Uganda’s lottery shuffle

The exit of a lottery operator exposes both the strain and the strength of a booming digital gambling industry

Kampala, Uganda | JULIUS BUSINGE |  The exit of ITHUBA Uganda Limited from the National Lottery business has drawn fresh attention to the stability of Uganda’s fast-growing gaming industry, with the regulator stepping in to manage the transition and protect players, retailers and public revenues.

The National Lotteries and Gaming Regulatory Board (NLGRB) said ITHUBA stopped offering National Lottery games on June 30 and ceased trading on July 1 after informing authorities of financial and operational difficulties.

The development comes at a time when the sector has been reporting strong growth in tax contributions, underlining its rising importance to government revenue.

In a statement, the regulator said it was taking “all necessary regulatory and oversight measures” to ensure an orderly transition and safeguard stakeholders.

“The Operator’s cessation of operations does not relieve ITHUBA Uganda Limited of its obligations under the law, the National Lottery Licence, or the Concession Agreement,” NLGRB said.

It added that it was acting under its statutory mandate to ensure compliance while protecting government, players, prize claimants, retailers, employees and other affected parties.

Transition under way

NLGRB said all outstanding matters, including player balances, prize claims, operational records and liabilities, remain under regulatory supervision.

Players with pending claims have been advised to contact ITHUBA through official channels, as the regulator monitors settlement processes and compliance with obligations.

The authority said it is working with the operator and other government institutions to ensure an orderly and legally compliant transition, adding that further updates will be provided as the process unfolds.

Industry expansion

ITHUBA’s exit comes amid rapid expansion in Uganda’s gaming industry, which has been driven by mobile money adoption, increased smartphone penetration and the growth of online betting platforms.

According to NLGRB figures, government collected Shs568 billion in taxes from betting, gaming, lotteries, casinos and related activities in the 2025/26 financial year up to March.

That compares with Shs18.5 billion recorded in 2019/20, reflecting the speed at which the sector has grown into a significant source of domestic revenue.

The surge highlights how digital platforms have reshaped gambling behaviour in Uganda, with regulators estimating that about 93 percent of gaming activity now takes place online.

Speaking during a recent media briefing, NLGRB Chief Executive Officer Denis Mudene Ngabirano said technology has fundamentally changed the structure of the industry while increasing regulatory complexity.

“The online shift has fundamentally changed the gaming landscape. Technology has expanded access to gaming services across the country, but it has also increased the complexity of oversight,” he said. “Our responsibility is to ensure that growth happens within a transparent, accountable and safe environment.”

Regulatory tightening

Despite the industry’s expansion, the regulator said strengthening oversight remains a priority as more operators move into digital gaming.

NLGRB said it is collaborating with regional and international bodies, including the Gaming Regulators Africa Forum (GRAF) and other African regulatory associations, to improve supervision and align standards.

The authority said stronger regulation will be key to sustaining investor confidence and protecting consumers in an increasingly digital market.

“As gaming revenues reach record levels and enforcement actions intensify, we are determined to ensure that the industry’s future is defined not merely by the size of the jackpot, but by the credibility of the system behind it,” Ngabirano said.

Outlook

While ITHUBA’s exit has created uncertainty around the future of the National Lottery, the regulator said the wider gaming sector remains stable, supported by existing licensing frameworks and ongoing oversight mechanisms.

The immediate focus, it said, is ensuring continuity in lottery operations while safeguarding player funds and ensuring compliance with contractual obligations.

The coming weeks are expected to determine how quickly new arrangements for the National Lottery are put in place, even as Uganda’s broader gaming industry continues to expand and cement its position as one of the country’s fastest-growing digital economy sectors.