iTHUBA Awarded Uganda National Lottery

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The Ugandan government has issued a 10-year licence to Ithuba Uganda, a subsidiary of South African firm Ithuba, to run a national lottery in what Finance Minister Matia Kasaija said was a move to raise public funds and support social causes. Kasaija said the signing of the partnership was a sign of ‘Ubuntu’ and would go a long way in strengthening relations between Uganda and South Africa. The duration of the National Lottery agreed is for a period of 10 years.

The National Lottery’s mission is to boost government revenue through a portion of gross sales, including gaming tax (approx. Shs 87 billion), and non-tax revenue (approx. Shs 60 billion) for good causes annually.

The generated revenue holds a noble purpose—it will empower initiatives in vital sectors: public infrastructure, education, health, and sports development. Together, we’re making a positive impact.

The National Lottery is also an agent of change. There is an anticipated creation of 1700 direct jobs for Ugandan Nationals, with the ripple effect extending to numerous indirect employment opportunities.

The National Lotteries and Gaming Regulatory Board is mandated and will be responsible for the supervision of the activities and operations of the National Lottery and its operator.

Uganda Gaming Licence Requirements and Costs

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  1. Proof of payment of Application fees as stated under Lotteries and Gaming (fees) regulations 2017 schedule as attached here under.
  2. Duly filled Licence application form
  3. A cover letter
  4. Certified copy of Certificate of Incorporation/or Registration where the applicant is a company
  1. Certified copy of the Memorandum and Articles of Association where the applicant is a company
  1. Certified copies of Company forms 18 and 20 where the applicant is a company
  2. Where the applicant is an individual, police clearances from Interpol, proof of citizenship, work permits if foreigner and resident here.
  3. Tax Identification number for the applicant
  4. Tax clearance Certificate from Uganda Revenue Authority
  5. Proof of capital adequacy as required by Section 39 of the Act and Regulation 3 of the Lotteries and Gaming (Minimum Capital Requirements) Regulations. See the minimum capital requirement below;
ItemType of LicenceAmount of minimum capital required (UGX)
1.Sports Betting250,000,000
2.Slot Machines250,000,000
3.Manufacture, supply or installation of gaming or betting machines250,000,000
4.Casino operating Licence1,000,000,000
5.National Lottery5,000,000,000
6.Public Lottery250,000,000
7.Pool betting250,000,000
8.Bingo250,000,000
9.Betting intermediary operating licence250,000,000

  1. List of Games rules and equipment that the applicant intends to operate.
  2. Details of premises both principal location and operational premises.
  3. Business plan for the year of business with a Corporate Social Responsibility component.
  4. Details of key employees; CVs, police clearances, proof of citizenship and work permits if foreigners and residents here.
  5. Bank account details
  6. Corporate Social Responsibility plan.
  7. Bank Guarantee of 500,000,000/- in favour of the Board.
  8. Proof of payment of Licence fees upon approval of the application

                                                      SCHEDULE FEES

ItemType of Licence, registration or other matters under the ACT or RegulationsFees Payable (UGX)
1.Application fee to conduct a national or public lottery: (a) foreigners

(b) nationals

 

50,000,000

20,000,000

2.Licence fee to conduct a national lottery100,000,000
3.Application fee to conduct a public lottery

(a) foreigners

(b) nationals

 

20,000,000

10,000,000

4.Licence fee to conduct a public lottery10,000,000
5.Application fee to operate a casino or a casino operating licence;

(a) foreigners

(b) nationals

 

 

50,000,000

20,000,000

6.Licence fee to operate a casino or a casino operating licence15,000,000
7.Application fee for a licence to provide facilities for pool betting or a pool betting operating licence;

(a) foreigners

(b) nationals

 

 

 

20,000,000

10,000,000

8.A pool betting or a pool betting operating licence.10,000,000
9.Application fee for a licence to provide facilities for playing bingo, or a bingo operating licence;

(a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

10.Licence to provide facilities for playing bingo, or a bingo operating licence;10,000,000
11.Application fee for a licence to provide facilities for betting or a general betting operating licence;

(a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

12.Licence fee to provide facilities for betting or a general betting operating licence;10,000,000
13.Application for a licence to act as a betting intermediary or a betting intermediary operating licence; (a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

14.Licence to act as a betting intermediary or a betting intermediary operating licence.10,000,000
15.Licence fee to supply gaming machines available for use in a gaming centre or gambling software operating licence. (a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

15.Application for renewal of licence where the previous licence has not expired in accordance with section 47 of the ActNil
16.An application for a special employee licence50,000
17.Registration of gaming or betting machine or device50,000 per machine
18.Transfer of registered ownership of gaming or betting machine or device50,000
19.Approval to lease or transfer possession of a gaming or betting machine50,000
20.Inspection and approval fee for establishing a branch of a casino or any other gaming or betting facility1,000,000

Botswana gaming industry

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Botswana is a landlocked country in southern Africa with a landscape defined by the Kalahari Desert and Okavango Delta with a small population of 2.3 million, the country was annexed by Great Britain in 1885 and remained a colony until 1966. On the 30th of September of that year, the first general elections took place and marked the establishment of the Republic of Botswana. The country’s gaming industry is famously known for its brick-and-mortar casinos. Most of them are housed by hotels or resorts making them a popular destination for both locals and tourists.

