Zambia proposes wider betting levy and tax changes for 2027
The proposals cover online betting tax treatment, airtime-funded mobile lotteries, appointed-agent remittance requirements and inspection fees.
Key takeaways:
- Zambia proposes extending the Betting Levy to non-account-based betting and gaming activities.
- The expansion includes mobile phone lotteries funded through airtime deductions.
- Online betting businesses’ income is subject to the Betting Levy rather than Income Tax under the clarified treatment.
- Appointed agents could face 10,000 penalty units per day for late remittance.
- Inspection fees are proposed for betting houses and lotteries.
Zambia.- Zambia has proposed changes to its betting tax framework in the 2027 Budget, including extending the Betting Levy to non-account-based betting and gaming activities, clarifying the tax treatment of online betting income and strengthening levy collection. The proposals also include daily penalties for appointed agents that fail to remit withheld levy on time and legislation to provide for inspection fees on betting houses and lotteries.
The proposals are detailed in the Zambia Revenue Authority’s (ZRA) 2027 Budget Highlights, following the announcement of the national budget by Finance and National Planning Minister Situmbeko Musokotwane on November 6, 2026.
Under the proposals, the Betting Levy would cover non-brick-and-mortar betting and gaming activities that do not involve deposits into or withdrawals from a customer’s gaming account. The change would bring activities operating outside conventional customer accounts into the levy framework.
This specifically includes mobile phone lotteries in which participants enter by sending a code and the entry fee is deducted directly from their airtime. Explaining the existing exclusion, the ZRA stated in its 2027 Budget Highlights: “Currently, such activities are not covered by the Betting Levy Act because they do not involve betting accounts.”
The authority added: “The measure will ensure equity in the taxation of betting and gaming activities.”
The budget also proposes clarifying that income from businesses providing online betting services is subject to the Betting Levy rather than Income Tax. The ZRA noted that the levy was introduced in 2026 to replace Income Tax on gaming and betting, making this a clarification of existing tax treatment rather than a separate online betting tax.
How Zambia’s Betting Levy framework will change in 2027
The proposals build on the Betting Levy framework introduced in January 2026 under the Betting Levy Act No. 27 of 2025. The legislation established a 5 per cent levy calculated on deposits into and withdrawals from customer gaming accounts, while exempting brick-and-mortar betting companies.
Betting companies must submit monthly levy returns and remit the amounts collected to the Commissioner General within 10 days after the end of each month. The 2027 proposals do not specify a change to the 5 per cent rate; instead, they seek to extend the levy to activities outside the conventional customer account system.
The ZRA also proposes empowering the Commissioner General to require appointed agents to remit withheld Betting Levy within a prescribed period.
A penalty of 10,000 penalty units for each day, or part of a day, would apply if an appointed agent fails to remit the withheld levy within that period. The ZRA states in its 2027 Budget Highlights that: “The penalty will encourage timely remittance of collected revenue and provide an effective enforcement mechanism for non-compliance.”
The penalty applies to appointed agents responsible for remitting withheld levy, rather than automatically to all betting operators. Separately, the budget proposes legislation to allow inspection fees to be charged on betting houses and lotteries in line with CAP 160. The measure is listed under non-tax revenue-generating measures, although the ZRA document does not specify the fee amounts or how they would be calculated.
The proposals form part of Zambia’s 2027 Budget for the fiscal year running from January 1 to December 31, 2027. They remain subject to parliamentary approval.
Frequently asked questions (FAQs)
- What betting tax changes has Zambia proposed for 2027? The proposals include wider Betting Levy coverage, clarification of online betting tax treatment, new remittance requirements for appointed agents, daily penalties and inspection fees.
- Will Zambia’s Betting Levy apply to mobile phone lotteries? The proposal specifically includes mobile phone lotteries where participants enter by sending a code and the entry fee is deducted directly from airtime.
- What is Zambia’s existing Betting Levy rate? The existing rate is 5 per cent, calculated on deposits into and withdrawals from customer gaming accounts. The 2027 Budget does not propose changing this rate.
- What penalty could appointed agents face for late Betting Levy payments? The proposed penalty is 10,000 penalty units for each day, or part thereof, that an appointed agent fails to remit withheld levy within the prescribed period.
