Ithuba Uganda Ltd, the operator of Uganda’s National Lottery, is no longer operational, leaving major infrastructure subsidies in the pipeline indefinitely.
Announced by the National Lotteries and Gaming Regulatory Board of Uganda (NLGRB), the abrupt cessation of Ithuba’s local operations has initiated a procedure within the applicable licensing and concession framework, so that the regulator can ensure an orderly transition.
Ithuba took on the 10-year licence in August, 2023, successfully passing the relevant tender process to oversee the National Lottery of Uganda. The operator made an initial investment of $14m (£10.5m), with additional commitments to further develop the lottery’s infrastructure and technology.
Initial government estimates projected annual contributions of around UGX 80bn (£16.3m) in tax revenue, which would’ve been diverted into public infrastructure, education, health and sports initiatives, with the National Lottery treated as a long-term investment into the national development of Uganda.
There were also plans to gradually introduce around 1,700 jobs, alongside other lottery-related employment opportunities, which have now been put behind.
The changing of hands in South Africa was embroiled in some controversy, with players alleging that they were unable to withdraw their winnings on the eve of the transition.
However, Ithuba remained steadfast that it had abided by all necessary procedures when handing over the licence, having submitted all documentation around player records and pending payments to Sizekhaya.