Starting from August 15, 2023, individuals participating in betting, gambling, and lottery activities will be subject to a 10% withholding tax on their winnings. The government’s decision to amend the Tax Act has led to the implementation of this withholding tax on sports betting and lottery wins. Over the past decade, the betting industry in Ghana has experienced significant growth, attracting numerous betting companies to establish a presence in the country. The rise of sports betting has sparked debates among Ghanaians, with some expressing concerns about its impact on the youth, while others argue that as long as no laws are violated, betting is a legitimate practice.
The introduction of the 10% withholding tax has received criticism from some members of the Ghanaian public, who have taken to social media to express their disapproval. Influencer KalyJay tweeted, “You pay tax on data, you pay tax on imported cars, you pay tax on online purchases, you win a bet, you pay tax, but we don’t see where the money is going. Our country is becoming too burdensome.” Another Twitter user, LilMoGh, questioned the rationale behind the tax, particularly for cases where individuals both win and lose money in their bets.
Under the new tax regulation, individuals who win bets, gamble, or participate in lotteries will be required to allocate 10% of their winnings as tax to the government.