Uganda Moves Toward Centralised Payment Gateway for Gambling Sector, With Heavy Penalties Proposed for Non-Compliance

Uganda’s authorities are urging the country’s gambling operators to prepare for the introduction of a proposed Centralised Payment System that could soon reshape how betting transactions are conducted nationwide.

The system, which is awaiting parliamentary approval, would impose strict requirements on operators and carries a potential penalty of UGX110 million (€26,268) for those who fail to comply.

The proposed payment gateway would be licensed by the Bank of Uganda and connected to the Uganda Revenue Authority’s (URA) electronic notice platform. Officials say the initiative forms part of a wider effort to reform the way gambling payments and winnings are processed across the sector.

Details of the proposal are included in the Tax Procedures Code (Amendment) Bill, 2025. If the legislation is approved, casinos, sports betting companies, and other gambling operators will be required to route all wagers and payouts exclusively through the new centralised system.

Operators who do not comply with the requirement would face steep financial consequences. Henry Musasizi, Uganda’s State Minister for Finance, explained the penalty structure under the proposed law.

“An operator of a casino, gaming or betting activity who does not use or is not integrated with the gaming and betting centralised payments gateway system is liable to pay a penal tax equivalent to double the gaming or withholding tax due or 5,500 currency points, whichever is higher,” Musasizi said.

Under the bill’s provisions, the 5,500 currency points penalty amounts to UGX110 million (€26,268). The scale of the fine highlights the significant financial exposure gambling operators could face if they fail to integrate their systems with the proposed gateway.

The government says the new system is designed to improve transparency in the gambling sector while strengthening the collection of taxes. Authorities also aim to curb the underreporting of gambling revenues, an issue that has drawn increasing scrutiny from regulators.

Although the legislation is still at the proposal stage, officials have indicated that it is nearing completion. They say the measure is “all set to be finalised” once it receives parliamentary approval.

If enacted, the Uganda Revenue Authority would oversee the centralised payment system, while the National Lotteries and Gaming Regulatory Board (NLGRB) would continue its role as the primary regulator of gambling operators in the country.

Government officials say the emphasis on strict penalties reflects a determination to ensure strong compliance once the law comes into force. In the meantime, operators across Uganda’s gambling industry are closely watching the legislative process, aware that once the measure is enacted, failure to integrate with the centralised payment system could expose them to substantial fines and heightened regulatory oversight.

Before the system and its penalties can become law, the bill must first secure approval from parliament and receive presidential assent. Until then, stakeholders in the sector remain in a wait-and-see position as they assess how the proposed reforms could reshape the industry’s operational and regulatory landscape.

By fLEXI tEAM