Uganda's NLGRB Enhances Regulatory Framework for National Lottery

Yesterday, Denis Mudene Ngabirano led the National Lotteries and Gaming Regulatory Board (NLGRB) team before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE). The delegation was present to respond to queries raised in the Auditor General’s report for the financial year that ended June 30, 2025.

Expressing gratitude for the oversight, Ngabirano stated, “I thank the Chairperson and Members of COSASE for this important accountability exercise and for the opportunity to explain the progress we have made in addressing the audit findings.”

Addressing Audit Findings and Enhancing Regulatory Frameworks

The Auditor General’s report outlined several core areas of concern. These included the framework for approving gaming products, the processing of foreign software providers outside the electronic licensing system, internal information-systems audit capacity, compliance with procurement reservation schemes, and broader issues of performance measurement and revenue forecasting.

In response, the NLGRB detailed a series of comprehensive corrective measures. Ngabirano informed the Committee that the Board has successfully developed and implemented the Uganda Games Classification and Product Approval Framework. This new risk-based mechanism provides a standardized approach for approving, monitoring, and reassessing gaming products across the sector.

Addressing the processing of four foreign software providers outside the electronic portal, the NLGRB clarified that the digital system initially mandated applicants to hold Ugandan Tax Identification Numbers and URSB registration numbers. To prevent operational delays, these four applications were evaluated and approved manually, with all prescribed fees successfully routed through the URA. The digital platform has since been upgraded and reconfigured to fully accommodate eligible foreign applicants.

Furthermore, the NLGRB highlighted several internal operational improvements, including:

• Commencing specialized information-systems audit training for the Internal Audit team.
• Incorporating specific procurement opportunities for women, youth, and persons with disabilities.
  Refining organizational performance indicators.
• Introducing a new automated monitoring and evaluation system.
   

Financial Accountability and the Future of the National Lottery

When questioned about the significant non-tax revenue shortfall, the Board explained that the deficit was primarily driven by the National Lottery. The lottery's first-year performance fell substantially below projected targets as the initial operator struggled to gain sufficient market traction, ultimately ceasing operations on June 30, 2026.

To protect the sector's integrity, the NLGRB is currently undertaking a thorough exit audit of the previous operator to establish all outstanding obligations and ensure an orderly closure. More importantly, the Board is actively laying the groundwork to relaunch the National Lottery with a new, capable operator to revitalize the project.

Reaffirming the Board's dedication to transparency, Ngabirano concluded, “Accountability is fundamental to effective public-sector leadership. We welcome Parliament’s scrutiny and remain committed to implementing every valid recommendation that strengthens regulation, transparency, and public confidence in Uganda’s gaming sector.”