Zambia court upholds 10 per cent betting tax
In their petition, operators argued that the tax violated several constitutional articles, including those on national values, sovereignty and economic management.
Zambia.- Zambia’s Constitutional Court has rejected a bid by Betway and betPawa to block a 10 per cent excise duty on betting stakes, allowing the Zambia Revenue Authority (ZRA) to continue collecting the tax, which was introduced through the Customs and Excise (Amendment) Act No. 11 of 2025.
The duty is levied on the total amount staked by players, with betting firms required to compute and remit payments by the 15th of each month, as per a notice issued by the ZRA on October 15, 2025.
Protesting the tax, several betting companies suspended their businesses in Zambia. On October 14, Betway announced the temporary halt of its services, stating that the tax makes operations financially unsustainable. betPawa followed by pausing its casino services, while BetLion also suspended all activities.
In their petition, the operators argued that the tax violated several constitutional articles, including those on national values, sovereignty and economic management. They claimed it was introduced without adequate consultation and could lead to business closures and job cuts in the gaming sector. However, the court ruled that the companies did not present strong grounds to justify a temporary suspension of the tax policy pending the full hearing.
Oliver Nzala, ZRA Corporate Communications Manager, clarified that the duty is a consumption tax on players, not the companies. He noted that the tax followed stakeholder discussions and that operators’ financial worries were based on assumptions rather than facts. He pointed out that the “pay now, argue later” rule in tax matters applies in this case, meaning Betway and betPawa must pay the tax while challenging it in court.
The ripple effect of the new tax is already being felt in the sports sector. The Zambian Premier League (ZPL) ended its sponsorship deal with Betway on October 22, citing the tax’s financial strain. In a press release, ZPL Head of Communications Christina Zulu said Betway had supported coaching programs, club development and fan initiatives since 2023, but the league now plans to find new partners to maintain progress in Zambian football.
