The reforms reflect Uganda’s broader push to increase fiscal revenues ahead of the 2026–27 national budget cycle.
Operators and bettors in Uganda will both face additional taxes from July onwards after parliament passed two bills last week.
Last Thursday, the Ugandan parliament passed the Lotteries and Gaming (Amendment) Bill 2026, which will set a harmonised 30% tax rate for both betting and gaming.
Additionally, the now-approved Income Tax (Amendment) Bill 2026 will enforce a 15% withholding tax on net winnings from players’ betting and gaming activities.
The bills form part of the Ugandan government’s wider plans to raise revenue in order to fund the national budget for the 2026-27 financial year.
Now the bills have been passed, the increased burden for players and operators will come into force from 1 July.
Betting targeted in Uganda tax hike
Under the previous Lotteries and Gaming (Amendment) Act 2023, Uganda had been applying a two-tier structure to gambling taxation.
The legislation raised the tax on gaming activities, including casinos, from 20% to 30%, reflecting the view that these pose a higher risk of harm to players.
By contrast, betting had been taxed at 20% because it was considered a lower-margin segment for operators.
The harmonised tax rate from July means Uganda now has one of the highest burdens in Africa.
But the market is not alone among African markets in revising its gambling taxation.
In Kenya, authorities last year introduced a 5% levy on every withdrawal from a betting wallet, alongside a 5% excise duty on deposits.
Meanwhile, the state of Lagos in Nigeria implemented an immediate 5% withholding tax on player winnings in February this year.
Ugandan gambling on an upwards trajectory
According to the latest H2 Gambling Capital data, Uganda’s gambling market has recorded steady growth in recent years.
The total interactive segment reached a gross win of $435.3 million in 2025 and is projected to break the $1 billion barrier by the end of 2029.
Betting remains the dominant vertical, contributing $341.2 million of the 2025 interactive gross win.
However, the market continues to face challenges from illegal activity, with the offshore interactive segment generating $114.6 million in gross win in 2025, accounting for more than 26% of the total interactive market.
