Uganda's land-based casinos want an alternative to 15% withholding tax

Land-based casino operators in Uganda have asked the government to review the 15% withholding tax deducted from players' winnings. The operators argue that this tax cannot be applied correctly at physical venues.

The Uganda Gaming Operators Association (UGOA) is calling for land-based casinos to remain under the existing 30% gross gaming revenue (GGR) tax. Association chairman Robert Kabonero said they are not opposed to taxation, but want a practical collection method that suits how land-based casinos operate. Kabonero said the current tax system, backed by strong supervision and enforcement, is a more reliable source of revenue for the government.

The withholding tax has been in effect since 1 July. The Uganda Revenue Authority (URA) updated its guidance on 2 November. For table games, the chips purchased per visit by each player must be deducted from the chips cashed out. For slots, the cash withdrawn minus the cash deposited is calculated per visit. Operators are required to show the tax on receipts, post notices for players, keep records for five years, and submit a monthly return containing each player's daily details.

According to the association, transactions are easier to track in online accounts. In a casino, however, players can buy and cash out chips many times during a single visit and move between games. As an example, a player who buys chips worth 1 million UGX ($245.28) and withdraws 700,000 UGX in cash has lost 300,000 UGX and has no taxable winnings. UGOA says compliance would require identity verification, transaction monitoring and additional staff, and warns that this could put more than 2,500 casino businesses at risk. It also says that players moving to unlicensed operators could further increase risks.