Uganda Engages Gaming Operators on New 15% Tax on Player Winnings

Uganda's gaming regulator and tax authority have met licensed operators to discuss implementation of a 15% withholding tax on betting and gaming winnings, with the levy calculated on players' net gains rather than the full payout.

Uganda's National Lotteries and Gaming Regulatory Board (NLGRB) and Uganda Revenue Authority (URA) have held talks with licensed gaming companies over the implementation of the country's new withholding tax regime for betting and gaming winnings.

The measure is contained in Section 131 of the Income Tax (Amendment) Act, 2026. It requires operators making payments to winning players to withhold 15% of the net winnings, defined as the difference between the player's payout and the amount originally staked.

For example, if a player stakes UGX50,000 and receives a total payout of UGX300,000, the taxable winning is UGX250,000 rather than the entire UGX300,000 payment. At a 15% rate, the withholding tax would therefore be UGX37,500. URA classifies the withholding as a final tax on the player's winnings.

The amended legislation took effect from July 1, 2026, although it was formally assented to on August 20. Winnings paid by an operator licensed to conduct Uganda's National Lottery are excluded from the provision.

NLGRB Chief Executive Denis Mudene Ngabirano said the talks with operators were intended to create a practical and predictable framework that supports tax compliance while allowing the regulated gaming industry to continue developing. He also encouraged companies to adopt technology-driven compliance systems to improve transparency and accountability.

Operators are responsible for deducting the tax before paying players and declaring the amount to URA. Current tax guidance requires withholding-tax returns on betting and gaming winnings to be submitted monthly, by the 15th day of the following month.

The reform is significant because Uganda previously changed its approach to gambling taxation several times. The new framework extends the withholding obligation across betting and gaming while explicitly taxing the player's net gain rather than the full payout, giving operators a clearer basis for calculating deductions.

For Uganda's licensed betting industry, the immediate challenge will be ensuring that betting platforms, payment systems and reporting tools apply the new calculation consistently. The regulator's decision to engage operators directly suggests that implementation and technological compliance will now be as important as the tax rate itself.