Gambling Stakes to Hit UGX14.1 Trillion as Government Pushes Tougher Laws on Illegal Betting

The National Lotteries and Gaming Board has projected that more than UGX14.1 trillion will be staked through gambling and sports betting in the 2025/26 financial year, following the operationalisation of the National Central Electronic Monitoring System (NCEMS), which has expanded government oversight of the sector.

The projection was disclosed by Bernard Winyi, Senior Manager for Finance and Administration at the National Lotteries and Gaming Board, while appearing before Parliament’s Finance Committee on Wednesday, 21 January 2026, to present the Board’s 2026/27 National Budget Framework Paper.

Winyi said the monitoring system has significantly improved visibility of gambling operations, replacing the previous reliance on self-declarations by operators.

“Through the National Central Electronic Monitoring System, we now have better visibility of operators and activity in the gaming industry. In 2022/23, when declarations were self-reported, the amount staked was UGX2.4 trillion. After operationalising the system in 2023/24, that figure rose to UGX4.3 trillion,” Winyi said.

He added that the value of stakes increased further to UGX8.3 trillion in the 2024/25 financial year and is projected to reach UGX14.1 trillion in 2025/26.

“This visibility has enabled us to improve tax collections,” he noted.

Winyi was responding to a query by Amos Kankunda (Rwampara County), Chairperson of the Finance Committee, who sought an update on the UGX6.833 billion NCEMS procured to monitor gambling activities nationwide.

“The new system that we approved has not been discussed in detail. How is it working? Has it reduced revenue leakages or improved collections?” Kankunda asked.

The Board further reported that between July and December 2025, UGX176 billion was collected in revenue from sports betting and casino gambling. Projections indicate that total collections will reach UGX391 billion by the end of the 2025/26 financial year.

“In 2024/25, we realised UGX323 billion. At half-year in 2025/26, we had collected UGX176 billion, and we project UGX391 billion by the end of the financial year,” Winyi said. “Our 2026/27 budget aims to increase gambling and gaming revenue by 15 percent, from UGX391 billion to UGX450 billion.”

Proposed amendments to gambling law

In a related development, the National Lotteries and Gaming Regulatory Board revealed plans to amend the Lotteries and Gaming Act, 2016, to impose stiffer penalties on operators of illegal gambling machines.

Winyi told the Finance Committee that the current penalties are too lenient to deter illegal operations, citing Section 67 of the Act, which prescribes a fine of 48 currency points, about UGX960,000, or imprisonment of up to two years, or both.

“Our law is weak in terms of curbing illegal operations. People plead guilty, pay UGX960,000, and return to the same business. We are already working on amendments to make the law more deterrent,” Winyi said.

Section 67 of the Act criminalises operating a casino, betting house, gaming machine, or other betting facilities without a licence. However, subsection (2) provides harsher penalties, up to 200 currency points (UGX4 million), for the unlicensed manufacture, supply, installation, or adaptation of gaming and betting software.

Dickson Kateshumbwa (Sheema Municipality) urged the Board to work closely with local governments to curb illegal gambling, arguing that enforcement costs often exceed the penalties imposed.

“In some cases, the cost of enforcement is higher than the fine collected. That is why the amendment is urgently needed,” Kateshumbwa said, adding that local government structures could support enforcement efforts at community level.

He also called for closer collaboration with the Uganda Revenue Authority (URA) to prevent the importation of illegal gambling machines.

“Uganda does not manufacture these devices. They are imported. How do you work with URA Customs to stop them at entry, instead of chasing them across the country after they have already entered?” he asked.

Keefa Kiwanuka (Kiboga East) raised concerns about the link between illegal gambling machines and Uganda’s high betting participation rates, including the involvement of minors.

“Uganda is ranked among the top countries in Africa in betting activity. How are you addressing the growing number of unlicensed operators and the participation of minors?” Kiwanuka asked.

Winyi cited revenue leakages among the Board’s challenges, attributing them to inconsistencies between the Lotteries and Gaming Act and the Income Tax Act, particularly on withholding tax provisions. He also noted inadequate funding for retooling and staffing.

The Board requested an additional UGX3.76 billion to recruit staff to fully operationalise its regional offices in Mbale, Mbarara, and Gulu.

“Each regional office currently has only a senior regional officer and a driver. Yet these offices are critical in responding to illegal gambling operations, especially those involving small, unlicensed machines,” Winyi said.