How Uganda’s Road to Cash-less Economy Aid Online Betting and Gambling

Uganda has experienced a significant increase in the use of the internet and mobile device-based banking, as well as in debit and credit card usage, as the country steadily advances towards a cashless economy.

Consequently, the considerable penetration of mobile devices thanks to the competitive mobile market ecosystem has been pivotal to the penetration of the technology that has been instrumental in making mobile devices affordable, which 49% of the populace having access to mobile phones. The success of the technology has accelerated a cashless economy, with a report from the Bank of Uganda stating the country now has 2.9 million active debit cards. This has spurred the growth of online betting and gambling in the country, coupled with mobile money success, that 46% of the population use the service to deposit on their preferred sports betting wallets. However, in the country betting on sports is the most popular form of gambling.

In contrast, gambling and betting on national and international sporting events is almost a sort of national pastime for the ordinary Ugandan people; 70% bet daily, according to a report by the PRC, which mobile phone is the first choice tool for players as it is now a norm and mobile-first strategy the norm for sports betting operators. Interestingly Uganda is one of the emerging gambling markets in Africa. Today Ugandans are avid gamblers who once faced several challenges of solving problem gambling in 2012 due to the alarming numbers of youth who are having social issues relating to under-regulated and impoverishment of the lowest economic class that is the most vulnerable to the economic effects of excessive gambling.

However, the drive toward a cashless economy is evident in Uganda at the National Social Security Fund in Kampala Atingi-Ego; the Deputy Governor of Bank Uganda said that the Eastern African country is looking to establish a ‘cash light’’ before growing into a cashless economy. Atingi-Ego added that the “most efficient way to bring all Ugandans into the money economy lies in democratizing access to e-payments.”

Though there is little doubt that COVID-19 accelerated digital payment due to restrictions placed on movement, mobile money transaction values have increased by 46% in the twelve months ending March 2022. Internet and mobile banking transfers also increased by 82% and 146%, respectively. “Regarding the card transactions, the number of active debit cards increased by 12.4% from 2.59m in March 2021 to 2.91m in March 2022,” explained Atingi-Ego.

“Debit card transaction volumes increased by 28.01% from 4.4 million transactions in March 2021 to 5.68 million in March 2022. While credit card transaction volumes increased by 62% from 142,350 to 230,910 transactions over the same period.”

According to Atingi-Ego, there are several challenges to financial inclusion in Uganda, including “limited interoperability for card payments”, which has “kept transaction fees high, resulting in low usage at ATM/POS terminals” across the country. “Other factors that inhibit usage include cyber security threats and related online fraud.” Uganda is keen to speed up the implementation of the National Payment Systems Act, which it hopes will “support financial innovations” after establishing they can test a “regulatory sandbox financial innovations under the oversight” of the central bank.

Interestingly the drive for a cashless economy will propel the growth of online betting and gambling in Uganda. The inclusion drive will be a game-changer that will position the Uganda gambling and betting industry in years to come as one of the hot-spot for Africa’s online betting.

About Post Author