Zimbabwe Votes and Backs 10% Tax on Sports Betting Winnings

[Maslate]

The main responsibility of the governments of any country is the development of its country. And for this they need money, which is why they make various laws to collect money from different platforms. However, the laws they are making for gambling will definitely discourage gamblers. Gamblers will be more affected by this law.

This law will likely push gamblers to resort to illegal casinos, where the government won’t be able to track transactions, meaning gamblers won’t be forced to pay taxes on their winnings. IMO, this is a wrong move, taxing casinos should already be enough since they’re the ones really profiting.

If gamblers start shifting to illegal gambling, the government’s tax collection could actually be negativel affected.
They might realize this mistake sooner or later, but by then, it could be too late to undo the damage.

[summonerrk]

Do you think the gambling population would see it as a fair system or they would evade paying the tax?

More importantly, government introduce tax on gambling profit but they don't have repayment package for wager loses   hehehe

https://www.gamblingnews.com/news/zimbabwe-votes-and-backs-10-tax-on-sports-betting-winnings/

It is definitely possible to say that this tax looks absolutely unfair and it is just a way for the state to get rich on the happiness of the winners. At the same time, the state does not care that people spend their money on casinos, no one returns 10 percent to them. If I were a gambler and betting enthusiast from Zimbabwe, I would simply play at those casinos that are associated with cryptocurrencies and which, unlike state casinos, do not transfer data on winners to the state.

[Peanutswar]

Based on the website statement it is overall within the players wins so still the casinos are the one who are paying with the tax of 10%, now if the casino makes a change so the players will not win on the game its up to them but imagine if the player discover that they arent getting fair to their players still consider them as part of the lose of their summary of earnings. Actually that's quite low instead here in the Philippines afaik they are having a 30% tax to the casino just to operate here in the country.

[pakhitheboss]

It is definitely possible to say that this tax looks absolutely unfair and it is just a way for the state to get rich on the happiness of the winners. At the same time, the state does not care that people spend their money on casinos, no one returns 10 percent to them. If I were a gambler and betting enthusiast from Zimbabwe, I would simply play at those casinos that are associated with cryptocurrencies and which, unlike state casinos, do not transfer data on winners to the state.

Zimbabwe is a third world country and people have been using gambling as mean to become rich. But, If you practically think about it only a few win from gambling not all are lucky. This tax might be a way to stop people from getting poor through gambling and it's addiction. I don't agree with your point of view on government getting rich through 10 percent of winning amount. As, I said earlier only a few will win but a majority will lose.

[Ziskinberg]

Zimbabwe is a third world country and people have been using gambling as mean to become rich. But, If you practically think about it only a few win from gambling not all are lucky. This tax might be a way to stop people from getting poor through gambling and it's addiction. I don't agree with your point of view on government getting rich through 10 percent of winning amount. As, I said earlier only a few will win but a majority will lose.

If the implemented tax doesn’t reduce the number of gamblers or their activities, the government will gain more income. But if it ends up discouraging people from gambling, then their revenue will decrease, and I’m sure they’ve done some studies before deciding to implement it.

As you mentioned, it’s a third-world country, and in such places, people are often desperate to make money even if it’s through gambling, which many see as a risky or “wrong” way.

[pakhitheboss]

If the implemented tax doesn’t reduce the number of gamblers or their activities, the government will gain more income. But if it ends up discouraging people from gambling, then their revenue will decrease, and I’m sure they’ve done some studies before deciding to implement it.

Those who are addicted will continue with their gambling habit. Those who are new, as in seeking to find a way to earn money will get discouraged. It is a known fact taxation does create an opportunity for those who are smart. It does disrupt those who cannot enjoy this opportunity. Those who make money are those who have money, whereas it works the other way for those who seek gambling for earnings.

As you mentioned, it’s a third-world country, and in such places, people are often desperate to make money even if it’s through gambling, which many see as a risky or “wrong” way.

It is not desperation, it is an option to survive the hardship. While, I am not an individual promoting gambling, I still believe gambling is one of the options to enjoy your life without contacting your friends who are always ready to degrade you, as in yourself.

[Findingnemo]

It's pretty much similar to most of the countries and 10% rate is also very fair amount, I. Some countries they have tax ranging from 30 to 50% which is unacceptable. The Zimbabwe is not economically sound country so they are looking for ways to increase the revenue of their government considering all these facts I am not looking it absurd like most of the guys expressed in this thread.

