Kampala, Uganda – The government has declared war on tax evasion in Uganda’s booming gaming sector, proposing stiff penalties for casinos and betting companies that fail to comply with a new centralized payment system.
The Tax Procedures Code Amendment Bill 2025, tabled in Parliament by State Minister for Finance Henry Musasizi, introduces some of the harshest financial penalties ever seen in Uganda’s gambling industry.
Key Reforms Targeting Casinos & Betting Firms
- Mandatory Centralized Payments: All betting stakes and payouts must go through a Bank of Uganda-regulated gateway, linked to URA’s tax system.
- Heavy Fines for Non-Compliance: Operators avoiding the system face double the owed tax or 5,500 penalty points (whichever is higher).
- Real-Time Tax Tracking: The system ensures every transaction is recorded, making tax evasion nearly impossible.
“No more shadow payments,” Musasizi warned. “If you’re not integrated, prepare to pay heavily.”
Why This Matters
Uganda’s gaming sector has exploded, but tax compliance remains spotty. The new rules aim to:
✔ Boost government revenue from an industry worth UGX 500B+ annually.
✔ Curb money laundering via untraceable cash payouts.
✔ Protect gamblers by ensuring fair, regulated transactions.
Broader Tax Reforms in the Bills
1. NIN as Tax ID: Your National ID Number (NIN) will now serve as your Tax Identification Number (TIN).
2. Penalty Waivers: Taxpayers who clear principal dues by June 2026 get interest & penalty waivers.
3. Bujagali Tax Break: The hydropower firm’s tax exemption extends to 2032.
Industry Reaction
While URA applauds the move, betting operators fear crippling compliance costs. “This could push small players out,” said a Kampala casino manager, speaking anonymously.
What’s Next?
The four bills now face parliamentary debate, with the gaming rules likely to spark heated discussions. If passed, enforcement begins July 2025.
