Zimbabwe’s recently announced gambling tax hikes have faced strong criticism from industry groups, betting operators, and financial analysts. They warn that these measures could destabilize the sector and negatively impact ordinary punters.

The 2026 national budget, presented by Finance Minister Mthuli Ncube, introduces a significant overhaul of the country’s gambling tax system. The withholding tax on punters’ winnings will increase from 10% to 25%, while a new 20% final tax on bookmakers’ gross revenue replaces the previous 3% levy. These changes, effective January 1, 2026, are intended to boost revenue from the growing gambling sector and alleviate social harms associated with betting.

However, industry representatives argue that these taxes unfairly target both citizens and licensed operators without addressing the underlying causes of economic hardship. A spokesperson for a local betting association stated, “These taxes punish ordinary citizens and licensed operators, without addressing the root causes of economic hardship.”

Analysts warn that the 25% tax on winnings will significantly reduce net payouts for punters. The 20% levy on gross revenue may push smaller betting operators towards financial distress, leading to job losses, outlet closures, and a migration of betting activity into unregulated channels.

An industry analyst criticized the government’s approach, saying, “Rather than addressing spending inefficiencies or tackling corruption, the government is squeezing a sector that provides both employment and entertainment.”

Experts describe these tax changes as “one of the most significant overhauls” of Zimbabwe’s gambling system in years. They caution that higher costs for both punters and operators could stifle growth rather than stabilize the sector, according to a report by African iGaming.

Punters have expressed frustration, noting that the tax increases come at a time of broader economic hardship. Many see gambling as both a source of entertainment and a potential supplemental income during tough times. Critics argue that these new measures focus on symptoms rather than addressing core issues such as unemployment, inflation, and poverty, which often drive people to gamble.

Industry observers are closely monitoring the impact on licensed operators and government revenue. The analyst added, “If the sector contracts or shifts underground, the government risks losing both regulatory control and tax income.”

While Zimbabwean authorities claim the reforms aim to balance revenue generation with consumer protection, critics describe the policy as punitive and finance-driven. They warn that the real economic challenges facing ordinary punters and small operators remain unaddressed.