for early access to the latest igaming videos!
and get the latest igaming news first!
The Zambia Revenue Authority (ZRA) has announced strict deadlines for the newly implemented 10% betting tax, requiring operators to make payments by the 15th of each month for the previous month’s transactions.
This official notice, issued on October 15, 2025, marks the first collection of this excise duty for transactions conducted in September 2025 under the Customs and Excise (Amendment) Act No. 11 of 2025, which Parliament enacted on August 19, 2025.
The introduction of this tax aims to enhance domestic revenue for the government’s K33.6 billion (€3.3 billion) supplementary budget for 2025. The ZRA has specified that betting companies must remit payment for September immediately, with payments for October due by November 15, and subsequent payments required on the same date each month.
Operators who fail to comply with these deadlines will face penalties, intensifying the pressure on the gambling sector amid ongoing disputes over the tax.
“Betting companies are required to compute and remit excise duty at 10 per cent on the total amount staked by the 15th of each month. All betting companies must manually compute the excise duty and make remittances using their Withholding Tax Accounts under the Lumpsum Payment option,” the authority said in a press release.
Operators responsible for accounting and remittance
The introduction of the 10% excise duty aims to boost domestic revenue and enhance oversight of Zambia’s rapidly expanding betting industry. The government intends for this measure to standardize tax practices, improve compliance, and generate additional funds for national development.
In this context, the Zambia Revenue Authority (ZRA) has made it clear that betting operators bear full responsibility for accurately accounting for and remitting the tax.
The ZRA has issued a stern warning that failure to comply with these requirements could lead to penalties under Zambia’s tax regulations. This emphasis on accountability places significant pressure on operators to ensure timely and accurate payments.
Operators continue to exit market
The introduction of the new tax has stirred significant reactions from major betting operators in Zambia. Several companies have challenged the tax in court, expressing worries about its potential impact on their businesses.
On October 3, the Constitutional Court dismissed applications from betPawa and Betway that aimed to block the excise duty, affirming that it is a consumption tax that bettors ultimately bear and falls within the ZRA’s authority.
In the wake of this ruling, Betway temporarily halted its operations, while BetLion paused its services. Although betPawa chose to adjust its offerings, it continued to operate under the new tax regime, demonstrating the immediate consequences of the levy on the betting landscape in Zambia.
The court’s decision follows the “pay now, argue later” principle, allowing the ZRA to collect the tax even as legal disputes unfold. The suspension of operations by these major players highlights the financial pressure the excise duty imposes on the industry. Meanwhile, the ZRA insists that the duty is a consumption tax, enacted after consultations with stakeholders, and believes it will ultimately be absorbed by bettors.
Source: Focus Gaming News Africa
