Uganda’s betting companies withhold Shs 2.6bn in winning claims

Lotteries and gaming operators in Uganda withheld at least Shs 2.6 billion in winning claims from 125 players in the current financial year.

According to the National Lotteries and Gaming Regulatory Board (NLGRB), the complainants petitioned the regulator after their purported winnings were not honoured by the operators.

The board’s chief executive officer said that, so far, 112 of the 125 complaints have been successfully resolved.

“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 explained.

He attributed this responsiveness to strict licensing conditions that require operators to deposit a security bond, which acts as a safeguard for players and ensures that verified claims can be compensated.

“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,” Ngabirano said.

Speaking during a stakeholder engagement, Ngabirano said the board is leveraging technology through the National Central Electronic Monitoring System to track gaming activities and safeguard players.

“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,” he said.

Ngabirano further revealed that more than 16,000 Ugandans have embraced self-exclusion tools aimed at promoting responsible betting, describing it as a positive shift in gambling behaviour across the country.

He noted that responsible gaming remains the regulator’s core focus, emphasising that its objective is to protect the public from the adverse social and economic effects associated with gambling.

Revenue growth and sector performance The gaming sector continues to make a significant contribution to Uganda’s revenue base. The regulator reported that Shs 353 billion was collected in the previous financial year, while Shs 271 billion has already been realised in the current financial year within the first nine months.

Despite this growth, Ngabirano said revenue generation is not the regulator’s primary objective.

“Our focus is not revenue. Our focus remains responsible gaming and protecting the public. However, revenue is important for economic transformation, so we must collect it,” he said.

Crackdown on illegal gaming machines

The regulator identified illegal gaming operations, particularly slot machines, as one of the biggest challenges facing the sector in Uganda. More than 7,000 illegal gaming machines have been confiscated, with over 6,000 already destroyed following due legal processes.

“When we confiscate these machines, we present our case before the Standards and Utilities Court to obtain a destruction order. We then engage NEMA-certified companies to handle the destruction,” he said.

The destruction process is conducted in partnership with certified electronic waste management firms, including companies licensed to handle hazardous materials, to ensure compliance with environmental regulations.

Ngabirano explained that the illegal machines are often imported into the country in parts, making detection at entry points difficult.

“The machines do not come in as complete units. Importers bring in spare parts such as motherboards, which can easily pass as components for computers or televisions. Once inside the country, they are assembled and distributed.”

While enforcement efforts have significantly reduced illegal gaming operations in central Kampala, operators have increasingly shifted their activities to remote areas. However, the regulator says it is expanding its reach to counter the trend.

Online betting and enforcement

Beyond physical machines, the regulator is also targeting illegal online betting platforms. At least 23 illegal online betting companies have been blocked in collaboration with telecommunications firms and mobile money service providers.

“We work with telecom operators to disrupt their payment channels, effectively cutting off their operations,” he said.

He added that enforcement efforts have resulted in the prosecution of 24 cases, with 21 convictions secured so far. Those prosecuted include both Ugandan nationals and foreign individuals involved in the illegal supply chain of gaming equipment.

Research and responsible gaming initiatives Ngabirano revealed that the regulator is conducting research to better understand gambling trends and their impact on society. A 2023 study on the socioeconomic and health effects of gambling found that 99 per cent of gamblers in Uganda are men, while 58 per cent are youth.

“This shows that young people are heavily involved in gambling, which is why we are focusing our sensitization efforts on schools and higher institutions of learning,” he said.

The regulator has partnered with the Ministry of Education and Sports to access schools for awareness campaigns and with the Ministry of Health to provide support through mental health services.

Individuals struggling with gambling addiction are referred to qualified counsellors, with treatment costs covered by the regulator.

“We provide confidential support, including a toll-free line where individuals can seek help and be referred for counselling,” Ngabirano noted.

Regulatory reforms and future plans Ngabirano revealed that the regulator is in the process of amending existing laws to address the rapid growth of online gaming, which has expanded significantly since the Covid-19 pandemic.

“Before COVID-19, the sector was largely land-based. Now, over 75 per cent of operators have moved online. Our laws must evolve to address this shift,” he said.

The regulator is also expanding its presence across the country, with regional offices already established in key areas and plans underway to open more.

Additionally, the NLGRB is collaborating with regional and international bodies such as the Gaming Regulators African Forum to strengthen cross-border enforcement and standardisation.

“Gaming is here to stay. The best approach is to regulate it effectively, provide safeguards, and ensure that it does not harm our people,” he said

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المصدر: The Observer (Uganda)