Betway Zambia suspends betting operations after Constitutional Court ruling upholds 10 per cent tax
Following the Constitutional Court’s dismissal of its challenge, Betway halts operations, citing the new 10 per cent excise duty as financially unsustainable.
Zambia.- Betway, one of Zambia’s leading betting operators, has temporarily suspended all betting operations in the country following the Constitutional Court’s dismissal of its challenge to the government’s newly introduced 10 per cent excise duty on betting stakes. The company called the tax “financially unsustainable”, warning that it threatens the stability of the local betting industry and its customers.
The Court dismissed a petition filed by Betway and BetPawa on October 3, 2025, which sought to stop the Zambia Revenue Authority (ZRA) and the Attorney General from collecting the tax. The ruling allows the ZRA to continue enforcing the levy while the broader constitutional challenge proceeds.
In response to the court’s decision, Betway has paused operations. In an official notice to customers, the company said: “We regret to inform you that, due to the implementation of a new 10 per cent excise duty, we have made the difficult decision to temporarily pause our operations.”
In regards to customer funds, the notice added: “Please rest assured that your funds are safe and available for withdrawal at your convenience. All open bets will be settled, with winnings paid out as usual.” Betway added that it looked forward to resuming operations once a “fair and balanced solution” is reached.
The legal challenge focused on Section 7 of the Customs and Excise (Amendment) Act No. 11 of 2025, which introduced the excise duty on August 8, 2025. The petitioners argued that the law was unconstitutional, describing it as excessive, ambiguous, unimplementable and financially unsustainable, warning that it could force operators out of business and lead to job losses.
Betway and BetPawa also sought an interim injunction to halt enforcement, claiming that the tax burden exceeded their gross gaming revenue, lacked clarity and was introduced mid-financial year, making compliance impractical.
The court, however, ruled that the petitioners had failed to demonstrate a sufficiently serious constitutional issue to justify suspending the law. ZRA emphasised that suspending tax collection would undermine the globally recognised “pay now, argue later” principle, a cornerstone of tax administration.
Finance and National Planning Minister Situmbeko Musokotwane introduced the excise duty as part of the 2025 amendments. Betting companies had argued that the law lacked transparency and adequate consultation with the industry, while ZRA maintained that the tax is a consumption duty borne by players and that the legislation followed stakeholder engagement.
With legal avenues still in progress, Betway’s temporary halt highlights the growing tension between government revenue initiatives and the sustainability of the gambling sector in Zambia.
