Staff
By Our Reporter
Licensed casino operators in Uganda are calling on the Government to reconsider the 15% withholding tax on winnings from land-based casinos, warning that difficulties in implementing the measure could threaten more than 2,500 jobs, household livelihoods and government revenue.
Through their umbrella body, the Uganda Gaming Operators Association (UGOA), operators argue that the tax could increase compliance costs and drive players towards illegal and non-compliant gambling operators, potentially affecting licensed businesses, employment, local suppliers and existing tax collections.
According to UGOA, land-based casinos directly employ more than 2,500 people, including dealers, cashiers, security personnel, cleaners and hospitality workers. These jobs support families who depend on their incomes for rent, school fees and other household needs. Casinos also support local businesses providing food, transport, maintenance and other services.
The concerns follow an engagement this week between gaming industry stakeholders and the Private Sector Foundation Uganda (PSFU), led by its Executive Director, Stephen Asiimwe. PSFU indicated that its Policy Department would assess the taxation challenges and their implications for employment, business sustainability and livelihoods to inform an advocacy paper.
UGOA proposes that genuine land-based casino activity continue to be taxed through the existing 30% gross gaming revenue framework, calculated as total wagers less winnings paid out. To address concerns about tax avoidance, the Association recommends separate licensing for land-based and online casinos, clearer transaction classification, separate financial records, independent audits, stronger monitoring and penalties for deliberate misclassification.
At the centre of UGOA’s concerns is the difficulty of accurately determining a player’s net winnings during a visit to a land-based casino.
Unlike online gaming, where transactions are recorded through individual player accounts, conventional casinos involve multiple chip purchases, exchanges and movements between games. Although withholding tax applies to net winnings at cash-out per visit, operators argue that accurately establishing each player’s net position requires tracking and reconciling transactions throughout that visit.
For example, a player may enter a casino with UGX 1 million, purchase chips and play several games before cashing out UGX 700,000. Although the player receives UGX 700,000 at the cashier, they have lost UGX 300,000 and therefore have no taxable net winnings.
UGOA argues that effective tax collection depends on clear rules, reliable systems and accurately determined taxable amounts. Implementing the measure would require investment in player identification, transaction monitoring, reconciliation procedures and staff, alongside safeguards against incorrect assessments and disputes. The Association warns that these costs, coupled with potential customer losses, could weaken licensed businesses, threaten jobs and supplier contracts, and reduce existing tax collections.
“We are not opposed to taxation, and as licensed operators, we pay our fair share. What we are asking for is a practical and fair collection approach that reflects how land-based casinos operate. We believe the existing 30% gross gaming revenue tax, supported by stronger oversight and enforcement, provides a more reliable way for government to collect revenue,” said Robert Kabonero, the UGOA Chairman.
The industry players have also stated that no other country in the world applies a comparable tax on net winnings at cash-out in land-based casinos, due to the practical difficulties of accurately determining individual players’ winnings.
The practical challenges of applying withholding tax to land-based casinos date back to 1994 and have remained unresolved despite repeated engagements with government. In 2019, the Solicitor General indicated that the provision under consideration appeared more suited to sports betting than conventional casino operations. URA conducted a study visit in 2022, while Parliament removed the 15% withholding tax on gaming winnings in 2023, recognising difficulties in establishing a taxable point in games such as roulette, poker and slots, and increased operator-side gaming tax to 30%. Similar challenges resurfaced during consultations in April 2026, when further engagement and international benchmarking were discussed.
According to figures cited by the operators from government reporting, tax collections from Uganda’s wider gaming sector increased from UGX 17.4 billion in FY2015/16 to UGX 323 billion in FY2024/25. Collections reached UGX 176.7 billion in the first half of FY2025/26, against a full-year target of UGX 391 billion.
UGOA’s submission indicates that the proposed withholding tax is expected to contribute towards UGX 65 billion in government revenue in FY2026/27. The Association is seeking a breakdown of projected collections from sports betting, online gaming and land-based casinos, alongside an assessment of whether the anticipated revenue would outweigh potential reductions in existing tax collections.
“This is not simply about casino operators. We are talking about employees who depend on these jobs, families supported by their incomes and local businesses that supply our establishments. We recognise the Government’s responsibility to mobilise revenue, but tax measures must also consider their potential impact on employment, business sustainability and existing revenue collections,” Kabonero said.
UGOA is calling on the Government to reconsider the application of withholding tax to genuine land-based casino winnings, complete the international benchmarking and stakeholder consultations discussed in April 2026, and establish a joint technical working group to develop a practical tax administration framework.
The Association maintains that player-side withholding should not apply to genuine land-based casino play until a reliable mechanism for determining each player’s net winnings has been established.
