The National Lotteries and Gaming Regulatory Board Uganda (NLGRB) is a corporate body, established under the Lotteries and Gaming Act No. 7 of 2016.
Lotteries and gaming board sole role is to license and regulate lotteries, casinos, and the betting industry in Uganda but also operate under a set of five regulations, in effect since May 27, 2016.
The mandate of lotteries as per section 4 of the Act, includes licensing, supervision, enforcement, and dispute resolution in the lotteries and gaming sector.
However, established in 2015 as a department under the Ministry of Finance, Planning and Economic Development, the sector has seen revenue collection grow from Shs17 billion to Shs151.9 billion.
The growth in revenue collection under this sector indicate the rising desire for lotteries and gaming by the ever-growing young population in the country.
Entry of Ithuba
Around August last year, governmentthrough Ministry of Finance and Economic Planning has signed a 10-year contract with Ithuba Holdings Limited to run Uganda National Lottery.
Through their local company, Ithuba Uganda Limited was issued with a license and this marked the start of business in Uganda.
Ministry of Finance through National Lotteries and Gaming Regulatory Board issued the licence to Ithuba Uganda Limited.
Ithuba has committed to invest $15 million.
As Ithuba positions itself to take over the lotteries and gaming sector on May 4, 2024, the sector has estimated annual average revenue of Shs147 billion for the next ten years effective financial year 2024/25 shows that all isn’t lost in negativity as some Ugandans associate lotteries and gaming wasteful spending and expenditure.
Accordingly, lotteries and gaming sector have planned that out of the Shs147 billion earmarked annually 60% of the proceeds is gaming tax and 40% is non-tax revenue for good cause.
It is also planned that the sector will contribute to corporate social investment (CSI) projects in the communities. The licensee is obliged to spend 0.5% of the total sales on CSI. The translates to Shs3 million per year.
Also, of significance is to create an estimated 1,700 jobs in Uganda,
construct a primary data centre in Kampala and a secondary data centre in Jinja. And establishment of regional offices in Gulu, Mbale, Mbarara, Fort portal and Arua.
The National Lottery shall be launched on May 2024 and thereafter, priority shall be given to sports facilities development in the utilization of the funds raised from the National Lottery.
In an effort to protect communities from the effects of illegal gambling, the National Lotteries and Gaming Regulatory Board has embarked on a relentless crackdown on illegal gaming machines and the closure of unlicensed gaming premises in an ongoing enforcement exercise around Uganda. When illegal gaming operations are dismantled communities are better protected, legal operators thrive in a fairer environment and revenues collected are directed toward the public services they were intended to support and as such, 2, 869 illegal gaming equipment have been confiscated while 17 illegal gaming sites have been blocked.
NLGRB board chairperson Aloysius Mugasa Adyeri revealed that Ithuba Uganda Limited had secured irrevocable funding to fiancé the operation of the National lottery as it shall construct an in-country data centre.
“As a board, we are confident that the National Lottery shall contribute significantly to raising the required revenue for funding government programmes but also promote social responsibility through its operations” Mr Mugasa said during signing of an agreement with Ithuba.
