MPs Urge Stricter Controls on Illegal Gaming in Uganda's Rural Areas

Lawmakers on the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) have raised serious concerns over the proliferation of illegal gaming and lottery operations, especially in Uganda’s rural areas. They have directed the National Lotteries and Gaming Regulatory Board (NLGRB) to intensify efforts against unlicensed operators who are reportedly exploiting local populations.

Hon. Joseph Ssewungu, MP for Kalungu County West, highlighted that numerous gaming and lottery businesses, often run by foreign nationals, have established themselves in rural areas lacking adequate regulatory oversight. He noted that these unlicensed operations, like those he previously helped shut down in Kalungu District, were collecting money from residents, leading some to sell essential assets like coffee.

“Many of them were not licensed but were charging money. People were complaining that they have sold all their coffee after playing lotteries,” Ssewungu stated during a COSASE meeting, emphasizing the need for clear licensing and enforcement strategies.

Concerns were also raised about the effectiveness of the Board’s technology in tracking revenue from online gaming. Hon. Bumali Mpindi, representing Persons with Disabilities, questioned why tax collection from this sector remains challenging for the Uganda Revenue Authority (URA), despite sophisticated systems.

In response, the NLGRB’s CEO, Denis Ngabirano, reported that the Board has confiscated over 9,900 illegal gaming machines and blocked 57 illegal online gaming sites in the last six years. He also indicated improvements in tax collection from online gaming, attributing it to a new financial monitoring system. However, challenges persist with collecting withholding tax from land-based casinos, which is tied to winnings that are harder to track than electronic transactions.

Source: Parliament of Uganda