Zambia 2027 Budget Clarifies Online Betting Tax and Mobile Levies

The gambling industry in Zambia is entering a new phase of regulatory clarity. Finance Minister Situmbeko Musokotwane recently proposed a series of measures within the 2027 Budget to define how online betting is taxed. A key takeaway is the clarification that online operators fall under the specific Betting Levy regime rather than standard corporate income tax. This update, published by the Zambia Revenue Authority (ZRA) on November 6, 2026, is described as a housekeeping amendment to ensure consistent application of the law across the sector.

The Betting Levy was originally introduced in January of the current year to replace income tax for gaming businesses. However, specific legal language regarding the online sector remained ambiguous until now. By cementing this status in the 2027 Budget, the government provides much-needed certainty for international firms operating in the region. Unlike many Western jurisdictions that tax gross gaming revenue, Zambia’s model focuses on the flow of funds, placing the tax burden directly on the transaction point.

Numbers and facts

Under the existing rules, betting companies must charge and remit a 5 percent levy on all deposits made into betting accounts and all withdrawals taken from them. The ZRA has made it clear that this levy is ultimately carried by the player, not the operator. Companies are tasked with filing monthly returns and must transfer the collected funds within ten days after the end of each month. The budget does not propose any changes to this 5 percent rate, focusing instead on expanding the scope of the tax.

A significant shift involves mobile phone lotteries. Previously, these activities often escaped the levy because participants paid via airtime deductions rather than traditional betting account deposits. The new proposal seeks to widen the levy to include these non-brick-and-mortar gaming activities. Furthermore, enforcement is being ramped up. Agents appointed to withhold levies face severe penalties of 10,000 penalty units for every day a payment remains outstanding beyond the prescribed period.

Background

The push for clarity follows a period of extreme volatility in the Zambian market. In 2025, the industry was disrupted by a 10 percent excise duty on betting stakes. This led to immediate legal challenges from industry giants including Betway and betPawa. The case eventually reached the Constitutional Court, which refused to stay the tax during proceedings. As a result, BetLion suspended its operations, and others significantly reduced their presence. The deadlock was only broken when Minister Musokotwane suspended the duty to zero at the start of 2026, allowing brands like Betway and the newly rebranded Bandabets to resume full services.

„The measures clarify that online betting operators fall under the Betting Levy regime rather than income tax.“ - Zambia Revenue Authority (ZRA)

Why it matters for German players

For players in Germany, the Zambian situation illustrates the risks of erratic tax policies. Germany operates under the State Treaty on Gambling 2021 (GlüStV 2021), which provides a much more stable, albeit highly restrictive, environment. While Zambia taxes transfers, Germany applies a 5.3 percent tax on stakes for online slots and poker. This often results in lower payout percentages (RTP) for players at legal German sites compared to those operating under MGA or Curacao licenses.

Furthermore, German players are protected by the LUGAS system, which enforces a monthly deposit limit of 1,000 euros across all licensed platforms. While Zambian players face direct costs on their withdrawals, German players deal with stake-based taxes and strict loss-prevention measures like the 1-euro per spin limit. The stability of the GGL (Joint Gambling Authority of the States) whitelist ensures that players don't face the sudden service suspensions seen in Zambia when tax laws change abruptly.

What it means for GGL-licensed casinos

Licensed casinos in Germany can view the Zambian case as a reminder that clear tax classifications are essential for long-term investment. The Zambian U-turn on the 10 percent excise duty shows that excessive taxation can quickly lead to market exit by major players. In Germany, the GGL focuses on maintaining a balanced market where legal operators can compete with the black market. The ongoing enforcement against unlicensed offshore operators is critical to ensuring that the 5.3 percent stake tax does not drive players toward unsafe, non-regulated platforms.