Ugandans harvest Shs3 trillion from betting in 10 months

Betting companies paid out at least Shs3 trillion to winning tickets in the 10 months to April, signaling the growth of gaming and betting as an income earner.

In details provided by the National Lotteries and Gambling Regulatory Board, the payout was at least Shs900b higher than the Shs2.1 trillion paid out in the full year to June 2023, which translated to a 90.9 percent return on bets placed during the period.

Details further indicate that during the 2022/23 financial year, Shs2.1 trillion was paid out against Shs2.4 trillion staked in the year.

Mr Denis Ngabirano, the National Lotteries and Gaming Regulatory Board acting chief executive oficer, on Monday noted that “players have staked Shs3.3 trillion from July to date”, which was an increase of Shs1.2 trillion from the Shs2.1 trillion recorded in the half year to December 2023.

“In recent years, there has been a trend towards greater return to players. Payouts have risen from 73 percent in the 2022/23 financial year to now 90.9 percent and this can be attributed to the tax amendments made in the Income Tax Act,”

– he said, noting that there has been rapid growth in stakes, almost doubling the Shs2.4 trillion staked in the 2022/23 financial year.

In March, Mr Ngabirano told Monitor that the gaming and betting industry had grown both in turnover and tax contribution due to increased compliance and licensing, which had led to an increase in the number of betting and gaming companies in Uganda to 45 companies.

Betting and gaming is increasingly becoming a popular industry in Uganda, boosted by the growing popularity of European sports activities among the youth, key among them football.

Projections indicate that tax revenue and stakes are expected to expand further and could double before the end of the 2023/24 financial year.

It was not immediately clear how much tax government generated during the 10 months to April. However, according to data contained in Uganda Revenue Authority Annual Data Book for the period ended June 2023, tax revenue from gambling and betting activities almost tripled in the four years to the 2022/23 financial year.

For instance, during the period, data indicated, tax revenue increased from just Shs49.9b in the 2019/20 !nancial year to Shs133.4b, which was a growth of 37.4 percent in the period under review.

Gaming is subjected to a 30 percent tax on the promoter’s turnover, while winning bets are subjected to a 15 percent withholding tax, in addition to a 20 percent tax levied on the promoter’s winning tickets.

The shift to online

The growth in turnover and payouts has been boosted by a shift in betting and gambling technology, with many companies establishing 24-hour online gaming and betting sites. Gaming is subjected to a 30 percent tax on the promoter’s turnover, while winning bets are subjected to a 15 percent withholding tax, in addition to a 20 percent tax levied on the promoter’s winning tickets.

Government uses taxes, together with stringent liquidity requirements to control betting, given its social impact. However, the various taxes levied on betting have previously been blamed for the exit of various companies in the last 10 years, among which include Sports Betting Africa, 1xBet, and Pulsebet.

Source: monitor.co.ug

About Post Author

Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.