The Ministry of Finance in Rwanda has moved to significantly raise taxes on the country’s gambling sector amid increased political volatility.

Yusuf Murangwa, Minister of Finance and Economic Planning, revealed that GGR tax will be elevated from 13% to 40%. Additionally, withholding tax on winnings will grow from 15% to 25%.

Reflecting on the news on the latest episode of iGaming Daily, Joe Streeter, Editor of iGaming Expert, explained that the rising tax on the sector is in an effort by the government to “drive economic growth and strengthen domestic remobilisation” and  “slow the frequency” of VIP players.

Alongside tax spike on gambling, foreign companies such as Netflix and Amazon also face tariffs and mobile usage is also under the spotlight of the Ministry of Finance.

Joe highlighted that these hikes come as the Rwandan economy faces increased western scrutiny due to its reported backing of the M23 rebels in DR Congo. Britain’s foreign minister David Lammy has warned that the $1bn in global aid the country receives could be under threat.

As the gaming industry takes an increased interest in Africa, the uncertainty in Rwanda provides a stark reminder that stakeholders must be fully aware of the wider political situation of any new market they are planning to enter.

“It really does emphasise that you need to understand the market you’re going into. We used to say it all the time when Latin America first emerged, localisation is key. You need to understand that markets are not just one size fits all. Africa is a huge continent and when you break it down into countries, they’re all different,” explained James Ross, SBC’s Multimedia Editor. 

Thailand’s major casino shift

Elsewhere in the episode, the duo also discussed the latest updates from Thailand. 

Following a meeting between Chinese President Xi Jinping and Thai Prime Minister Paetongtarn Shinawatra, it has been reported that an update to Thailand’s casino bill could see the exclusion of the vast majority of Thai nationals from integrated resorts.

A US$150 fee is set to be applied to Thai citizens enerting the integrated resorts and Thai residents would also have to have at least US$1.5m in fixed deposits in order to play at Thailand’s casino venues.

On the update, Joe said: “It’s worth being conscious of the fact that there has always been a focus on these integrated resorts not being gambling venues as such and the Thai president was always very clear about that. One of the things [Shinawatra] put down as a focus is that only 10% of floor space can be utilised for gambling.”

He added that the touted locations of the seven venues, including one in Bangkok, also suggest that their focus is on attracting tourists rather than Thai nationals.