Zambian Betting Operators Suspend Services Following Tax Court Ruling
BetLion has suspended all betting operations in Zambia while betPawa has partially paused services following the Constitutional Court’s dismissal of their legal challenge against the 10% excise duty. Meanwhile, Betway temporarily halted all operations days earlier.
Court Ruling Enables Continued Tax Collection
The Constitutional Court dismissed the petition from Betway and betPawa on October 3, 2025. Subsequently, the ruling permits ZRA to enforce the levy while the broader constitutional case proceeds. Therefore, operators must comply with the tax during ongoing legal proceedings. Moreover, the court reaffirmed the “pay now, argue later” principle governing Zambian tax administration.
BetLion stated that “due to the new 10 per cent excise duty, BetLion operations are temporarily paused. Your funds remain safe and available for withdrawal.” However, betPawa clarified that casino and jackpot services are now unavailable while sports betting and virtuals remain active. Consequently, the 10% stake tax is automatically applied to remaining betting options. Finance Minister Situmbeko Musokotwane defended the levy, emphasizing it followed stakeholder engagement.
Industry Faces Operational Uncertainty
Operators argued the mid-year tax introduction was excessive and implemented without adequate consultation. Therefore, compliance difficulties and business sustainability remain primary concerns. Additionally, enforcement could destabilize smaller operators who struggle to absorb the tax burden. Moreover, concerns include potential job losses and operators passing costs to customers.
ZRA maintains the excise duty is a consumption tax borne by betting players rather than operators. Nevertheless, industry stakeholders monitor whether negotiations or legislative adjustments will balance government revenue objectives with operator sustainability. Meanwhile, legal proceedings continue as Zambia’s betting sector faces ongoing uncertainty.
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