Casino operators propose withholding tax alternative to protect jobs, revenue

What the report says

Licensed casino operators in Uganda are urging the government to rethink a proposed 15% withholding tax on winnings from land-based casinos, saying the rule could be difficult to administer and may put more than 2,500 jobs and related business activity at risk. The position was presented through the Uganda Gaming Operators Association (UGOA), which says the measure could also weaken compliance and push customers toward illegal or unlicensed gambling operators.

According to the group, land-based casinos support dealers, cashiers, security staff, cleaners and hospitality workers, and also generate work for local suppliers in transport, food and maintenance. UGOA argues that the current 30% gross gaming revenue tax is a more practical system for conventional casinos because it taxes the total betting activity after winnings are paid out, rather than trying to calculate each player’s net result at the cashier.

The article says the concerns follow a recent engagement with the Private Sector Foundation Uganda, which said its policy team would review the employment and business implications before drafting an advocacy paper. UGOA wants separate rules for land-based and online casinos, stronger transaction tracking, audits and penalties for misclassification. It also says Parliament previously removed a similar withholding provision in 2023 after recognizing the practical challenges of applying it to games such as roulette, poker and slots.

The issue matters because the gaming sector has become a significant source of tax revenue in Uganda, and both government and operators are weighing how to raise revenue without undermining licensed businesses, jobs and existing collections.