Key Takeaways

  • Uganda’s land-based casino operators want the government to retain the existing 30% gross gaming revenue tax framework.
  • UGOA says calculating individual player winnings through casino chips creates operational and compliance difficulties.
  • The association estimates that licensed casinos directly employ more than 2,500 people across Uganda.
  • Uganda’s Revenue Authority has issued guidelines for collecting the 15% withholding tax from gaming winnings.

Uganda’s land-based casino operators are asking the government to reconsider the 15% withholding tax on player winnings, proposing that physical casinos continue paying tax under the existing 30% gross gaming revenue (GGR) framework. The Uganda Gaming Operators Association (UGOA) says applying the withholding requirement to individual casino customers could create difficulties in calculating winnings and increase compliance costs. The association also estimates that licensed casinos directly employ more than 2,500 people and warns that additional financial pressure could affect jobs and local suppliers.

Uganda Casino Operators Challenge 15% Tax On Player Winnings

UGOA wants the government to maintain the existing 30% tax on gross gaming revenue for land-based casinos rather than apply the 15% withholding tax to individual player winnings. The association argues that the two approaches create different administrative requirements, particularly for casinos where customers move between tables and use chips across multiple games. Under the existing GGR framework, gaming tax is calculated using the difference between the total amount wagered and the winnings paid out by the operator. The Uganda Revenue Authority (URA) lists the gaming tax rate at 30% of gaming revenue.

The association illustrated the issue with a player who purchases UGX1 million in chips but cashes out UGX700,000. Although the player receives money at the cashier, the transaction represents a net loss of UGX300,000 rather than taxable winnings. Operators argue that accurately calculating such transactions requires tracking chip purchases, exchanges and redemptions throughout each visit. UGOA warns that additional compliance expenses could put pressure on these businesses and potentially encourage some customers to use unlicensed gambling establishments instead.

The concerns followed an engagement between gaming industry representatives and the Private Sector Foundation Uganda, led by executive director Stephen Asiimwe. Its policy department is expected to examine the industry’s concerns and assess their implications for employment, business sustainability and government revenue before preparing an advocacy paper.

Uganda’s 15% Withholding Tax Remains In Effect Under 2026 Law

The operators’ request comes after changes to Uganda’s tax legislation in 2026. Parliament approved the removal of a proposed exemption for land-based casino winnings. The decision left casino winnings subject to the 15% withholding tax, while retaining an exemption for winnings paid by a licensed national lottery operator. The Income Tax (Amendment) Act 2026 was assented to on August 20 and published in the Uganda Gazette on August 28. The Uganda Revenue Authority published its withholding tax guidelines, explaining how licensed operators must calculate and collect the tax across different gaming activities.

The taxable amount is calculated by subtracting the value of chips purchased during a player’s visit from the value of chips cashed out. For slot machines, the calculation uses the difference between cash-out and cash-in amounts. Online gaming winnings are taxed at the point of withdrawal, while jackpots and major prizes are subject to withholding when paid or made available to the winner. The guidelines also require operators to disclose applicable withholding tax on transaction records, display notices informing customers about the tax, maintain records for five years and submit monthly Gaming Information Returns.

UGOA is also asking for separate licensing arrangements for online and land-based casinos, clearer classifications of gaming transactions, independent financial records and regular audits. The association wants a joint technical working group involving industry representatives and government authorities to examine the implementation challenges.

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