Zimbabwe’s finance minister, Mthuli Ncube, has proposed a 10% withholding tax on gross winnings from sports betting.
The announcement came during the presentation of the 2025 National Budget in parliament last week. The tax, effective from 1 January 2025, will be levied on all winnings regardless of their size.
Ncube 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.
“The betting industry is quite popular and is growing, as indicated by the proliferation of sports betting houses countrywide,” he said.
“Sports betting punters, however, receive income from winnings, which is currently non-taxable under personal income tax.
“In order to include punters in the tax space, I propose to introduce a 10% withholding tax on gross winnings.”
Ncube explained that the tax is part of a broader effort to enhance revenue collection and align it with activities in emerging sectors of the economy.
The government anticipates that this measure will generate substantial revenue, although specific figures have not been revealed.
Zimbabwe is aiming for GDP growth of up to 6% next year, up from a projected 2% in 2024.
Regulatory reform
The introduction of the tax complements ongoing regulatory reforms in Zimbabwe’s gambling sector.
In August, the country’s cabinet approved the Lotteries and Gaming Amendment Bill, which aims to strengthen compliance and promote responsible gambling.
The bill includes anti-money laundering measures and consumer protections, with penalties for non-compliance by gambling operators.
It also provides for the rebranding of the Lotteries and Gaming Board to the Gaming Regulatory Authority of Zimbabwe, with expanded enforcement powers to ensure accountability and compliance.