Gambling remains popular among people of different age brackets, with some negative effects, such as individuals experiencing mental health issues after losing property.

Meanwhile, those running gambling operations have seen substantial profits. In 2024, gambling companies generated 640 billion Rwandan francs (Frw), a significant increase from Frw 251 billion in 2023.

As he explained the basis of the draft law to the parliament on March 19, 2025, Godfrey Kabera, Minister of State in Charge of the National Treasury in the Ministry of Finance and Economic Planning, explained that the primary purpose is to expand the tax base, ease tax implementation, and reduce services with negative impacts on public health.

“The gambling tax will be raised from 13% to 40%, and the tax on prizes won will increase from 15% to 25% of the prize value,” Kabera said.

He also noted that these changes would be offset by removing the tax on profits for gambling service providers, thus easing their financial burden.

A new tax on profits from foreign tech companies such as Google and Amazon, which do not operate locally, has also been introduced.

Additionally, the Value-Added Tax (VAT) will rise from 5% to 10%, and its scope will expand to include the trading of shares, bonds, licenses, and collateral.

Deputy Munyangeyo Théogène remarked that while raising this tax was necessary, an immediate threefold increase could drive gambling operations out of Rwanda, potentially leading to illegal activities.

“It seems like a deterrent, and there has been investment in some businesses... if we make it too difficult, we might also see an increase in smuggling activities, as gambling companies in the region are involved. While the decision is enforced here, someone in Rusizi can cross over to Bukavu to continue betting,” he explained.

Munyangeyo also pointed out that online gambling platforms not registered in Rwanda should be scrutinized.

Kabera assured the public that the gambling sector had grown enough for these taxes to not harm its operations.

"It’s the right time to raise taxes. Even though we’ve raised the tax on one hand, we’ve also removed the tax on profits, which will ease their burden and make payments more manageable," he said.

"We have no concerns that their investments will be jeopardized. From what we’ve observed, they will continue to make profits,” Kabera added.

He emphasized that the goal is to ensure gambling is conducted responsibly with minimal negative impact while generating revenue for the government to fund other activities.

Rwandan lawmakers have approved the relevance of a draft law that increases taxes on gambling services, raising the tax rate from 13% to 40%.