Zimbabwe raises gambling taxes for 2026
Zimbabwe will overhaul its gambling sector from 1 January 2026. Bookmakers’ tax will rise from 3% to 20%. Players’ winnings, which were previously taxed at 10%, will now be taxed at a 25% charge. The government aims to increase revenue and curb social risks linked to the fast-growing gambling industry.
Government announces major policy shift
Presenting Zimbabwe’s 2025 budget to Parliament in November 2024, Finance Minister Mthuli Ncube noted the rapid rise of sports betting nationwide. To tap into the expanding sector, he proposed the introduction of a withholding tax.
However, the proliferation of betting shops did not deliver direct revenue to the state because punters’ winnings were not taxed. To formalise the industry and strengthen revenue collection for pressing budget needs, he introduced a 10% withholding tax on gross sports betting winnings. Ncube listed it as one of only four new taxes announced that day. The government implemented the tax on 1 January 2025, applying it to winnings at all local betting outlets and online platforms operated by land-based bookmakers.
Recently, Minister Mthuli Ncube revealed the sweeping changes. He announced the reforms during the 2026 National Budget presentation on 28 November. The event took place at the New Parliament Building in Harare. Ncube said the move will strengthen regulatory oversight and improve revenue collection.
To ensure compliance, he confirmed that the 20% levy will act as a final tax. This change means affected companies will no longer pay Corporate Income Tax. The measure targets all licensed operators across the country’s gambling market.
Minister explains taxation rationale
Ncube said, according to iHarare, “The tax hike is meant to enhance fairness and ensure that the beneficiaries of the sector’s growth also contribute meaningfully to public revenue. The new rate applies to all licensed betting companies, lotteries and casino operators, representing a 17-percentage-point increase.”
He stressed that punters will also face significant changes under the new system. The withholding tax on winnings will rise to 25%. Ncube highlighted the government’s intent to formalise the rapidly expanding industry and curb associated risks.
He added, “The government expects that this substantial increase in taxation for punters will not only enhance the state’s revenue stream but also provide the necessary resources to address the growing betting-related vices.”
Strong industry growth drives reform
Zimbabwe’s betting industry has expanded rapidly over the past few years. According to a Herald report, the sector generated approximately $120m in 2023. Online operations contributed about $45m during the same period. Active online bettors reportedly exceeded 300,000 in 2024. Around 60% were aged 18-35.
The industry posted annual revenue growth of 8-10% from 2023 to 2024. Online betting remains the fastest-growing segment. The rise reflects shifting consumer preferences and wider internet access across the country. Officials believe the surge has outpaced existing controls.
Government responds to social concerns
Ncube expressed concern over the social consequences of the gaming sector. He warned that problem gambling cases were rising. The Minister argued that the new measures will help address these challenges. He said the reforms will support efforts to manage betting-related issues nationwide.
Authorities believe the updated tax regime will encourage fair contributions to state revenue. They also expect the system to improve regulatory compliance. The changes reflect a broader plan to enhance economic stability.
A significant turning point for Zimbabwe
The revised taxing framework marks a shift in Zimbabwe’s gambling industry. Authorities believe the new structure will stabilise revenue while improving social safeguards. The updated regime reflects a more vigorous commitment to regulating the expanding market and ensuring long-term national gains.
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