Uganda has removed the tax exemption for land-based casinos, aligning them with the country’s online sector. The change follows approval of President Yoweri Museveni’s proposal to amend the Income Tax (Amendment) Bill 2026.
Land-based casinos must now apply a 15% withholding tax to customers’ net winnings, matching the rate already used for online betting and gaming. The government expects tax revenue to reach Shs65 billion under the revised framework.
Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, said the previous exemption created opportunities for tax avoidance and revenue leakage.
“The committee examined the Income Tax (Amendment) Bill and the president’s request and agrees with the president that the exemption granted to land-based casinos will create unnecessary opportunities for tax avoidance and revenue leakage since it establishes different tax treatment for substantially similar gaming activities solely on the platform through which they are conducted,” he said.
Uganda continues wider harmonisation of betting and gaming taxes
The latest measure follows approval of the Lotteries and Gaming (Amendment) Bill 2026 in April. It introduced a harmonised 30% tax rate for both betting and gaming.
Previously, betting was taxed at 20% because authorities viewed it as lower risk. H2 Gambling Capital said Uganda’s interactive gambling market generated $435.3 million in gross win during 2025 and could exceed $1 billion annually by the end of 2029.
African markets adjust gambling tax frameworks
Uganda is not alone in revising gambling taxation across Africa. Kenya introduced a 5% levy on betting wallet withdrawals last year, plus a 5% excise duty on deposits.
In Nigeria, Lagos State introduced an immediate 5% withholding tax on player winnings in February. The changes show African governments using gambling taxation to increase public revenue while reducing differences between betting channels.
Uganda’s decision stays consistent with its vision of regulating gambling activity equally, whether online or in a casino. The bigger question is how much additional tax the market can withstand before higher costs start affecting legal operators and player behaviour.
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