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Betway has decided to temporarily pause all its operations in Zambia after the Constitutional Court rejected its challenge against a new 10% excise duty on betting stakes. The company has labeled this tax as “financially unsustainable,” expressing concerns about its potential impact on the stability of the local betting industry and its customers.
On October 3, 2025, the court dismissed a petition from both Betway and betPawa, which aimed to prevent the Zambia Revenue Authority (ZRA) and the Attorney General from collecting the tax. The ruling allows ZRA to proceed with enforcing the levy while a broader constitutional challenge is still underway.
Betway willing to resume operations
In light of the court’s decision, Betway has officially paused its services. In a notice to its customers, the company stated:
“We regret to inform you that, due to the implementation of a new 10 per cent excise duty, we have made the difficult decision to temporarily pause our operations.”
“Please rest assured that your funds are safe and available for withdrawal at your convenience. All open bets will be settled, with winnings paid out as usual.”
The company also confirmed that it’s willing to resume operations when a “fair and balanced solution” is reached.
Court rejected bid for interim injunction
The court dismissed the petitioners’ request for an interim injunction against the enforcement of the new excise duty outlined in Section 7 of the Customs and Excise (Amendment) Act No. 11 of 2025, which took effect on August 8, 2025.
Betway and betPawa argued that this law was unconstitutional, labelling it as excessive, ambiguous, and unimplementable. They warned that it could drive operators out of business and result in significant job losses.
In their plea, the companies sought to halt enforcement of the tax, claiming it imposed a burden greater than their gross gaming revenue, lacked clarity, and was introduced mid-financial year, making it difficult to comply.
However, the court found that the petitioners did not present a serious enough constitutional issue to warrant suspending the law. The Zambia Revenue Authority (ZRA) also highlighted that pausing tax collection would violate the widely accepted principle of “pay now, argue later,” which is fundamental to tax administration.
Source: Focus Gaming News Africa
