Malawi’s gambling regulator MAGLA opens operator talks after 15% winnings tax overhaul

MAGLA has begun consultations with major bookmakers after Malawi raised withholding tax on betting, gambling and lottery winnings to 15% and removed previous tax-free thresholds, as the regulator weighs market impact and next steps with government stakeholders.

Malawi’s Gaming and Lotteries Authority (MAGLA) has launched consultations with leading betting brands, including Betway, betPawa and Premier Bet, following the country’s latest tax changes on player winnings.

The reform, adopted at the end of December 2025, increased withholding tax on “winnings on betting and gambling including lotteries” to 15% and treated the amount withheld as a final tax. At the same time, Malawi removed the K100,000 and K500,000 tax-free thresholds, meaning all winnings are now subject to withholding.

MAGLA CEO Rachel Mijiga said the regulator is collecting feedback from operators and plans to engage the Ministry of Finance and the Malawi Revenue Authority to align on a workable approach that balances government revenue goals with sector stability. Operators have warned the higher rate could squeeze margins and affect volumes, while the regulator has also flagged the risk of pushing some activity toward unregulated channels if the market response is not managed carefully.

For Malawi’s regulated betting market, the message is that the tax change is now a compliance reality, but the implementation details and any mitigation measures could still evolve through stakeholder engagement. How MAGLA and fiscal authorities respond in the coming weeks will be closely watched by operators assessing product pricing, payout mechanics and player retention under the new 15% framework.