Uganda is set to embark on a new tax regime as the African as the country increases tax rates for GGR from 20% to 30% for sportsbooks.
The new framework would harmonise gambling taxes in the African country, bringing sportsbooks in line with casinos at a 30% tax rate.
Government in the country has identified the increase in gambling engagement as a key avenue to boost its economy.
Uganda is also embattled against the growth of unlicensed operators in the country, whilst gambling engagement is mainly made up of regulated operators, the growth of unlicensed operators is continuing to cause concern.
As this threat grows, tax leakage continues to be a prevalent threat, as the door opens further for unlicensed operators to gain market share.
There is a fine balance for the Ugandan government as it looks to continue the momentum of the gaming sector and the positive impact it has had on the economy, whilst also not providing an avenue for the black market to grow.
As a result of the taxation shift, the group is also seeking to close loopholes – and stop the underpaying of tax from a myriad of operators in the country.
As mobile penetration and data capabilities grow, the ceiling for the Ugandan iGaming sector is only set to heighten. Currently, it sits as a second-tier region in the market, alongside the likes of Ghana and Tanzania, however remaining significantly smaller than Nigeria and Kenya.
Earlier in the year, the country’s National Lotteries and Gaming Regulatory Board praised a near eight-fold increase in gaming industry non-tax revenue collection, shifting from Sh 1.14bn (£232,945) in the 2019/20 financial year to Sh 8.79bn (£1.8m) in FY 2024/25.
Meanwhile, annual revenue collection grew from Sh 17.4bn (£3.6m) in FY 15/16 to Sh 323bn (£66m) in FY 24/25 – undoubtedly fuelling the appetite for the government when it comes to this latest tax hike.