New Tax on Betting Winnings Takes Effect on January 1, 2026

Starting January 1, 2026, Zimbabweans who win bets will have 25% of their winnings automatically deducted as tax.

This new tax rule was introduced through the Finance Act signed by President Mnangagwa earlier this week.

Gaming operators, including sports betting firms, casinos, and lottery providers, must withhold 25% of a winner’s gross winnings when they pay out.

For instance, if a person wins $20, $5 will be taken as tax, leaving them with $15. The gaming company is responsible for sending this tax money to the Zimbabwe Revenue Authority (ZIMRA).

Gaming operators must also submit a report about each winning customer by the 5th of the month following the payout.

In addition to individual bet taxes, there is a 20% tax on the total monthly income of gaming operators, which they must pay by the 10th of the following month, the Herald reports.

ZIMRA can enforce penalties for unpaid taxes but might waive these if the failure to pay was not intentional.

Finance Minister Professor Mthuli Ncube announced these changes to enhance revenue collection from the rapidly growing betting and gambling industry, which has seen an annual revenue increase of around 8% to 10% from 2023 to 2024.

With the new tax structure, the government aims to improve compliance and significantly boost revenue from the gaming sector.

The industry, once limited to traditional sports betting, has expanded to include a vibrant digital and retail wagering market, particularly popular among youth and urban residents.