[crwth]

I think they are just finding ways to get money, and maybe they have found out that the citizens they have are really into gambling. I hope they find ways to collect it properly and ensure that this citizen understands why they are doing it, and I hope that it is not used for corrupt practices.

[Ziskinberg]

If the implemented tax doesn’t reduce the number of gamblers or their activities, the government will gain more income. But if it ends up discouraging people from gambling, then their revenue will decrease, and I’m sure they’ve done some studies before deciding to implement it.

Those who are addicted will continue with their gambling habit. Those who are new, as in seeking to find a way to earn money will get discouraged. It is a known fact taxation does create an opportunity for those who are smart. It does disrupt those who cannot enjoy this opportunity. Those who make money are those who have money, whereas it works the other way for those who seek gambling for earnings.

They’re likely looking at the bigger picture, expecting to benefit if they impose this tax.
But we don't need to panic yet since it’s just a proposal, there’s no guarantee it will be signed into law. Even if it is, they’ll probably monitor whether it achieves their goals and could revise it over time if it doesn’t work as intended.

This uncertainty is likely what regulators fear most ;

This was undertaken previously in August when the government voted on the Lotteries and Gaming Amendment Bill, tweaking the country’s regulatory framework to ensure that Zimbabwe addresses fears about money laundering or uncompliant gambling operators.

The 10% proposed by Ncube will be charged on all winnings, meaning that you could as easily pay a 10% tax on your $5 wager as you are likely to pay on $2,000.

Fears have naturally materialized about the tax driving people to the black market and pushing players into websites that operate “offshore” and do not pay the tax to the government.

[madnessteat]

Tax on profits including those from gambling is a very common global practice. The main question is whether Zimbabweans will disclose their winnings on gambling platforms of other jurisdictions. It seems to me that this is not in the priorities of gamblers and most if not absolutely all of them will hide their winnings from the tax authorities. In order to collect taxes from gambling winnings it is necessary to build a system of interaction not only with local gambling platforms, but also with gambling platforms of other jurisdictions. It seems to me that we will not see such a system in Zimbabwe and everything will be bogged down in corruption as usual.

[_act_]

Tax on profits including those from gambling is a very common global practice. The main question is whether Zimbabweans will disclose their winnings on gambling platforms of other jurisdictions.

They likely won't. Africans have laws that are not effective at all. I think this could be one of them. This is the reason Americans and countries in European are strict to the extent of telling gambling sites to obtain a licence in their country before they can make their citizens gamble on their site. But African countries are not like that. The 10% tax will only be effective on the gambling sites that are registered in Zimbabwe.

[pakhitheboss]

snip..

If the government is even thinking about Taxation policy it means it will be implemented. This is how a government makes money to run and country and implement social policies. If this tax is implemented then it will remain unless a new government comes to power. This is what I have seen in my country and other countries. I only know one thing they will not be making a lot of money from such a tax as in gambling or sports betting there won't be many winners. In my country, only online gambling as offline gambling is not allowed and every winning is taxed which is more than the percentage the Zimbabwe government is planning to introduce.

[Solosanz]

It's pretty much similar to most of the countries and 10% rate is also very fair amount, I. Some countries they have tax ranging from 30 to 50% which is unacceptable. The Zimbabwe is not economically sound country so they are looking for ways to increase the revenue of their government considering all these facts I am not looking it absurd like most of the guys expressed in this thread.

10% looks fair if the government only tax the profit you earn, not every time you win. You know, any gamblers will always win, but not all gamblers will end up in profit. While the 30% to 50% is income tax, even though it's high, but the money you earn is still higher than working in low middle income countries.

However, we should wait for the official announcement how Zimbabwe's government taxes on gambling.

[Samlucky O]

So what do you think about this new tax regime of gambling profit in Zimbabwe!

African countries are gradually becoming ridiculous, I will say this act is not a welcome development, there are many loses in gambling each day that pases by. Government don't refund the money lost but removes tax from win, that's daylight fraud. It would have been better if government refund gambling loses and also take profit from win. Not only focusing on the positive side.

Do you think the gambling population would see it as a fair system or they would evade paying the tax?

There is no how the gambling population will see it as a fair system. No body is happy being cheated, I Think they will look for a way to bypass this tax by all means.

[Rabata]

So what do you think about this new tax regime of gambling profit in Zimbabwe!

African countries are gradually becoming ridiculous, I will say this act is not a welcome development, there are many loses in gambling each day that pases by. Government don't refund the money lost but removes tax from win, that's daylight fraud. It would have been better if government refund gambling loses and also take profit from win. Not only focusing on the positive side.

