UGANDA- National Lotteries and Gaming Regulatory Board (NLGRB) shared striking new figures recently. Online gaming now generates over 68% of gaming tax collections nationwide. This growth comes as technology improves monitoring across the sector. The NLGRB has also stepped up enforcement against illegal gaming operations. In fact, the Board has confiscated 9,983 illegal gaming machines over the past six years.

NLGRB Chief Executive Officer Denis Mudene disclosed these figures during an important meeting. He met with Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE). This comes according to a Parliament of Uganda press release.

Technology Drives Tax Collection Growth

The meeting covered several key topics facing Uganda’s gaming sector. Discussions focused on gaming taxation, licencing, and enforcement broadly. MPs questioned the regulator closely about its oversight responsibilities. Mudene explained the technology behind this tax growth clearly.

“Most of the tax we are collecting is from online gaming; it is over 68 per cent,” Mudene said. “The increase was because of the online financial monitoring system we put in place and we plan to digitise all our systems.”

This figure specifically relates to gaming tax collections. It does not reflect online gaming’s overall market share. The NLGRB also highlighted a separate challenge involving land-based casinos. The Uganda Revenue Authority (URA) has reported difficulties here. Specifically, collecting withholding tax from these venues proves challenging. This tax applies to winnings, which prove easier to track electronically.

Enforcement Campaign Targets Illegal Gaming

Alongside these tax figures, NLGRB officials detailed their enforcement efforts. The regulator has confiscated thousands of illegal gaming machines already. Over the past six years, this total reached 9,983 machines. The Board has also blocked 57 illegal online gaming sites during this period.

Mudene addressed a specific enforcement challenge during the meeting. “It is true that we have illegal equipment but they are not imported when assembled, some are imported as electronic spare parts,” he said.

MPs responded strongly to these enforcement figures. They called for tougher action against unlicensed gambling operations. This concern applies particularly to rural areas across Uganda. As a result, COSASE tasked the NLGRB with a clear mandate. The Board must intensify licencing, monitoring, and enforcement efforts. This applies to illegal lotteries, gaming machines, and online platforms alike.

MPs Raise Concerns About Rural Enforcement

Kalungu County West MP Joseph Ssewungu raised specific concerns during the session. He pointed to gaming businesses operated by foreign nationals. These operations have spread into rural areas increasingly. Enforcement in these areas remains inadequate, he argued.

“Many Indians, Chinese and other Asians have established gaming and lottery businesses in rural areas,” Ssewungu said. “Licencing is a source of revenue for your entity because your budget is minimal and our interest is in licencing.”

Ssewungu cited a specific example from his own experience. In Kalungu District, he had previously intervened directly. He helped close several unlicensed lottery businesses operating there. These businesses had been collecting money from unsuspecting residents. Ssewungu asked the NLGRB to clarify its enforcement mechanisms. He argued rural communities bear the greatest consequences from illegal gaming.

Questions Raised Over Online Revenue Capture

MPs also questioned whether Uganda captures sufficient online gaming revenue. Persons with Disabilities (PWD) Representative Bumali Mpindi raised this issue directly. He questioned the effectiveness of the Board’s IT systems. Specifically, he asked whether these systems truly track online revenue properly. The URA had previously reported difficulties collecting these taxes as well.

“You license online gaming companies and they collect a lot of money but the country does not adequately benefit,” Mpindi said. “You are talking about ICT; what is difficult about collecting this money when you have all these systems?”

Budadiri East MP Julius Nakiyi raised a different concern during discussions. He called for fairness in taxing both online and land-based gaming. Nakiyi also urged the NLGRB to boost public awareness efforts. Specifically, he wants more focus on excessive gambling dangers.

Uganda Prepares to Relaunch National Lottery

These developments arrive as Uganda faces another significant transition. The country is preparing to relaunch its National Lottery entirely. The previous operator failed to meet first-year performance projections. As a result, operations ceased on June 30, 2026. The NLGRB is now conducting a thorough exit audit. The Board also plans to appoint a new operator soon. However, no timeline has been disclosed for this relaunch yet.