On January 1, 2026, Zimbabwe will overhaul its gambling tax structure, marking a substantial shift aimed at increasing state revenue and addressing the social risks tied to the swiftly expanding gambling industry. Bookmakers operating in the country will face a tax rate hike from 3% to 20%, while the tax on bettors’ winnings will rise from 10% to 25%.
During the unveiling of the 2026 National Budget on November 28 at the New Parliament Building in Harare, Finance Minister Mthuli Ncube announced these major reforms. He emphasized that the newly implemented 20% tax on bookmakers will be a terminal levy, effectively replacing Corporate Income Tax for these companies. This change underscores the government’s intent to ensure that the sector’s profits contribute more meaningfully to the nation’s finances. Ncube noted that this rate would apply across all licensed betting companies, lotteries, and casino operators, representing a notable increase of 17 percentage points from the previous tax rate.
Bettors, too, will not go unaffected by these changes. Their winnings will now incur a higher withholding tax of 25%. According to Ncube, this increase is expected to bolster state revenue and provide essential funds to tackle the negative impacts associated with gambling, such as addiction and other social issues.
The gaming sector in Zimbabwe has been on an upward trajectory, with the industry generating approximately $120 million in 2023. Online betting has particularly stood out, accounting for $45 million of that total. By 2024, the number of active online bettors had exceeded 300,000, with a significant portion, approximately 60%, being young adults aged between 18 and 35. This demographic has shown an annual revenue growth rate of 8-10% from 2023 to 2024, highlighting online betting as the fastest evolving segment within the market.
However, the rapid growth of online betting has led to increased concerns about addiction and other societal impacts, revealing gaps in the existing regulatory framework. In response, the Zimbabwean government is introducing these tax reforms as part of a broader strategy to manage the economic benefits and social challenges posed by the gambling sector’s expansion. These reforms represent one of the most comprehensive changes to Zimbabwe’s gambling policies in recent memory, aiming to align the industry’s growth with the country’s fiscal and social goals.
This move has sparked various opinions within the industry and among the general populace. On one hand, the government insists that the increase in taxes is a necessary step to ensure that the gains from the booming gambling industry are equitably shared and contribute to public welfare. The expectation is that these changes will also help in mitigating the potential harms associated with gambling addiction, a growing concern as more young people engage in online betting.
Conversely, some industry stakeholders have expressed concerns about the potential impact of higher taxes on their operations. The substantial increase, they argue, could deter investment in the sector and stifle innovation. There is apprehension that the heavier tax burden may drive some gambling activities underground, thereby reducing transparency and regulatory oversight. They suggest that the government should also consider strengthening the regulatory framework to support responsible gambling practices rather than solely focusing on tax increases.
As Zimbabwe stands on the brink of these sweeping changes, the debate continues over the best approach to balance economic growth with social responsibility. The effectiveness of the new tax regime will largely depend on its implementation and the government’s ability to address the concerns of all stakeholders involved. While the intended outcome is a more robust revenue stream for the nation, the long-term impact on the gambling industry and its patrons remains to be seen.
The coming months will be crucial as both the government and industry players navigate this new landscape, with the hope that the changes will ultimately lead to a more sustainable and socially responsible gambling environment in Zimbabwe.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.