Uganda Casino Operators Challenge 15% Winnings Tax, Warning of Risks to 2,500 Jobs

Uganda's land-based casino operators are calling for a review of the 15% withholding tax on player winnings, arguing that the system creates operational difficulties and additional costs for licensed businesses.

Uganda's casino industry is urging the government to reconsider the application of a 15% withholding tax on gambling winnings, raising concerns about compliance costs and the potential impact on employment.

The Uganda Gaming Operators Association (UGOA) has proposed retaining a taxation approach based on the existing 30% gross gaming revenue (GGR) framework for land-based casinos.

According to association chairman Robert Kabonero, calculating individual winnings accurately in physical casinos is challenging because customers frequently exchange chips, move between gaming tables and conduct multiple transactions during a single visit.

The operators argue that the additional reporting requirements could increase administrative costs, reduce competitiveness and encourage some customers to move towards unlicensed gambling businesses.

UGOA estimates that licensed casinos directly employ more than 2,500 people, including dealers, cashiers, security personnel and hospitality workers.

The association has raised its concerns through the Private Sector Foundation Uganda (PSFU), which is examining the potential effects of the tax on businesses and employment.

However, the Uganda Revenue Authority (URA) maintains that the 15% withholding tax has applied to gambling winnings since July 1, 2026.

Under official guidance, the taxable amount for casino table games is calculated as the difference between chips cashed out and chips purchased during a player's visit.

Importantly, the 30% GGR tax and the 15% withholding tax apply to different tax bases and should not be treated as interchangeable rates.

The dispute highlights growing tensions between tax collection requirements and casino operations. Any reform will depend on discussions between industry representatives, tax authorities and policymakers, with no approved exemption announced.