Casinos

Most casinos open for 24 hours while others open for limited hours. Common casino games just like in most casinos worldwide are blackjack, bingo, Baccarat, Roulette, poker, and slot machines. Plus, almost every casino in Botswana offers live poker games. Casinos in Botswana are majorly clustered in two popular towns–Gaborone and Francistown. Gaborone Sun Hotel and Casino is the largest casino found in Botswana. It is located within the Grand Palm Hotel Casino Convection resort with its doors open 24/7.

The Sediment and CrestaThapama Hotel is a renowned casino located in Francistown. The casino is open for a limited time—11 am to 2 am. Other licensed physical-based casinos include Syringa Casino, King’s CasinoMarang Hotel and Casino, Moonlite Casino, Menateng Casino, Sedibeng Casino, and Letsatsi Casino. Sun International Group ran most of these casinos.

Regulation

The industry is regulated by the Gambling Authority which exists as an entity under the Ministry of Investment, Trade, and Industry (MITI). According to the Gambling Authority of Botswana, the industry will have a strong external focus with a market that is largely outside Botswana’s borders by the year 2036. The authority affirms that this will be realized through an economy that is diversified, competitive, and private-sector-led, with sustainable business opportunities. This intent is further supported by the National Development Plan 11 which aligns with the national vision and commits to developing diversified sources of economic growth as one of the priority areas in the long term. Vision 2036 aims to transform Botswana from an upper-middle-income country to a high-income country within the next 15 years. This Vision identifies the following four key Pillars as the foundation of the principles it espouses: Sustainable Economic Development, Human and Social Development, Sustainable Environment, and Governance, Peace, and Security.

The Ministry of Investment, Trade, and Industry contributes to the Vision 2036 pillar ‘Prosperity for All’ and the NDP 11 ‘Economy and Employment’ thematic area. Therefore the Ministry drives policy formulation and strategies that seek to diversify the national economy through the creation of a conducive business environment, and diversified industries in addition to creating sustainable employment for Batswana by facilitating domestic and foreign direct investments. The Ministry also promotes the development of an entrepreneurial culture. These priority areas seek to address key national challenges such as poverty, unemployment, income inequality, and slow economic growth. Given the fact that the Authority is a regulator, its role in this transformation agenda is effectively facilitating the growth of the gaming industry. A position that was endorsed by both the NSO and the MITI.

Sports betting opportunity

As mentioned earlier the industry is occupied mainly by brick-and-mortar casinos with a few betting companies and the majority of international online sportsbooks that avail their offerings to this country meaning regardless of their population being small it’s a sweet heaven for small sportsbooks that would like to expand into Africa as a starting nest. Less investment reasonable business opportunity

By Najib Balinda attributed to the Gambling Authority of Botswana

 

 

Ugandan government plans to increase gaming tax by 10%

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The Ministry of Finance proposed a 10 percent increase in gaming and lotteries tax. The proposals are contained in the Lotteries and Gaming (Amendment) Bill, 2023 which seeks to amend a number of provisions under the Lotteries and Gaming Act, 2016.

The amendments, signed by Finance Minister Matia Kasaija seek to increase the tax rate on gaming activities from 20 percent to 30 percent.

Key reasons that were given;

  • Ugandan bettors lose millions to illegal gaming sites
  • Gaming operators under-declare revenue by half-audit

The Bill if passed, will have a significant impact on the gaming industry but is expected to generate more revenue. It is expected to take effect on July 1.

The gaming industry in Uganda has expanded rapidly in recent years, owing in part to the growing popularity of sports betting and online gambling.

According to the Uganda Revenue Authority (URA) annual revenue performance report for the 2021/22 financial year, there was a surplus in tax collected from casinos, which resulted in a significant increase in revenue attributed to gaming tax arrears recovery amounting to Shs35.65b.

This growth resulted in a surplus of Shs22.67b and was caused by compliance enforcement actions that made taxpayers file and make payments, as opposed to prior periods when some taxpayers would only make estimated payments.

URA also indicated that Shs53.68b was collected, increasing by 303.41 percent, the highest percentage increase in tax heads in the last financial year, followed by rental income tax, which increased by 33.15 percent from Shs156.1b.  However, some critics argue that the gaming industry has negative social and economic consequences, particularly for vulnerable populations.

Proponents of an increase in game tax argue that the increase will help to mitigate some of the negative effects by providing additional funds for social programs and initiatives. However, some stakeholders argue the increment will harm the gaming industry and is likely to discourage investors.

The lotteries and gaming industry is expected to expand further in the coming years, owing to increased access to mobile technology and rising disposable income levels among the country’s population.