Uganda Revenue Authority (URA) takes charge of betting pay-outs
The Uganda Revenue Authority (URA) is ramping up its efforts to ensure transparency in the expanding betting and gaming industry in Uganda. In a bid to support a comprehensive strategy for enhancing tax enforcement, the Ugandan government has introduced the Tax Procedures Code (Amendment) Bill, 2025. The bill establishes a framework for a centralised payment gateway system that will transform the management of payments and pay-outs within the gaming industry.
The Bill was tabled before parliament by Matia Kasaija, Minister of Finance, Planning and Economic Development in Uganda. Subsequently, it was published as Bill No. 9 in the Bills Supplement to The Uganda Gazette of March 25, 2025. The bill proposes several amendments, and among them is enhanced tax identification measures such as the use of national identification and business registration numbers being made compulsory.
The centralised payment gateway
The suggested payment gateway is seen as a transformative element in Uganda’s gaming ecosystem. Quoting directly from the Bill, “An operator of a casino, gaming or betting activity shall only accept a wager or money staked and only make payments through the gaming and betting centralised payments gateway system licensed by the Bank of Uganda under the National Payment Systems Act.”
This clause positions the Uganda Revenue Authority (URA) as the principal organisation that tracks financial transactions in the industry, hence laying a solid foundation for revenue collection. In addition, apart from increasing the transparency of operations, the law prescribes sanctions to deter non-compliance.
Under Section 93B, “An operator of a casino, gaming or betting activity who fails to use or is not connected with the gaming and betting centralised payments gateway system is liable to pay a penal tax equal to double the gaming or withholding tax due or five thousand five hundred currency points, whichever is higher.”
Such stringent penalties are an indication of the government’s dedication to ensuring operators are in full compliance with the prescribed regulations. Since the introduction of the bill, the National Lotteries and Gaming Regulatory Board (NLGRB) has drawn revenue targets with a view to collecting UGX 300 billion (USD 81,566,223.90) in gaming collections in the financial year 2024/2025.
Denis Mudene, Executive Director of the NLGRB, described the board’s efforts as follows: “We are onboarding many gaming operators on our National Central Monitoring System to ensure accurate revenue declarations.” He also highlighted the fact that their online system allows the board to “interface with operators and monitor their daily transactions, which leads to honest declarations of revenues.”
As the government anticipates more significant revenue from the gaming sector, an extensive digital governance strategy supports this initiative. Uganda already implemented technologies such as the Telecommunications Intelligent Monitoring System (TIMS) and Data Monitoring System (DMS) to track mobile money transactions related to gaming and betting activities. Introduced in 2016 and 2018, respectively, these systems facilitate real-time tracking of online betting activities that now represent 92% of all such transactions in the country.
Historical context and future implications
The URA’s collection of revenues through these online platforms has seen favourable growth. In the 2019/2020 financial year, using TIMS/DMS data, the URA collected a little over $5 million in gaming taxes. In stark contrast, recent estimates indicate that this figure has grown to approximately $26 million, even after some large gaming operators pulled out of the market.
From 2021 to 2022, data presented by GVG indicated a whopping 301.48% increase in tax revenue from gaming from the previous year, which demonstrated the government’s ability to oversee digital financial transactions. With the growth of the gaming sector, the Tax Procedures Code (Amendment) Bill 2025 gives the Uganda Revenue Authority the authority to take strict steps in managing disbursements and enforcing compliance.
Stakeholders highlight that the developments mark a big leap for Uganda’s digital tax policy. The focus on cross-agency coordination and real-time data integration promises a new chapter of effective revenue mobilisation and governance reform. The launch of a centralised payment system is a significant milestone for Uganda’s gaming industry since it will be geared towards enhancing regulatory enforcement and tax compliance.
With disbursements to be handled by the Uganda Revenue Authority (URA), the prospects of a successful Ugandan gaming sector seem to lie in the harmonisation of incentives between operators and the government. This will ensure that a transparent and fair betting system is established for all stakeholders.
Join the biggest iGaming Community in the world with SiGMA’s Top 10 news countdown. Subscribe HERE for weekly updates from the world’s iGaming authority and exclusive subscriber-only offers.
