BetLion and betPawa Suspend Operations in Zambia Over 10% Betting Tax

In Zambia, BetLion has suspended its operations, while betPawa has disabled its casino and jackpot sections following the Constitutional Court’s refusal to overturn a 10% excise tax on bets. BetLion is advising customers to withdraw their remaining balances. betPawa’s sports betting section remains available, but now includes an automatic 10% tax deduction on all wagers.

Court Ruling and Operator Reactions

On October 3, 2025, the Constitutional Court of Zambia declined to hear an appeal by Betway and betPawa challenging the government’s introduction of a 10% excise tax on betting. This decision allows the Zambia Revenue Authority (ZRA) to continue collecting the tax even while legal proceedings are ongoing. The court reaffirmed the “pay now, argue later” principle that governs the country’s tax system.

Following the ruling, several leading operators adjusted how their platforms operate:

• BetLion fully suspended its services in Zambia, assuring players that their funds are safe and can be withdrawn.
• betPawa temporarily disabled casino and jackpot games, keeping only sports and virtual betting available — now subject to an automatic 10% deduction.
• Betway had already halted its operations a few days prior to the court decision.

Operators’ Arguments vs. Government Position

Industry representatives argue that the new tax was introduced mid-year without sufficient consultation. Betting companies claim that the 10% excise creates compliance challenges and threatens business sustainability. Smaller operators, in particular, struggle to absorb the added costs without significant financial strain.

Stakeholders have also raised concerns over potential job cuts and higher betting costs for consumers. However, Finance Minister Situmbeko Musokotwane stated that the tax was introduced after stakeholder consultations and is aimed at boosting national revenue.

Who Bears the Tax Burden?

The Zambia Revenue Authority maintains that the excise is a consumer tax, paid by bettors rather than operators. Nevertheless, companies argue that it indirectly affects their profits by reducing user activity and total betting volume.

Uncertainty in Zambia’s Betting Market

The ruling marks a turning point for Zambia’s betting industry. Operators are now reevaluating their financial strategies to comply with the new taxation framework. As legal challenges continue, companies are closely monitoring potential negotiations and legislative adjustments that could ease the tax burden and help maintain player engagement.