We are targeting Shs45b in revenue – Lotteries Board

What is the Lotteries and Gaming Regulatory Board?

The Lotteries and Gaming Regulatory Board is a government body that is mandated to regulate the gaming industry through licensing and monitoring the management, establishment and operation of gaming, betting and lotteries in Uganda. This institution was officially flagged off on May 9 last year by the minister of Finance. We have been in operation for about six months now.

What is the evolution of this business?
The biggest progress has been realised in regard to levels of compliance to sector rules and regulations since our inception. Previously, there were so many illegal un-licensed operators that were not known to the government and were operating their businesses regardless of the law.
Most came out of the shadows last year to be known and get registered after the Board issued a 30-day amnesty to all illegal operators. The legally operating companies have also stepped up their game and are now more complaint.
We have also been able to oversee the formation of gaming associations in the sector and engage directly with the operators. This year, we should see a better run and regulated industry.

How many gaming institutions have you licensed so far?
From January to November last year, we licensed approximately 30 companies of which 14 were casinos both in the urban and rural areas. The others were betting houses, slot operators and a lottery operator.

What challenges has this business gone through?
As LGRB, we lacked resources to efficiently carry out our duties. For example, we had five compliance officers to inspect all gaming centres in Uganda. Some of the sports betting operators have multitudes of outlets that could not efficiently be reached and inspected.
We also had financial constraints, lack of knowledge about gaming by the public, general bias and negative attitude towards the sector. We also faced a problem of capital flight as most companies are owned by foreigners. There has also been high number of illegal operations who in most cases are putting machines in the open yet it is supposed to be in closed gazetted areas.

How effective is the legislation in this sector?
The legislation is largely effective with a few amendments to the law required, for example, we are making proposals, seeking to amend some articles in the Act. High on the agenda is lowering operation time. These outlets are normally open from 10a.m to 4a.m but because of public outcry, we want to adjust the time to between 2p.m and 9p.m.
We also want to charge penalties to non-compliant operators, destroy illegal equipment in the business as opposed to merely closing their operations.
In addition, we would like to review the age of admission to 18 years of age, among others.

Sports betting is a successful business in Uganda. However, fear of casinos being for the rich is still predominant. What is the board doing to change this perception?
We have proposals that are looking at gazetting areas for casinos because we shall no longer be licensing new casinos in Kampala. We now want people to go upcountry to promote diversity which in turn boosts rent for property owners, jobs for people in villages, trading and local council fees paid by these operators.

Government has always looked at gambling as something bad. What message is it sending by instead creating an institution to be in charge of it?
We were caught in between a rock and a hard place as some were pushing for a total ban of the industry. We thought banning it completely wouldn’t guarantee gaming ceases. But it would instead go underground. At that point, there would not be any regulation or follow up especially for problem gamblers. The best solution was to set up a board to study, understand and implement mechanisms of streamlining and effectively regulating it.

What is the revenue target of this industry?
Last financial year, we collected Shs35b in taxes accrued from gaming operations and we have set a goal to raise approximately Shs45b in the 2018/2019 financial year. However, with the introduction of the centralised monitoring system, we should collect more than Shs100b because we shall be able to track every transaction logged by the punters in all gaming outlets.

What is the regional outlook of Uganda in the East African Community?
Being a young institution, statistics are scanty at the moment. However, the tax levied on the operators in Uganda is 20 per cent while Kenya is at 50 per cent. Kenya has one of the highest tax levied in this industry.

What is your goal for the next six months?
The board is focused on enhancing enforcement operations to promote compliance to sector rules and regulations and to stamp out the remaining illegal operations.
The board also intends to intensify communication and sensitisation drives country-wide to demystify gaming operations, rules and regulations to all sector stakeholders and the public. We also intend to roll out a responsible gaming programme aimed at tackling the adverse effects of the sector to the public.

Anything more to Ugandans?
I want to inform Ugandans that with the total ban of gaming and betting activities comes a negative hit on the economy. Who will take in the more than 30,000 unemployed people that are working as operators in the outlets across the country? The rent lost from the establishments left vacant?
Government revenue in form of tax lost alongside the Internet connectivity and utilities such as water and electricity that will now be left unconsumed?
We as LGRB commit to strictly regulate and protect the public from the adverse effects of the sector by identifying, tracking and finding relevant solutions.