Uganda Imposes 15% Winnings Tax on Land-Based Casinos

Uganda has now extended a 15% winnings tax to encompass land-based casinos, following a proposal to amend the Income Tax (Amendment) Bill 2026 by President Yoweri Museveni. This shift eliminates the tax exemption that previously benefited these establishments, aligning them with the tax rules applicable to online gaming and betting.

Aligning Tax Policies Across Platforms

The introduction of the 15% withholding tax on net winnings for land-based casinos mirrors existing obligations for online operators. This adjustment is projected to bolster Uganda's tax revenue by UGX 65 billion ($17.5 million). Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, emphasized that the exemption could lead to tax avoidance and revenue leakage due to inconsistent treatment of similar activities based on their platform.

The Broader Strategy: Tax Harmonisation

In April 2026, Uganda's government approved the Lotteries and Gaming (Amendment) Bill, which set a unified 30% tax rate for both betting and gaming. This marked a change from the previous 20% for betting, differentiated on the grounds of perceived risk to players. The harmonization reflects a shift towards cohesive fiscal policies in the gambling sector.

Comparative Context in Africa

Uganda is not alone in revising its gaming tax structure. In Kenya, authorities implemented a 5% levy on each withdrawal from betting wallets, alongside a 5% excise duty on deposits. Similarly, Lagos state in Nigeria introduced a 5% withholding tax on player winnings earlier this year. These changes highlight a regional trend towards stricter gambling tax regimes.

Market Insights and Future Projections

H2 Gambling Capital notes that Uganda's interactive segment generated $435.3 million in gross win in 2025, with expectations to exceed $1 billion by the end of 2029. The harmonization of tax policies is not just about revenue but also adapting to future growth in the industry.

Implications for Operators

Operators in Uganda must now adjust to this updated tax landscape. Land-based casinos face a new obligation to withhold 15% on winnings, bringing them into line with their online counterparts. This shift requires robust compliance measures to ensure smooth implementation and adherence to the new fiscal requirements.