Parliament of Rwanda approves major tax increases on gambling revenues and winnings

On April 29, Rwanda’s Parliament passed a new income tax bill that significantly increases taxes on the gambling sector, aiming to promote responsible gambling and boost government revenues, The New Times reported.

The legislation raises the tax on Gross Gambling Revenue (GGR) from 13% to 40% and increases the withholding tax on players’ winnings from 15% to 25%. These measures are part of broader tax reforms intended to strengthen Rwanda’s financial resources and support economic growth.

The reforms had earlier received the backing of the Rwandan Cabinet in February, when a package of tax policy changes was endorsed to expand the country’s revenue base across multiple sectors.

Announcing the changes, Minister of Finance and Economic Planning Yusuf Murangwa explained that the sharp 27-percentage-point hike in the GGR tax is designed to regulate excessive gambling while ensuring that the industry makes a greater contribution to public finances. GGR tax is levied on the total income earned by gambling operators after deducting winnings paid out to players.

At the same time, the higher withholding tax means gamblers will now face a 25% deduction from their winnings, a move intended to curb frequent betting by reducing the attractiveness of payouts.

Gambling in Rwanda has seen a steady evolution over the past decade. Once largely unregulated, the sector was formalized with the introduction of the 2012 law governing gaming activities, which imposed licensing requirements and tax obligations on operators. Today, the government continues to tighten oversight to balance industry growth with social responsibility.