Ghana has removed the 10% tax on gambling winnings. This comes just two years after the tax was introduced. The move has sparked debates on how it will affect government revenue and the betting industry.
Why the Ghana Gambling Tax Was Introduced
In 2022, the government added a 10% tax on all gambling winnings. The aim was to raise more money for the country. It applied to sports betting, lottery wins, and casino games. The Ghana Revenue Authority (GRA) oversaw collecting it.
Problems from Day One
The tax faced issues from the start. Betting companies had trouble applying it. Many didn’t know if the tax was on the total win or just the profit. For online bets, real-time deductions were hard to manage.
Gamblers also looked for ways around the tax. Some turned to offshore sites. Others used informal local betting. This made it harder for the government to track bets and collect money.
The Ghana Gambling Tax Didn’t Work
The tax didn’t bring in as much money as expected. Several reasons explain this:
- Fewer people placed bets.
- Many bettors used sites that weren’t taxed.
- It was hard to collect the tax properly.
- The cost of running the tax system was high.
Licensed betting companies lost customers. Players moved to places where they didn’t have to pay tax.
Why the Government Repealed It
In 2025, the government cancelled the tax. Here’s why:
- It didn’t bring in much money.
- Hard and costly to enforce.
- Betting companies complained it was hurting their business.
- It drove gamblers to unlicensed platforms.
- Ghana became less competitive compared to nearby countries.
Betting firms welcomed the repeal. Many expect business to bounce back.
Experts Are Concerned
Not everyone supports the repeal. Some financial experts say the government should have adjusted the tax instead of dropping it.
They say the decision shows poor planning and sends the wrong message to investors. There’s also worry that the country lost a good chance to earn extra revenue.
What’s Next for Gambling Rules?
Now that the tax is out, the focus may shift to other ways of managing gambling in Ghana:
- Higher license fees for betting companies
- Taxes on company profits instead of player winnings
- Rules on ads and gambling awareness
- Safer gambling systems to protect users
- Education on gambling risks
These steps aim to balance industry growth with public safety.
Lessons for the Future
Here are key takeaways from this policy flip:
- Talk to industry players before making big changes.
- Check how hard a new rule will be to apply.
- Start with smaller steps and scale up.
- Update policies instead of scrapping them quickly.
- Think about how other countries handle the same issue.
Other countries in Africa may learn from Ghana’s experience.
What to Expect Now
There is an expectation that the gambling industry will grow again. Companies may increase ads and promotions. More people might return to betting.
But the government still needs to manage gambling risks. Without the tax, there’s less control. Industry players may have to step up and act responsibly.
Final Thoughts
Removing the gambling tax shows how tricky it is to balance revenue and regulation. While the tax aimed to bring in money and curb gambling, it failed in practice.
Ghana’s decision to cancel it shows the government is listening, but it also raises questions about long-term planning. As the industry picks up again, everyone will be watching to see if new rules can support both growth and safety.
Also Read: How to Play Maybets Super League.
FAQs About Ghana Gambling Tax
When Was the Betting Tax Introduced in Ghana?
Ghana first introduced a betting tax in 2015, imposing a 5% withholding tax on lottery and betting winnings. Due to implementation challenges and stakeholder protests, it was abandoned in 2017. The tax was reintroduced in August 2023 as a 10% withholding tax on gross winnings from betting, lottery, and other games of chance, under the Income Tax (Amendment) Act, 2023.
What Was the 10% Betting Tax in Ghana?
The 10% betting tax, effective from August 15, 2023, was a withholding tax on gross winnings from betting, lottery, and other games of chance. Additionally, betting companies were subjected to a 20% tax on their gross gaming revenue.
Was the Betting Tax Cancelled?
Yes. In March 2025, the Ghanaian government, under the Mahama administration, announced the removal of the 10% betting tax in the 2025 Budget Statemen. The decision was part of efforts to reduce the financial burden on citizens and support economic recovery.
How to Avoid Betting Tax in Ghana?
As of March 2025, the 10% betting tax has been abolished. Prior to its removal, bettors were subject to the tax on all winnings, with no legal avenues to avoid. Engaging in responsible gambling practices and staying informed about current tax laws is advisable.
Responsible Gambling and Tax Policy Changes in Ghana (2021–2022)
- 2021: No significant changes to betting tax policies were recorded.
- 2022: The government passed the Income Tax (Amendment) Bill 2022, leading to the reintroduction of the betting tax in 2023. This move aimed to increase domestic revenue amid economic challenges.
Why Was the Betting Tax Removed
The betting tax faced widespread criticism for disproportionately affecting the youth and low-income earners who relied on betting as a source of income. It also failed to generate the expected revenue. The government’s decision to abolish the tax was aimed at easing the financial burden on citizens and stimulating economic activity.
