New Slot machines being installed for betting
Rwanda’s Chamber of Deputies has approved a new draft law that imposes significant taxes on the gambling sector, aiming to strengthen national revenue while supporting responsible industry growth.
During a plenary session on Tuesday, lawmakers passed the legislation, which allocates 50 per cent of net profits from gambling activities to the national treasury. The law also increases the tax rate on gambling winnings from 15 per cent to 25 per cent and requires companies to pay a 40 per cent tax on the difference between total revenues and payouts.
Godfrey Kabera, Minister of State in Charge of the National Treasury at the Ministry of Finance and Economic Planning, clarified the government’s position:
“The gambling sector holds economic value; we want to promote it, not shut it down. The key is not to deprive operators, but to help them function in a way that doesn’t harm people’s well-being.”
Kabera cited regional benchmarks where governments typically tax gambling winnings at rates between 15 per cent and 25 per cent. In contrast, Rwanda has opted to claim a larger share of net profits for public use.
The legislation also targets digital service providers. Companies with a significant presence in Rwanda must now pay a 1.5 per cent tax on all revenue generated within the country.
The Committee on National Budget and Patrimony introduced the draft law, along with other proposed tax and duty reforms. Committee Chairperson Uwamariya Odette explained that the reforms aim to bring structure to an industry that previously operated without oversight.
“Gambling is practised worldwide. That’s why we established a regulatory law in 2021. Before then, the sector lacked proper control. Since it operates within our borders, the state must regulate it,” she said.
Several MPs expressed concerns about the social impact of gambling, particularly its potential to harm families. MP Munyangeyo questioned whether the public perceives online and physical gambling differently, and whether these forms lead to varying social consequences.
MP Ntezimana argued for recognising gambling as a legitimate industry:
“We shouldn’t treat gambling as some random or harmful activity. It involves money. By taxing it, we are giving it legal value, and the public will see it as a legitimate sector. Some people even call it ‘a trap for the unwise,’ which is a misconception.”
Uwamariya welcomed Ntezimana’s remarks and acknowledged that his views aligned with the committee’s goal of maintaining proper oversight to prevent negative outcomes.
Although gambling remains a divisive issue, the government believes that effective regulation and monitoring, including early intervention teams, can mitigate associated risks while fostering a sustainable and economically beneficial sector.
