Online gaming now generates over 68% of Uganda’s gaming tax receipts

Uganda’s gambling regulator says digital gaming has become the dominant source of sector tax revenue, even as lawmakers press for tougher action against illegal machines, unlicensed operators and offshore websites, particularly in rural areas.

Online gaming now accounts for more than 68% of Uganda’s gaming tax collections, according to the National Lotteries and Gaming Regulatory Board (NLGRB), highlighting the rapid shift of the country’s gambling market toward digital channels. Chief Executive Officer Denis Mudene Ngabirano disclosed the figure during an appearance before Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE).

Ngabirano attributed the growth in tax collections partly to the regulator’s National Central Electronic Monitoring System, which gives authorities greater visibility over online transactions and supports tax reconciliation. Gaming-sector tax revenue increased from UGX194 billion in FY2023/24 to UGX368.02 billion in FY2025/26, according to figures presented by the regulator.

The shift online has also changed the regulator’s enforcement priorities. The NLGRB reported that it has confiscated 9,983 illegal gaming machines over the past six years, including 4,400 during FY2025/26 alone. Of the total seized, 6,749 have already been destroyed under court orders.

Digital enforcement is expanding in parallel. Working with the Uganda Communications Commission and service providers, the Board says it has blocked or disrupted 57 illegal gaming websites. The regulator has also been engaging telecom operators and internet service providers to move beyond reactive blocking toward faster identification of unauthorised platforms and stronger public-protection measures.

Despite those figures, MPs told the regulator that illegal gambling remains a serious problem outside major urban areas. During the COSASE hearing, lawmakers argued that unlicensed gaming machines, lotteries and betting businesses are increasingly appearing in rural communities where monitoring and enforcement are weaker. They called for more aggressive licensing checks and enforcement operations.

Kalungu County West MP Joseph Ssewungu specifically raised concerns about gaming and lottery businesses operating in rural districts without adequate supervision, while other members urged the Board to ensure greater fairness between online and land-based taxation. Parliament also called for stronger public-awareness campaigns around excessive gambling and its impact on productivity and household welfare.

The NLGRB says overall compliance among licensed operators improved from 68% in FY2024/25 to 79% in FY2025/26. Over the past three years, it has also processed 26 prosecutions involving illegal operators and suppliers, with 22 resulting in convictions.

Uganda’s latest figures underline a two-sided regulatory challenge. Online gaming is becoming increasingly important to public revenue and easier to monitor through digital systems, but illegal land-based equipment and unauthorised online platforms remain significant enforcement problems. Parliament’s message to the NLGRB is therefore that stronger digital oversight must be matched by more visible enforcement in rural communities.