Upon Government’s imposition of 20% withholding tax on winnings from betting and gambling transactions including lotteries, the Malawi Gaming Association has released a statement stating that operators in the industry are considering exit strategies.

Prior to government’s new arrangement, excise tax is charged on every bet received from players, as at least 90% of the amount is to be given back to the players as winnings. The excise added with the withholding tax, means that government is demanding almost 100% of the gross gaming revenue from the operators.

“Now that the taxes are upheld and endorsed by the current budget, there is no hope for the gaming industry to survive as it definitely cannot survive the current excise tax law” says part of the statement signed by the Malawi Gaming Association.