Rwanda’s gambling tax rift: betting pays the price while lottery walks free
Private operators face a 40 per cent tax while the state-run lottery is excluded, raising questions over equal treatment.
Rwanda.- Rwanda’s gambling industry is at a crossroads as the tax system treats betting operators and the government-backed national lottery very differently. Placing wagers is central to both, yet betting companies face a steep 40 per cent tax while the lottery remains exempt, leading to strong discussion over biased treatment and transparency.
The national lottery, partly owned and run by the government, enjoys full tax exclusion while private gambling operators face a hefty tax on their gross revenue.
Critics say this amounts to a double standard that unfairly punishes private operators while shielding a government enterprise.
“Even those engaged in the lottery, we consider that as betting. But because the government has a stake in it, they have been exempted,” said politician Théogène Munyangeyo, according to the New Times.
The new tax law recently raised the tax rate on gross gambling revenue from 13 per cent to 40 per cent. Gambling companies are now required to calculate tax based on the difference between total wagers and winnings, file returns monthly and pay within 15 days of each month’s end.
Government defends lottery tax exemption
Government claims the distinction is justified, arguing that the national lottery is a state-backed initiative that directs up to 50 per cent of its revenue into the public treasury.
Officials argue the move will not only boost public funds but also encourage more responsible gambling as the sector expands.
Odette Uwamariya, chairperson of the Parliamentary Committee on State Budget and Patrimony, defended the policy. “National lottery is distinct in that it is organised under government control and contributes a defined portion of its revenue directly to the treasury,” she said.
Uwamariya added that the contribution might rise from 50 to 60 per cent, warning that further taxation would be equivalent to double taxation.
Rwanda’s 2011 law defines the national lottery as a government-owned or partially owned scheme, officially authorised for nationwide operation. It requires specific licences and is governed by revenue sharing and tax agreements.
Minister of National Treasury Godfrey Kabera defended the reforms. “These reforms are not designed to cause losses to those engaged in gambling, but to ensure the sector develops in a responsible and effective way,” he said.
