Wins from lottery games, casinos and marketing promotional raffles will now attract a 10 per cent tax with effect from August 15, 2023.
Starting from August 15, 2023, a 10% tax will be imposed on all winnings from lottery games, casinos, and marketing promotional raffles. This new taxation scheme signifies that any earnings derived from betting, gaming, lotto, and other games of chance will be subject to a final 10% withholding tax.
Additionally, the Gross Gaming Revenue (GGR), calculated as the total stakes minus the winnings, will also face a 20% withholding tax.
The Ghana Revenue Authority (GRA) aims to generate approximately GH¢1.2 billion in the initial stages of implementing this tax on lottery operators, with the expectation of revenue increasing to around GH¢3 billion thereafter.
This development follows the enactment of the Income Tax (Amendment) Act, 2023 (Act 1094), which mandates lottery operators to deduct the withholding tax from lottery wins and remit it to the GRA.
The withholding tax rule applies to various types of winnings, such as those from private lotto operators, sports betting, casinos, route operations (slot machines), marketing promotions, national lotto betting, remote interactive games operators, and other games of chance.
Edward Gyambrah, the Commissioner of the Domestic Tax Revenue Division of the GRA, emphasized that lottery operators must adhere to the law by deducting 10% of the tax from gross winnings and submitting the payments to the Authority. Operators are required to update their software systems to display bet amounts, winnings, and withheld tax for reporting purposes.
Implementation of the policy began on June 1 for some operators including casinos, route operations, and marketing promotions, while others like sports betting and private lotto operations are set to commence on Tuesday.
Non-compliant operators risk losing their licenses with the backing of the Gaming Commission of Ghana. This initiative is part of the GRA's effort to bolster domestic revenue generation, as Ghana's tax-to-Gross Domestic Product (GDP) ratio lags behind that of neighboring countries.
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