The Government of Uganda has introduced new legislation aimed at standardizing gambling tax across its rapidly expanding betting and gaming sector, in a move expected to enhance revenue collection and regulatory clarity. The proposed law, titled the Lotteries and Gaming (Amendment) Bill, 2026, was formally presented by Finance Minister Matia Kasaija and published in the Uganda Gazette on March 27.
According to the bill’s memorandum, the amendment seeks to harmonise the gaming tax rate at 30% of gross gaming revenue, defined as the total amount of money staked by players minus payouts. This approach aligns with international best practices and introduces a uniform taxation framework across betting, casinos, and other gaming activities.
“The object of this Bill is to amend the Lotteries and Gaming Act… to harmonize the gaming tax rate… to thirty percent of the total amount of money staked less the payouts,” the memorandum states. If approved by Parliament, the new law will take effect on July 1, 2026, creating consistency across the sector and simplifying compliance requirements for operators.
Uganda’s gaming industry has experienced significant growth in recent years, driven by increased smartphone adoption, widespread use of mobile money, and the rise of digital betting platforms particularly among younger, urban populations. Government figures highlight this upward trend, with gaming-related revenues increasing from Shs17.4 billion in the 2015/16 financial year to over Shs323 billion in 2024/25.
Growth has accelerated markedly in recent years, reflecting both higher participation and improved monitoring mechanisms. The sector now plays a key role in the national economy, contributing substantially to both tax and non-tax revenues while supporting more than 10,000 jobs across retail betting outlets, technology platforms, and ancillary services.
A central feature of the amendment is the clear definition of taxable revenue. The bill specifies payouts as “the total gross amount of money, or the fair market value of non-monetary prizes” awarded to players. This clarification is expected to reduce ambiguities that previously led to inconsistent interpretations among operators. By adopting a gross gaming revenue model, authorities aim to improve compliance, minimize disputes, and strengthen oversight particularly as digital betting continues to dominate the market.
The reform comes as the government intensifies efforts to boost domestic revenue mobilization to fund infrastructure and social programmes while limiting reliance on public debt. Enhanced monitoring of telecom and mobile money transactions has already improved visibility into betting activities, the majority of which now occur on digital platforms. Officials expect the harmonized tax rate to further streamline enforcement and increase collections from a sector that has shown strong but uneven compliance.
While the proposal is expected to benefit public finances, industry stakeholders are likely to closely evaluate the impact of the 30% rate on operational margins. Some operators have previously raised concerns that higher taxation could challenge smaller firms and potentially shift players toward informal or offshore platforms. At the same time, policymakers continue to balance fiscal objectives with social considerations, particularly regarding the impact of gambling on young people.
The bill was formally received by Parliament on March 31 and will now undergo committee review before proceeding to debate and a potential vote. If enacted, Uganda will join a growing number of African countries strengthening regulation and taxation of the gaming sector as it evolves into a significant digital revenue stream.
