Zimbabwe’s new gambling tax kicks in as operators face first submission deadline in 2026
Gambling operators are expected to submit initial returns for punters’ winnings and bookmakers’ gross takings to ZIMRA following the January 1 rollout of the new tax regime.
Zimbabwe.- Zimbabwe’s new gambling tax regime, which came into force on January 1, 2026, hit its first major deadline this week, with operators expected to submit initial tax returns for punters’ winnings and gross takings to the Zimbabwe Revenue Authority (ZIMRA).
The 2026 gambling tax increases bettors’ withholding on winnings from 10 per cent to 25 per cent, while operators’ gross takings tax jumps from 3 per cent to 20 per cent. Those who may have missed the January 5 submission still have the chance to file outstanding returns and make payments promptly, ensuring compliance with the new rules.
Under the Finance Act, operators including sports betting firms, casinos and lottery providers must withhold 25 per cent of punters’ gross winnings at the point of payout and remit the tax to ZIMRA. They are also required to submit monthly returns for winnings by the fifth day of the month following the pay-out, with payments due by the tenth.
The ZIMRA Public Notice 02 of 2026 states: “Returns and Payments Due January 2026 shows that Punters Withholding Tax and Bookmakers Tax returns for the period ending December 31, 2025 were due by January 5, 2026, with payments due by January 10 2026.” ZIMRA’s notice lists these and other tax types alongside their deadlines.
ZIMRA highlights taxpayer responsibilities, and even those who have missed the recent deadline are urged to regularise their accounts. The notice added: “Taxpayers who have not yet submitted their outstanding returns are encouraged to do so, whilst those who are behind on their tax payments must pay the overdue amounts without further delay to prevent legal action.”
Taxpayers can make payments into the ZIMRA Bank Account by way of Cash deposits and bank transfers through their linked bank accounts. Because the 25 percent withholding tax only took effect on January 1, 2026, the first reporting cycle effectively covered a short initial window. By law, subsequent monthly returns – including those for January 2026 pay-outs – are expected to be due by February 5.
The operators’ 20 per cent monthly tax on gross takings, commonly called the Bookmakers Tax, follows the same reporting and payment schedule.
Revenue boost and compliance
Finance Minister Mthuli Ncube said the reforms are designed to capture a larger share of revenue from the rapidly growing gambling sector, which has expanded significantly with the rise of online and retail betting platforms. Industry estimates suggest annual gambling revenues increased by 8 to 10 per cent from 2023 to 2024.
ZIMRA’s notice lists several additional taxes with the same return and payment schedule – 5 January for returns and 10 January for payments – which may be relevant for operators with diversified businesses. These include Pay As You Earn (PAYE), Mining Royalties, Value Chain Withholding Tax, Presumptive Tax, Fast Foods Tax and Plastic Carrier Bag Tax, which all form part of a wider compliance system.
In addition to gambling taxes, Zimbabwe also introduced a 15 per cent withholding tax on digital services, effective January 1, 2026, administered by ZIMRA. This tax applies to payments to offshore digital platforms, such as streaming services and satellite internet providers.
