Uganda is planning a big change with the new gambling reform it has introduced. It is a bold step for the country. The government is requiring all casinos, sportsbooks and any other betting platforms in Uganda to carry out all transactions through a single, official, government-operated payment system. In theory, it actually looks pretty good: deter tax evasion, eradicate illegal operatives and keep dirty money out of the system.
The central hub, according to the 2025 Tax Procedures Code Amendment would be one licensed by the Bank of Uganda and connected directly to the Uganda Revenue Authority. What for? Basically, getting hold of tax information at any level and zero leakages. Apart from that, regulators believe it will assist in better money laundering and suspicious activity detection.
On the other hand, some analysts doubt it will be so easy. For example, Innocent Davis Bamurike, a betting entrepreneur and industry insider, tells us the authorities have been planning this for a long time as they think that some operators understate their revenue. Nevertheless, he warns that establishing the single gateway does not necessarily compel everyone to play by the rules.
Getting around this new system will lead to harsh consequences, as the operators can be fined a maximum of UGX110 million or twice the amount of their tax debt. But the problem is this: illegal operators who aren’t a part of the system to begin with can’t really be fined for taxes they never declared. This loophole might allow underground gambling to continue just like before.
According to industry experts such as Najib Balinda, there will be even more challenges apart from these. For instance, the system might not be able to handle the heavy traffic during the weekends when there is an increased betting activity. Besides, the dependence on mobile money in Uganda may be a source of several technical difficulties. In fact, even a brief network failure could result in thousands of transactions being left unresolved, which would not only annoy the users but also the operators.
On the other hand, companies that are licensed worry that the reform will be the cause of their biggest problems, what with the 30% tax on gaming revenue, 15% withholding tax on winnings and the cost of integration. This might lead to small players withdrawing completely, thereby making it easier for offshore or crypto-based betting sites to take over the market.
The reasons for Uganda’s new gambling gateway are good: transparency, proper taxation and a cleaner industry. However, if the system is not very well built and thoroughly tested, it might very well turn out that it will be forcing legitimate operators unlike the shadow market which is its real target.
Editor-in-chief and creator Cole Smith of casinocurrencies.com, has extensive experience with casino payment systems, The site was created to provide an honest and trustworthy resource for online gambling players.