Uganda has officially removed the tax exemption for land-based casinos, applying a 15% withholding tax on net winnings effective immediately following the approval of the Income Tax (Amendment) Bill 2026. President Yoweri Museveni signed the proposal to align physical gaming venues with the online sector, which already operates under this tax structure.
The new regulation requires land-based operators to deduct 15% from player winnings, a measure previously reserved for digital platforms. The government anticipates this harmonization will generate approximately $17.5 million (Shs65 billion) in additional tax revenue. Maximus Ochai, chairperson of the Committee on Finance Planning and Economic Development, explained that the previous exemption allowed for tax avoidance.
He emphasized that applying different rates to similar gaming activities based only on the platform created revenue leakage.
Market Harmonization and Regional Trends
This update follows the approval of the Lotteries and Gaming (Amendment) Bill 2026 in April, which established a unified 30% tax rate for both betting and gaming activities. According to H2 Gambling Capital, Uganda’s interactive segment generated $435.3 million in gross win during 2025, with projections exceeding $1 billion by the end of 2029.
Other African jurisdictions have recently adjusted their gambling tax regimes. Kenya authorities introduced a 5% levy on betting wallet withdrawals and a 5% excise duty on deposits last year, while Lagos state in Nigeria implemented a 5% withholding tax on player winnings in February.