Parliament has passed the Lotteries and Gaming (Amendment) Bill, 2026, introducing a harmonised 30 percent tax on betting and gaming activities with a projection of an annual revenue increase of Shs24 billion from the reform.
The Bill was first read on Wednesday, April 1, 2026 by the State Minister for Finance, Planning and Economic Development (General Duties), Henry Musaasizi, who also tabled a certificate of financial implications indicating the expected revenue gains from the proposed amendments.
The Bill was subsequently committed to Parliament for detailed scrutiny in accordance with Rule 135 of the Rules of Procedure, where the committee undertook a comprehensive review before reporting back to the House for consideration.
The objective of the Bill is to amend the Lotteries and Gaming Act, Cap. 334 in order to harmonise the gaming tax rate by introducing a uniform 30 percent levy on betting and gaming activities, computed on total stakes less payouts. The reform also introduces a clear definition of payouts to eliminate ambiguity and improve consistency in tax administration.
During scrutiny, the Committee engaged a wide range of stakeholders including the Ministry of Finance, Planning and Economic Development, the Uganda Revenue Authority, the Uganda Gaming and Betting Alliance, the Uganda Gaming Operators Association and the Tax Justice Alliance.
The Committee also relied on written submissions, the Explanatory Notes to the Bill and provisions of the Lotteries and Gaming Act, Cap. 334.
The Committee observed that the proposed amendment addresses existing disparities in the sector where gaming tax was previously charged at 30 percent while pool betting attracted 20 percent, despite both activities operating under similar economic structures. It noted that harmonising the rate eliminates inconsistencies and promotes fairness across licensed operators.
“The proposed tax is computed on net winnings as opposed to applying a uniform thirty percent Gross Gaming Revenue to both betting and gaming activities, including land based and live casinos,” the Committee observed.
The committee added that this approach ensures a level playing field for all operators regardless of the form of gambling.
The Committee further observed that defining payouts is critical in ensuring clarity in tax computation and strengthening enforcement mechanisms, while also simplifying tax administration processes.
The Ministry informed the Committee that the harmonisation was necessary given the evolving nature of betting and gaming activities, which now operate in a closely linked environment, making differentiated taxation less practical and harder to administer.
The Committee recommended an amendment of the Bill by substituting the words “transferred or credited” with “paid” in order to remove ambiguity that could arise in interpretation and application of the law.
Following consideration of the Committee report, Parliament adopted the recommendations and passed the Bill at Third Reading after it had earlier gone through the Committee Stage for detailed consideration.
The law now establishes a uniform 30 percent tax on net gaming revenue and is expected to enhance compliance, strengthen revenue mobilisation and improve regulation of Uganda’s rapidly growing gaming sector.
