Uganda Applies 15% Tax on Physical Casino Winnings

In Uganda, physical casinos will now be required to apply a 15% tax on winnings as a result of a proposal to amend the Income Tax Bill 2026. The proposal from President Yoweri Museveni removes the previous exemption that allowed physical casinos not to include this withholding tax in their fiscal calculations. With this approval, the disparity between online and physical casinos is eliminated, equalizing tax treatment. The measure is designed to increase tax revenues to Shs65 billion ($17.5 million). Maximus Ochai, chairman of the Financial Planning and Economic Development Committee of Uganda, indicated that this removal of the exemption will help safeguard this figure, expected after the harmonization of gaming tax rates.

“The committee reviewed the Income Tax Amendment Bill and the president's request, and agrees that the exemption granted to physical casinos will create unnecessary opportunities for tax evasion and revenue leakage by establishing different tax treatments for substantially similar gaming activities solely based on the medium through which they are conducted,” said Ochai.

Harmonization of Gaming Taxes in Uganda

In April, Uganda passed the Lotteries and Gaming Amendment Act 2026, which established a harmonized tax of 30% for both betting and gaming. Previously, betting was taxed at 20% due to its perceived lower risk for players compared to gaming. According to H2 Gambling Capital, Uganda's total interactive segment generated $435.3 million in gross winnings in 2025. The sector is expected to surpass $1 billion in annual gross winnings by the end of 2029.

Changes in Other African Countries

Alongside Uganda, several other jurisdictions in Africa have sought to modify their fiscal regimes for gaming. In Kenya, authorities introduced a 5% levy on each withdrawal from a betting wallet, as well as a special 5% tax on deposits. Meanwhile, in Nigeria's Lagos state, a 5% tax on player winnings was introduced in February of this year.