Ghana has officially abolished its gambling winnings tax, less than two years after its introduction, in a move that has sparked debate over its economic and social implications.
The 10 percent tax, first implemented in August 2023, was introduced as part of a broader effort to increase domestic revenue and address concerns about rising gambling activity, particularly among young people. The tax applied only to winnings, excluding the original bet, and was deducted automatically at payout.
The move marks a reversal of policies introduced by former President Nana Akufo-Addo. President John Dramani Mahama, who won last December’s election with 56 percent of the vote, returned to office in January for his second non-consecutive term. His administration has framed the repeal as part of a broader strategy to enhance tax compliance, attract investment, and stimulate consumption.
Approval follows one-month stall
The decision to repeal the tax was announced in February 2025 by Finance Minister Dr Cassiel Ato Forson during his presentation of the 2025 national budget. The repeal also included other fiscal levies, such as the e-levy and the Covid-19 levy. Forson argued that removing these taxes would reduce financial strain on households, increase disposable income, and boost economic activity.
Despite the government’s optimism, the decision has drawn criticism from some economic analysts. The Institute of Economic Affairs (IEA), a leading Ghanaian think tank, warned that the 10 percent tax on winnings was a valuable source of revenue. Its removal, they argue, could worsen the country’s already strained fiscal position, especially alongside other recent tax cuts.
A financial impact analysis by KPMG estimated that abolishing the betting tax, alongside the removal of the e-levy and Covid-19 levy, could result in a revenue shortfall of approximately GHS 6.4 billion (€369.6 million). Critics fear this could further challenge Ghana’s post-pandemic economic recovery and efforts to manage public sector debt.
Govt. promoting over-gambling?
Beyond economic concerns, some experts have raised social and public health issues. With no tax on winnings, there are worries that the government may inadvertently encourage excessive gambling, particularly among young people.
Ghana has witnessed a surge in betting activity, driven by the proliferation of online betting platforms and the growing popularity of sports betting. Without strong regulatory measures, problem gambling rates could increase, leading to long-term societal consequences.
Meanwhile, betting operators have welcomed the policy change. Many companies have ramped up their marketing efforts in Ghana, introducing promotions such as no-deposit bonuses to attract new users. However, some stakeholders have criticised these tactics, arguing that they could increase gambling-related harm and put vulnerable populations at financial risk.
The government has not yet outlined specific measures to mitigate the risks associated with expanded gambling access. While the Ministry of Finance has emphasised the economic benefits of increased consumer spending and investment, public health and education stakeholders have called for new and clear safeguards to protect young people from gambling addiction.
