Uganda Casinos Prefers 30% Tax on GGR Instead of 15% Withholding Tax
Uganda’s land-based casino operators are challenging the 15 per cent withholding tax on gaming winnings, proposing that they remain under the existing 30 per cent gross gaming revenue (GGR) framework.
The Uganda Gaming Operators Association (UGOA) argues that calculating out each player’s wins raises compliance expenses and causes operational challenges. Additionally, the tax might put at risk almost 2,500 jobs, according to the association.
According to UGOA chairman Robert Kabonero, the association desired a tax collecting strategy appropriate for land-based casinos. “We are not opposed to taxation, and as licensed operators, we pay our fair share. What we are asking for is a practical and fair collection approach that reflects how land-based casinos operate.”
The association claims that tracking transactions through online player accounts is easier than calculating individual earnings in real casinos. It can be challenging to determine a customer’s overall net position because they may buy chips, switch between games and redeem their leftover chips at the end of a visit.
UGOA proposes independent audits, more rigorous oversight, distinct financial records, clearer transaction categories, and separate licenses for online and physical casinos in order to mitigate these concerns. It states that additional player identification, transaction monitoring, and reconciliation processes would be required in order to enforce the tax.
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According to Kabonero, if there is better control and enforcement, the current 30% GGR framework, which is based on the difference between total wagers and winnings paid out, would provide the government a more reliable way of collecting revenue.
The Income Tax (Amendment) Act, 2026 (Act 21 of 2026), which was approved on August 20 and gazetted on August 28, provides for the tax. Withholding tax is set at 15% on gaming and betting winnings, which are defined as the difference between the payout and the amount staked.
On August 4, Parliament rejected a proposed exemption for profits from landbased casinos, leaving only winners paid by national lottery operator. The proposed casino exemption, according to Parliament, might make it easier for individuals to evade taxes and revenue leakage.
Uganda Revenue Authority (URA) provided clarification on how the tax must be imposed in its public notice, “Withholding Tax on Payments for Winnings of Gaming or Betting,” which was first released on October 30 and revised on November 2, 2026.
According to the notice, wins from casino table games are determined by subtracting the number of chips that each player purchases during a visit from the number of chips that are cashed out. The formula for slot machines is cash-out minus cash-in. While sports betting companies are required to withhold the tax prior to paying or crediting winnings, online gaming profits are subject to a 15% withholding on net gains at each withdrawal.
Additionally, URA mandates that licensed operators submit monthly Gaming Information Returns outlining player transactions, display notices alerting customers to the tax, reveal withholding tax on player receipts or transaction records and keep records for five years.
In order to assess the collection challenges and propose a practical solution, UGOA is looking for further discussions with industry and government stakeholders as well as a joint technical working group. While the existing legislation still mandates a 15% withholding tax on gaming winnings, the association is seeking modifications to the tax’s application to land-based casinos.
