Uganda removes land-based casino exemption from 15% winnings tax
Land-based casinos in Uganda will now have to pass on a 15% winnings tax to its customers, following a proposal to amend the country’s Income Tax (Amendment) Bill 2026.
As a result of President Yoweri Museveni’s proposal, the Ugandan government has removed the previous exemption afforded to land-based casinos, which meant they did not need to include a 15% withholding tax on winnings in their tax bill.
The 15% withholding tax will apply to net winnings, as it does for online betting and gaming.
The approval of Museveni’s proposal has now eliminated that disparity between online and land-based casinos.
The proposal is expected to increase tax income to Shs65 billion ($17.5 million).
Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, said the removal of the exemption on land-based casinos would help to protect this figure, which is expected following the harmonisation of various betting and gaming tax rates.
“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.
Harmonisation of gambling taxes in Uganda
In April, Uganda approved the Lotteries and Gaming (Amendment) Bill 2026, which set a harmonised 30% tax rate for both betting and gaming.
Previously, Uganda taxed betting activities at 20% due to its perception of being a lower risk to players than gaming.
According to H2 Gambling Capital, Uganda’s total interactive segment generated $435.3 million in gross win in 2025. H2GC expects the sector to surpass $1 billion in annual gross win by the end of 2029.
Alongside Uganda, several other jurisdictions in Africa have sought to alter their tax regimes for gambling.
In Kenya, authorities last year introduced a 5% levy on every withdrawal from a betting wallet, as well as a 5% excise duty on deposits.
Meanwhile, Nigeria’s Lagos state introduced an immediate 5% withholding tax on player winnings in February this year.