By Juliet Makwama
The Bookmakers and iGaming Association of Zambia (BiGA) has cautioned against the proposed 10 percent excise tax on stakes saying it will drive customers to offshore and unregulated operators thereby reducing government tax revenue.
Association president Victor Sodala says if effected, the move will make legal operations unsustainable and threaten the over 2,500 jobs that the sector offers.
Towards the end of last year, government proposed, through the Customs and Excise Amendment Bill No. 24 of 2024, to introduce 10% excise duty on betting.
Mr Sodala says in terms of revenue, the betting and gaming sector remains one of Zambia’s highest-taxed industries, despite licensed operators investing over $15 million annually in marketing and sponsorships within Zambia.
Mr Sodala says evidence from other jurisdictions shows that excise taxes do not work and threaten the very foundation of a regulated industry.
He has urged policymakers to recognize the sector’s contributions and work with stakeholders toward a sustainable future.
Mr Sodala however says the association remains dedicated to supporting government objectives for fiscal sustainability and responsible gaming, as it continues to advocate for a balanced tax framework that ensures sector viability, job protection and sustainable community investments.
He says in some countries, stake taxes have not led to increased tax revenue but they have consistently resulted in reduced collections and a shift of consumers and operators to unlicensed and offshore platforms.
The betting and gaming sector remains one of Zambia’s highest-taxed industries.
In 2024, the Zambia Revenue Authority (ZRA) collected an estimated K 932 million from the industry in various taxes, excluding land-based casinos and slot machines.
The sector is subject to presumptive taxes of 20% -35% depending on product, and 15% withholding tax.
