The African gambling market is reshaping the rules and triggering a wave of tax reforms
The African gambling market is rapidly changing its appearance against the backdrop of large-scale tax reforms affecting several countries on the continent at once. The authorities of a number of states are raising rates, revising taxation schemes, and actively discussing new laws. These changes are causing a broad public response and a heated debate among operators and players. By 2026, the new rules may radically change the industry's business model and also influence the habits of millions of users.
African countries are tightening tax policy and launching a chain reaction of changes
In recent years, African governments have increasingly made decisions to tighten tax policy regarding the gambling business. This approach is associated with the rapid growth in popularity of online gambling, which is attracting more and more young people and providing significant turnover. The authorities aim to increase budget revenues, as well as strengthen market control and combat illegal operators who often engage in tax evasion. Similar reforms have already been carried out in Latin American and Eastern European countries, where they were accompanied by both increased revenues and disputes.
Zimbabwe increases taxes and focuses on fairness in the industry
In Zimbabwe, the authorities have decided to sharply increase the tax burden on the gambling sector. Now the tax on operators has risen from 3% to 20%, and the tax on players' winnings has increased from 10% to 25%. The Ministry of Finance, headed by Mthuli Ncube, explains the reform as a pursuit of greater fairness and a desire to direct part of the rapidly developing sector's income to the needs of society. Experts note that until recently, Zimbabwe was considered one of the most promising markets for investors due to its soft regulation and high demand. The new rules may change the balance in the industry and affect the inflow of investments.
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Senegal introduces new rates and follows the example of its neighbors
Senegal has also decided to tighten the tax burden on players by setting a 20% tax on winnings. This measure reflects the country's desire to follow Zimbabwe's example and strengthen control over gambling. The market reaction has been mixed: some operators have expressed concerns about the growth of the shadow sector and the decline in the attractiveness of legal platforms. At the same time, representatives of government agencies are confident that the new rates will increase transparency and boost budget revenues.
Zambia faces protests and legal proceedings over excise tax
In Zambia, the authorities introduced a 10% excise tax on bets, which triggered a wave of protests from the largest operators, including BetPawa and Betway. The excise tax is an additional levy on certain types of activities, in this case—on each bet placed by a player. Operators tried to suspend the tax through the courts, but the country's Constitutional Court rejected their claims. The Zambia Revenue Authority insists on the legality of the reform and emphasizes that the decision was made after consultations with all interested parties. The operators' arguments boil down to concerns about declining interest in the legal market and an increase in illegal bets, but legal proceedings continue, and a final decision has not yet been made.
Kenya changes its taxation mechanism and expects revenue growth
In Kenya, the authorities have decided to change the taxation scheme: now a 5% tax is levied not only on winnings but also when withdrawing funds from a gaming account. Previously, there was a 20% tax on winnings, which did not affect the original bet. According to forecasts by the Parliamentary Budget Office, the new scheme will allow budget revenues to more than double: from 5.4 billion Kenyan shillings ($32.9 million) to 11.4 billion Kenyan shillings ($69.54 million). This approach will help more effectively control virtual operators, including foreign ones, and reduce opportunities for tax evasion through mobile transfers.
Nigeria discusses reform and faces criticism from regional authorities
In Nigeria, a bill is under consideration that proposes the harmonization of tax policy in the field of gambling throughout the country. The attempt to establish uniform rules for all 36 states provoked sharp criticism from regional authorities and some parliamentarians. Opponents of the reform accuse the authors of the initiative of violating the principles of federalism and judicial independence. They believe that centralized regulation may lead to a conflict of interest between the federal center and the regions. Supporters of the law argue that a unified system will increase the efficiency of tax collection and reduce the level of illegal gambling.
Experts compare the authorities' arguments and analyze market risks
Analysts note that the authorities of all countries explain the reforms by concern for fairness, the need to replenish the budget, and strengthening market control. Among the advantages of the new tax schemes, they highlight increased treasury revenues and the possibility of more transparent industry regulation. However, for operators and players, stricter rules mean increased costs and reduced potential profits. Experts warn that excessive pressure may stimulate part of the market to go underground and complicate the investment climate. The final consequences of the reforms are still difficult to predict, as the market reaction may be mixed.
Revenues from online casinos and bookmakers move into the risk zone
Despite the fact that online betting is not legalized in all African countries, the gambling sector on the Internet is actively developing, and tax reforms in any case affect the field of online betting. Tightening has a negative impact on it, so many international platforms move into the grey area. A complete ban on online betting leads to the same result.
As an example, experts consider India. Recent news about tightening the law in the field of sports betting has been widely discussed in society. We turned to experts for comments on the situation.
Responses to inquiries from representatives of review sites from the top of search results indicate a high interest of the country's residents in online betting. The authors of a site that offers legal betting apps in Andhra Pradesh point out that the number of people downloading betting apps is steadily growing. And many of these apps really prefer to operate unofficially.
Thus, a strict policy regarding online betting proves ineffective—this applies to both prohibition and taxation. However, for the offline sector, this issue is no less relevant. The example of Africa shows that tax reform should take into account the interests of all parties.
The African experience of gambling reform becomes a benchmark for other markets
Large-scale changes are already altering the everyday reality of operators, players, and government agencies in the African gambling market. Africa's experience is gaining special significance for other developing countries, where issues of regulation and taxation of the gambling business are also being discussed. The final results of the reforms will become apparent only in a few years, when it will be clear whether the authorities have managed to achieve a balance between the interests of the state, business, and society.