Local sports betting houses have embraced the gross winnings withholding tax introduced by Government in January this year, with most operators now fully compliant through upgraded systems that ensure timely and accurate collection, the Zimbabwe Revenue Authority (Zimra) has said.
In his 2025 National Budget presentation last year, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube highlighted the rapid growth of the country’s gaming and betting industry. However, he noted that the fiscus had not been directly benefitting from this boom, prompting the introduction of a 10 percent tax on all sports betting winnings, to be collected at source by betting operators.
Zimra corporate affairs executive Mr Gladman Njanji said the new tax has received a largely positive response from betting houses over the past 10 months.
“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. Many operators acknowledge the tax’s potential positive role in fostering greater formalisation of the betting sector and reducing illicit competition,” he said.
Mr Njanji added that the betting industry has adjusted its business models to accommodate the new tax environment.
“To sustain their businesses, operators are adapting strategically — balancing compliance demands with adjustments such as refining their service offerings and client engagement to mitigate adverse effects on betting volumes. Overall, the sector appears largely compliant, with the tax having integrated into routine business operations, even as the industry navigates the challenges and opportunities the new tax regime presents,” he said.
While Mr Njanji did not disclose the total amount collected to date, he confirmed that the levy had significantly boosted fiscal inflows.
“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 revenue contribution has added to the existing contributions from other tax types, reflecting the effectiveness of the tax in capturing earnings from the growing sports betting sector. Betting operators have complied by deducting and remitting the tax as required, enabling a consistent inflow of funds to Government coffers.”
Mr Njanji said Zimra continues to monitor the betting industry to prevent tax avoidance and discourage bettors from shifting to unregulated platforms.
At a pre-budget seminar held in Bulawayo last week, Speaker of Parliament Advocate Jacob Mudenda, urged legislators to explore more efficient and broader resource mobilisation strategies to support national development.
Tax expert Mr Marvellous Tapera, founder of WTS Tax Matrix and CEO of WTS Tax Matrix Academy, said the betting tax will help formalise the industry and enhance Zimra’s ability to collect verifiable revenues. However, he raised concerns about the structure of the levy.
“The flat-rate structure of the tax raises fairness concerns because it disproportionately affects low-income and casual bettors compared to wealthier participants,” he said.
Mr Tapera added that compliance had come at a cost for operators.
“Although feasible, these changes were operationally demanding and particularly costly for smaller operators, requiring significant time and financial resources,” he said.
He noted that South Africa’s model, which applies a 15 percent withholding tax only on winnings above R25 000, protects lower-income and casual punters.
Meanwhile, WTS Tax Matrix Academy is hosting a Mastering Tax Returns Workshop at a lodge in Selous, Mashonaland West Province. The workshop, which began yesterday and ends tomorrow, features key speakers including Mr Tapera, Mr Simon Gwenzi, CEO of Platinum Consultancy Services and several Zimra officials.-herald
