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The gambling industry is expected to contribute significantly more to fiscal revenue inflows after Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, on Thursday announced significant hikes and changes to tax rates applicable to the country’s burgeoning betting and gambling sector.
Presenting the 2026 national budget at the New Parliament Building in Harare, the minister raised the primary bookmakers’ tax from 3 percent to 20 percent of gross revenues.
Similarly, he increased the withholding tax rate for a punter’s winnings from 10 to 25 percent.
The sweeping measures that take effect from January 1, 2026, are intended to tackle widespread tax evasion and curb the rising tide of “betting-related vices” in the country.
The proposed tax hike applies to all licensed bookmakers, lotteries, and casino operators, representing a 17 percentage point jump on their gross takings.
Minister Ncube said that the industry, which includes sports betting and casino gaming, has expanded rapidly, noting an annual revenue increase of between 8 percent and 10 percent from 2023 to 2024.
Zimbabwe’s betting industry generated approximately US$120 million in 2023, with online operations contributing about US$45 million. The domestic gambling industry is projected to reach US$145 million by the end of this year.
Yet, like many financial transactions in many areas of Zimbabwe’s economy, some of the key participants, like punters, have operated in fiscal shadows while the bookmakers contribute very little to State revenues despite making huge earnings.
Official data shows the number of active online bettors rose by 15 percent in 2024 to over 300 000, with young people aged 18 to 35 making up about 60 percent of participants.
However, the Minister stressed that this growth has been accompanied by severe social consequences, including “addiction, indebtedness, suicide and loss of productive hours,” stating that these issues have “outpaced the existing regulatory controls.”
He also claimed that “widespread profit-shifting practices and under-declaration of revenues” have resulted in the rapidly expanding sector being significantly under-taxed.
To promote fairness, the new 20 percent levy on operators’ gross revenues will be treated as a final tax, meaning companies will be exempt from paying Corporate Income Tax.
The move mirrors global trends.
South Africa is considering implementing a national online gambling tax as the industry continues growing. A discussion paper on a national online gambling tax has been released by the National Treasury, which is inviting submissions from the public on the proposed 20 percent tax on the total gambling revenue generated by online gambling.
The gambling industry in South Africa reached a record R1, 5 trillion ($80 billion) turnover in the 2024/25 financial year, with online betting dominating the market.
The UK taxes remote gaming at 21 percent of gross profit and is consolidating remote levies and New Zealand introduced a 12 percent offshore duty on online gambling profits.
The global market for gambling, estimated at US$773,7 billion in the year 2023, is projected to reach a revised size of US$1 trillion by 2030, growing at a CAGR of 3,7 percent over the analysis period 2023-2030.
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