New bill targets higher revenue from fast-growing betting industry
Uganda is moving to significantly reshape its gambling taxation framework after introducing a new proposal that would impose a 30% tax on gaming revenue. The proposed legislation aims to increase government earnings from the rapidly expanding betting and gaming industry, which has grown substantially over the past decade due to digital adoption and mobile money penetration.
The measure was introduced under the Lotteries and Gaming (Amendment) Bill, 2026, presented by Finance Minister Matia Kasaija and officially published in the Uganda Gazette on March 27. If passed, the new tax regime is expected to take effect on July 1, 2026.
Unified tax structure to replace fragmented system
The bill proposes a harmonised tax system that will apply a flat 30% rate on gross gaming revenue, calculated as total stakes placed by players minus winnings paid out. This approach is intended to eliminate inconsistencies in how different types of gaming activities are currently taxed, including betting shops, casinos, and online platforms.
According to government officials, the reform is designed to streamline taxation and improve compliance across the sector, which has become increasingly digital and complex to regulate. The new definition of taxable revenue also seeks to close loopholes that previously led to disputes between operators and tax authorities.
Gaming sector growth drives policy change
Uganda’s gambling industry has experienced rapid expansion, fueled by widespread smartphone usage and the growth of mobile-based betting platforms targeting young urban populations. Government data shows a sharp increase in gaming-related revenue, rising from Shs17.4 billion in 2015/16 to more than Shs323 billion in 2024/25.
This surge in revenue has positioned the sector as a significant contributor to national tax collections, with officials noting that it also supports over 10,000 jobs across retail betting outlets, digital platforms, and associated services.
Economic benefits weighed against industry concerns
While policymakers argue that the tax reform will strengthen public finances and improve regulatory oversight, industry stakeholders are expected to raise concerns about its impact on profitability. Operators fear that a 30% tax rate could place pressure on margins, particularly for smaller businesses already operating in a competitive environment.
There are also concerns that excessive taxation could encourage users to shift toward unregulated or offshore platforms, potentially undermining the intended revenue gains.
Parliamentary review and future outlook
The bill has now been submitted to Parliament, where it will undergo committee scrutiny before being debated and potentially enacted into law. If approved, Uganda would join a growing number of African countries tightening gambling regulations as governments seek to maximise revenue from the expanding digital economy while managing its social implications.
