The National Lotteries and Gaming Regulatory Board has unveiled plans to amend the Lotteries and Gaming Act, 2016 to introduce stiffer penalties against operators of illegal gambling machines, arguing that the current fine of Shs 960,000 is too lenient to deter offenders.
The proposal was presented by Bernard Winyi, Senior Manager for Finance and Administration at the Board, on January 21, 2026, while appearing before Parliament’s Finance Committee to present the Board’s 2026/27 National Budget Framework Paper.
Winyi told the Committee that the existing law allows offenders to repeatedly violate regulations by simply paying the small fine and resuming illegal operations.
“Our law is weak in terms of curbing illegal operations; it is not deterrent enough,” Winyi said. “Section 67 provides for a fine of 48 currency points, about UGX 960,000, or imprisonment for two years or both. Many offenders plead guilty, pay the fine, and return to the same business.”
He added that the Board is already working on amendments to make the penalties more punitive and effective.
Section 67 of the Lotteries and Gaming Act, 2016 criminalises operating a casino, betting house, bingo facility, or gaming and betting machines without a licence, prescribing a fine not exceeding 48 currency points or imprisonment of up to two years, or both.
However, Section 67(2) provides tougher penalties for businesses that manufacture, supply, install or adapt gaming and betting software without a licence, setting a fine of up to 200 currency points (UGX 4 million) or imprisonment of up to two years, or both.
Sheema Municipality MP Dickson Kateshumbwa urged the Board to work closely with local governments to combat illegal gambling, noting that enforcement costs often exceed the fines collected.
“You may be spending more money on enforcement than you are actually collecting,” Kateshumbwa said. “If you travel to arrest someone over an illegal machine and the fine is UGX 960,000, yet the cost of fuel and operations is higher, then clearly the law needs urgent amendment.”
He further encouraged collaboration with local government structures, including parish chiefs and town agents, to strengthen enforcement at grassroots level.
Kateshumbwa also called for closer cooperation between the Board and the Uganda Revenue Authority (URA) to curb the importation of illegal gambling machines.
“Uganda does not manufacture these devices, yet you have confiscated over 1,400 illegal machines,” he said. “What measures are in place with URA Customs to stop them from entering the country without licences?”
Kiboga East MP Keefa Kiwanuka questioned whether the prevalence of illegal gambling machines contributes to Uganda being ranked among Africa’s top gambling nations.
“Uganda is reportedly among the top three countries in Africa with the most active betting population,” Kiwanuka said. “How are you addressing the growth of unlicensed operators, especially with concerns of minors participating in betting?”
In response, Winyi cited revenue leakages caused by inconsistencies between the Lotteries and Gaming Act and the Income Tax Act, particularly on the base for withholding tax, as well as inadequate funding to support enforcement activities.
The Board also requested Parliament to allocate an additional UGX 3.76 billion to enable recruitment of staff to fully operationalise its regional offices.
Winyi revealed that although the Board has offices in Mbale, Mbarara and Gulu, each currently operates with only two staff members instead of the required seven.
“These regional offices are critical in responding to illegal operations, especially small illegal gaming machines that are widespread in the market,” Winyi said.
