Zimbabwe Introduces 20% Gambling Tax Amid Rapid Growth in Online Betting
Zimbabwe is preparing to implement one of the most significant changes to its gambling sector in recent years, as the government announces substantial tax increases set to take effect on January 1, 2026. Bookmakers will face a sharp rise in taxes, with levies on gross gambling revenue jumping from 3% to 20%, while bettors will see individual winnings taxed at 25%, up from 10%. The move comes as part of a broader effort by authorities to capture more revenue from the rapidly growing industry while also attempting to address social concerns linked to gambling.
Finance Minister Mthuli Ncube unveiled the sweeping changes during the presentation of the 2026 National Budget at the New Parliament Building in Harare on November 28. To ensure compliance, the Minister clarified that the new 20% will be treated as a final tax, meaning that companies subject to it will no longer be required to pay Corporate Income Tax.
According to iHarare, Ncube said, “The tax hike is meant to enhance fairness and ensure that the beneficiaries of the sector’s growth also contribute meaningfully to public revenue. The new rate applies to all licensed betting companies, lotteries and casino operators, representing a 17-percentage-point increase.”
The gambling sector in Zimbabwe has expanded quickly, driven in large part by the rise of online betting, where easy access via smartphones and increasing internet penetration have attracted a younger and more tech-savvy audience. Traditional operators, including casinos and lottery organizers, have also reported consistent growth over the past few years, creating a lucrative environment for the government to increase tax revenue.
By introducing a final tax on operators, the authorities aim to simplify the taxation process, ensuring that revenues are collected efficiently while discouraging underreporting. For bettors, however, the changes will significantly reduce the net returns on winnings, particularly affecting high-stakes players and frequent participants. The heightened tax burden may also encourage some gamblers to seek alternative platforms or cross-border betting options, raising challenges for regulation and oversight.
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According to a report by The Herald, the sector generated approximately $120 million in 2023, with online operations contributing around $45 million during the same period. Active online bettors reportedly surpassed 300,000 in 2024, with roughly 60% aged between 18 and 35.
The industry recorded annual revenue growth of 8% to 10% from 2023 to 2024, with online betting emerging as the fastest-growing segment. Analysts attribute this rise to changing consumer preferences and wider internet access across the country, noting that the sector’s expansion has begun to outpace existing regulatory controls.
