Betting companies sue government
Men at a sports betting centre in Arua Town recently. The Lotteries and Gaming Act, 2016 requires firms seeking to start the business to have Shs250m as minimum capital. FILE PHOTO
Kampala- Two gaming and betting companies have dragged government before the Constitutional Court, accusing it of imposing a high minimum initial capital of Shs250m for any company to join the business.
Game Concepts Ltd and Home Bet Ltd have sued the Attorney General and the National Lotteries and Gaming Regulatory Board, a body mandated to issue licenses for, among others, gaming and betting companies in the country.
Core to their petition filed last week, the companies contend that Section 39 of the Lotteries and Gaming Act, 2016 imposes minimum initial exorbitant fees of Shs250m, which they say is intended to discriminate ordinary citizens from joining the gaming and betting business.
They say the fees is against the spirit of the Constitution as it infringes on their rights to participate in a lawful business. They also say the scenario leads to creation of monopolies in the industry.
“This derogation of the petitioner’s constitutional rights is not acceptable or demonstrably justifiable in a free and democratic society,” the petitioners contend.
Human rights
The petitioners add that Section 40 of the Lotteries and Gaming Act, 2016 and Regulation 30 of the Lotteries and Gaming (licencing) Regulations 2017, impose the requirement of a security bond of Shs500m for either betting operations or Shs1 billion for both, which they say is inconsistent with articles 40 (2) and 21 of the Constitution.
“These conditions impose an onerous financial burden calculated to prevent the participation of ordinary citizens from gaming and betting industry,” the petitioners say.
They also aver that Section 67 of the Lotteries and Gaming Act, which makes it an offence to provide facilities for gaming and betting without a licence, is inconsistent with Article 40 (2) of the Constitution which guarantees the right to all persons to participate in a lawful business.
Through their lawyers of Byenkya, Kihika & Co Advocates, the petitioners want the court to issue an injunction against the National Lotteries and Gaming Regulatory Authority from imposing any new burdensome conditions on their businesses.
