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The Rwandan government has announced a sharp increase in gambling taxes, a move aimed at strengthening national revenue while promoting responsible gambling. Effective from the 2024/2025 fiscal year, the tax on Gross Gambling Revenue (GGR) will rise from 13% to 40%, while the withholding tax on player winnings will jump from 15% to 25%.
This tax overhaul is part of Rwanda’s broader economic strategy, aligning with the Second National Strategy for Transformation (NST2), which prioritizes infrastructure development, job creation, and improvements in education and healthcare. The Ministry of Finance and Economic Planning (MINECOFIN) has framed these changes as essential for reducing economic reliance on external aid while fostering self-sufficiency.
Beyond gambling, the government has introduced additional fiscal measures, including a 15% excise tax on imported cosmetics and beauty products, higher vehicle registration fees, and the reinstatement of VAT on mobile phones and ICT devices. The fuel levy has also been adjusted, shifting from a fixed amount to 15% of the cost-insurance-freight (CIF) value.
The substantial tax increase is expected to put pressure on Rwanda’s gambling sector, which has been a growing contributor to the economy. Between 2013 and 2019, the industry generated 264.3 billion Rwandan Francs (RWF) in revenue and contributed 8.8 billion RWF in taxes, in addition to funding the Rwanda Social Security Board (RSSB).
However, industry stakeholders warn that the steep tax hikes could lead to reduced investment, business closures, and job losses, particularly among the estimated 5,000 employees working in the sector. Some operators also fear that the changes may drive players toward unregulated or illegal gambling markets, undermining the government’s efforts to control the industry.
To address these concerns, the Rwanda Development Board (RDB) has introduced a new gambling policy, emphasizing tighter regulatory oversight, enhanced player protections, and measures to combat problem gambling.
Despite the concerns, the government remains firm in its stance, with the Ministry of Finance and Economic Planning stating: "As we continue to build a robust economy and transform the livelihoods of all citizens, the reform of the gambling tax regime is a pivotal part of our medium-term strategy. These measures strengthen our resilience and promote self-reliance, allowing us to meet our development goals effectively."
The government has also committed to ongoing industry monitoring and policy adjustments, ensuring that the increased tax revenue does not cripple the gambling sector. Engaging with stakeholders and maintaining regulatory flexibility will be crucial in striking a balance between economic growth and industry sustainability.
While these tax changes represent a bold move for Rwanda’s economy, their success will depend on effective implementation, industry compliance, and the government's ability to prevent unintended consequences—such as a shift to unregulated gambling markets. With a focus on both revenue generation and responsible gaming, Rwanda’s evolving gambling landscape will be one to watch in the coming years.
Sources: SIGMA, iGaming Today
