The Court dismissed a petition<\/strong> filed by Betway and BetPawa <\/strong>on October 3, 2025, which sought to stop the Zambia Revenue Authority (ZRA)<\/strong> and the Attorney General from collecting the tax. The ruling allows the ZRA to continue enforcing the levy while the broader constitutional challenge proceeds<\/strong>.<\/p>\n\n\n\n In response<\/strong> to the court\u2019s decision, Betway has paused operations. In an official notice to customers, the company said: \u201cWe 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<\/strong>.\u201d<\/p>\n\n\n\n In regards to customer funds, the notice added: \u201cPlease rest assured that your funds are safe<\/strong> and available for withdrawal<\/strong> at your convenience. All open bets will be settled, with winnings paid out as usual.” Betway added that it looked forward to resuming operations<\/strong> once a \u201cfair and balanced solution<\/strong>\u201d is reached.<\/p>\n\n\n\n The legal challenge focused on Section 7 of the Customs and Excise (Amendment) Act No. 11 of 2025<\/strong>, which introduced the excise duty on August 8, 2025. The petitioners argued that the law was unconstitutional<\/strong>, describing it as excessive, ambiguous, unimplementable and financially unsustainable, warning that it could force operators out of business and lead to job losses.<\/p>\n\n\n\n Betway and BetPawa also sought an interim injunction to halt enforcement, claiming that the tax burden exceeded their gross gaming revenue<\/strong>, lacked clarity and was introduced mid-financial year, making compliance impractical<\/strong>.<\/p>\n\n\n\n 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 \u201cpay now, argue later\u201d principle<\/strong>, a cornerstone of tax administration.<\/p>\n\n\n\n Finance and National Planning Minister <\/strong>Situmbeko Musokotwane introduced the excise duty as part of the 2025 amendments. Betting companies had argued that the law lacked transparency and adequate consultation<\/strong> with the industry, while ZRA maintained that the tax is a consumption duty borne by players and that the legislation followed stakeholder engagement.<\/p>\n\n\n\n With legal avenues still in progress, Betway\u2019s temporary halt highlights the growing tension between government<\/strong> revenue initiatives and the sustainability<\/strong> of the gambling sector in Zambia.<\/p>\n\n\n![\"\"](\"https:\/\/focusgn.com\/africa\/wp-content\/uploads\/sites\/7\/2025\/10\/ZAMBIA-3-1-418x600.jpg\")
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