In a significant move for the gambling industry, the Zambian government is proposing a 10% excise duty on betting amounts as part of the 2025 budget. This announcement was made by Finance Minister Situmbeko Musokotwane during his presentation to Parliament yesterday, and it has sparked considerable debate among the country's youth, who increasingly engage in sports betting.
What Does the Proposal Mean for Gamblers?
The introduction of a 10% excise duty means that for every amount wagered, 10% will be deducted as tax. For instance, if a punter places a bet of K100, only K90 will be eligible for the bet, with the government taking K10 as tax. If the bet wins, the government will also receive an additional 15% of the winnings.
Reactions to the Proposal
The response to this proposal has been mixed. While some welcome the move as a means to increase government revenue, others fear it could discourage gambling activities. The new tax could potentially lead to a reduction in the number of individuals participating in betting, particularly among young people who are currently embracing this pastime.
The Growing Gambling Market in Zambia
Zambia has seen a surge in betting companies, with over 30 operators now active in the market. The accessibility of online gambling has allowed many young Zambians to participate, with minimal entry requirements. With just a smartphone and an internet connection, individuals can open an account and place bets starting as low as K50.
President Hakainde Hichilema's Call to Action
In response to the increasing popularity of gambling, President Hakainde Hichilema previously urged the youth to reconsider their priorities. He encouraged them to focus on innovative pursuits rather than relying on luck through gambling. “Please, young people, spend less time on gambling and betting. Spend more time on what you are doing than looking for luck. Luck comes because you have worked hard,” he stated.
Conclusion
As Zambia moves toward the approval of the 2025 budget, the proposed 10% excise duty on betting amounts is set to reshape the landscape of gambling in the country. While it aims to boost government revenues, its potential impact on participation rates among the youth remains to be seen.