Why a well-regulated gaming sector is vital for Uganda’s progress
Betting companies are among the most prolific and reliable tenants in the country, guaranteeing stable rental income for local landlords, particularly in developing countryside trading centers. We also act as efficient tax agents, withholding and remitting rental income tax directly to the Uganda Revenue Authority (URA).
Dr Innocent Nahabwe. (Courtesy)
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OPINION
By Dr Innocent Nahabwe
While gambling is an activity as old as history itself; even recorded in biblical times when Roman soldiers cast lots at the foot of the cross, formal, regulated gaming and lotteries are relatively young in Uganda. Prior to 2007, when the country registered its first sports betting company, wagering happened entirely in the shadows. It was an unregulated world of playing cards, Ludo, and dice in informal settings. Since it lacked a legal framework, society naturally loathed it, associating it entirely with delinquency.
Nearly two decades later, that historical stigma stubbornly persists. Yet, the reality on the ground has fundamentally shifted. Through formal regulation, the gaming and betting industry has undergone a massive transformation, evolving into a highly structured, scrutinised, and vital pillar of Uganda’s socio-economic fabric.
Furthermore, the face of the industry is changing. Historically dominated by foreign investors, giving rise to the colloquial phrase “beating Muyindi”, Ugandans have rapidly built local capacity. Today, indigenous entrepreneurs are no longer just participants as punters; they are business owners, shareholders, and executives driving the sector forward.
Gaming is one of the most widespread retail networks in Uganda, spanning over 3,000 branches nationwide. Each branch requires security personnel, cashiers, and customer service attendants. At our headquarters, we employ auditors, IT professionals, risk experts, and managers. Directly, the sector employs over 23,000 Ugandans; predominantly youth and young women who would otherwise face the brunt of unemployment.
Betting companies are among the most prolific and reliable tenants in the country, guaranteeing stable rental income for local landlords, particularly in developing countryside trading centers. We also act as efficient tax agents, withholding and remitting rental income tax directly to the Uganda Revenue Authority (URA).
According to data from IPSOS National Audience Measurement Surveys, the betting sector is the third-largest contributor to media advertising revenue, trailing only behind the massive beverage and telecom industries. This financial lifeline supports journalists, producers, and creators. Downstream, we sustain the printing hubs along Kampala’s Nkrumah and Nasser Roads, where thousands earn a living printing daily fixture schedules, billboards, signposts, etc.
A unique benefit of betting is its ability to pull money from the untaxed, informal cash economy into the formal financial ecosystem, where it enters banking circulation and becomes taxable. With a Return to Player (RTP) rate averaging at least 80%, billions of shillings are redistributed back to the public, providing a livelihood for those who engage responsibly. For many, it is a legitimate micro-enterprise, no different from running a roadside kiosk or a livestock business.
The gaming sector is one of the fastest-growing tax brackets in Uganda. Through Withholding Tax (WHT), Gaming Tax, Corporate Income Tax, PAYE, and VAT, the industry remitted over sh350 billion to the URA last year alone, alongside substantial licensing fees paid to the National Gambling Board.
Crucially, a regulated sector is a responsible sector. Licensed operators strictly adhere to the Standard Operating Procedures set by the National Lotteries and Gaming Regulatory Board. We enforce strict age gates online and deny minors entry to physical premises. We ensure prompt payouts, keep our distance from schools, churches, and hospitals, and ensure all marketing carries responsible gaming notices. We are actively developing self-exclusion mechanisms and accessible counseling frameworks for individuals adversely affected by addiction.
We submit to these rules because we value accountability. However, because of lingering negative perceptions, our industry’s challenges are often ignored by policymakers. We currently grapple with heavy compliance costs driven by bureaucratic inefficiencies, a punitive tax regime, and short licensing tenures that discourage long-term investment.
Worse still, while compliant local businesses face heavy regulation, we face unfair, stiff competition from illegal, unregistered borderless internet betting sites. Locally, unauthorised micro-betting shops occasionally mushroom in small trading centers. These rogue actors do not pay taxes, do not protect minors, and tarnish the reputation of compliant operators.
We highly commend the recent steps taken to empower and fund the National Gaming Board, which has resulted in hundreds of successful seizures of illegal equipment. Stronger enforcement against these bad actors is exactly what the industry needs to protect the public and safeguard state revenue.
Much like the alcohol sector, attempting to wish gaming away through prohibition is an impossible task. The focus must shift from moral judgment to pragmatic regulation. A well-regulated, compliant, and supported betting sector protects the vulnerable, eliminates illegal syndicates, and fuels national growth. It is time society views us for what we truly are: a formal economic partner working for the progress of Uganda.
The writer is the Chairperson of the Uganda Betting and Gaming Alliance, an association that brings together Licensed Betting and Gaming Operators in Uganda.