uganda’s total interactive gambling segment generated $435.3 million in gross win in 2025. The sector is projected to surpass $1 billion in annual gross win by the end of 2029.
Broader African Context: Tax Changes Across the Region
Uganda is not alone in revising its gambling tax policies. Several other African jurisdictions have recently made similar moves:
- Kenya introduced a 5% levy on every withdrawal from a betting wallet, along with a 5% excise duty on deposits.
- Nigeria’s Lagos state implemented an immediate 5% withholding tax on player winnings in February this year.
These changes reflect a regional trend toward tighter regulation and increased tax capture from the growing gambling industry.