• Gaming involves staking money or money’s worth on games of chance where participants stand a chance of winning prizes.
• Betting involves making or accepting a wager on the outcome of a race, competition, sporting event or any uncertain occurrence.
• A lottery is any game, scheme or promotional competition in which prizes are distributed by chance through tickets, numbers or similar methods.

These activities are regulated to ensure fairness, integrity, consumer protection and tax compliance.

The key players involved include;

• Casino operators
• sports betting companies
• lottery promoters
• pool betting operators
• bingo operators
• online and virtual gaming operators
• gaming machine operators
• gaming software providers
• agents of gaming companies
• investors in the gaming industry

members of the public who participate in gaming activities

• Betting: This is making or accepting a wager on the outcome of a race, a sporting competition, another event, or whether something will happen, or is true or false.
• Casino: A licensed establishment where gambling takes place through approved games such as roulette, card games, slot machines and other authorised games of chance.
• Gaming: It means the playing of a game of chance for winnings in money or money’s worth. It also includes gambling. e.g. sports betting, horse betting.
• Lottery: Any game, scheme, promotional competition or arrangement where prizes are distributed by chance through tickets, numbers or similar methods.
• Gaming and Betting Machines: These are eelectronic or mechanical equipment machines used in the gaming and betting activities such as slot machines, electronic gaming machines and electronic betting terminals; every gaming machine must be registered with the National Lottery and Gaming Regulatory Board (NLGRB).
• Licensee: any person or company issued with a licence to conduct gaming activities under the Lotteries and Gaming Act.
• Winnings: The amount received by a player after successfully participating in a gaming or betting activity.
• Stake: means a sum of money or thing of value risked on any gaming activity.

• National Lottery: this is conducted on behalf of Government to raise funds for public purposes approved by the Minister responsible for Finance.
• Public Lottery:  means any lottery in which any member of the public may participate or stake” These include draw lotteries, instant lotteries, bingo, lotto, keno, Powerball and football pools conducted by licensed operators.
• Sports Betting: This is predicting the outcome of sporting events, such as football, basketball, rugby, boxing, athletics, tennis, cricket and horse racing, and staking money on those predictions.
• Pool Betting: This is a form of betting where every player’s stake is combined into a single pot and then divided between whoever predicts the correct outcomes of the pool. Every player’s financial contribution is pooled together, hence the name, to form a jackpot which is shared between whoever predicts the correct outcomes. So, if five players guess correctly, they will each win 20% of the jackpot. If just one person wins, they will win it all themselves.
• Casino Gaming: are gambling games commonly found in casinos such as blackjack, roulette, poker, baccarat, slot machines and dice games conducted in licensed casino premises.
• Virtual Gaming: These are electronically generated sporting events and simulated games offered through licensed gaming platforms.

• The National Lotteries and Gaming Regulatory Board (NLGRB) supervises, licenses and regulates all gaming, lottery, betting and casino activities. Its functions include licensing operators, approving gaming equipment, regulating gaming premises, , protecting the public and promoting responsible gaming.
• The Uganda Revenue Authority (URA) administers and collects the taxes payable by gaming operators.
• The Uganda Registration Services Bureau (URSB) registers business entities before they commence operations, and local governments issue trading licences and other local approvals.

Note: Registering a business with URSB or obtaining a TIN from URA does not authorise a person to conduct gaming activities. A gaming operator must first obtain the appropriate licence from the NLGRB before commencing operations.

Depending on location, an operator may also need a Trading Licence, Physical Planning approvals, Fire Safety clearance and Public Health approvals from local authorities such as KCCA or a municipal council.

The NLGRB issues different licences depending on the nature of gaming activities, and each licence authorises only the activity it specifies:

• Casino Licence (casino games within approved premises);
• Betting Licence (sports betting and fixed-odds betting);
• Pool Betting Licence (pool betting competitions);
• Public Lottery Licence (lotteries open to the public);
• National Lottery Licence (the National Lottery, under Government supervision);
• Bingo Licence (bingo games);
• Gaming Machine Licence (installation and operation of gaming machines such as slot machines);
• and Gaming Software Licence (development or supply of gaming software used in regulated gaming activities).

A licensed operator is expected to comply with all licence conditions, maintain accurate financial records, permit inspections by authorised officers, display the licence prominently at the business premises, pay all prescribed licence fees and taxes, prevent participation by underage persons, ensure gaming equipment is Board-approved, and comply with all applicable tax laws. Failure to comply may result in suspension or cancellation of the licence.

Other general taxes applicable to gaming and betting

1. PAYE: Gaming businesses that employ staff such as cashiers, dealers, security personnel, accountants, marketing officers, branch managers, IT personnel and customer service staff — must register for PAYE, deduct tax from employees’ taxable salaries, file monthly PAYE returns and remit the tax to URA within the prescribed time. (Maintain a threshold of UGX 335,000)
2. Income Tax: like other businesses, gaming operators are taxed on their taxable business profits. Operators should maintain proper accounting records, prepare annual financial statements, file annual income tax returns and pay income tax due within the prescribed timelines.
3. VAT: where a gaming operator makes taxable supplies that require VAT registration like owning a restaurant/bar and VAT on imported services, the operator must register for VAT, issue tax invoices where required, file VAT returns, and remit VAT collected to URA.

Note:

Every gaming business registered for income tax should also submit an annual income tax return declaring its taxable income and tax payable for the year.

A gaming and betting operator should maintain the following business records;

• Financial records (cash books, bank statements, general ledgers, trial balances, financial statements)
• Gaming records (total amount staked, total winnings paid, gaming revenue, betting revenue, daily gaming reports, machine reports, jackpot records)
• Employee records (payroll, PAYE schedules, employment contracts, staff attendance records) and
• Tax records both on DT and Customs (tax returns, payment receipts, withholding tax schedules, correspondence with URA and customs declarations).

Note:  Existing URA guidance recommends keeping such records for at least five years from the date they are generated.

The NLGRB and URA may inspect gaming premises to ensure compliance with licensing conditions and tax laws. During inspections, operators may be required to produce licences, gaming machine approvals, accounting records, tax returns, payment records, betting records and employee records. Operators are expected to cooperate with authorised officers during inspections conducted under the law.

The Lotteries and Gaming Act creates offences intended to protect the integrity of the gaming industry, including: