The recommendation came after a parliamentary review of projects funded through the Lotteries and Gaming Board. Lawmakers looked at work in Mutasa, Gutu, Zaka, Lupane and Kadoma, where gambling-linked revenue has been used for health, education and skills projects.
The levy is independent of the broader gambling taxes in Zimbabwe. The existing framework requires bookmakers to pay 2%, with 1.8% going toward development programs. Parliament said the increase would strengthen the board’s resource base for projects in underserved areas.
Projects Behind the Push
The review cited several local projects as an indication that the board’s responsibilities have extended beyond mere licensing and regulation. For instance, in Zaka, Harava Clinic and a mothers’ waiting shelter cater for over 9,000 people in 22 villages. Also, in Lupane, Pupu Clinic made it possible for residents who previously had to travel close to 80 kilometres to get to Lupane District Hospital to access healthcare nearby.
Additionally, some education projects have contributed to the justification for a higher levy. For example, at Herbert Chitepo Skills Training Centre in Mutasa, enrollment increased from 20 to 80 learners each term following improved infrastructure. Similarly, there were more pupils at Elim Primary School in Penhalonga after constructing a classroom block.
Another Cost for Operators
The proposal comes soon after Zimbabwe’s wider gambling tax reform took effect on January 1, 2026. The 2026 National Budget raised Bookmakers Tax from 3% to 20% of gross revenues and extended it to licensed bookmakers, lotteries and casino operators. It also increased the tax on bettors’ winnings from 10% to 25%. The operator tax is treated as a final tax, meaning affected operators are no longer subject to Corporate Income Tax.
The 20% tax goes into the broader state revenue system. The proposed 4% levy would strengthen the Lotteries and Gaming Board’s project funding channel.
The government has linked the tax changes to growth in betting and concerns over social harm. Budget documents noted an 8% to 10% annual revenue increase in the sector between 2023 and 2024, while also citing addiction, debt and under-declared revenue as policy concerns.
What to Watch Next
The proposal shows Zimbabwe’s attempt to harness betting growth for the benefit of tangible community developments (especially in areas where clinics and schools still face infrastructure gaps). The potential risk here is the new costs that operators now encounter. These include higher sector taxes, a higher winnings tax for players, and potential doubling of the development levy.
If the levy proposal goes through, the next test for Parliament would be to prove project delivery and prevent the community fund from becoming another burden for the regulated market.
