Rwanda approves 208% tax hike on gambling industry
Revenue from Rwandan gambling operators reached 640 billion Frw (€ 393m) in 2024.
Rwanda.- The Rwandan government has increased taxes on gambling to generate additional revenue for development projects.
In March 2025, Rwandan lawmakers voted in favour of a draft law that proposes increasing taxes on gambling services from 13 per cent to 40 per cent.
The measure was among a series of fiscal reforms presented to the parliament by Godfrey Kabera, minister of state for finance and economic planning, on March 19, 2025. Kabera said that the main aim of the draft legislation was to expand the tax base, improve tax efficiency, and minimise operations that pose health risks to the public.
According to Kabera, the goal is to create a framework that allows gambling to contribute to government revenue while minimising the industry’s negative consequences.
Gambling is fast becoming a popular activity among diverse age groups in Rwanda, resulting in remarkable growth in the nation’s gambling market. In 2024, operators raked in 640 billion Rwandan Francs (€394.7m) in revenue, a 155 per cent increase from 251 billion Frw (€154.4m) in 2023.
Under the new structure, the tax rate on prize winnings will also rise to 25 per cent from 15 per cent.
While the tax increase was being debated, the deputy chairperson of the committee on economy and trade in the parliament, Munyangero Théogène, warned that a sudden threefold tax hike might force gambling operators out of Rwanda, and potentially lead bettors to illegal betting sites.
Théogène said: “It seems like a deterrent, and there has been investment in some businesses… if we make it too difficult, we might also see an increase in smuggling activities, as gambling companies in the region are involved. While the decision is enforced here, someone in Rusizi can cross over to Bukavu to continue betting.”
However, Kabera reassured that the gambling industry had matured enough to absorb the tax increases without adversely impacting its operations. He said: “This is the right time to increase the tax. While we raised the tax on one side, we removed the profit tax to ease the burden on operators.”
