Uganda casino operators seek alternative to 15% winnings tax
Uganda’s land-based casino operators have asked the government to reconsider a 15% withholding tax on players’ winnings, arguing physical venues cannot apply the tax accurately.
The Uganda Gaming Operators Association (UGOA) wants land-based casinos to stay under the existing 30% gross gaming revenue (GGR) tax. Operators calculate GGR by subtracting winnings from total wagers.
According to Nile Post’s report, the association raised its concerns after meeting the Private Sector Foundation Uganda (PSFU). PSFU is the country’s main umbrella body for the private sector.
Its policy department will assess the tax’s impact on jobs, businesses and household incomes. That work will inform an advocacy paper.
“We are not opposed to taxation, and as licensed operators, we pay our fair share,” said UGOA chairman Robert Kabonero. “What we are asking for is a practical and fair collection approach that reflects how land-based casinos operate.
“We believe the existing 30% gross gaming revenue tax, supported by stronger oversight and enforcement, provides a more reliable way for government to collect revenue.”
How the winnings tax works
The withholding tax has applied since 1 July under changes to Uganda’s income tax law. The Uganda Revenue Authority (URA) updated its guidance on 2 November.
For table games, operators must subtract chips purchased from chips cashed out for each player per visit. For slots, the calculation uses cash-out minus cash-in per visit.
Operators must show the tax on receipts and display notices for players. They must also retain records for five years and submit monthly returns detailing each player for each day.
UGOA says online accounts make individual transactions easier to track. Casino players, however, can buy chips repeatedly, exchange them and move between games during one visit.
The association gives an example of a player who buys UGX1 million ($245.28) in chips and cashes out UGX700,000. Despite receiving cash, that player has lost UGX300,000 and has no taxable winnings.
UGOA says compliance would require investment in player identification, transaction monitoring, reconciliation and additional staff. It warns that these costs could threaten more than 2,500 casino jobs and reduce tax receipts. Players moving to unlicensed operators could compound those risks.
“This is not simply about casino operators,” Kabonero said. “We are talking about employees who depend on these jobs, families supported by their incomes and local businesses that supply our establishments.”
Operators seek a workable collection system
During an April hearing before Parliament’s finance committee, New Vision reported that operators raised the same concerns.
Kabonero told lawmakers that when “you have 100 people playing at the same time, different games, there is cash on the tables, cashing out, cashing in using the same money, it is practically impossible to collect”.
Committee vice-chairperson Moses Aleper said: “But as of now, it is easier to trace the online [gaming] than the land-based casinos.”
In 2023, Parliament raised gaming tax to 30%. The finance committee also proposed removing the 15% withholding tax on gaming winnings. It cited difficulties identifying a taxing point in roulette, poker and slots.
UGOA says these collection problems date back to 1994. It puts projected revenue from the new measure at about UGX65bn for the 2026–27 financial year. The association wants a breakdown covering sports betting, online gaming and land-based casinos.
To address tax-avoidance concerns, UGOA proposes separate licences and financial records for physical and online casinos. It also recommends clearer transaction classifications, independent audits and penalties for deliberate misclassification.
The association wants the government to establish a joint technical working group. This would develop a practical system for collecting the tax.