• Government raises tax on betting winnings from 10% to 25%, significantly increasing the cost of gambling for ordinary punters starting 1 January 2026
  • Treasury also hikes the Bookmakers Tax from 3% to 20% of gross revenues, making it a final tax and reshaping the entire gambling sector’s tax structure
  • The measures are punitive and revenue-hungry, government should tackle corruption and spending inefficiencies instead of burdening already struggling citizens

Harare - Finance Minister Mthuli Ncube has proposed to raise the tax on betting winnings to 25% from the current 10%, according to the 2026 National Budget, marking a significant escalation of government’s efforts to regulate and derive revenue from Zimbabwe’s booming gambling industry.

The new rate, which takes effect on 1 January 2026, comes barely a year after government first introduced the 10% withholding tax on punters’ winnings in 2025 ,a measure that was already controversial among citizens who have increasingly turned to betting as a means of survival.

‘’In addition, I propose to review the tax applicable on winnings by Punters from 10% to 25%,’’he said.

The Budget also introduces a sweeping change to the taxation of operators. Treasury is reviewing the Bookmakers Tax from 3% to 20% of gross revenues, extending the levy to all licensed bookmakers, lotteries and casino operators.

The tax will be treated as final, meaning operators will no longer be subject to Corporate Income Tax. Government says this realignment brings Zimbabwe in line with international best practice, where gambling operators are typically taxed on turnover at rates between 15% and 30%.

The move is also intended to curb widespread under-declaration of revenues and profit-shifting practices that have long limited the state’s ability to earn meaningful tax from the rapidly expanding sector.

To illustrate the impact of the new 25% tax on winnings, a punter who previously won US$250 would have lost US$25 to tax under the 2025 rules, taking home US$225. Under the new framework, the same win will attract a US$62.50 deduction, leaving the punter with US$187.50. As before, betting companies will be required to withhold the tax at source and remit it directly to the Zimbabwe Revenue Authority, eliminating the possibility of evasion.

However, while the government frames these changes as necessary for strengthening revenue mobilisation and promoting responsible gambling, they represent yet another attempt to extract money from a population already buckling under multiple layers of taxation.

For many Zimbabweans, sports betting has become a desperate lifeline in an economy marked by high unemployment, limited formal job opportunities and rising living costs. Across cities and townships, it is common to find young people staking their last dollars on football games in the hope of earning something to tide them over. Against this backdrop, the jump from 10% to 25% feels punitive and burdensome.

The increase is a form of “daylight robbery,” government is targeting vulnerable citizens instead of addressing deeper structural weaknesses that continue to undermine public finances.. Zimbabwe’s fiscal challenges stem less from insufficient taxation and more from persistent governance failures, policy inconsistencies and rampant corruption. Estimates suggest that the country loses over US$2 billion annually through corrupt procurement systems, illicit financial flows and abuse of public funds figures that dwarf potential revenue gains from betting taxes.

Rather than continuously imposing new taxes on citizens and corporates already bearing one of the highest tax burdens in the region, government should prioritise comprehensive anti-corruption reforms, transparent financial management and a restructuring of public expenditure. Zimbabwe needs clearer economic policies and a stable political environment to successfully negotiate debt restructuring with Western creditors and multilateral institutions. Such engagement could open new credit lines and stimulate foreign investment, reducing the state’s reliance on aggressive domestic taxation.

There are also growing calls for government to conduct a thorough review of its own spending patterns, particularly concerning international travel. Analysts point out that foreign trips, often undertaken by large delegations, consume substantial public funds while delivering minimal strategic or economic value. By pruning unnecessary expenditures and redirecting funds toward development priorities, government could ease its fiscal pressures without imposing further hardship on economically vulnerable citizens.

Treasury maintains that the new measures are necessary to ensure fairness in taxation, harness the betting industry’s rapid growth and mitigate rising social harms linked to gambling, including addiction, indebtedness and loss of productivity.

Betting revenues grew by an estimated 8% to 10% between 2023 and 2024, driven by online sports betting platforms, lotteries and casino gaming. Yet this growth, according to government, has come with rising vices that require stronger regulatory oversight and decisive fiscal interventions.

 

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