The government has proposed a fine of shs110 million for casinos, sports betting, and gaming companies that fail to integrate with the Bank of Uganda’s centralized payments system for stakes and winnings.
The proposal is part of the Tax Procedures Code Amendment Bill, 2025, which was tabled before Parliament by Henry Musasizi, the State Minister for Finance.
The bill seeks to grant the Bank of Uganda (BoU) authority to oversee a centralized system that regulates payments in the betting and casino industry.
According to the proposed law, operators in the gambling industry who do not comply will be subjected to a penal tax equivalent to double the gaming or withholding tax due, or 5,500 currency points (shs110 million), whichever is higher.
“An operator of a casino, gaming, or betting activity who does not use or is not integrated with the gaming and betting centralized payments gateway system is liable to pay a penal tax equivalent to double the gaming or withholding tax due or five thousand five hundred currency points, whichever is higher,” Musasizi stated.
The government argues that the centralized system will increase transparency, curb tax evasion, and enhance monitoring of financial transactions in the gaming industry.
Authorities believe some operators underreport their revenues, leading to loss of tax revenue.
If passed, the law will make it mandatory for all betting and casino businesses to process payments through the Bank of Uganda’s gaming and betting payment gateway, ensuring all financial transactions are recorded and taxed accordingly.
The gaming and betting industry in Uganda has grown significantly over the years, attracting both local and international investors.
However, anti-gambling advocates have consistently criticized the practice, arguing that it contradicts cultural values and is morally unacceptable from a religious perspective.
