The tax disparity in Uganda's gambling industry is about to become history. Last Thursday, the Ugandan Parliament officially passed the "2026 Lottery and Gaming Amendment Act," which levels the tax rate for gambling and betting to 30%, and concurrently passed the "2026 Income Tax Amendment Act," imposing a 15% withholding tax on players' net profits starting from July 1. This marks the end of Uganda's previous two-tier tax system, which heavily taxed casinos at 30% while only levying 20% on sports betting. With the new law in place, Uganda will join the ranks of the highest gambling tax burdens in Africa. This amendment is a key part of the Ugandan government's overall layout to expand fiscal revenue before the 2026-27 fiscal year budget cycle.
From the perspective of market size, Uganda's gambling industry has maintained a steady pace of expansion in recent years. According to the latest data from H2 Gambling Capital, the country's interactive gambling sector generated a gross income of $435.3 million in 2025, and it is expected to exceed the $1 billion mark by the end of 2029. Sports betting still dominates, contributing $341.2 million. However, the grey areas are equally startling—the offshore interactive gambling sector generated a gross income of $114.6 million in 2025, accounting for more than 26% of the entire interactive gambling market. Whether the tax increase will further push price-sensitive players towards unregulated offshore platforms will be a key variable worth tracking after the policy implementation.
This move by Uganda is not an isolated event, but a reflection of a collective tightening of gambling taxes across multiple African countries. In Kenya, authorities last year imposed a 5% tax on every withdrawal from gambling wallets and added a 5% consumption tax on deposits. Lagos State in Nigeria also imposed a 5% withholding tax on players' profits in February this year. From East to West Africa, the gambling industry is rapidly transforming from a relatively lax tax haven into a target for national revenue enhancement.
PASA's official website continues to track the evolution of gambling market regulation and tax policies in Africa, noting that Uganda's recent legislation simultaneously raises the tax burden on operators and players, with the underlying fiscal logic and regional trends showing high consistency.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
