Uganda launches a national lottery, managed by a private company
Rewritten Article:
Uganda's new National Lottery, a significant venturesome move towards infrastructure development for the upcoming 2027 Africa Cup of Nations (AFCON), has stirred a flurry of anticipation and apprehension among the Ugandan populace. The government's decision to enlist the services of a private company, ITHUBA Uganda, a subsidiary of the South African National Lottery operator, as the exclusive operator of the National Lottery for the next decade, has sparked debates among lawmakers and experts.
Prime Minister Robinah Nabbanja, expressing optimism, declared, "I'm convinced that under ITHUBA, we will see growth and integrity in lottery operations, providing opportunities to the citizenry across all social classes." The lottery's official launch took place on July 26, with ticket sales commencing earlier in June.
ITHUBA Uganda has already invested over $41 million into the Uganda National Lottery. Kabonero, its chairman, emphasized their commitment to international best practices, ensuring transparent and beneficial operations for Uganda's development and transformation.
However, opposition leader MP Joel Ssenyonyi voiced concerns over the move, stating, "We still have not sorted out issues of standards." He added, "The previous lottery operators such as Premier Lottery and JADA made some people rich."
Researchers have identified a high prevalence of problem gambling among Ugandan secondary school students, prompting calls for tighter restrictions on gambling opportunities and advertising, stricter age-based entry into gambling establishments, and limited opening hours, among other measures, to protect the population from gambling harm.
Despite these concerns, Chairman Mabuza of ITHUBA Uganda has emphasized the potential financial gains, telling the press, "I'm still deeply moved by the story of Phionah, a mother of two who recently won Shs8m in our lottery. Her win made her dream of owning land possible."
Alarmingly, gamblers who view gambling primarily as a means to make money are more likely to develop problem gambling behaviors. This side effect is a risk that ITHUBA Uganda must carefully navigate to ensure a balanced approach between promoting big wins and preventing addiction.
In addition to the concerns around gambling addiction, the Lotteries and Gaming Regulatory Board expects the introduction of the National Lottery to boost tax revenues from the current UGX 193 billion ($52 million) over the past fiscal year to UGX 300 billion ($80 million). The increase is attributed to the implementation of the National Central Electronic Monitoring System (NCEMS) in January 2024, which enables real-time monitoring of industry activities.
The partnership is expected to generate 1,700 direct jobs and over 100,000 indirect jobs, with the government earmarking lottery proceeds for vital sectors such as education, healthcare, and infrastructure development, particularly for AFCON 2027 preparations.
The approval of iGaming bills in Alberta and the ongoing debate regarding GST for skill-based games in India demonstrate the global attention being paid to the gambling industry. Meanwhile, concerns around the over-stimulation of latent gambling through advertising, unregulated entry into gambling establishments, and irresponsible marketing tactics remain key issues that ITHUBA Uganda must grapple with.
As the SiGMA East Europe Summit powered by Soft2Bet approaches in Budapest from September 2 - 4, the future of the gambling industry continues to unfold, with each ticket sold signifying not just a chance at financial fortune, but a deliberate step towards enriching Uganda's educational, healthcare, and infrastructure landscape.
finance: The introduction of the National Lottery, operated by ITHUBA Uganda, is expected to boost tax revenues from the current UGX 193 billion ($52 million) over the past fiscal year to UGX 300 billion ($80 million).
sports: The partnership is aimed at providing infrastructure development for the upcoming 2027 Africa Cup of Nations (AFCON), with the government earmarking lottery proceeds for vital sectors such as infrastructure development.
