Uganda Gaming Board Pushes for Harsher Penalties Against Illegal Betting

The National Lotteries and Gaming Regulatory Board (NLGRB) is urging Parliament to amend the Lotteries and Gaming Act, seeking more severe penalties for illegal gaming operators. The board’s chief executive, Denis Ngabirano, stated that the current maximum fine of Shs900,000 is insufficient, with some offenders viewing it merely as a business expense. He noted that repeat offenders often plead guilty, pay the fine, and immediately resume illegal operations.

Mr. Ngabirano made these remarks during a recent appearance before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), which was reviewing the Auditor General’s report. The committee expressed concerns about the growing number of unregulated gaming businesses in Uganda. Legislators highlighted the need to protect vulnerable populations, particularly in rural areas, from the risks associated with these illicit operations.

The proposed amendments aim to address the evolving landscape of online gaming, including transactions involving cryptocurrencies, as approximately 70% of gaming activities and 93% of transactions now occur online. The NLGRB has been enhancing its National Central Electronic Monitoring System (NCEMS) to improve oversight, tax collection, and responsible gaming initiatives, incorporating features like self-exclusion and betting limits.

To combat illegal operations, the board has confiscated and destroyed thousands of illegal gaming machines. They have also collaborated with the Uganda Communications Commission to block numerous websites belonging to unlicensed companies. While compliance among licensed operators has shown improvement, the Auditor General’s report raised issues regarding regulatory system vulnerabilities and significant shortfalls in non-tax revenue collection. The board also faces a skills gap in specialized information systems auditing.

This report details the board’s efforts and challenges in regulating the gaming sector, underscoring the need for stronger legislative backing and enhanced enforcement capabilities. The committee is expected to present its findings and recommendations to Parliament.