Uganda’s casino industry is asking the government to reconsider the recently introduced 15% withholding tax on gambling winnings. Operators warn that applying the tax to land-based casinos could raise costs, put jobs at risk and weaken the regulated gaming sector.

Through the Uganda Gaming Operators Association (UGOA), operators propose retaining the existing 30% tax on gross gaming revenue (GGR), which they say is more practical and transparent. UGOA chairman Robert Kabonero says the industry is not trying to avoid its tax obligations. Instead, the association is concerned about how the new system would work in land-based casinos.

Unlike online gambling, casinos involve frequent exchanges of chips and multiple transactions, making it harder to calculate each player’s winnings. The association estimates that more than 2,500 jobs could be at risk if customers shift to unlicensed gambling platforms.

The current debate follows concerns that led lawmakers in 2023 to abolish the previous tax on winnings and raise casino operators’ GGR tax to 30%. The National Lotteries and Gaming Regulatory Board (NLGRB) and the Uganda Revenue Authority (URA) have since issued guidance on applying the new 15% tax.

For casinos, the guidance says winnings can be calculated as the difference between the chips cashed out and the chips purchased. Operators are seeking further discussions with the government and propose a joint technical working group. They say this could help resolve implementation challenges and develop a sustainable tax framework.