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The National Lotteries and Gaming Regulatory Board (NLGRB) and the Uganda Revenue Authority (URA) sat down with licensed operators this week to discuss how the new 15% withholding tax on betting and gaming winnings will be applied.
The measure, introduced under Section 131 of the Income Tax (Amendment) Act, 2026, requires operators to deduct the tax from winnings, calculated as the difference between the payout and the stake. Winnings from the National Lottery are exempt.
NLGRB Chief Executive Officer Denis Mudene stressed the importance of cooperation between government and industry, noting, “Licensed operators continue to make an important contribution to Uganda’s economy through tax revenues, employment, investment and innovation. It is therefore essential that government, regulators and industry engage openly and candidly on how new policies are implemented.”
Mudene explained that the NLGRB and URA are committed to building a compliant and sustainable gaming sector. He said the goal is a regulatory framework that protects government revenue while still allowing the industry to grow.
“We are committed to creating a practical, sustainable and consistent policy, regulatory and operating environment that benefits all parties,” he added, according to local news outlet ChimpReports.
Uganda continues to push toward single gambling framework as market grows rapidly
Uganda’s latest engagement with operators fits into a broader effort to unify its gambling rules. In April, amendments to the Lotteries and Gaming Act set a single 30% tax rate for both betting and gaming, replacing the earlier split where betting was taxed at 20%
The change reflects the government’s view that the two activities should be treated alike, especially as online gambling continues to expand.
Recent figures underline the scale of that growth. Gaming‑sector tax revenue rose from UGX194 billion in FY2023/24 to UGX368.02 billion in FY2025/26, while non‑tax revenue climbed from UGX1.14 billion in FY2019/20 to UGX12.58 billion in FY2025/26.
According to the regulator, stronger compliance monitoring, automation, and cooperation with the Uganda Revenue Authority have driven the improvement.
Online gambling now accounts for more than two‑thirds of tax collections, supported by the National Central Electronic Monitoring System. Compliance rates also improved, moving from 68% to 79% in just one year.
Bringing land-based casino into the fold
The government has also moved to close gaps between online and land‑based operators. Last month, casinos lost their exemption from the 15% withholding tax on player winnings, bringing them in line with online platforms.
During the stakeholder engagement this week, Mudene urged operators to adopt technology‑driven compliance tools, calling them central to effective regulation as the crackdown on illegal gambling continues.
That crackdown has been visible. In its August report, the regulator said 9,983 illegal gaming machines had been seized, with 4,400 taken in FY2025/26 alone. More than 6,700 machines have since been destroyed under court orders.
Alongside this, 57 illegal websites have been blocked or disrupted in cooperation with the Uganda Communications Commission and payment providers. Mudene noted at an August 14 stakeholder meeting that shutting down websites alone is not enough, stressing the need for telecoms to do more.
Together, these steps show Uganda’s push toward a single framework that balances revenue collection with tighter oversight, while steadily closing loopholes in both the online and physical gambling markets.
