Zambia’s 10% Betting Tax Sparks Controversy in Africa

Across Africa, excise duty taxation on gambling operations has become a hot topic over the past year. In Zambia, the government’s proposal to impose a 10% excise duty on all betting stakes has faced significant opposition.

Betting operators BetPawa and Betway challenged the measure in the Constitutional Court, seeking to halt its implementation. Their appeal cited potential breaches of Section 7 of the Customs Excise (Amendment) Act No. 11 of 2025, arguing that the law lacked transparency, had limited public consultation and could adversely affect the economy. They also claimed the tax was excessive, ambiguous and could threaten their future operations.

The Zambia Revenue Authority (ZRA), however, countered that the excise duty applies to bettor consumption, not operators and affirmed that stakeholders had been consulted. Efforts to secure an interim injunction were dismissed by the Court, which ruled that the petitioners had not demonstrated sufficient grounds to suspend the law.

The 10% rate in Zambia sits between Kenya’s previous 15% and its recently reduced 5% threshold. Notably, Kenya changed its excise duty mechanism: instead of taxing bets at the time of placement, tax is now applied when funds are transferred from a mobile wallet to a betting account. MP Kimani Kuria, chairman of Kenya’s Finance Committee, explained that this adjustment captures transactions more effectively, including operators outside the country.

Other African jurisdictions are also exploring alternative approaches to excise duty. Nigeria, for instance, applies a 5% withholding tax on winnings for residents and 15% for non-residents. Malawi drastically reduced its gaming tax from 20% to 5% in 2023, illustrating how markets are experimenting with flexible strategies to maximise revenue.

Industry leaders have voiced concerns over Zambia’s approach. Christopher Coyne, Co-Founder and CEO of 888 Africa, warned that high taxation rates could reduce Zambia’s attractiveness for operators, while highlighting growth opportunities in Nigeria and Egypt if the latter regulates in the future.

As African markets refine their gaming tax structures, balancing simplicity, fairness, and economic impact remains key. Zambia’s implementation of a straight 10% rate will serve as an interesting case study compared with Kenya’s adaptive model, offering insights into the future of gambling taxation across the continent.