TLDR
- Uganda’s casino operators want to keep the 30% gross gaming revenue tax instead of a new 15% tax on player winnings.
- The tax authority says table game winnings equal chips cashed out minus chips bought per player visit.
- Operators say tracking each player’s final win across games would need costly new systems.
- The industry group estimates more than 2,500 jobs could be lost if players move to unlicensed gambling.
- Operators are asking for a joint technical working group to study how the tax is collected.
Casino operators in Uganda want the government to drop a new 15% tax on player winnings for land-based venues. They are asking instead to keep the existing 30% tax on gross gaming revenue, or GGR.
The request comes from the Uganda Gaming Operators Association (UGOA). The group says its concern is not about paying tax, but about how the new tax is collected.
GGR is the difference between the money players wager and the winnings paid out. Operators say this model already gives the government a clear way to collect revenue from casinos.
How the Winnings Tax Works at Casino Tables
The Uganda Revenue Authority (URA) explained how the 15% withholding tax applies in a public notice updated last Monday. The notice was reported by Focus Gaming News.
For casino table games, winnings are worked out as chips cashed out minus chips bought by each player during a visit. Slot machines use the same method, with cash-out less cash-in.
Online gaming winnings face a 15% withholding on net gains at every withdrawal. Sports betting operators must withhold the tax before they pay or credit winnings to customers.
Licensed operators must show the tax on player receipts or transaction records. They must also post notices telling customers about the tax.
Records must be kept for five years. Operators also have to file monthly Gaming Information Returns that detail player transactions.
The notice came weeks after the National Lotteries and Gaming Regulatory Board (NLGRB) and the URA met with licensed operators. They discussed how the new tax would apply.
“We are committed to creating a practical, sustainable and consistent policy, regulatory and operating environment that benefits all parties,” NLGRB Chief Executive Officer Denis Mudene said at the time.
Operators Point to Tracking Problems and Job Losses
Operators say casino floors are different from online accounts, where each transaction is recorded and linked to one user. In a casino, customers can buy and exchange chips many times while moving between games.
Finding a final taxable win for each customer would require new compliance systems, according to the UGOA. Casinos say they would need extra monitoring, reconciliation steps and customer tracking.
The group also worries that some players may turn to unlicensed gambling if licensed venues become less attractive. It estimates that more than 2,500 jobs could be lost.
“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,” association chairman Robert Kabonero said, according to Kikubolane.
“We are not opposed to taxation, and as licensed operators, we pay our fair share,” Kabonero said. He added that the 30% GGR tax, backed by stronger oversight and enforcement, is a more reliable way to collect revenue.
The debate is not new. Concerns about taxing winnings at roulette, poker and slot machine operations led lawmakers in 2023 to remove a previous winnings tax and raise the operator rate to 30% of GGR.
Operators raised the issue during meetings with the Private Sector Foundation Uganda. They warned that the current approach could affect jobs, business stability and government revenue.
The UGOA is now asking for more talks with government and industry groups. It also wants a joint technical working group to study the collection problems and suggest a workable approach.
