Zimbabwe's sports betting operators have largely complied with the 10 percent gross winnings withholding tax introduced by Government in January 2025, with upgraded systems now enabling efficient and timely collection, the Zimbabwe Revenue Authority (Zimra) has said.
The tax, announced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube in the 2025 National Budget, seeks to ensure the fiscus benefits from the fast-growing betting industry, which had previously contributed little to public revenue.
Zimra corporate affairs executive Mr Gladman Njanji said most operators had embraced the tax and integrated it into their daily business operations.
"Most operators have embraced their compliance responsibilities by registering for the tax and implementing systems to deduct the tax at source as required by law," said Mr Njanji.
"Many operators acknowledge the tax's potential positive role in fostering greater formalisation of the betting sector and reducing illicit competition."
He said the industry had shown resilience by adapting its business models to accommodate the new tax.
"To sustain their businesses, operators are adapting strategically - balancing compliance demands with adjustments such as refining service offerings and client engagement to mitigate adverse effects on betting volumes," he added.
While Mr Njanji did not disclose the total amount collected so far, he confirmed that the levy had generated a strong and steady revenue stream over the past ten months.
"Since the introduction of the 10 percent withholding tax on sports betting winnings in January 2025, Zimra has seen a strong and steady stream of revenue generated from this tax," he said.
"This contribution has added to the existing revenue base, reflecting the effectiveness of the measure in capturing earnings from the growing sports betting sector."
He added that Zimra continues to monitor compliance closely to curb tax evasion and prevent bettors from migrating to unregulated online platforms.
Tax expert Mr Marvellous Tapera, founder and CEO of WTS Tax Matrix, said the betting tax is a step toward formalising the sector and improving revenue transparency. However, he warned that the flat-rate structure could be regressive.
"The flat-rate structure raises fairness concerns because it disproportionately affects low-income and casual bettors compared to wealthier participants," said Mr Tapera.
He also noted that compliance had imposed additional costs on operators.
"Although feasible, these changes were operationally demanding and costly for smaller operators, requiring significant time and financial resources," he said.
Mr Tapera pointed to South Africa's model, which applies a 15 percent withholding tax only on winnings above R25,000, as a fairer approach that protects casual punters.
At a recent pre-budget seminar in Bulawayo, Speaker of Parliament Advocate Jacob Mudenda urged legislators to explore more efficient and diversified revenue mobilisation strategies to fund national development.
Analysts say the success of the betting winnings tax underscores the potential of targeted levies in capturing income from expanding but previously informalised industries such as betting and gaming.
Meanwhile, WTS Tax Matrix Academy is conducting a Mastering Tax Returns Workshop in Selous, Mashonaland West Province, which began yesterday and ends tomorrow. The event features several speakers, including Mr Tapera, Mr Simon Gwenzi (CEO of Platinum Consultancy Services), and Zimra officials, focusing on building compliance capacity among taxpayers.
- The Chronicle
Signed, sealed, and delivered US$1 billion 
SA media reporting on Eskom is racist 
Millions celebrate Diwali festival in India 
SA bitcoin firm mulls Zimbabwe listing 
Gold edges up as traders await guidance 
Airlink applies for Lanseria to Harare, Bulawayo route 
Young Investment Professional (YIP) Graduate Programme 2019 
Young Investment Professional (YIP) Graduate Programme 2019
Editor's Pick