Zimbabwe, officially the Republic of Zimbabwe, is a landlocked country in Southern Africa with a population of about 15 million. Unfortunately, due to economic hardships, gambling has become more popular, with many people turning to the activity to earn additional income.
As Zimbabwe boasts one of the highest literacy rates in Africa, the country could greatly benefit from further development of the gambling industry. Unfortunately, limited internet access is a setback for online gambling, which offers a more convenient way to enjoy casino and betting entertainment.
Gambling is a regulated industry in Zimbabwe, and anyone over the age of 18 may participate. Land-based casinos and betting shops can be found across the country, with locals showing great interest in betting on various sports. The Lotteries and Gambling Board regulates gambling in Zimbabwe. Issuing licenses to operators who wish to run gambling facilities is also within the remit of this authority.
When it comes to online gambling, matters are not as clear. Because the law that regulates gambling in Zimbabwe is quite outdated, it makes no specific mention of online gambling. This is why this activity is somewhat of a gray area because it is neither deemed illegal nor clearly legal. Nevertheless, the lack of explicit restrictions allows Zimbabweans to gamble online without worrying about legal consequences.
Due to restrictions implemented during the global pandemic, many land-based gambling facilities in Zimbabwe were forced to close. This shift made online gambling even more popular, with players mainly turning to offshore websites.
Gambling Regulation in Zimbabwe
Gambling has been part of Zimbabwean culture for a long time, with horse and dog race betting especially popular. While gambling and sports betting were previously frowned upon, as the country developed and embraced new technology, gambling became increasingly popular among Zimbabweans and was well received by younger generations.
In 1998, Zimbabwe passed the Lotteries and Gaming Act, which came into effect in 2000. This legislation now regulates the gambling industry in the country. Under the same act, the Lotteries and Gambling Board was established to oversee all gambling activities in Zimbabwe.
Land-Based Gambling in Zimbabwe
Online Gambling in ZimbabweZimbabwe Gaming Regulatory Body and License Fees
With the enactment of the Lotteries and Gaming Act, the authority overseeing the implementation of gambling regulations was also introduced. Under that legislation, the Lotteries and Gambling Board (LGB) is responsible for regulating casino gaming, sports betting, and other legal gambling activities in Zimbabwe. Issuing gambling licenses to operators who wish to offer land-based gambling in the country is also within the remit of the LGB.
In March 2021, licensing fees in Zimbabwe were increased to the surprise of many, leaving gambling venue owners with almost no time to react. These significant changes affected operators that wished to offer casino, lottery, or betting services in Zimbabwe. The new fees complied with section 65 of the Lotteries and Gaming Act (Chapter 10:26) and sections 16 and 23 of the Betting and Totalizator Control Act (Chapter 10:02).
Following the new rules, the current application fee for an LGB license is $250,000. A review of a totalizator license, as well as processing or applying for a renewal, will cost operators a fee of up to $50,000. Casinos and betting shops are also required to pay the same fee for a license review, processing, or renewal.
Many viewed the increase in licensing fees as a way to impose stricter regulations on Zimbabwe’s rapidly growing gambling scene. The Zimbabwean government is considering additional changes to current regulations to exert tighter control over the industry.
Gambling Taxes in Zimbabwe
While gambling operators must pay licensing fees to run casinos, lotteries, and betting shops, players are required to pay tax on their winnings. Currently, Zimbabweans must pay a 10% tax on gambling winnings. Some casinos also impose an additional 15% tax whenever a player hits a jackpot prize offered at the respective facility.
As players who win larger sums are subject to higher taxes, it is unlikely that the Zimbabwean government will ban jackpot games any time soon. Because tourists visiting casinos place significantly higher bets than locals, the country can generate substantial revenue through gambling taxes. This is one of the reasons Zimbabwe is working to regulate the industry and expand legal gambling activities that can help boost the economy.
Possible Changes to the Gambling Regulations in Zimbabwe
Online gambling is becoming more popular in Zimbabwe, with most players using their smartphones to access virtual casinos. Because the current Lotteries and Gaming Act is outdated and does not properly cover online gambling, the law needs to be amended to provide clearer guidelines on how the industry should be regulated in Zimbabwe.
At the beginning of 2022, Kazembe Kazembe, Zimbabwe’s Home Affairs Minister, announced a possible amendment to the law that governs the lottery and gaming industry. The review aims to update the legislation to reflect modern technological trends in online gambling. According to Kazembe, the review of the Lotteries and Gaming Act is long overdue, and the revision must be completed as soon as possible. The responsibility for reviewing the outdated act falls under the remit of the local regulatory body, the LGB.
One of the reasons the Home Affairs Minister assigned the task to the LGB is the extremely high rate of unauthorized online gambling in Zimbabwe. Kazembe stated that the country will regulate online gambling once measures are in place to prevent money laundering through lotteries and gambling.
According to Kazembe, the proper approach to online gambling should focus on expanding revenue through technological innovations in the gaming industry. However, the LGB must develop a strategy that allows regulated online gambling without jeopardizing the country’s integrity regarding money laundering.
Closing Thoughts
Gambling is a regulated industry in Zimbabwe, with lotteries, casinos, and betting shops legally offering gambling services. The industry is governed by the Lotteries and Gambling Board, established following the enactment of the Lotteries and Gaming Act in 2000. The same regulatory body issues licenses to any operator that wishes to legally offer gambling activities to Zimbabweans.
While land-based gambling is properly regulated, online gambling in Zimbabwe remains a gray area. Because the Lotteries and Gaming Act does not define online gambling or specify how it should be regulated, many Zimbabweans take advantage of this legal loophole by betting on offshore online casinos.
Due to increased online gambling activity, Zimbabwean lawmakers are considering amendments to the current Lotteries and Gaming Act. The changes would allow the country to regulate virtual gambling, generate additional revenue, and ensure a safer gaming environment for Zimbabwean players.