Uganda sets unified 30% gambling tax and 15% withholding on winnings starting July 1

Uganda has approved a 30% gambling tax and a 15% withholding levy on player winnings, part of its plan to fund the 2026–27 national budget, with implementation set for July 1.

Parliament passed the Lotteries and Gaming (Amendment) Bill 2026, introducing a harmonized 30% tax rate across betting and gaming activities. Lawmakers also approved the Income Tax (Amendment) Bill 2026, which imposes a 15% withholding tax on net winnings from betting and gaming.

The updated framework replaces the two-tier system under the Lotteries and Gaming (Amendment) Act 2023. That system applied a 30% tax on gaming activities, including casinos, and a 20% rate on betting, which had been classified as a lower-margin segment.

With the new legislation, both verticals will be taxed at a single 30% rate.

Regional tax adjustments continue

Uganda joins other African jurisdictions that have revised gambling-related taxes. In Kenya, authorities introduced a 5% levy on withdrawals from betting wallets and a 5% excise duty on deposits last year. In the state of Lagos in Nigeria, a 5% withholding tax on player winnings took effect in February.

According to H2 Gambling Capital, Uganda’s interactive gambling segment recorded $435.3 million in gross win in 2025. Projections indicate the market could surpass $1 billion by 2029.

Betting accounted for $341.2 million of the 2025 total, remaining the largest segment. However, illegal activity also continues to contribute to the market. The offshore interactive segment generated $114.6 million in gross win in 2025, representing more than 26% of total interactive revenue.