Malawi’s gambling environment is facing significant pressure following the recent taxation of betting and gambling winnings. Experts argue that the move could lead to an exodus of players from the regulated betting environment and force them to join online betting sites. Daily, punters claim that the reduced returns undermine the trust they have in the regulated betting environment.
Tax changes trigger industry concern
Last December, Malawi’s Minister of Finance Joseph Mwanamveka announced changes under the Taxation (Amendment) (No. 2) Bill. The legislation raised the withholding tax on betting and gambling winnings from 10 per cent to 15 per cent. The new law also removed previously applied tax-free thresholds for smaller winnings.
Earlier on, the policy exempted amounts below specific amounts, such as 100,000 kwacha(€50), and sometimes even 500,000 kwacha(€245). The new policy now subjects all amounts to a 15% tax regardless of the amount. The policy seems to affect the small-scale punters more than it used to.
Everyday punters voice frustration
Public criticism intensified after a nurse in Malawi shared her experience on social media in January 2026. Baby Gin (@LESofficialMw), an avid sports fan, posted a detailed X thread outlining daily challenges faced by players. She said: “Punters stake their own personal funds and bear 100% of the financial risk when placing bets.”
She added: “In the event of a loss, no relief or compensation is provided.” “However, when a punter records a win, a 15% withholding tax is deducted from the gross payout.” Her comments resonated with players who feel the tax penalises success rather than encouraging responsible participation.
Impact on small margins and trust
Baby Gin explained that the taxes often apply to minimal gains above the original stake. She said this reduces returns and creates a perception of unfair treatment.
She highlighted that licensed operators already pay taxes on gross gaming revenue. Operators also cover licensing fees and other regulatory compliance costs. She warned that the policy could damage confidence in the regulated gambling framework.
Risk of migration to unlicensed platforms
The social media user cautioned that unintended consequences may follow the tax changes. She predicted reduced betting activity on licensed platforms. She also warned of increased migration to unregulated or illegal betting services. Such shifts could erode trust between regulators, operators and consumers.
Industry leaders sound the alarm
Industry concerns were echoed by Africa iGaming Alliance leadership. Peter Kesitilwe, CEO of Africa iGaming Alliance, addressed the issue in a recent interview.
He warned that Malawi’s sharp changes to winnings taxation and levies will curb regulated activity. Kesitilwe said the policy is likely to hinder sector growth. The gaming veteran has long advocated evidence-based and sustainable gambling taxation models.
Balancing revenue and consumer protection
Kesitilwe emphasised the need to balance government revenue objectives with consumer protection. He warned that excessive taxation risks encouraging offshore operators to disrupt regulated markets. Unlicensed platforms often operate beyond local oversight and enforcement reach.
A lose-lose outcome for stakeholders
When the players move to the offshore platforms, the players as well as the government suffer losses. The players face uncontrolled platforms, which do not offer protection in the form of fair odds or access to dispute resolution. On the other hand, the government loses the revenue generated through gambling. Stakeholders are urging authorities to reconsider the tax approach before licensed activity dwindles further.
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