Betting Tax Debate: Did the NPP Government Ever Implement It?
During the presentation of the 2025 Budget Statement and Economic Policy on March 11, Finance Minister Dr. Cassiel Ato Forson announced the abolition of the 10% withholding tax on lottery winnings, commonly referred to as the “Betting Tax.” The move was widely welcomed by bettors and stakeholders in the gaming industry, who had long opposed the tax, arguing that it was exploitative.
“Mr. Speaker: we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the ‘Betting Tax,’” Dr. Forson declared in Parliament. However, the announcement has since sparked controversy, with former Finance Minister Dr. Mohammed Amin Adam challenging the legitimacy of the claim.
Ah sports betting tax has started?😳 almost 1k tax from a 5k bet why? pic.twitter.com/8pvxWj2rn7
— Don (@Opresii) April 1, 2022
Dr. Amin Adam’s Claims Stir Controversy
Shortly after the budget presentation, Dr. Amin Adam, the MP for Karaga and former Finance Minister under the New Patriotic Party (NPP) administration, dismissed the announcement, accusing the government of misleading the public. He argued that the betting tax was never implemented, making its abolition meaningless.
“Ladies and Gentlemen, the betting tax that they said they have abolished—we never collected betting tax. We never implemented the betting tax. So, to come and tell Ghanaians that you have abolished something that was never implemented is to deceive the people of Ghana,” he stated while addressing journalists in Parliament.
His statement has been met with strong criticism, particularly from bettors on social media, who claim they have consistently had 10% deducted from their winnings. Many questioned, “If the tax was never implemented, where did the deductions from our winnings go?”
Dr. Amin Adam Clarifies His Statement Amid Backlash
Following the backlash, Dr. Amin Adam took to Facebook on March 11 to clarify his stance, arguing that his remarks were misinterpreted. According to him, the tax that was being abolished referred to lottery winnings, not sports betting.
“Betting Tax – The tax applies to lottery wins and betting wins. What the Minister said he is abolishing is the lottery wins, which knowingly or unknowingly he called ‘betting tax.’ We have never collected the tax on lottery wins, so it cannot be abolished,” he wrote.
However, research conducted by 3News contradicts this claim, revealing that the Ghana Revenue Authority (GRA) officially began implementing the taxation of gross gaming revenue and winnings on April 24, 2024.
GRA Documents Confirm Betting Tax Was Implemented
A document titled “Amended Practice Note on Taxation of Gross Gaming Revenue and Winnings from Lottery Operations under the Income Tax Act, 2015 (ACT 896),” issued by former GRA Commissioner-General Julie Essiam, confirms that a 10% withholding tax on betting and lottery winnings had been in force.
According to the document, sources of taxable winnings included:
- Sports Betting
- Lotto (National Lottery Authority & Private Operators)
- Casino Games
- Remote Interactive Games
- Other Games of Chance
Furthermore, the calculation method for withholding tax on sports betting winnings was outlined:
- A bettor opts to withdraw a specific amount from their gaming wallet.
- The deductible stake is subtracted to derive the gross winnings.
- The 10% withholding tax is deducted from the gross winnings.
- The remaining amount is transferred to the player’s bank account or mobile wallet.
Many bettors claim they experience this deduction regularly, contradicting Dr. Amin Adam’s assertion that the tax was never collected.
Bettors Demand Accountability
Bettors and industry players have since demanded an explanation from the government, calling on the GRA and Ministry of Finance to account for the tax deductions made over the past year. Social media platforms have been flooded with complaints, with some users even demanding a refund of the withheld taxes.
As the debate intensifies, analysts argue that clear communication and transparency from both past and present governments are necessary to restore public trust regarding taxation in the gaming sector.
Source: 3News