Zimbabwe Votes and Backs 10% Tax on Sports Betting Winnings

A new tax will make sports bettor in Zimbabwe feel a little underwhelmed when they see their net winnings. Even worse, the proposed and now enforced 10% tax which is taking effect on January 1, 2025, will be calculated on players’ gross winnings every time they get a wager right.

Zimbabwe Hopes to Prop Up Public Finance with Sports Betting Tax

To help boost collection rates, Zimbabwe is leaving the payment of the tax not to the consumers, but to operators who ought to detract, report, and pay the government the withheld amounts.

Finance minister Mthuli Ncube, who is the key backer of the new law, has said that additional tax on sports gambling made sense and it faced pressing budget needs. He also said that there is a surging wave of sports gambling in the country, that has already impacted youths.

However, Ncube’s considerations seem to be the type of someone who worries about the budget more so than the societal impact of gambling proliferation. The measure is indeed pitched as another level the country can use to raise money for the public purse, but it fails to properly address the need for a more comprehensive responsible gambling effort.

Zimbabwe Focused on Tax Collection, But Black Market Threat Looms

This was undertaken previously in August when the government voted on the Lotteries and Gaming Amendment Bill, tweaking the country’s regulatory framework to ensure that Zimbabwe addresses fears about money laundering or uncompliant gambling operators.

The 10% proposed by Ncube will be charged on all winnings, meaning that you could as easily pay a 10% tax on your $5 wager as you are likely to pay on $2,000.

Fears have naturally materialized about the tax driving people to the black market and pushing players into websites that operate “offshore” and do not pay the tax to the government.