KAMPALA, Uganda — Starting in the 2025/2026 fiscal year, all betting, casino and gaming operators in Uganda will be required to process payouts through a centralized system managed by the Bank of Uganda, under a new proposal by the Ministry of Finance.
The measure, introduced in the Tax Procedures Code (Amendment) Bill, 2025, aims to improve tax compliance and curb illicit financial transactions within the gaming sector. The bill is currently under review by Parliament’s Committee on Finance.
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According to the bill, “An operator of a casino, gaming or betting activity shall only receive a wager or money staked and only make payouts through the gaming and betting centralized payments gateway system licensed by the Bank of Uganda under the National Payments Systems Act.”
The proposed system will be linked to the Uganda Revenue Authority’s electronic notice system and is one of several tools designed to enhance transparency and tax collection.
Eric Odongo, an economist at the Civil Society Budget Advocacy Group, said the initiative is intended to track betting-related revenues and close existing tax loopholes. “The Ministry of Finance is trying to address irregular tax remittances in the sector,” he said.
National Lotteries and Gaming Board (NLGB) CEO Denis Mudene Ngabirano said the centralized payments system is part of a broader effort to shield the sector from being exploited for money laundering and terrorism financing.
“There is a likelihood that this sector can lead to money laundering and terrorism financing, but we are working with the Financial Intelligence Authority and other agencies to curb that risk,” Ngabirano said.
He also cited illegal gaming operations in rural areas as a growing concern, noting that the NLGB has begun establishing regional offices in Gulu, Mbale and Mbarara to strengthen oversight.
The Tax Procedures Code (Amendment) Bill is one of seven tax bills tabled to expand Uganda’s tax base. Others include the Income Tax (Amendment) Bill, Excise Duty (Amendment) Bill, VAT (Amendment) Bill, Stamp Duty (Amendment) Bill, Hides and Skins (Export Duty) (Amendment) Bill, and the External Trade (Amendment) Bill.
Junior Finance Minister Henry Musasizi told lawmakers last week that the bills are designed to create “a fairer and more predictable tax environment” while reducing loopholes that lead to revenue loss.
The Uganda Revenue Authority has been tasked with collecting Shs36 trillion in domestic revenue for the 2025/2026 budget, which is projected to total Shs71 trillion.
Under the new legislation, any operator found issuing payouts outside the centralized system would face steep penalties. The proposed fine is either double the tax due or 5,500 currency points—equivalent to Shs110 million—whichever is greater.
Ngabirano reported improved compliance in the gaming sector, with Shs194 billion collected in the 2023/2024 financial year. As of February 2025, the NLGB had collected Shs189 billion and projects revenue will reach Shs250 billion by the end of the current fiscal year.
The Finance Committee is expected to receive feedback from stakeholders before compiling a final report on the bill. The full House will then vote on whether to adopt or reject the proposed changes.
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