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Taxes from betting to go into Afcon preparations
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Finance Minister Matia Kasaija, other government officials and stakeholders, pose for a photo during the launch of the National Lottery in Kampala. Photo / Courtesy
What you need to know:
- Government expects to collect at least Shs300b from lotteries and gaming in the 2024/25 financial year
Finance Minister Matia Kasaija has said that tax proceeds from gaming and betting will go towards developing Uganda’s sports infrastructure to help the country prepare for the 2027 Africa Cup of Nations (Afcon).
Speaking at the launch of ITHUBA Uganda, Mr Kasaija said the National Lotteries and Gaming Regulatory Board had during the 2022/23 financial year collected a surplus of Shs33b, remitting Shs193b to the National Treasury against a target of Shs160b.
However, he noted that with the entry of players such as ITHUBA, government expects collections from lotteries and gaming to increase to at least Shs300b in the 2024/25 financial year.
“We envision the Uganda national lottery as a key contributor to our nation’s development, supporting vital sectors of the economy. I have directed that this financial year’s [2024/25 tax] proceeds are earmarked for the development of sports infrastructure as Uganda prepares for Afcon 2027,” Mr Kasaija said, noting that the national lottery generates government revenue from a gross sales, including gaming tax, which is estimated to be worth Shs87b, and non-tax revenue, estimated at Shs60b.
In April, ITHUBA, which has so far put in an initial investment of $14m (Shs51.8b), entered in Uganda as the official operator of Uganda’s first national lottery. The company has since established more than Shs2.8b in estimated jackpots for games such as Powerball, Daily Lotto, Spin 4 Cash, and Sportstake.
The sports sub-sector in the 2024/25 financial year is prioritising infrastructural development, focusing on construction of Hoima Stadium and renovation of Namboole Stadium as Uganda prepares for the Afcon 2027.
Hoima Stadium, which is part of Uganda’s joint Pamoja bid with other partner states, is expected to cost Shs280b, with a completion target of December 2025. Earlier this year, Parliament approved Shs152b for the project.
In addition, government needs $30m as commitment fees to host Afcon 2027, a cost to be borne by each of the other East African partner states, including Kenya and Tanzania.
The current budget for this financial year also includes Shs110b allocated for the construction of training facilities across the country in preparation for Afcon.