In the grand chambers of the Parliament of Uganda, where discussions often tilt toward debt management and fiscal deficits, a rare success story emerged on January 21, 2026. Appearing before the Committee on Finance, Planning, and Economic Development, officials from the National Lotteries and Gaming Regulatory Board (NLGRB) revealed a staggering fiscal performance that has transformed the gambling industry from a shadowed “vice” into a cornerstone of the nation’s non-tax revenue (NTR) pool.
The board’s report was a master class in institutional growth: an eightfold rise in non-tax revenue collections over five years, surging from a modest Shs1.14 billion in FY 2019/20 to Shs8.79 billion in FY 2024/25. By mid-year of the current 2025/26 cycle, the board had already remitted Shs176.7 billionto the national coffers, putting it well on track to exceed its annual target of Shs391 billion.
From Self-Declaration to Real-Time Oversight
For years, Uganda’s gaming sector operated on a “trust-based” system that was inherently flawed. Operators would self-declare their earnings, and the government had little way of verifying the trillions of shillings flowing through sports betting shops and casinos.
Everything changed with the operationalization of the National Central Electronic Monitoring System (NCEMS). This Shs6.8 billion digital backbone has pulled the industry into the light. The NCEMS requires every electronic gaming machine and betting platform in the country to be connected to the regulator’s servers in real-time.
The results of this visibility were immediate and shocking:
- FY 2022/23 (Self-Declaration): Total stakes seen by the government stood at Shs2.4 trillion.
- FY 2023/24 (Post-NCEMS): Stakes “magically” grew to Shs4.3 trillion.
- FY 2024/25: Stakes doubled again to Shs8.3 trillion.
- FY 2025/26 (Projected): The board expects a record-breaking Shs14.1 trillion to be staked by Ugandans.
“The system has enabled us to get visibility and, by doing so, improve tax collections,” noted Bernard Winyi, the acting Executive Director of the Board. By simply knowing exactly how much money is being wagered, the government has plugged massive leakages that previously benefited only the operators.
A Diverse Revenue Stream
The board’s success isn’t just about betting taxes. It has refined its fee structures and licensing processes to ensure every player in the market contributes.
| Revenue Type | FY 2015/16 (Launch) | FY 2024/25 (Performance) | FY 2025/26 (H1 Result) |
| Total Revenue | Shs17.4 Billion | Shs323 Billion | Shs176.7 Billion |
| NTR (Fees/Licenses) | – | Shs8.79 Billion | – |
| Annual Target | – | – | Shs391 Billion |
The State Minister for Finance and Planning, Hon. Amos Lugoloobi, has challenged the board to look even higher. He believes that with continued investment, the sector can move from its current targets to contributing a massive Shs1 trillion annually.
Fighting Illicit Gaming
Despite the revenue success, the Finance Committee highlighted a persistent “black market” that threatens both revenue and public safety. MP Dicksons Kateshumbwa (Sheema Municipality) raised concerns about the influx of illegal gaming machines, which are often disguised during importation.
Winyi admitted to the committee that smugglers have become sophisticated. Machines are frequently imported as “spare computer parts” or “motherboards”—items that are often tax-exempt—and then assembled into gambling kiosks in local workshops. To date, the board has confiscated over 1,400 illegal devices, but the “law of the land” remains a hurdle. The NLGRB warned that current penalties under the 2016 Act are not deterrent enough, with many illegal operators viewing the small fines as a mere “cost of doing business.”
In response, the board is seeking closer collaboration with URA Customs and local parish chiefs to identify and shut down these unlicensed dens, particularly those located near schools and markets.
Revenue vs. Responsibility
With the projection of Shs14.1 trillion being staked this year, some Members of Parliament expressed concern that the government is essentially “taxing the poverty” of its citizens. Hon. Xavier Kyooma (Ibanda North) cautioned that while fiscal gains are commendable, they must not come at the expense of vulnerable households.
“Revenue growth must be consistent and responsible,” Kyooma stated. “We must ensure this does not lead to social harm.”
To address this, the board has earmarked a portion of its Shs17.39 billion budget for the 2026/27 financial year specifically for:
- Responsible Gaming Programs: Sensitization campaigns to warn against the dangers of addiction.
- Consumer Protection: Ensuring that winners are paid promptly and those games are fair.
- Dispute Resolution: Establishing mechanisms for bettors to lodge complaints against rogue operators.
High-End Tourism and 2027
The NLGRB isn’t stopping at sports betting. The board revealed plans to align its regulations with Uganda’s broader tourism strategy. There is growing interest from international hotel chains to establish high-end casinos in Kampala and Entebbe, targeting foreign visitors and high-net-worth individuals.
As the board moves toward a Shs450 billion target for 2026/27, it stands as a rare example of how technology can turn a chaotic sector into a transparent, high-performing asset for the national treasury.
For the Ugandan taxpayer, the message from the Finance Committee is clear: while the social impact of gambling remains a debate, the digital “eye” of the government is now firmly on the money.
