Zambian Court Allows 10% Betting Tax Collection Despite Operator Challenge
Zambia’s Constitutional Court has rejected an application by betting operators BetPawa and Betway to suspend collection of the newly enacted 10% excise duty on betting stakes. Meanwhile, the ruling permits the Zambia Revenue Authority to continue enforcing the tax.
Operators Challenge Tax Implementation Terms
BetPawa and Betway challenged the levy under the Customs and Excise (Amendment) Act No. 11 of 2025. Specifically, they argued the tax was excessive, ambiguous, unimplementable, and financially unsustainable. Moreover, the operators sought an interim injunction against collection. Therefore, they claimed the mid-year introduction on August 8 made compliance practically impossible.
The betting firms contended the tax burden exceeded their gross gaming revenue. However, ZRA challenged these financial projections as speculative and unsupported by audited data. Oliver Nzala, ZRA Corporate Communications Manager, stated that “ZRA maintained that the excise duty is a consumption tax borne by betting players, not operators, and that the law was enacted following stakeholder engagement.”
Court Prioritizes Public Revenue Interest
The court ruled the petitioners failed to demonstrate a serious constitutional issue justifying law suspension. Subsequently, judges reaffirmed the “pay now, argue later” principle in tax matters. Moreover, the court found no evidence that tax compliance would cause operator insolvency. Consequently, the court emphasized that public interest outweighs private concerns of betting companies.
Nzala noted that the court observed the obligation to pay tax is not a legal impossibility. Therefore, ZRA retains full authority to collect the 10% excise duty under the newly enacted legislation. Meanwhile, betting players will continue paying the tax while the constitutional challenge proceeds through the legal system.
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