The Government of Uganda has unveiled significant tax reforms affecting the gambling and gaming industry through the Lotteries and Gaming (Amendment) Bill 2026 and the Income Tax (Amendment) Bill 2026, aimed at harmonizing the tax regime and enhancing national revenue collection.

The proposed reforms, set to take effect on 1 July 2026, introduce a unified tax structure for the sector, including a standardized 30% tax on Gross Gaming Revenue (GGR) applicable to both betting and online gaming (iGaming). Previously, sports betting was taxed at 20%, while higher-margin gaming activities such as casinos already attracted a 30% rate.

In addition, the government has proposed a 15% withholding tax on players net winnings across all betting and gaming activities. This measure shifts the tax focus from stakes placed to actual winnings received by players, aligning taxation more closely with payout outcomes.

To strengthen oversight and improve transparency, all wagers and payouts will be required to pass through a centralized payments gateway licensed by the Bank of Uganda. The system is expected to enable real-time monitoring of transactions across the industry, improving regulatory compliance and revenue accountability.

Operators who fail to comply with the new payment processing requirements face penalties of up to UGX 110 million (approximately USD 30,137) or double the tax due, whichever is higher. Government officials have emphasized that the reforms are designed to modernize the regulatory framework, close revenue gaps, and ensure a more transparent and efficient gaming ecosystem.

The amendments mark one of the most comprehensive overhauls of Uganda’s gaming tax structure in recent years, reflecting the rapid growth of the sector and the government’s focus on sustainable fiscal management.