Ugandan president returns betting tax bill over casino exemption clause
Museveni wants Parliament to reconsider a clause exempting land-based casino winnings from a proposed withholding tax on gambling winnings.
Uganda.- Ugandan president Yoweri Museveni has returned the Income Tax (Amendment) Bill, 2026, to Parliament for reconsideration, objecting to a clause that would exempt land-based casino winnings from a proposed withholding tax on betting and gaming winnings. Museveni also declined to assent to the Excise Duty (Amendment) Bill, 2026, arguing that provisions in both pieces of legislation require further review before they can become law.
At the centre of Museveni’s objections is Clause 11 of the Income Tax (Amendment) Bill, which proposes introducing a withholding tax on betting and gaming winnings while exempting winnings earned from land-based casinos licensed under Uganda’s Lotteries and Gaming Act, 2016.
According to the president, there is no justification for taxing gambling winnings differently based on where they are generated. He argued that exempting casino winnings would create an uneven playing field for operators engaged in similar gambling activities and create opportunities for tax avoidance and revenue leakage.
Deputy Speaker Thomas Tayebwa informed Parliament of the president’s objections during a sitting on July 14, telling lawmakers that both tax bills would have to be reconsidered before they could receive presidential assent.
The legislation formed part of the government’s 2026/27 revenue proposals, which Parliament had already approved. Among the measures were a harmonised 30 per cent tax on betting and gaming operators and a 15 per cent withholding tax on players’ net winnings.
While Museveni did not oppose the introduction of a tax on gambling winnings, his decision indicates that the proposed framework must be amended to ensure consistent tax treatment across betting and casino operations before it can take effect.
The development means Uganda’s gambling sector will continue operating under the existing legal framework until Parliament reviews the president’s recommendations and agrees on a revised version of the legislation.
