Zimbabwe targets June rollout for higher bookmaker levy

Zimbabwean lawmakers are pushing to raise the levy paid by licensed bookmakers from 2% to at least 4%, with the additional funds intended to expand community projects financed through the Lotteries and Gaming Board.

Zimbabwe is moving toward another gambling-sector cost increase as a parliamentary committee targets June implementation of a higher bookmaker levy. The proposal would raise the levy collected from licensed bookmakers from the current 2% to at least 4%, strengthening the resource base of the Lotteries and Gaming Board.

The recommendation came from the Parliamentary Portfolio Committee on Defence, Home Affairs, Security Services and War Veterans Affairs after a review of LGB-supported community projects. The committee examined how gambling-sector revenue had been used in areas including Mutasa, Gutu, Zaka, Lupane and Kadoma, where funds have supported clinics, schools, skills training centres and other public infrastructure.

At present, bookmakers contribute a 2% levy to the LGB, with 1.8% directed to community development projects. Lawmakers argue that doubling the levy would allow the Board to expand its social impact, particularly in underserved areas where gaming revenue has already helped improve access to healthcare, education and maternal services.

The proposed levy increase is separate from Zimbabwe’s broader gambling tax reform that took effect on January 1, 2026. Under that reform, the tax on bookmakers rose from 3% to 20%, while the tax on bettors’ winnings increased from 10% to 25%. This means licensed operators are already adjusting to a much heavier fiscal environment before the new levy is added.

The committee’s report praised the LGB model as an example of how regulated gambling revenue can deliver public value beyond the betting industry. However, it also identified operational weaknesses, including project delays, maintenance problems at completed facilities and cases where infrastructure projects were affected by unpaid utility bills or structural defects.

For bookmakers, the June implementation target creates another short adjustment window. Operators will need to factor in the higher levy alongside the existing 20% bookmaker tax and the 25% tax on winnings, which could affect margins, pricing and promotional strategies.

For Zimbabwe’s gambling sector, the policy direction is clear: the government wants regulated betting to contribute more directly to public development. The challenge will be balancing social funding goals with market sustainability, especially if higher costs make licensed operators less competitive against informal or unlicensed betting channels.