RDB: Rwanda Sports Betting New Regulations Bring 40% Tax Hike

• The Rwanda Development Board (RDB) assumed regulatory control over gambling in 2024, implementing a new national policy aimed at a 60% reduction in gambling addiction by 2030.
• Licensing was paused from June 2024, resuming in August 2025, following concerns about weak enforcement and under-reported operator earnings.
• Significant tax increases took effect in September 2025, raising the Gross Gaming Revenue (GGR) tax for operators to 40% and the withholding tax on net gaming winnings to 25%.
• RDB enforcement actions in 2025 included the collection of over 7,000 unlicensed slot machines and the suspension of an operator for exceeding its sports betting license.
• Since the tax changes, the revenue authority has reported collecting Rwf3.1 billion in gaming tax and Rwf1.2 billion in withholding tax.

Lawyers advising gambling operators in Rwanda must ensure clients comply with the Rwanda Development Board's new licensing framework and increased tax rates to avoid penalties and asset seizures, given the heightened enforcement against unlicensed and non-compliant operations.

The landscape for Rwanda sports betting new regulations has undergone a significant transformation since the Rwanda Development Board (RDB) assumed regulatory authority over gambling activities in 2024. This shift was swiftly followed by the introduction of a new national gambling policy, which notably set an ambitious target of reducing gambling addiction by 60% by the year 2030. A critical period of review led to a pause in licensing activities from June 2024, allowing the RDB to thoroughly assess and refine the regulatory framework.

Licensing for operators subsequently resumed in August 2025, with reports indicating that more than 30 operators had already secured registration by the time of this policy implementation. The initial pause in licensing was prompted by internal concerns, specifically an internal report that highlighted deficiencies in enforcement mechanisms and a pattern of under-reported earnings within the sector. For context, operators collectively generated over Rwf21 billion in revenue during 2023, yet contributed only approximately Rwf2.3 billion in gaming tax, representing just over 10% of their income.

A cornerstone of the RDB gambling policy changes Rwanda is a substantial increase in tax rates, impacting both operators and individual bettors. Since September 2025, the tax levied on operators' gross gaming revenue (GGR) has surged to 40%, a significant jump from the previous rate of 13%. This Rwanda gaming tax increase 2025 is designed to ensure a more equitable contribution from the thriving betting industry.

Furthermore, the Rwanda withholding tax gaming winnings has also seen an upward revision, increasing from 15% to 25%. According to guidance from EY Rwanda, this 25% withholding tax is applied specifically to net winnings, which are calculated as the total winnings minus the original stake. For example, if a stake of Rwf1,000 yields a payout of Rwf5,000, the net winnings amount to Rwf4,000, from which Rwf1,000 would be withheld. Early figures from the revenue authority indicate that since these changes were implemented, Rwf3.1 billion has been collected in gaming tax and Rwf1.2 billion in withholding tax.

The RDB gambling enforcement Rwanda has become notably more stringent, signaling a clear intent to regulate the market effectively and combat non-compliance. In 2025, authorities undertook a significant operation, collecting over 7,000 unlicensed slot machines for recycling, with new regulations stipulating that such machines must now operate exclusively within licensed casino premises. This move underscores the RDB's commitment to ensuring all gambling activities fall within the legal framework.

Further demonstrating its proactive approach, in July 2025, the RDB issued licenses to new international operators for online betting. Shortly thereafter, the regulatory body suspended another company for offering casino-style games, which extended beyond the scope of its specific sports betting license. These actions highlight the RDB's resolve to enforce the precise terms of Rwanda sports betting licensing and prevent operators from exceeding their authorized activities. Some legislators, however, have voiced concerns that the elevated taxation might inadvertently encourage bettors to seek out unlicensed sites, which operate outside regulatory oversight and offer minimal local consumer protection.

The comprehensive changes introduced by the Rwanda Development Board necessitate a thorough understanding and strict adherence from all participants in the gambling sector. Lawyers advising gambling operators in Rwanda must ensure clients comply with the Rwanda Development Board's new licensing framework and increased tax rates to avoid penalties and asset seizures, given the heightened enforcement against unlicensed and non-compliant operations. The RDB's objective is to foster a more responsible and transparent betting environment, aligning with its goal of reducing gambling addiction while ensuring fair revenue generation.

Examining other regulated markets, such as Alberta, Canada, which launched its private online market in July 2026, provides a benchmark for robust consumer protection. Such markets typically feature clear listings of approved brands with registered company details, comparisons between regulated and offshore sites, mechanisms for resolving withdrawal disputes, stringent age verification (e.g., 18+), identity checks, self-exclusion programs, and helplines. While the Alberta model serves as an external reference, it illustrates the standards of transparency and player safety that the RDB's evolving framework aims to achieve, making compliance with the new Rwanda sports betting licensing requirements paramount for all operators.

Lawyers advising gambling operators in Rwanda must ensure clients comply with the Rwanda Development Board's (RDB) new licensing framework and increased tax rates (40% GGR, 25% withholding tax on winnings) to avoid penalties and asset seizures, given the heightened enforcement against unlicensed and non-compliant operations.

Source: Original reporting via industry analysis