On October 3, 2025, Betway took a decisive step to suspend its activities in Zambia after the Constitutional Court upheld the imposition of a 10% excise duty on betting stakes. This development follows a legal challenge from both Betway and betPawa, who expressed serious concerns over the sustainability of such a tax on the betting industry and its patrons.
The court’s decision dismissed the joint petition filed by Betway and betPawa, aimed at blocking the Zambia Revenue Authority (ZRA) and the Attorney General from implementing the excise duty. This ruling effectively grants the ZRA the authority to enforce the tax while a more extensive constitutional review is still pending in the judicial system.
Betway, in a formal communication to its users, emphasized the gravity of the situation: “Due to the implementation of a new 10 per cent excise duty, we have made the difficult decision to temporarily pause our operations.” However, the company reassured its customers that their funds remain secure and accessible, with all pending bets to be concluded and winnings disbursed as per usual protocols.
Betway has expressed its willingness to reinstate its operations contingent upon reaching a “fair and balanced solution.” This demonstrates the company’s commitment to the Zambian market, despite the challenging fiscal environment created by the new tax.
The judicial proceedings also saw the court denying a request for an interim injunction, which sought to delay the enforcement of the excise duty detailed in Section 7 of the Customs and Excise (Amendment) Act No. 11 of 2025. This legislation, enacted on August 8, 2025, has been contentious, with Betway and betPawa arguing that it is unconstitutional in its current form. They have described the tax as not only excessive but also vague and difficult to implement.
The companies contend that the tax could impose a financial strain greater than what their gross gaming revenues can sustain, potentially pushing operators out of business and leading to significant job losses within the sector. “The timing of this tax, introduced mid-financial year, complicates compliance,” they argued in their plea, underscoring the practical challenges faced by gaming operators.
Despite these arguments, the court concluded that the petitioners failed to present a constitutional issue strong enough to justify suspending the law. The Zambia Revenue Authority highlighted an important principle in tax administration: “pay now, argue later,” suggesting that halting tax collection could disrupt standard governmental financial procedures.
In a broader context, the introduction of this excise duty comes amid growing governmental efforts in various countries to increase tax revenues from the flourishing betting and gaming industries. This global trend reflects an understanding of the substantial earnings these industries generate, which governments are eager to tap into for public coffers.
However, critics of such fiscal measures argue that over-taxation could stifle industry growth, discourage foreign investment, and limit consumer choices. The balance between regulation, taxation, and industry health remains a delicate one, as seen in Zambia’s current scenario.
On the other hand, supporters of the excise duty view it as a necessary step to ensure that the betting industry contributes its fair share to the national economy. They argue that these funds can be redirected to vital public services such as healthcare and education, thus benefiting the broader society.
As the situation unfolds, stakeholders within Zambia’s betting sector are closely watching how these developments will influence market dynamics. Operators like Betway and betPawa are particularly interested in how negotiations and further legal challenges might alter the current landscape. Their willingness to re-engage with the market indicates optimism for a resolution that balances governmental fiscal needs with the operational viability of betting companies.
Where the industry goes from here will largely depend on ongoing discussions between the government and industry players. The path forward involves careful negotiation to ensure that tax policies foster a stable and thriving gaming environment, one that supports economic growth while addressing regulatory concerns.
As these discussions progress, both betting operators and customers in Zambia remain in a state of anticipation, hoping for an outcome that preserves the vibrancy of the market without compromising regulatory integrity.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
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