Uganda Removes Land-Based Casino Exemption from 15% Winnings Tax
The Ugandan government projects that the tax overhaul across the gambling sector will generate approximately Shs65bn ($17.5m / £13.7m) in state revenue.
Uganda’s parliament has approved amendments to the Income Tax (Amendment) Bill 2026, officially eliminating a tax exemption that previously spared land-based casinos from collecting a 15 per cent withholding tax on player winnings.
The legislative change follows a direct intervention by President Yoweri Museveni, who called on lawmakers to level the playing field between brick-and-mortar venues and the country's rapidly growing online gambling sector. Under the updated framework, a 15 per cent withholding tax will be levied on players' net winnings regardless of whether the activity takes place in a physical venue or via digital platforms.
The Ugandan government projects that the tax overhaul across the gambling sector will generate approximately Shs65bn ($17.5m / £13.7m) in state revenue.
Supporting the president's proposal, Maximus Ochai, Chairperson of Uganda's Committee on Finance, Planning and Economic Development, stated:
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.
Fiscal Policy Alignment
The removal of the physical casino loophole completes a broader restructuring of Uganda’s gambling taxation regime following parliament's approval of a unified 30 per cent tax rate on operator gross gaming revenue (GGR) across both sports betting and casino verticals earlier this year.
Elaborating on the government's evolving tax strategy, Henry Musasizi, Minister of State for Finance, added:
In a nutshell, I am of the considered opinion that the President's proposal is in the right direction. The process of arriving at this decision evolves; we can have a position today as a government, but when new information comes, another position can be formed.
Key Market Impacts
- Equalisation Across Platforms: Extends the 15 per cent net winnings tax to physical casino venues, removing the competitive advantage land-based operators previously held over online platforms.
- Revenue Preservation: Protects an estimated Shs65bn ($17.5m) in national tax receipts intended to fund the 2026–27 state budget.
- Broader Tax Overhaul: Complements the 30 per cent harmonised operator tax rate introduced across all gambling categories to streamline the country's fiscal framework.
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