Zambia’s betting industry is undergoing a dramatic shake-up following the introduction of a new 10% excise tax on betting stakes, prompting major operators to suspend or scale back their services. BetLion has announced a complete halt to its operations in the country, citing the tax as a critical factor that has rendered its business model unsustainable. The company expressed regret over the decision, emphasizing that the regulatory shift has made it impossible to continue offering services under the current conditions. This marks a significant retreat from a market that has seen rapid growth in recent years, fueled by digital platforms and a rising interest in sports betting.
In a similar move, betPawa has partially paused its operations, choosing to suspend its Casino and Jackpot offerings while maintaining access to sports betting and virtual games. The company has adjusted its platform to reflect the new tax, automatically applying the 10% levy to all betting stakes and clearly displaying it on bet slips. This approach allows betPawa to remain active in a limited capacity while complying with the Zambia Revenue Authority’s enforcement of the new tax. The decision reflects a strategic compromise aimed at balancing regulatory compliance with continued user engagement.
These developments follow Betway’s earlier decision to temporarily suspend its operations in Zambia, signaling a broader industry response to the tax policy. The wave of suspensions gained momentum after the Constitutional Court dismissed a legal challenge filed by Betway and betPawa, which sought to overturn the excise duty. The court’s ruling on October 3, 2025, upheld the Zambia Revenue Authority’s mandate to collect the tax, even as constitutional proceedings on the matter continue. The judgment has effectively solidified the legal standing of the tax, leaving operators with limited recourse.
The new tax has sparked widespread debate among stakeholders and the betting community. Supporters argue that the levy could generate substantial public revenue and promote responsible gambling by discouraging excessive betting. Critics, however, warn that the tax may drive operators out of the market, reduce consumer choice, and push betting activity into unregulated or informal channels. Social media reactions have been swift and polarized, with some users lamenting the loss of popular platforms and others questioning the government’s approach to regulating the industry.
As the dust settles, Zambia’s betting landscape is in a state of flux. Operators are reassessing their business models, and users are adjusting to a new cost structure that fundamentally alters the betting experience. The long-term impact of the tax remains to be seen, but for now, it has triggered a wave of operational changes that could reshape the future of digital betting in the country.