Mthuli Ncube Announces Massive Tax Hikes for Betting and Gambling in the 2026 National Budget

Mthuli Ncube Slaps Betting Industry With Massive Tax Hikes in 2026 National Budget

Finance Minister Mthuli Ncube, has announced sweeping tax increases targeting Zimbabwe’s betting and gambling industry.

The new rates—set to take effect on January 1, 2026—are part of the 2026 National Budget and are aimed at curbing tax evasion and addressing the growing social harms linked to gambling.

Bookmakers Tax Raised from 3% to 20%

A major component of the reform is the sharp rise in the Bookmakers Tax, which has jumped from 3% to 20% of gross revenues.
The new rate applies to all licensed betting companies, lotteries, and casino operators, representing a 17-percentage-point increase.

Ncube said the betting sector has become one of the fastest-growing industries in the country, recording 8–10% revenue growth between 2023 and 2024. However, he warned that the expansion has been accompanied by significant tax leakages.

He accused operators of “widespread profit-shifting practices and under-declaration of revenues,” resulting in what he described as severe under-taxation of “a rapidly expanding sector.”

To promote compliance, the Minister announced that the 20% levy will be treated as a final tax, meaning affected companies will no longer pay Corporate Income Tax.

Tax on Winnings Shoots From 10% to 25%

Punters are also set to feel the impact of the new measures.

Just a year after introducing a 10% withholding tax on gambling and betting winnings, the Ministry has raised the rate dramatically to 25%.
This means that for every dollar won, 25 cents will go directly to Zimra.

The Minister said the tax hike is meant to enhance fairness and ensure that the beneficiaries of the sector’s growth also contribute meaningfully to public revenue.

Concerns Over Gambling-Related Social Problems

Beyond revenue concerns, Ncube warned Parliament that the rapid rise of sports betting and casino gaming has fuelled worrying social trends.

He cited growing cases of addiction, indebtedness, suicide, and loss of productive hours, saying these challenges have “outpaced existing regulatory controls.”

The new measures, he argued, are intended to address both the economic and social risks associated with the booming gambling sector.