In a decisive move to capitalize on the nation’s rapidly expanding iGaming sector, the government of Uganda has unveiled a rigorous new fiscal framework.
Finance Minister Matia Kasaija has officially presented the Lotteries and Gaming (Amendment) Act 2026 to Parliament, proposing a significant tax hike that would place Uganda among the most high-taxed jurisdictions in East Africa.
Harmonizing Verticals: The 30% Shift
The centerpiece of the amendment is the harmonization of tax rates across all betting verticals. Currently, traditional sports betting is taxed at 20%, a rate established in 2023 under the belief that betting was less harmful than casino gaming.
However, the new bill seeks to bring betting tax in line with the casino sector at 30% of Gross Gaming Revenue (GGR). If ratified, these changes are scheduled to take effect on July 1, 2026, fundamentally altering the profit margins for local and international operators.
The Return of Withholding Tax on Winnings
Operators are not the only stakeholders facing an increased financial burden. The government of Uganda’s proposals for the 2026/27 financial year include the reinstatement of a 15% withholding tax on net winnings. This levy was previously removed during the 2023 tax restructuring but is being reintroduced to align with regional trends seen in neighboring Kenya and Zimbabwe.
The move reflects a broader push by the East African Community (EAC) for tax harmonization. In comparison, Zimbabwe recently hiked player taxes to 25%, while Kenya utilizes a “deposit and withdraw” tax model. Uganda’s return to taxing net winnings signals a prioritized focus on maximizing state revenue as the market matures.
A Surge in Revenue Driven by Digital Monitoring
The legislative push follows a period of unprecedented financial success for the National Lotteries and Gaming Regulatory Board (NLGRB). Non-tax revenue collection has surged nearly eight-fold over the last five years, climbing from Sh 1.14bn to Sh 8.79bn (£1.8m).
Bernard Winyi, Acting Executive Director of the NLGRB, attributed this success to the National Central Electronic Monitoring System:
“The implementation of this system has significantly improved the visibility of operators and activities across the industry. Coupled with our revised fee structures, we are seeing the direct benefits of a more transparent regulatory environment.”
With annual total revenue collection skyrocketing from Sh 17.4bn in 2016 to Sh 323bn (£66m) in 2025, Uganda’s gambling market is no longer a niche sector but a critical component of the national economy, fueled by massive mobile adoption and a digital-native youth demographic.
