Zambia's Court Upholds 10% Betting Tax Despite Industry Backlash
The Constitutional Court of Zambia has rejected an attempt by betting firms to halt a new 10% excise duty on betting stakes. BetPawa and Betway sought an interim injunction to stop the Zambia Revenue Authority (ZRA) from enforcing the tax, but the Court dismissed their application. The ruling means the tax will remain in place while a full constitutional challenge proceeds.
The betting companies argued that the tax was unconstitutional, claiming it lacked transparency and public consultation. They also stated that the financial burden exceeded their gross gaming revenue, threatening their operations. In response, ZRA defended the tax as lawful and necessary, insisting it was a consumption tax paid by bettors, not operators.
The Court ruled that the petitioners had not proven a serious constitutional issue or shown evidence of irreparable harm. It emphasised that ZRA's duty to collect taxes served the public interest, outweighing private business concerns. The judges also upheld the 'pay now, argue later' principle, requiring compliance with the law during legal disputes.
Since its introduction in 2025, the 10% excise duty has already impacted the industry. Revenue and profits in the sector have dropped by 15-20%, leading to job losses—around 5,000 by early 2026—particularly in Lusaka and the Copperbelt region. Some operators have raised odds or left the market entirely.
The dismissal of the injunction allows ZRA to continue collecting the excise duty without interruption. The constitutional challenge will still go to a full hearing, but for now, the tax remains enforceable. The decision maintains the status quo while the legal process continues.
