Prime
Govt to use gambling funds to build Afcon stadia
Prime Minister Robinah Nabbanja (R) officially launches the National Lottery as other officials and stakeholders look on. PHOTOS/GOERGE KATONGOLE
What you need to know:
Ithuba, a South African operator, was licensed on August 8, 2023 to exclusively operate the national lottery for 10 years.
The government expects money generated from gambling activities in the country to be used to fund the construction of the Africa Cup of Nations infrastructure.
Uganda was awarded rights to co-host the 2027 Africa Cup of Nations (Afcon) alongside Kenya and Tanzania. The biennial tournament will be hosted in East Africa for the first time since Ethiopia staged the 1976 finals. But all the countries have only one international standard venue which calls for massive investment in new facilities.
Shs590b was allocated for the preparations with a new stadium expected in Hoima at a cost of Shs380b.
Finance Minister Matia Kasaija announced on Friday that the proceeds from Uganda's National Lottery, which was officially launched at Speke Resort in Munyonyo, will be used to fund the development of sports infrastructure for the 2027 Africa Cup of Nations (AFCON). The minister emphasized that the official operator of the National Lottery, Ithuba, will be responsible for generating these funds.
Kasaija revealed that the National Lottery and the Gaming Regulatory Board enabled the government to collect taxes amounting to Shs193b in the fiscal year 2024. With the advent of the National Lottery, the government believes that this figure could grow to Shs300b.
“We envision the National Lottery as a key contributor to our nation's development goals, supporting vital sectors such as education, healthcare, and infrastructure development. I have directed that this financial year's proceeds are earmarked for the development of sports infrastructure as Uganda prepares for AFCON 2027,” Kasaija said.
The Lotteries and Gaming Board chairman Aloysious Mugasa Adyeri said they expect to collect Shs147b annually from which Shs67b shall be dedicated to good causes.
In 2015/2016 gambling activities contributed Shs17.4b yet the industry has grown tremendously contributing Shs193b as of June 30, 2024. More than Shs200b is expected to be collected this financial year.
A game changer
The official launch of the National Lottery marks a pivotal opportunity for Ugandans to contribute to key sectors such as infrastructure, education, healthcare and sports.
Prime Minister Robinah Nabbanja said the government is optimistic about the benefits of the National Lottery for all citizens. She called on the operators to be transparent while urging Ugandans to be responsible in gambling.
“I’m optimistic that the National Lottery is going to significantly benefit our country, offering opportunities to the citizenry across all social classes. I am confident that under Ithuba, we will see growth and integrity in lottery operations,” she said.
Governement officials and stakeholders of the National Lottery pictured after the official launch in Munyonyo.
Impactful
Ithuba, a South African operator, was licensed on August 8, 2023 to exclusively operate the national lottery for 10 years.
Chairmane Mabuza, the CEO of Ithuba Uganda talked about the power of transforming communities through the National Lottery.
"I'm still deeply moved by the story of Phionah, a mother of two who recently won Shs8m in our lottery," said Mabuza. "She came to our offices with a dream of owning land, and her win made that possible. It's inspiring to see how many people use their winnings positively, and we hope to hear more of these stories."
The National Lottery features popular games such as lotto, powerball, daily lotto, and sportstake 10, with estimated jackpots of Shs2.8b up for grabs.
She added that they have got more than 3000 winners since the first ticket was sold in June this year.
Bob Kabonero, the chairman of Ithuba Uganda, stressed the importance of transparency and the lottery’s role in fostering meaningful change and transformation in the country.
"We have endeavoured to uphold international best practices to ensure our operations are transparent and promote significant benefits that contribute to Uganda's development and transformation," Kabonero said.
With an initial investment of $14 million, Ithuba Uganda aims to provide a platform that offers a chance to change individual lives and significantly bolster national revenue and drive economic growth.
National Lottery vs sports betting
The National Lottery and sports betting are both forms of gambling, but they differ significantly. The National Lottery is primarily a game of chance where winners are determined by random number generation or a draw. The odds of winning are fixed, and the prize pool is predetermined based on ticket sales. Lottery games often include various options like numbers, scratch cards, and instant win games. A portion of the proceeds is typically allocated to social or charitable causes.
On the other hand, sports betting involves a combination of chance and skill. Bettors predict the outcome of sporting events, and the odds fluctuate based on factors such as team performance and public betting. While luck plays a role, knowledge and analysis of sports can influence success. Sports betting is primarily considered entertainment, with the potential for winnings as an added incentive.
