Uganda closes land-based casino loophole in 15% winnings tax

Uganda’s Parliament has approved the removal of the land-based casino exemption from the country’s 15% withholding tax on gambling winnings, putting physical casinos on the same footing as online operators. The decision, reached on 4 August 2026, came after President Yoweri Museveni returned the Income Tax (Amendment) Bill 2026 for reconsideration, objecting to a provision that carved out casinos licensed under the Lotteries and Gaming Act, 2016.

The Parliament Committee on Finance, Planning and Economic Development supported the president’s position. Committee chairperson Maximus Ochai said the exemption would create 'unnecessary opportunities for tax avoidance and revenue leakage' because it treated substantially similar activities differently depending only on the platform. With the exemption removed, the 15% withholding tax will apply to net winnings from both land-based and online betting and gaming.

The change is expected to help the government hit a projected revenue target of Shs65 billion ($17.5 million) under the 2026/27 national budget. Lawmakers argued that removing the carve-out protects that figure by closing a loophole that could otherwise allow revenue to shift through the lower-tax channel.

Harmonised tax framework

The move completes a broader realignment of Uganda’s gambling taxation. In April, Parliament passed the Lotteries and Gaming (Amendment) Bill 2026, which introduced a single 30% tax rate for betting and gaming, replacing the two-tier system under the 2023 Act that taxed gaming at 30% and betting at 20%. The 15% withholding on net winnings was created alongside that harmonised regime.

Uganda’s interactive gambling market is expanding quickly. H2 Gambling Capital estimates the country’s interactive segment generated $435.3 million in gross win in 2025 and projects it will surpass $1 billion by 2029. Betting contributed $341.2 million of the 2025 total, while the offshore interactive segment generated $114.6 million, representing more than 26% of total interactive revenue.

Regional tax moves

Uganda is not alone in tightening gambling taxation in Africa. Kenya introduced a 5% levy on withdrawals from betting wallets and a 5% excise duty on deposits last year. In Nigeria, Lagos state imposed a 5% withholding tax on player winnings in February.