The Tax Procedures Code (Amendment) Bill, 2025, marks a significant milestone in Uganda’s efforts to regulate and modernize the betting and gaming industry. By introducing a centralized payment gateway system, the government aims to enhance tax compliance, increase transparency, and strengthen oversight of financial transactions within this rapidly growing sector.
Centralized Payment Gateway
At the heart of the new legislation is the creation of a centralized payment gateway licensed by the Bank of Uganda under the National Payment Systems Act. This gateway will serve as the exclusive platform through which all wagers placed and payouts made in casinos, sports betting, lotteries, and other gaming activities must be processed.
Rather than allowing operators to handle payments independently, the law requires every transaction to flow through this single, government-approved system. This ensures that all betting transactions are recorded and tracked in real-time, enabling greater transparency and accountability.
Importantly, existing payment methods such as mobile money services (MTN, Airtel), credit and debit cards, and e-wallets will remain available to users. However, these channels must be integrated into the centralized gateway to prevent any transactions from bypassing government oversight.
Betting operators are mandated to complete this integration within 12 months from the commencement of the amendment, using APIs or software tools provided by the Bank of Uganda to ensure seamless compliance.
Enhanced monitoring and tax enforcement
The centralized payment gateway will be integrated with Uganda’s existing digital monitoring infrastructure, including the Telecommunications Intelligent Monitoring System (TIMS) and the Data Monitoring System (DMS). These systems already track mobile money transactions, which account for approximately 92 percent of online betting activities in Uganda.
By linking the gateway with these tools, every bet and payout will be logged comprehensively, allowing the Uganda Revenue Authority (URA) and the National Lotteries and Gaming Board (NLGB) to monitor revenues accurately and in real-time.
This enhanced monitoring capability has already contributed to a dramatic increase in gaming tax revenues, rising from about five million US dollars in the 2019/2020 fiscal year to approximately twenty-six million dollars recently.
With the centralized gateway in place, the NLGB aims to collect around three hundred billion Ugandan shillings in gaming taxes for the 2024/2025 financial year. This system will enable real-time tax assessment and collection, reducing opportunities for tax evasion and ensuring all revenues are properly accounted for.
Compliance, penalties, and impact on stakeholders
To enforce compliance, the law imposes strict penalties on operators who fail to integrate or use the centralized payment gateway. Non-compliance will attract a penal tax equivalent to double the gaming or withholding tax due, or a fine of 5,500 currency points (approximately 110 million Ugandan shillings), whichever is higher. This strong deterrent is designed to ensure that all betting transactions are traceable and taxable.
For betting operators, this means upgrading their payment infrastructure within the stipulated 12-month period. While this may require investment and technical adjustments, it will also bring benefits such as increased operational transparency and reduced risk of illicit activities like money laundering.
Bettors will continue to use their preferred payment methods, but their transactions will now be routed through the centralized system. This could improve trust by providing clearer transaction records and ensuring payouts are processed through a regulated platform.
The Bank of Uganda will oversee the licensing and regulation of the gateway to ensure security and compliance with financial standards. The NLGB and URA will use the data generated to enforce licensing, tax compliance, and responsible gambling measures. Overall, this initiative aligns with Uganda’s broader digital governance strategy and efforts to foster a sustainable, accountable gaming industry.
Read About: itel A90 Specifications, Price, and Availability in Uganda
