Uganda proposes UGX 110M fine for betting firms evading payment system

The Ugandan government has introduced a proposal to impose stringent penalties on casinos, sports betting, and gaming companies that fail to integrate with the Bank of Uganda’s centralized payments system for stakes and winnings.

In a statement posted on its official Instagram page, the Parliament of Uganda announced, "The Tax Procedures (Amendment) Bill, 2025 provides for the use of the national identification number and the registration number as tax identification numbers, provide for a gaming and betting centralised payment gateway system & a penal tax for failure to use the system."

The proposed law seeks to grant the Bank of Uganda authority over a centralized system for processing payments related to winnings and stakes in the gambling sector. Under the bill, operators who fail to integrate with this system will face a penal tax amounting to either double the gaming or withholding tax due or 5,500 currency points (approximately UGX 110 million), whichever is higher.

State Minister for Finance Henry Musasizi emphasized that all financial transactions within the betting and casino industry would be required to go through the centralized payments gateway. The system, he explained, would be linked to the Uganda Revenue Authority’s electronic notice system, ensuring that all taxable earnings are properly recorded.

The government argues that these reforms will enhance transparency, curb tax evasion, and improve financial monitoring within the gaming industry. Officials believe that some operators currently underreport their revenues, leading to a significant loss in tax income.

The proposed reforms reflect the government’s broader strategy to strengthen financial regulation and enhance revenue collection.