Betway continues Zambia withdrawal following tax hikes

Betway continues Zambia withdrawal following tax hikes

Summary

Betway has withdrawn as the principal partner of the Zambian Premier League after Zambia introduced a 10% excise betting duty. The operator said the higher tax made continued investment in the market unsustainable. Betway and BetPawa challenged the Excise (Amendment) Act No. 11 of 2025 — arguing a lack of transparency, inadequate public consultation and that the law breached section 7 of the customs and excise legislation — but the Constitutional Court refused to suspend the duty pending a full hearing.

The Zambia Revenue Authority (ZRA) maintains the excise is lawful, implementable and is paid by bettors rather than operators. With the court declining to grant an interim injunction, the duty remains in force and Betway’s withdrawal underlines the potential commercial and sporting consequences of the tax change.

Key Points

• Zambia implemented a 10% excise betting duty via the Excise (Amendment) Act No. 11 of 2025.
• Betway pulled its principal sponsorship from the Zambian Premier League, citing the tax as making investment unsustainable.
• Betway and BetPawa petitioned the Constitutional Court claiming procedural and constitutional defects in the amendment; their request to suspend the law was denied.
• The ZRA says it consulted stakeholders and that the duty is payable by bettors, asserting the tax is lawful and enforceable.
• The outcome raises warnings about reduced operator investment, threats to sports funding and the wider risk of market exits in Zambia.

Context and relevance

Higher gambling taxes are an increasing trend in several jurisdictions and can quickly alter the commercial calculus for operators. This ruling is significant for anyone involved in iGaming, sports sponsorship or African market entry: fiscal shifts can lead to immediate reductions in sponsorship income, undermine local sports ecosystems and deter future investment.

Why should I read this?

Short and blunt — tax changes can wreck deals overnight. If you work in iGaming, sports partnerships or African regulation, this is a neat example of how a 10% levy turned a major sponsor into an ex-sponsor. We’ve done the digging so you don’t have to.

Source

Source: https://igamingexpert.com/news/regulation/betway-zambia-tax-hikes/