🇺🇬 Uganda Removes Casino Exemption: 15% Winnings Tax Now Applies to Land‑Based Gaming

Uganda has officially ended the long‑standing tax advantage enjoyed by land‑based casinos, bringing them fully in line with the online gaming sector. Following President Yoweri Museveni’s approval of amendments to the Income Tax (Amendment) Bill 2026, all casinos must now apply a 15% withholding tax on net winnings before paying out customers.

This marks one of the most significant regulatory harmonisations in Uganda’s gaming industry and carries direct implications for operators, investors, and casino buyers evaluating market entry or acquisition opportunities.

Unified Taxation Across All Gaming Verticals

Previously, land‑based casinos were exempt from the 15% winnings tax, while online betting and gaming were required to apply it. This discrepancy created opportunities for tax avoidance and inconsistent regulatory treatment.

The new amendment eliminates that gap entirely.

Uganda’s government expects the harmonised tax structure to generate Shs65 billion (USD 17.5 million) in additional revenue, strengthening fiscal oversight and reducing leakage.

Maximus Ochai, Chairperson of the Committee on Finance Planning and Economic Development, stated that maintaining different tax treatments for similar gaming activities “creates unnecessary opportunities for tax avoidance and revenue leakage.” The committee fully supported the president’s proposal.

📌 Practical Example: How the 15% Tax Affects a Winning Player

To illustrate how the new tax applies in real casino operations, consider a typical customer scenario:

Player Session Example

• Buy‑in: $100
• Cash‑out: $500
• Net winnings:

$500−$100=$400

Uganda’s 15% withholding tax applies only to the net winnings, not the full payout.

Tax Calculation

Tax=15%×$400=$60

Final Amount Paid to the Player

Final Payout=$500−$60=$440

The customer leaves the casino with $440.

This example demonstrates how profitable sessions are taxed, while losing sessions remain untaxed — a key operational detail for cage management and compliance teams.

Part of a Broader Regulatory Overhaul

The winnings tax harmonisation follows Uganda’s earlier approval of the Lotteries and Gaming (Amendment) Bill 2026, which set a uniform 30% tax rate for both betting and gaming operators. Previously, betting was taxed at 20% due to perceived lower player risk.

Uganda’s gaming market continues to expand rapidly:

• $435.3 million in interactive gross win in 2025
• Forecast to exceed $1 billion annually by 2029 (H2 Gambling Capital)

This growth, combined with regulatory tightening, signals a maturing market with stronger oversight — often a positive indicator for long‑term investment stability.

Regional Trend: African Markets Tighten Gaming Taxation

Uganda’s move aligns with broader tax reforms across Africa:

• Kenya introduced a 5% levy on betting withdrawals and a 5% excise duty on deposits
• Nigeria (Lagos State) implemented a 5% withholding tax on player winnings in early 2026

Governments across the continent are increasingly targeting gaming revenues to strengthen fiscal stability and reduce leakage — a trend investors should monitor closely.

Impact on Casino Buyers & Investors

For acquisition teams, operators, and gaming investors, Uganda’s updated tax regime signals:

• A more predictable and harmonised regulatory environment
• Stronger government oversight and reduced arbitrage opportunities
• Increased compliance requirements at payout desks
• Potential shifts in player behaviour due to reduced net payouts
• Clearer due‑diligence pathways for licensing and operational planning

While the tax increases the burden on profitable players, it also creates a uniform, transparent framework — often preferred by institutional investors and buyers evaluating long‑term viability.