Rwanda approves gambling tax reforms amid revenue push

The Rwandan Cabinet has endorsed a series of tax policy reforms aimed at strengthening the nation’s financial resources and driving economic growth, the Ministry of Finance and Economic Planning announced on Tuesday. The new measures seek to expand the tax base, enhance revenue collection, and improve administrative efficiency.

The government outlined several key changes, including significant tax hikes expected to impact consumers across various sectors. Gambling operators and players will also face substantial tax increases.

Minister of Finance and Economic Planning Yusuf Murangwa announced during a press briefing that the tax on Gross Gambling Revenue (GGR) will increase from 13% to 40%, marking a 27-percentage-point surge. Additionally, the withholding tax on winnings will be raised from 15% to 25%, imposing a greater tax burden on players.

GGR tax applies to the total income generated by gambling operators after paying out winnings. By substantially increasing this tax, the government aims to regulate excessive gambling while boosting state revenues. The hike in withholding tax means that players will now see a larger share of their winnings deducted before payouts, discouraging frequent betting.

Gambling in Rwanda has undergone notable regulatory changes over the years. Initially unregulated, the sector saw the introduction of the 2012 law governing gaming activities, which formalized operations and imposed tax obligations on operators. Today, various forms of gambling are legal, including sports betting, casinos, and lottery games, all of which are subject to government oversight.

The Rwanda Gaming Board (RGB) is the primary regulatory authority overseeing the industry. It is responsible for licensing operators, ensuring compliance with national laws, and implementing measures to prevent gambling-related harm.