Zambia’s BetLion suspends operations, betPawa pauses services in response to 10 per cent betting tax
Following Betway’s halt, Zambia’s leading betting operators adjust services as the Constitutional Court upholds the new excise duty.
Zambia.- Zambia’s BetLion has suspended all operations, and betPawa has partially paused services in response to the newly introduced 10 per cent tax on betting stakes. These moves follow Betway’s temporary halt a few days ago and come after the Constitutional Court dismissed the operators’ legal challenge.
BetLion said in an official notice: “Due to the new 10 per cent excise duty, BetLion operations are temporarily paused. Your funds remain safe and available for withdrawal.”
BetPawa clarified its service adjustments in a notice, stating: “To comply with the new excise tax from the Zambia Revenue Authority (ZRA), Casino and Jackpot are now unavailable. Sports betting and Virtuals remain live, with a 10 per cent stake tax automatically applied and clearly shown on your bet slip.”
On October 3, 2025, Zambia’s Constitutional Court dismissed a petition from Betway and betPawa, which sought to prevent the ZRA and the Attorney General from collecting the 10 per cent excise duty. The ruling allows the ZRA to continue enforcing the levy while the broader constitutional case proceeds.
The ZRA maintains that the tax is a consumption duty borne by betting players, not operators, and that it was enacted following stakeholder engagement. Betway and betPawa argued that the tax, introduced mid-financial year, was excessive, unclear and implemented without adequate consultation, making compliance difficult and potentially unsustainable for businesses.
Betway halts amid ongoing court case
The legal challenge that triggered Betway’s suspension remains ongoing. Betway has temporarily halted all operations in Zambia due to the excise duty, while the broader constitutional case continues.
Recent reports indicate that enforcement of the excise duty could destabilise the sector, particularly for smaller operators who may struggle to absorb the tax. Concerns also include potential job losses and the possibility that operators might pass the tax burden onto customers, affecting betting patterns and overall industry growth.
Finance and National Planning Minister Situmbeko Musokotwane defended the levy, emphasising that it followed stakeholder engagement and that the ZRA is obligated to enforce the law. The court’s dismissal of the interim injunction reaffirmed the principle of “pay now, argue later”, a cornerstone of Zambia’s tax administration.
With legal proceedings still ongoing, Zambia’s betting industry faces uncertainty as stakeholders monitor whether negotiations, court rulings or legislative adjustments will balance government revenue objectives with the sustainability of operators.
