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The Zimbabwean government imposed a 10% withholding tax on all gross sports betting gains as part of its 2025 national budget. This tax policy was disclosed by Finance Minister Professor Mthuli Ncube during his budget address at the Mount Hampden parliament building. The goal of this action is to increase government revenue while formalizing the expanding gambling industry. New Tax to Boost Government Revenues The new withholding tax will apply to every sports betting win, regardless of the amount. Ncube explained, "To include punters in the tax base, I propose to introduce a 10% withholding tax on gross winnings of sports betting punters, with effect from 1 January." This measure forms part of a broader initiative to increase revenue collection, particularly from emerging sectors like sports betting, which have seen rapid growth in recent years. Sports betting has gained immense popularity in Zimbabwe, especially among the youth. The rise of both online platforms and physical betting shops in urban areas has fueled this trend. By taxing this sector, the government hopes to capture a portion of its growing profits for national development. Ncube emphasized, "The popularity of sports betting has surged in recent years, becoming a lucrative industry. This 10% withholding tax ensures that the government can tap into this revenue stream for the benefit of all citizens." While the government anticipates that the tax will generate substantial revenue, local media reports suggest mixed reactions from bettors and operators. Many bettors view the tax as a reasonable way to regulate the industry, but some worry it may discourage participation. There are concerns that the tax could drive gamblers to illegal platforms, bypassing the formal channels entirely. One anonymous betting operator shared his apprehensions with the Zimbabwe Mail, saying, "A 10% withholding tax on winnings might discourage participation, particularly among small-scale punters. It will also require significant adjustments to our systems to comply with the new law." Some punters also argue that the tax unfairly penalizes them for their success in gambling, which already involves a high level of risk. The introduction of this tax is part of a larger strategy to expand the tax base and ensure that all sectors contribute fairly to government revenues. Ncube also stressed the importance of responsible gambling, urging participants to avoid excessive indulgence. "While we aim to tax this sector for development, we must also encourage participants to gamble responsibly and avoid excessive indulgence that can lead to financial and social problems," he said.

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