Ugandan legislators celebrate the launch of the country's new national lottery. As Uganda, Kenya, and Tanzania prepare to co-host the 2027 African Cup of Nations (AFCON), the funds generated by the lottery will play a crucial role in developing the necessary infrastructure. However, there are still some concerns.
"I am optimistic that the national lottery will significantly benefit our country, providing opportunities for citizens of all social strata. I believe that under the management of ITHUBA, we will see growth and integrity in lottery operations," said Prime Minister Robinah Nabbanja.
The official launch of the national lottery was on July 26, but ticket sales had already begun in June.
South African Operator
ITHUBA Uganda, a subsidiary of the South African national lottery operator, was granted the license to be the exclusive operator of the national lottery on August 8, 2023, for a period of ten years.
ITHUBA Uganda has invested over $41 million in the Ugandan national lottery.
"We strive to follow international best practices, ensuring our operations are transparent and make a significant contribution to Uganda's development and transformation," said ITHUBA Uganda chairman Kabonero.
Legislators and Experts' Concerns
The government's decision to select a private company to operate the national lottery has sparked significant dissatisfaction and concerns among legislators.
"We still haven't addressed standard issues, yet now we are launching a large national lottery. We previously had Premier Lottery and JADA, which made some people wealthy," opposition leader Joel Ssenyonyi said when revealing the name ITHUBA.
Different studies have revealed a high prevalence of problem gambling among Ugandan secondary students. Some experts call for measures to protect the public from gambling harms: "In terms of policy, we recommend limiting gambling opportunities to protect the public from excessive gambling stimuli: for example, stricter restrictions on advertising; stricter access controls to gambling venues based on age limits; and restrictions on operating hours," they suggest.
Risks of Highlighting Big Prizes: Emphasizing Financial Gains' Pitfalls
Despite researchers' suggestions on gambling addiction and harms, ITHUBA Uganda's CEO Mabuza promotes the company by emphasizing potential financial gains.
"I am still deeply moved by Phionah's story, a mother of two who recently won 8 million Ugandan shillings in our lottery. She came to our office with a dream of owning land, and her win made this dream a reality. Seeing so many people positively using their winnings, we hope to hear more such stories," Mabuza told the media.
Those who primarily view gambling as a way to make money rather than a form of entertainment are more likely to develop problem gambling behaviors.
Increase in Tax Revenue
The Lottery and Gaming Regulatory Board reports that tax revenue for the past fiscal year was 193 billion Ugandan shillings (about $52 million). With the launch of the national lottery, this figure is expected to rise to 300 billion Ugandan shillings (over $80 million). The increase in tax revenue is mainly attributed to the National Central Electronic Monitoring System (NCEMS) launched in January 2024, which allows real-time tracking of industry activities.
Employment, Infrastructure, Education, Healthcare: Government's Commitment
The partnership is expected to create 1,700 direct jobs and over 100,000 indirect jobs. "The national lottery is not only a means to foster community development, but it is also a catalyst and mechanism for socio-economic transformation. The lottery will benefit people across all regions and sectors of Uganda," said ITHUBA Uganda chairman Kabonero.
Finance Minister Matia Kasaija said, "We see the national lottery as a key contributor to national development goals, supporting vital areas such as education, healthcare, and infrastructure. I have directed that this fiscal year's revenue be specifically used for the development of sports infrastructure, preparing Uganda for AFCON 2027."
The allocation of lottery funds is particularly important as Uganda prepares to co-host AFCON 2027, the first time the event has been hosted in East Africa since Ethiopia in 1976. The government has allocated 590 billion Ugandan shillings ($158 million) for preparations, with the new stadium being built in Hoima expected to cost 380 billion Ugandan shillings ($102 million).
"Every ticket sold is not only a financial opportunity but also a meaningful investment in the development of Uganda's education, healthcare, and infrastructure," said the chairman of the Lottery and Gaming Regulatory Board, Aloysius Mugasa Adyeri.
