What is gaming?
Gaming refers to the playing of a game of a chance for winning in money or money’s worth.
What is gaming revenue?
This is the gross turnover less the amount paid out to customers as winning.
What is tax charged on gaming?
Winnings from gaming are taxed at a rate of 15%
When is the gaming tax paid?
The tax must be remitted by the 20th day of the month following the month of collection by a person carrying on a gaming business.
What is lottery?
Lottery is defined to include a sweepstake, a raffle or any scheme or device for the sale, gift disposal or distribution of any property depending upon or to be determined by lot or chance, whether by the throwing or casting of dice, or by the withdrawing of tickets, cards lots numbers or figures or by means of wheel.
What is tax charged on lottery?
The lottery tax is charged at a rate of 15% of the lottery turnover.
When is the lottery tax paid?
The lottery tax must be remitted to the collector by a person authorized to promote the lottery on the 20th day of the month following the month of the collection.
What is betting?
Betting transaction includes collection or payments of winning on a bet and any transaction in which one or more of the parties is acting as a bookmaker.
Who is a bookmaker?
A bookmaker is defined as any person:
- Whether on their own behalf or as a servant or agent carries on whether occasionally or regularly the business of receiving or negotiating bets.
- A person who holds himself out in any manner as a person who receives or negotiates bets.
- A person who permits himself to be held out in any manner as a person who receives or negotiates bets.
What is tax charged on betting?
Betting tax is charged at the rate of 15% of the revenue generated from betting.
When is the betting tax paid?
The betting tax must be remitted by the 20th day of the month following the month of collection.
What are the implications of non compliance?
As per the Betting Lottery and Gaming Act cap 131 sec 68(b)
Late payment of lottery, gaming and betting attracts a penalty of 5% of the tax payable, and to with a late payment interest of 1% per month
The interest is computed as simple interest.
Are winnings taxed?
The Tax Laws (Amendment) Act reintroduced WHT on winnings at the rate of 20%.
What are winnings ?
Winnings include money won, spoils, profits, or proceeds of any kind that refer to the amount or payment of winnings. The effect of this new definition is that Withholding Tax (WHT) will now be imposed on the gross winnings payable by all sectors governed by the Betting, Lotteries and Gaming Act, that is: Betting, Lotteries, Gaming and Prize Competition.