In a landmark decision, Ghana’s Parliament today, March 26, 2025, passed the Income Tax (Amendment) Bill, 2025, effectively abolishing the controversial 10% withholding tax on betting, gaming, and lottery winnings. The move, which awaits presidential assent from President John Dramani Mahama, marks the fulfillment of a key campaign promise by the ruling National Democratic Congress (NDC) and has sparked widespread reactions across the West African nation and beyond.
A Tax Under Fire
Introduced in August 2023 under the previous New Patriotic Party (NPP) government, the betting tax was part of the Income Tax (Amendment) Act, 2023 (Act 1094). It imposed a 10% withholding tax on gross winnings from sports betting, lotteries, and other games of chance, replacing an earlier 15% VAT on stakes. The Ghana Revenue Authority (GRA) hailed it as a revenue-boosting measure, projecting collections of over GH¢1.2 billion ($104 million) by the end of 2023. In its first month alone, the tax reportedly generated GH¢15 million, underscoring the rapid growth of Ghana’s gaming industry, which includes over 22 registered sports betting firms and numerous lottery operators.
However, the tax faced fierce opposition from the outset. Ghanaian youth, many of whom rely on betting as a source of income amid high unemployment, decried it as a punitive measure that eroded their earnings. Groups like the Concerned Bettors of Ghana (CBOG) lobbied against it, arguing that it disproportionately burdened vulnerable populations. Critics also pointed to enforcement challenges, particularly with offshore online betting platforms, which often evaded GRA oversight.
A Political Promise Delivered
The NDC, led by then-candidate John Mahama, seized on this discontent during the 2024 election campaign, pledging to scrap the “nuisance” tax if elected. Following their victory, Finance Minister Dr. Cassiel Ato Forson wasted no time, tabling the Income Tax (Amendment) Bill on March 13, 2025, alongside other tax relief measures like the repeal of the Electronic Transaction Levy (E-Levy). During today’s parliamentary session, Forson emphasized that abolishing the betting tax would ease financial pressures on citizens and curb smuggling in related sectors, such as the removal of a 1.5% withholding tax on unprocessed gold from small-scale mining.
The bill passed with strong support from the NDC-majority Parliament, reflecting a broader agenda to roll back taxes perceived as regressive. “This is a promise kept to the people of Ghana,” Forson declared in a statement, expressing confidence that President Mahama would sign it into law promptly.
Global and Local Reactions
The decision has reverberated beyond Ghana’s borders, drawing attention from international gaming firms and investors eyeing the region’s burgeoning betting market. Analysts suggest the tax repeal could boost Ghana’s attractiveness as a hub for sports betting and lotteries, a sector that globally reached an estimated $242 billion in 2022. However, some economists warn that the loss of betting tax revenue—however modest in the national budget—may strain Ghana’s fiscal recovery efforts post-IMF bailout.
Locally, reactions are mixed but largely celebratory. Posts on X reflect jubilation among bettors, with one user writing, “The Betting Tax is gone—time to cash out without the government’s cut!” Others, however, question the timing, noting Ghana’s ongoing economic challenges, including currency depreciation and high inflation. “Great for punters, but what about the bigger picture?” another user mused.
What’s Next?
Pending President Mahama’s assent, the abolition will take effect once gazetted, ending a two-year experiment that stirred both revenue and resentment. The move aligns with a broader package of tax reforms in the 2025 budget, including the scrapping of the E-Levy and Emissions Levy, signaling a shift toward policies aimed at stimulating economic relief and growth.
For Ghana’s youth and gaming enthusiasts, today’s vote is a victory. For the government, it’s a test of balancing populist measures with fiscal responsibility. As the world watches, Ghana’s next steps in regulating its fast-growing gaming industry—and funding its economic recovery—will be closely scrutinized.
Stay tuned for updates as President Mahama reviews the bill.