The Parliament of Uganda has officially passed the Lotteries and Gaming (Amendment) Bill, 2026, introducing a radical shift in how the nation’s betting sector is taxed.
The new law replaces the complex web of separate segment taxes with a single 30% tax rate across all betting and gaming activities.
Harmonizing Net Winnings
The reform, introduced by State Minister for Finance Henry Musaasizi, aims to raise an additional Shs24 billion annually. Crucially, the new formula calculates tax based on total stakes minus payouts, rather than a flat percentage of Gross Gaming Revenue (GGR). This move is designed to simplify compliance for land-based and live casinos while ensuring consistent administration.
The Committee reviewing the bill stated:
“The proposed tax is computed on net winnings as opposed to applying a uniform thirty percent Gross Gaming Revenue to both betting and gaming activities, including land based and live casinos.”
The Centralized Payment Gateway
To enforce this new code, Uganda is moving toward a Centralized Payment System. Contained in the Tax Procedures Code (Amendment) Bill, this mandate requires all operators to channel wagers and payouts through a single gateway licensed by the Bank of Uganda.
Minister Henry Musaasizi of the Parliament of Uganda warned of severe penalties for those attempting to bypass the system:
“Any operator outside the system would face penalties equal to double the gaming or withholding tax due, or 5,500 currency points, about UGX 110 million.”
This gateway will work in tandem with the National Central Electronic Monitoring System (NCEMS), which has been tracking real-time transactions since 2024. Full enforcement is slated for the 2025/2026 financial year, marking the end of the unorganized betting era in Uganda.