How did they come up with the idea of ​​taking taxes from gamblers? What scheme have they introduced for gamblers where gamblers will improve or how can they benefit in any way? If the government wants to discourage it, that is their business, but if they impose such taxes, it will never be beneficial for gamblers. When a gambler has a lot of losses, if he has to pay that money to the government treasury after making a small profit on a bet, how will he manage his next gambling? If such an unreasonable policy is taken, even if it lasts for a few days, it will definitely stop in the long run.

[Akbarkoe]

snip..

If the government is even thinking about Taxation policy it means it will be implemented. This is how a government makes money to run and country and implement social policies. If this tax is implemented then it will remain unless a new government comes to power. This is what I have seen in my country and other countries. I only know one thing they will not be making a lot of money from such a tax as in gambling or sports betting there won't be many winners. In my country, only online gambling as offline gambling is not allowed and every winning is taxed which is more than the percentage the Zimbabwe government is planning to introduce.

Yep right, what I see from gambling tax is excellent for state income, however the government can reduce the percentage of large taxes on players or casino owners to increase income, therefore this may also be aimed at so that people are not too active with gambling because Will harm them, large taxes will make gamblers feel that it is unfit for them.
The policy can be changed even though the government that passed it is still in power, but seeing this time test is effective or not depending on the output later after running.

[Zoomic]

So what do you think about this new tax regime of gambling profit in Zimbabwe!

African countries are gradually becoming ridiculous, I will say this act is not a welcome development, there are many loses in gambling each day that pases by. Government don't refund the money lost but removes tax from win, that's daylight fraud. It would have been better if government refund gambling loses and also take profit from win. Not only focusing on the positive side.

How did they come up with the idea of ​​taking taxes from gamblers? What scheme have they introduced for gamblers where gamblers will improve or how can they benefit in any way? If the government wants to discourage it, that is their business, but if they impose such taxes, it will never be beneficial for gamblers. When a gambler has a lot of losses, if he has to pay that money to the government treasury after making a small profit on a bet, how will he manage his next gambling? If such an unreasonable policy is taken, even if it lasts for a few days, it will definitely stop in the long run.

You really think their motive is to discourage people from gambling? This political guys just want to steal from gamblers. If any government is going to tax gamblers' earnings, then they should also put in place laws that would protect gamblers and ensure fairness between gamblers and casinos. In most countries, these laws are weak and nothing at all is done by the government when conflicts arise between the gambling platforms and the gamblers. I am certain that the Zimbabwean government is not in anyway interested in the welfare of the gamblers. Lots of gamblers would definitely look for alternatives just to avoid paying tax.

[stompix]

How did they come up with the idea of ​​taking taxes from gamblers?

By looking at the rest of the world? Do you think taxation directly on winnings is something unheard of?
Plenty of countries here in the European Union that will tax any winning ticket you try to cash out directly at the source, not matter, and not caring at all how much you actually lost before that.
People in the whole of Africa should start realizing that you can't demand your government to do the same thing as other nations when evading tax and paying the lowest taxes in the world is a national sport.

[Sanitough]

By looking at the rest of the world? Do you think taxation directly on winnings is something unheard of?
Plenty of countries here in the European Union that will tax any winning ticket you try to cash out directly at the source, not matter, and not caring at all how much you actually lost before that.
People in the whole of Africa should start realizing that you can't demand your government to do the same thing as other nations when evading tax and paying the lowest taxes in the world is a national sport.

I think passing a law is the easy part, but enforcing it is a whole different story. IMO, the biggest issue in poorer countries is the lack of proper implementation. Sure, they can pass this law, but there’s no guarantee it’ll actually work. Gamblers will always find loopholes or ways to avoid complying while making sure they don’t get caught for tax evasion.

[stadus]

If gamblers start shifting to illegal gambling, the government’s tax collection could actually be negativel affected.
They might realize this mistake sooner or later, but by then, it could be too late to undo the damage.

They really need a solid system in place to prevent that kind of situation. If they don’t, the whole idea of increasing tax collections might backfire, leading to less revenue instead. Gamblers might just ditch legal gambling sites and shift to overseas casinos that offer a better experience.

Passing a law like this requires careful study, and I hope they’ve done their homework. But since it’s the government, if they realize it’s not working as planned, they’ll probably repeal or revise the law. The problem is, by that time, what if gamblers have already fallen in love with those overseas casinos and don’t come back? That’s a bigger issue they’ll have to deal with.