Tax hikes in Zambia have caused Betway to withdraw its principal partnership of the Zambian Premier League, in a major blow to the country’s sports scene..
The operator underpinned that the investment in the market had become unsustainable amidst the rise in excise duty in the country.
News that the government in Zambia would introduce a 10% excise betting duty tax has been met with backlash from many stakeholders. However, Betway’s significant moves will only serve to intensify this pressure.
Previously, there was an appeal from BetPawa and Betway to halt the tax, but this was dismissed by the country’s Constitutional Court.
At the heart of the appeal against the introduction of the tax were claims that it breached section 7 of the customs Excise (Amendment) Act No. 11 of 2025. Objections included an alleged lack of transparency, inadequate public consultation, and severe economic impact.
Furthermore, they also claimed that it was excessive, ambiguous, unimplementable and financially unsustainable, warning that it could impact their future ability to operate in the country.
Nonetheless, the Zambia Revenue Authority (ZRA) continued in its pursuit of the excise duty. The ZRA stated that it had engaged with stakeholders in the decision and emphasised that the duty is paid by bettors, not operators.
Following this, the operators looked to secure an interim injunction to stop enforcement of the excise duty pending the full hearing of their constitutional petition.
ZRA countered that the tax was lawful and implementable in its current form. The organisation emphasised that any interference at this stage would be an encroachment on its statutory duty.
Seemingly cementing a future for excise duty in Zambia, the Court decided that the petitioners failed to demonstrate a sufficiently serious constitutional issue to justify suspending the law at this stage.
