KAMPALA, Uganda — Uganda’s lotteries and gaming industry operators have withheld at least Shs 2.6 billion in winnings from 125 players in the current financial year, according to the National Lotteries and Gaming Regulatory Board (NLGRB).
The regulator says the affected players filed formal complaints after operators allegedly failed to honour verified winnings, prompting investigations and dispute resolution processes.
NLGRB chief executive officer, Mr Denis Mudene Ngabirano said the majority of the cases have since been resolved, with 112 of the 125 complaints successfully settled.
“The resolution time depends on the evidence provided by the player, but I can assure you that operators are very responsive, especially when it comes to financial matters,” he said.
Security bonds used to protect players
The regulator attributed the high resolution rate to strict licensing requirements, including mandatory security bonds that gaming operators must deposit before being licensed.
The bond serves as a financial safeguard for players, allowing the regulator to compensate verified claims directly when operators fail to pay.
“If a player wins and is not paid, and we can prove it, we use that bond to compensate them. Once we touch that bond, the operator risks losing their license,” the CEO said.
Technology-driven monitoring expands oversight
The NLGRB says it has intensified surveillance of gaming activity through the National Central Electronic Monitoring System, which tracks transactions across licensed operators in real time.
According to the regulator, the system has improved transparency and strengthened enforcement against irregular practices in the sector.
Officials also reported a growing uptake of self-exclusion tools, with more than 16,000 users voluntarily restricting their access to betting platforms.
“We monitor daily transactions through the system, and we have seen over 16,000 individuals utilise self-exclusion tools to manage their betting behaviour. This is a very positive trend,” the CEO said.
Sector revenue grows despite regulatory concerns
The gaming sector continues to contribute significantly to Uganda’s revenue base, with Shs 353 billion collected in the previous financial year.
In the current financial year, Shs 271 billion has already been generated within the first nine months.
However, the regulator stressed that revenue collection is not its primary mandate.
“Our focus is not revenue. Our focus remains responsible gaming and protecting the public,” the CEO said, adding that revenue remains important for national economic planning.
Illegal gaming machines remain major challenge
Despite regulatory gains, illegal gaming operations remain a persistent challenge, particularly slot machines operating outside licensed frameworks.
The regulator says more than 7,000 illegal machines have been confiscated, with over 6,000 destroyed following court authorisation.
Authorities say the destruction process is carried out under strict environmental compliance procedures involving certified waste disposal firms.
According to the regulator, illegal machines are often smuggled into the country in parts, making detection at border points difficult.
Importers reportedly bring components such as motherboards, which can be disguised as ordinary electronic parts before being assembled locally for illegal operations.
Online betting platforms also targeted
Beyond physical machines, the regulator has also intensified action against illegal online betting platforms.
At least 23 unlicensed online operators have been blocked in collaboration with telecommunications companies and mobile money service providers.
Enforcement actions have also led to 24 prosecutions and 21 convictions involving both Ugandan and foreign nationals linked to illegal gaming operations.
Youth exposure raises concern
A 2023 regulatory study on gambling trends found that 99% of gamblers in Uganda are men, with 58% being young people.
The findings have prompted renewed focus on sensitisation campaigns targeting schools and higher education institutions.
Also Read: Kenya declares online gambling addiction a public health crisis
The regulator says it is working with the Ministry of Education and Sports to expand awareness programmes, while also collaborating with the Ministry of Health to provide counselling and mental health support.
Regulatory reforms underway
The NLGRB says it is reviewing existing legislation to address the rapid growth of online gaming, which has expanded significantly since the COVID-19 pandemic.
Officials estimate that more than 75% of operators have now shifted to online platforms, creating new regulatory and enforcement challenges.
“We must evolve our laws to match the digital shift in the sector,” the CEO said.
The regulator is also expanding its regional footprint and strengthening cooperation with continental bodies such as the Gaming Regulators African Forum to improve cross-border enforcement.
The regulator maintains that gambling will remain a permanent feature of Uganda’s economy but insists stronger oversight is necessary to protect consumers.
“Gaming is here to stay. The best approach is to regulate it effectively, provide safeguards, and ensure that it does not harm our people,” the CEO said.
