Uganda Ends Tax Exemption: Land-Based Casinos to Pay 15 Percent Winnings Tax

Uganda is significantly tightening its grip on the gambling sector by ending a long-standing tax privilege for land-based casinos. Previously, physical gambling halls enjoyed an exemption from the withholding tax on winnings that their online counterparts had to pay. This has now come to an end. Following an amendment to the Income Tax (Amendment) Bill 2026, land-based casino operators must now withhold a 15 percent tax on their customers' net winnings. This decision stems directly from a proposal by President Yoweri Museveni, who sought fiscal parity across all gambling platforms.

The government in Kampala is pursuing a clear objective with this step. It is about harmonizing the market and combating revenue leakage. By aligning tax rates, the government aims to eliminate disparities that previously meant identical gambling activities were taxed differently based solely on the platform used. This fiscal shift is part of a broader strategy that could make Uganda one of the most heavily regulated yet lucrative markets in East Africa.

Numbers and facts

The economic dimension of this legislative change is substantial. The Ugandan government expects tax income from the sector to rise to Shs65 billion, which is approximately 17.5 million US dollars. Maximus Ochai, chairperson of Uganda’s Committee on Finance Planning and Economic Development, strongly defended the measure. He emphasized that the exemption created unnecessary opportunities for tax avoidance.

“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.” - Maximus Ochai, Chairperson of the Committee on Finance Planning and Economic Development, Uganda

In addition to the 15 percent withholding tax on winnings, Uganda had already approved the Lotteries and Gaming (Amendment) Bill 2026 in April 2026, which set a harmonized 30 percent tax rate for both betting and gaming operators. Previously, betting activities were taxed at only 20 percent, as they were perceived to be lower risk for players than traditional gaming.

Background

The African market is growing rapidly, attracting the attention of tax authorities. Data from H2 Gambling Capital shows that Uganda’s interactive segment generated 435.3 million US dollars in gross gaming revenue (GGR) in 2025. By the end of 2029, this figure is expected to surpass one billion US dollars annually. Uganda is not alone in this push. In Kenya, authorities introduced a 5 percent levy on every withdrawal from a betting wallet last year, along with a 5 percent excise duty on deposits. Nigeria’s Lagos state also implemented an immediate 5 percent withholding tax on player winnings in February this year.

However, there are critical voices within the industry. Neal Menashe, CEO of Super Group (the parent company of Betway), warned against overtaxing the sector. He identifies an ideal tax sweet spot between 15 and 25 percent of net gaming revenue.

“When governments overtax at 30 or 40 per cent, customers then turn to the black market, which pays no tax and does not follow responsible gaming practices.” - Neal Menashe, CEO, Super Group

Why it matters for German players

For German players, the tax increase in Uganda has no direct impact on their own pockets, but it serves as a signal for global regulatory trends. In Germany, taxation is already strictly regulated by the State Treaty on Gambling 2021 (GlüStV 2021). Here, a tax of 5.3 percent is levied on the stakes for online slots and online poker, not on the winnings. This already leads to a factual payout limit and affects the available odds in Germany.

German players must also adhere to strict limits, such as the cross-operator deposit limit of 1,000 euros per month, monitored via the LUGAS system. The one-euro stake limit per spin for virtual slot games is another specific feature of the German market. While Uganda is now taxing winnings, the tax burden in Germany remains on the stakes, which is often less transparent for players. It remains crucial for users in Germany to play exclusively with providers listed on the official GGL whitelist to remain legally protected.

What it means for GGL-licensed casinos

German casinos with a GGL license operate in an environment that is already highly harmonized and taxed. The developments in Uganda show that the global trend is toward "total regulation." Providers like Betway, which operate worldwide, must constantly adapt their strategies. For GGL-licensed companies, fair taxation, as demanded by Neal Menashe, is the only way to remain competitive against the black market. If the tax burden becomes too high, players migrate to illegal MGA or Curacao casinos that do not follow German rules like panic buttons or stake limits. The GGL monitors such international trends closely to keep the channeling rate in Germany stable.