Uganda’s Gaming Regulator Proposes Stricter Rules to Combat Unlicensed Online Betting

The National Lotteries and Gaming Regulatory Board (NLGRB) of Uganda has announced plans to implement more stringent regulations aimed at unlicensed online betting operators and illegal gambling activities. In an effort to address tax leakage, enhance regulatory visibility, and mitigate financial crimes such as money laundering, the NLGRB is pursuing structural policy changes alongside increased enforcement operations.

Strengthening Digital Oversight
To address the digital shift in the betting sector, the NLGRB has initiated partnerships with the Uganda Communications Commission (UCC), licensed telecommunications operators, and internet service providers (ISPs). During a recent stakeholder engagement, Denis Mudene Ngabirano, Chief Executive Officer of the NLGRB, emphasized the necessity of these structural partnerships. He called for “stronger collaboration between the gaming regulator, the communications regulator and licensed ISPs to combat illegal online gambling operators.” By coordinating with telecommunications providers, the board aims to restrict unlicensed entities from providing unauthorized digital gaming services to Ugandan consumers.

Centralized Payment Infrastructure
A central component of the proposed regulatory framework is the implementation of a unified payment gateway for the gambling industry. Under the proposed Tax Procedures Code (Amendment) Bill, all licensed casinos, sportsbooks, and gaming entities would be required to process wagers and payouts through a single, state-monitored system. This gateway, licensed by the Bank of Uganda, will integrate directly with the electronic payment systems of the Uganda Revenue Authority (URA).

Innocent Davis Bamurike, an executive of an emerging regional sportsbook, noted that the policy seeks a structural remedy for the industry. “The major goal has always been to greatly reduce tax leakages from suspected underdeclarations by operators,” he stated. While licensed operators will be integrated into the URA-monitored system, the objective is to isolate unregulated platforms and limit their financial processing capabilities.

Physical Enforcement and Compliance
In addition to digital and financial oversight, the NLGRB has intensified physical enforcement against illegal operations. A recent initiative, known as Operation Mashine Haramu, resulted in the confiscation of hundreds of unauthorized gaming machines across the Kampala Metropolitan area and Western Uganda. An NLGRB spokesperson highlighted the necessity of these actions, stating, “We cannot talk about a fair and transparent gaming sector without emphasizing enforcement.” The board has indicated that further field operations will continue to ensure market compliance and maintain a level playing field for licensed businesses.