MPs Crack Down on Unlicensed Gaming Operations in Rural Uganda

Members of Parliament on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) have called for a more robust approach to regulating the gaming sector, with a specific focus on curbing the proliferation of unlicensed lotteries, gaming machines, and online platforms.

The committee members expressed concern that foreign nationals are increasingly establishing these operations in rural areas, where regulatory enforcement is perceived to be weak. Hon. Joseph Ssewungu highlighted instances in his constituency where unlicensed lottery businesses were allegedly collecting funds from unsuspecting residents, leading some to sell off assets like coffee crops.

Discussions also turned to the effectiveness of the Board’s technological systems in tracking revenue and ensuring fair taxation. Hon. Bumali Mpindi questioned the discrepancy between the number of licensed online gaming companies and the tax revenue collected, citing past difficulties reported by the Uganda Revenue Authority (URA).

Lawmakers are urging the Board to improve its licensing and monitoring mechanisms, emphasizing that rural communities are disproportionately affected by illegal gaming. There is also a call for public awareness campaigns to educate citizens about the potential dangers of excessive gambling and to strike a balance between gaming and economic productivity.

In response, the Board’s CEO, Denis Ngabirano, stated that efforts to combat illegal gaming have intensified, leading to the confiscation of thousands of illegal machines and the blocking of numerous illegal online sites. He also noted an increase in tax collections, particularly from online gaming, attributing this to the implementation of an online financial monitoring system, with plans to further digitize all operations.

Source: Parliament of Uganda