An intelligence-led enforcement operation by the National Lotteries and Gaming Regulatory Board (LGRB) has uncovered an illegal gaming machine manufacturing workshop after raiding four illegal gaming shops allegedly operated by Chinese national Liang Zhang Chen in Eastern Uganda.
The operation, which began in Kibuku Town, expanded into neighbouring Pallisa District after fresh intelligence-led investigators to a residence where officers discovered premises believed to have been used to manufacture or modify gaming machines, exposing what regulators say was a much larger illegal gaming network.
The discovery marks one of the Board’s most significant enforcement operations as it intensifies a nationwide crackdown on unlicensed gaming businesses that authorities say deprive the government of revenue, exploit vulnerable gamblers and undermine Uganda’s regulated gaming industry.
According to the LGRB, the operation was launched after intelligence reports pointed investigators to illegal gaming activities in Kibuku.
“What began as an intelligence led enforcement in Kibuku Town has uncovered a much bigger operation,” the Board said.
The regulator said enforcement teams shut down four illegal gaming shops linked to Zhang Chen before following new leads that widened the investigation beyond Kibuku.
“As investigations progressed, information from an informant pointed us to Zhang Chen’s residence in Pallisa. A search of the premises revealed what was being used as a manufacturing workshop, widening the scope of our operation,” the Board said.
The Board has not yet disclosed the number of gaming machines recovered or whether additional suspects have been arrested, saying investigations are continuing.
The latest operation adds to a series of enforcement actions the regulator has carried out across Uganda in recent months as it seeks to eliminate illegal gaming machines and unlicensed betting outlets.
LGRB has previously confiscated hundreds of unauthorized gaming machines from arcades, kiosks and betting premises operating without valid licences. The regulator has repeatedly warned that many illegal operators install gaming machines in trading centres where they become accessible to children and other vulnerable groups, contrary to Uganda’s gaming laws.
Authorities also argue that illegal gaming businesses often evade taxes, operate without responsible gaming safeguards and use unregulated equipment that exposes gamblers to fraud and financial loss.
The regulator credited the Regional Police Commander, the Regional CID Officer for Bukedi Region and Kibuku District Police officers for supporting the operation, saying cooperation between security agencies was instrumental in uncovering the larger network.
“We appreciate the Regional Police Commander, Regional CID Officer Bukedi Region and Kibuku District police officers for the cooperation on the enforcement, and the informant whose valuable leads made this a successful operation,” the Board said.
As investigations continue, the LGRB has appealed to the public to help identify illegal gaming operations hidden in communities across the country.
“The public is encouraged to report suspicious gaming operations or activities via our toll-free line 0800285800 or send us an email at info@lgrb.go.ug,” the Board said.
