Uganda’s Government Taking New Steps Towards Nationalizing Gambling Industry

Uganda’s government is proceeding with its intention to nationalize the gambling industry in this country.

By the directions of the finance minister of Uganda, Matia Kasaija, the National Gaming Board Uganda (NGBU) shouldn’t issue any new licenses for gambling operators.

Also, the NGBU should let existing licenses…

… expire without issuing renewal certificates.

The letter that the minister has sent to the NGBU is affirmation regarding the government’s January statement to take the gambling business under its wing.

At that time, the president Museveni a stop to the sports gambling in Uganda, and it seems that stricter gambling politics in this country continue.

However…

… the new policy may only be applied to international operators that don’t spend their revenues in Uganda but are operating on its soil.

NGBU Request Clarification

NGBU chairman, Manzi Tumubweine, sought further guidance from the government as to the specifics of its plans.

In its letter to the government, Tumubweine explains that NGBU had received 60 applications from gambling operators for licensing in 2019 and that the NGBU had “evaluated them accordingly.”

Kasaija’s letter appears to have brushed aside these concerns, instructing the NGBU to…

… “stop licensing of gaming and betting with immediate effect.”

Stricter regulations for players too

The government of this East African country wasn’t secretive of its desire to tighten its grip on the gambling industry. Besides the measures from the beginning of the year addressing the operators, since March, the government has brought in stricter regulations for players also.

The regulation implies that all Ugandans participating in gambling activities need to provide their government-issued identity cards and that they are above 25 years old.

Not only that – players from this country are also required to their phone numbers with the government’s central monitoring system.

In March, they issued a status update on the local gaming industry, which had the same month brought a status update on the local gaming industry by the NGBU.

It showed:

• 49 licensees as of 2019
• 11 applications pending for the same year

Only 22 betting licensees—nine of which offer online betting—are actually in operation at present.

Once the existing NGBU licenses expire…

… “the state would have the monopoly on sports betting activities countrywide.”

Legal Betting in Uganda

The state of Uganda has only 13 legal gambling facilities in the whole country, spread in three cities.

While the biggest gambling haven is Kampala, with 12 casino venues, more and more players are turning to online platforms.

Operators with Uganda licenses are paying 20% of their gross gaming revenue. They also have an obligation to withhold 15% of gamblers’ winnings.

The government expects to reap around UGX50b (US$13.3m) in gambling tax revenue in the current fiscal year.

That will exceed revenues in 2017-18 significantly, and it will be more than four times the UGX11.1b that the government collected in 2013-14.

Uganda’s government intentions to monopolize this industry are quite clear.

However…

… that doesn’t have to be a bad thing.

There are plenty of examples when nationalizing the betting industry has led to a safer environment for both players and operators.

Source:

“AFRICA Government to Nationalise Gambling Industry in Uganda”, europeangaming.eu, May 29, 2019.