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Gov’t Eyes Shs119.8bn In Taxes From Sports Betting In 2023

The National Lotteries and Gaming Board (NLGB) is hoping to collect Shs119.844Bn in 2022/2023 financial year as revenue from proceeds and licensing of sports betting and gaming across the country.

The details are contained in the 2023/2024 ministerial policy statement for the National Lotteries and Gaming Board that was presented before Parliament’s Finance Committee, where MPs expressed concern over the cost at which this revenue is being collected given the increased cases of irresponsible vetting across Uganda.

Denis Ngabirano, Acting Chief Executive Officer of the Board informed the Committee that the annual revenue collections has grown from Shs17.16Bn in 2015/2016 when the Board was established to Shs110.5Bn in 2021/2022 and in just the first half of the current financial year 2022/2023, the Board has already collected Shs81Bn out of the projected Shs119.8Bn the Board had earmarked to collect.

The revelation prompted Jane Pacuto (DWR Pakwach) to task the Board to explain the trends in the increase of the revenue collections remarking, “You projected to collect Shs119.8Bn in this current financial year, but within the first half, you are able to collect Shs81Bn which is commendable. What factors could have contributed to this performance and don’t you think you are under targeting your targets given this good performance?”

 

Faith Nakut (Napak DWR) however said it is too early to get excited about the good revenue collections given the fact that in Uganda, unlike in developed nations, it is the poor people heavily invested in gaming and betting which has seen some sink further in poverty due to irresponsible betting.

 

“So when our revenue increases, it implies that we are becoming poorer, perhaps we could neutralize it by reinvesting in the areas where this revenue is coming from. If we are talking about mindset change for our people, is it mindset change to appreciate gaming and betting? Is it mindset change to consider other livelihood options?” asked Nakut.

There were other MPs who called on Government to devise means to reduce on the increasing cases of irresponsible betting.

Henry Musasizi, State Minister for Finance (General Duties) said it should be the responsibility of parents to discipline their children not to engage in reckless gaming and betting, rather than pushing the same to government.

Minister Musasizi said, “There is something I want to say and please don’t crucify me for saying it. I want to do it the kikiga way. Bad acts of gaming is about discipline of these children, who is responsible, if parents have failed on their own, do you expect lotteries and gaming board to do it? Therefore, we need to go back to our homes. They are betting school fees and is this the responsibility of these people (National Lottery and Gaming Board)”

The Minister said that all Government will do is  put in place controls, procedures and systems in place but issues to do with discipline, behavior are a role of parenting, adding that this can be complemented by addressing the high poverty rates in Uganda too.

“And we should also deal with poverty, most of these vulnerable young people, when you check their backgrounds, they have nothing to do, the parents have neglected them, they grow just like trees growing in the forest, nobody is bothered about them,” said Minister Musasizi.

In the 2023/2024 national budget, the National Lotteries and Gaming Board has been allocated Shs13.575Bn and of this, the biggest chunk will go towards the procurement of the National Central Electronic Monitoring system machine at Shs6.833Bn, while wages will account for Shs2.484Bn, finance and administration Shs2.461Bn, while sector compliance, enforcement as well as strategy and corporate affairs have each been allocated Shs989.420M and Shs807.184M respectively.

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