What is the Betting Tax? 

The term “betting tax” has caused confusion, as no specific tax under that name exists in Ghana’s tax laws. Instead, the country operates under a broader tax category called the gaming and betting tax. This tax handle comprises multiple components, including the gross gaming revenue tax for betting companies and the withholding tax on betting winnings.

The recent announcement in the 2025 budget regarding the abolition of several taxes, including the betting tax, sparked widespread debate. While the former Minister for Finance claims the tax was never collected, official data from the Ghana Revenue Authority (GRA) suggests otherwise.

According to the GRA, the gaming and betting tax underwent revisions in the 2023 budget and was designed for implementation in three phases. The first phase, introduced in May 2023, required betting companies to pay a corporate income tax. In August 2023, the second phase took effect, implementing a 10% withholding tax on betting winnings. This means that if a person bets and wins GHS 100, they would be taxed GHS 10.

The third phase, set for 2024, aimed to incorporate over 1,200 lottery operators into the tax structure. However, concerns raised by the National Lottery Authority (NLA) led to a delay. The NLA argued that taxing lottery winnings would disadvantage the public betting sector while private operators remained largely unregulated.

Was the betting tax ever collected?

Following the budget announcement, former Finance Minister Dr. Mohamed Amin Adam stated that the betting tax was never collected, leading to confusion among people who bet and investors. However, official statements from the GRA reveal that the withholding tax on betting winnings was indeed enforced.

Data from the GRA shows that the government collected GHS 51.3 million from the tax in 2023 and GHS 147.76 million in 2024. These figures confirm that the withholding tax on betting was collected despite claims to the contrary.

In total, the betting industry contributed approximately GHS 495 million in taxes for 2024, making it a significant revenue source. The gaming and betting tax includes multiple components, such as the withholding tax on winnings, corporate taxes on betting companies, and other industry-related levies.

Debate Over Betting and Taxation

Beyond revenue considerations, there is a moral argument against betting. Some believe the government should discourage betting rather than tax it. However, others compare the industry to financial markets like forex trading, questioning why betting should be viewed negatively.

Supporters of the tax argue that if betting serves as a source of income for individuals, it should be taxed like any other income. The confusion surrounding the betting tax stems partly from terminology. With the finance ministry now moving to abolish the tax, many bettors have welcomed the decision. However, the debate over whether betting should be taxed like other income sources remains unresolved.