Uganda's gaming industry hits $2.2B amid regulatory reforms
Uganda’s gaming industry has recorded substantial growth over the past three financial years, with annual turnover increasing from UGX 500 billion (US$138 million) in FY2021/22 to approximately UGX 8 trillion ($2.2 billion) in FY2024/25, according to the National Lotteries and Gaming Regulatory Board (NLGRB). The regulator said the industry’s growth has led to continued regulatory and tax reforms.
The regulator said the scale of the industry’s growth reflects the increasing economic importance of Uganda’s regulated gaming market while also highlighting the need for stronger regulatory and taxation frameworks capable of keeping pace with a rapidly evolving digital sector.
According to the NLGRB, Uganda’s gaming industry has evolved from a small land-based market into a predominantly digital one, making traditional regulatory approaches increasingly ineffective. The regulator said the industry’s growth and expansion of digital gaming have increased the need for modern oversight mechanisms to support compliance, consumer protection and sustainable development.
The digital transition has been particularly significant, with the regulator reporting that 93 per cent of all wagering now takes place online. This shift has prompted the NLGRB to move away from relying solely on operator self-declarations towards real-time electronic monitoring.
Real-time monitoring boosts transparency
A key element of Uganda’s new regulatory framework is the National Central Electronic Monitoring System (NCEMS), which became operational in 2024.
Before the introduction of the monitoring platform, the regulator said it had limited visibility into the actual volume of betting activity across licensed operators. Following the system’s implementation, reported betting stakes increased from UGX 4.3 trillion ($1.19 billion) in FY2023/24 to UGX 8.3 trillion ($2.3 billion) in FY2024/25, reflecting improved transparency and oversight.
Uganda's gaming sector turnover grew from UGX 500 billion in FY2021/22 to roughly UGX 8 trillion by FY2024/25 — a sector that can no longer be regulated with yesterday's tools.
— National Lotteries and Gaming Regulatory Board (@lgrb_uganda) July 9, 2026
The harmonised tax framework is designed to capture that growth fairly, fund national priorities, and… pic.twitter.com/kANYSadV4Y
According to the NLGRB, gaming tax collections totalled UGX 323 billion ($89 million) in FY2024/25, with the regulator attributing the increase to improved oversight and stronger compliance.
The regulator said effective supervision must evolve alongside the industry’s rapid growth. By combining enhanced monitoring with updated taxation policies, Uganda aims to maintain a well-regulated gaming ecosystem that supports business growth, government revenue collection and responsible gaming practices.
New tax framework takes effect
The industry’s expansion has also shaped Uganda’s latest tax reforms. From 1 July 2026, the country introduced a harmonised 30 per cent gambling tax together with a 15 per cent withholding tax on player winnings.
According to the NLGRB, the updated tax framework is designed to reflect the expansion of Uganda’s gaming industry. The regulator said the reforms will strengthen oversight of licensed operators, improve regulatory efficiency and ensure the sector makes a fair contribution to national development.
Government projections indicate that, with continued investment and tighter oversight, total revenue collections from the sector could eventually reach UGX 1 trillion ($276 million).
Legislators have described the industry’s evolution into a mobile-first market, supported by widespread mobile money usage and football betting, as one of Uganda’s most significant digital success stories.
Enforcement targets illegal gambling
Despite the industry’s rapid digitalisation, illegal land-based gambling remains a challenge for regulators. The NLGRB reported that illegal gaming machines continue to enter Uganda after being smuggled into the country disguised as tax-exempt computer spare parts, including motherboards, before being assembled locally.
To tackle the illegal market, the regulator has intensified enforcement activities. It has confiscated more than 7,700 illegal gaming devices valued at UGX 8.77 billion ($2.4 million) and destroyed 6,867 machines to prevent them from returning to operation.
The regulator has also established a centralised payment gateway under the Bank of Uganda, through which all wagers and payouts are processed via a single supervised channel.
Responsible gaming remains a priority
The NLGRB has also expanded its focus on responsible gaming as the industry has grown. The regulator cited a 2023 study which found that 99 per cent of problem gamblers were male, while 58 per cent were young people. In response, it has decentralised its services through regional offices in Gulu, Mbale and Mbarara.
The NLGRB said the long-term sustainability of the gaming industry will depend on balancing commercial growth with consumer protection and responsible gaming.
The developments come shortly after the NLGRB confirmed that Ithuba Uganda Limited ceased operating as Uganda’s National Lottery operator on 1 July 2026. The regulator said it is overseeing the transition process in accordance with the Lotteries and Gaming Act, while managing licensing, concession and other regulatory obligations during the handover as Uganda prepares for the next phase of its National Lottery programme.
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