Are Betting Winnings Taxed in Zambia? (The 15% Myth)
The short answer to “Are betting winnings taxed Zambia?” is No. Paripesa does not deduct any withholding tax from your online betting winnings as of 1 January 2026.
The longer answer explains why so many outdated sources still say otherwise:
The withholding tax on winnings in Zambia used to sit in Section 82A(1) of the Income Tax Act. The rate was initially 20%, reduced to 15% for the 2023โ2025 charge years. However, the Income Tax (Amendment) (No. 2) Act No. 17 of 2025 completely deleted that paragraph. The Act was assented on 23 December 2025 and came into force on 1 January 2026.
So why do guides published in 2026 still quote the 15% tax? Because the 2026 National Budget (delivered in September 2025) proposed maintaining the rate, and bloggers wrote their articles based on that speech. The actual enacted law, passed three months later, went the other way. Where budget intent and statute diverge, the statute applies.
The practical result for you: Nothing comes off your winnings payout under section 82A.
Excise Duty on Stakes: Suspended to Zero
In 2025, a controversial 10% excise duty on betting services was introduced, charged on the amount you staked. This caused massive disruption in the Zambian market, leading several operators to suspend services or challenge the government in court.
The government responded by changing the model. On 9 December 2025, the Minister of Finance signed Statutory Instrument No. 1 of 2026 (Customs and Excise Suspension Regulations), which suspended the duty rate on betting services to 0%.
At Paripesa, when you stake 100 ZMW on a match, exactly 100 ZMW goes toward your bet. We do not deduct any excise duty from your stake.
The 2026 Reality: Who Remits What?
Three old charges were replaced by one streamlined levy. Confusing the old structure with the new is the most common error in Zambia today. Here is the official breakdown of how Paripesa handles your money in 2026:
| Tax / Charge Category | Official Position in 2026 | How It Is Applied |
|---|---|---|
| Withholding Tax on Winnings | Removed (1 Jan 2026) | 0% deducted from your winnings payout. |
| Excise Duty on Stakes | Suspended to Zero | 0% deducted when placing a bet. |
| Betting Levy | Active, 5% | Calculated on deposits into, and withdrawals from, a gaming account. |
The new 5% charge comes from the Betting Levy Act No. 27 of 2025. Under this Act, the betting company (Paripesa) legally calculates, collects, and remits this levy to the government. It is charged on the movement of money (deposits and withdrawals) rather than on your match results. You can view how this affects specific limits on our payment methods page.
How the Tax Shift Affects Your Betting Strategy
The point that gets missed when people celebrate the end of a tax on winnings is where the tax point actually moved to.
The former withholding tax only cost you when you won. The new 5% betting levy attaches to account transactions โ applying to money going in and out, regardless of what happened in between. For a bettor who makes multiple small deposits and withdrawals every single day, this new model is not obviously cheaper.
Our Strategy Tip: Since transactions are taxed, it is more mathematically efficient to make fewer, larger deposits and consolidate your withdrawals, rather than making daily micro-transactions. Consider this when you register and plan your bankroll.
Furthermore, “no tax on winnings” and “untaxed” are different statements. The most reliable way to judge true value is still to calculate the bookmaker’s overround (margin) from the odds in your own account, as our sports betting guide explains.
Regulatory Reform in Progress
The statutory framework in Zambia is older than the online betting industry it governs. Licensing still runs under the Betting Control Act, a law written long before smartphones existed.
In June 2025, the Cabinet approved introducing a bill to repeal that framework and replace it with modern, consolidated legislation. However, approval to introduce a bill is not an enacted statute. As of August 2026, the old Betting Control Act remains current law. The Ministry of Finance moved much faster on tax legislation (which took effect Jan 1, 2026) than the government did on licensing reform. Rest assured, Paripesa monitors all ZRA betting tax policies continuously to keep our Zambian platform 100% compliant.