Zimbabwe’s government has approved a new 10% withholding tax on gross winnings from sports betting, which will take effect on 1 January.
The tax will apply to all winnings, regardless of the amount, and will be deducted directly by betting shops and online sports betting operators.
Finance minister Mthuli Ncube proposed the measure during the presentation of the 2025 National Budget earlier in December, and the government has since approved the proposal, according to multiple local media reports.
At the time, Ncube (pictured) highlighted the rapid growth of the sports betting industry in Zimbabwe, noting its popularity among young people and the proliferation of betting shops and online platforms across the country.
“Sports betting punters, however, receive income from winnings, which is currently non-taxable under personal income tax,” Ncube added.
“In order to include punters in the tax space, I propose to introduce a 10% withholding tax on gross winnings.”
Call for stricter oversight
The measure aims to generate significant revenue for the national budget and complements broader regulatory reforms in Zimbabwe’s gambling sector.
In August, the cabinet approved the Lotteries and Gaming Amendment Bill, which seeks to enhance compliance, enforce responsible gambling, and combat money laundering.
According to a recent article in the Harare Post, deputy minister of home affairs and cultural heritage Chido Sanyatwe also emphasised the need for stricter oversight of the gambling sector by the Lotteries and Gaming Board.
“I call upon the board to intensify strategies that enhance compliance with the gaming industry’s governing regulatory framework,” Sanyatwe said.
“The growing appetite to invest in the gaming industry must be controlled and balanced with revenue growth, protection from gambling harm, and social responsibility.”
The Lotteries and Gaming Board echoed these sentiments, reaffirming its commitment to promoting responsible gaming.
The authority also outlined plans to monitor operators, promote awareness on gambling harm, and ensure compliance with existing regulations.