Ghana’s gambling winnings tax repealed two years after introduction

The controversial decision, which has sparked significant debate among economic analysts and the general population, reverses a tax policy introduced less than two years ago and represents a major shift in the country’s fiscal and regulatory stance on the gambling sector.

The now-defunct tax was first implemented in August 2023 as part of a broader government effort to increase domestic revenue and address concerns about the growing prevalence of gambling, particularly among the youth. The 10% withholding tax applied exclusively to winnings — excluding the original bet amount — and was automatically deducted at the point of payout.

It’s good news for gamblers, as there had also been a recent push to increase the tax to 50%.

The rationale behind the policy included discouraging compulsive gambling behaviour and generating public revenue from a rapidly expanding industry.

Last month, Finance Minister Dr. Cassiel Ato Forson announced the repeal of the gambling tax, along with other fiscal levies such as the e-levy and Covid-19 levy, during his presentation of the 2025 national budget.

He argued that eliminating these taxes would reduce financial strain on households, increase disposable income, and ultimately boost economic activity. The decision was framed as part of a broader strategy to enhance tax compliance, attract investment, and stimulate consumption in a challenging economic environment. It reverses a policy established by President Mahama’s predecessor, Nana Akufo-Addo.

Mahama was inaugurated for his second non-consecutive term in January, after winning the election last December with 56% of the vote. He previously served as president from 2012 to 2017 and his return to office marks the first time in Ghanaian history that a former president has been re-elected after a previous term.

Some unhappy with repeal

The removal of the gambling tax has not been universally welcomed. The Institute of Economic Affairs (IEA), a prominent Ghanaian think tank, has publicly expressed concerns over the fiscal implications of the repeal. According to IEA analysts, the 10% tax on betting winnings was a valuable source of government revenue. Its removal, they argue, could exacerbate the country’s already strained fiscal position, especially in light of other recent tax cuts.

Supporting this view, a financial impact analysis conducted by KPMG estimates that the abolition of the betting tax, in conjunction with the removal of the e-levy and Covid-19 levy, could lead to a cumulative revenue loss of approximately GHS6.4bn (€369.6m).

This figure represents a significant shortfall for a government still grappling with post-pandemic economic recovery and persistent public sector debt. Critics have also raised concerns about the social and public health consequences of encouraging gambling through deregulation. With the tax on winnings now lifted, observers worry that the government may be inadvertently incentivising excessive gambling, particularly among the country’s youth.

Ghana has witnessed a notable rise in betting activity in recent years, driven in part by the proliferation of online betting platforms and the popularity of sports betting.

Without proper regulatory oversight, some fear that problem gambling rates could increase, potentially resulting in long-term societal costs.

Betting operators expect positive outcome

Meanwhile, betting operators have responded positively to the policy change. Several companies have already ramped up their marketing efforts in Ghana, introducing promotions such as no-deposit bonuses to attract new users.

These aggressive marketing tactics have drawn scrutiny from local stakeholders, who argue that such incentives could exacerbate gambling harm and make vulnerable populations more susceptible to financial risk.

The government has not yet announced any specific plans to mitigate the risks associated with expanded gambling access. As a result, questions remain about how it intends to balance its goal of industry growth with the need for responsible gambling practices. The Ministry of Finance has emphasised the economic benefits of increased consumer spending and investment.

At the same time, stakeholders in the public health and education sectors have called for clearer safeguards to prevent the normalisation of gambling among minors and young adults. Additionally, some experts have pointed out the regulatory gap that may widen as a result of the policy shift.

Source: next.io

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.