Uganda moves toward centralized payment system for gambling operators

The gambling industry in Uganda is preparing for significant regulatory changes as authorities advance plans to introduce a Centralized Payment System (CPS) for betting transactions. The proposal is included in the Tax Procedures Code (Amendment) Bill, 2025, which would require casinos, sportsbooks, and other gambling operators to process all wagers and payouts through a single payment gateway once the legislation is enacted.

The system would be licensed by the Bank of Uganda and connected to the electronic notice platform operated by the Uganda Revenue Authority. Authorities say the centralized gateway will allow regulators to monitor betting transactions more effectively, improving financial transparency and ensuring accurate tax reporting across the gambling sector.

The proposed framework includes strict penalties for operators who fail to integrate with the system. According to State Minister for Finance Henry Musasizi, companies that do not connect to the centralized gateway could face a fine equal to double the applicable gaming or withholding tax, or 5,500 currency points.

This penalty currently amounts to around UGX 110 million (approximately €26,000), highlighting the financial risks for operators who do not comply with the new requirements.

Although the proposal has not yet become law, officials say the process is nearing completion. The bill still requires approval from the Ugandan Parliament and final authorization from the President before it can take effect.

Once implemented, the Uganda Revenue Authority will operate the centralized payment gateway, while the National Lotteries and Gaming Regulatory Board will continue overseeing the broader gambling industry.

Authorities state that the centralized system is intended to strengthen tax collection, improve regulatory oversight, and reduce underreporting of gambling revenues. The significant penalties attached to the proposal also signal the government’s intention to enforce strict compliance once the system becomes mandatory.

For now, gambling operators across Uganda are closely monitoring the legislative process, aware that once the law is enacted, integration with the centralized gateway will become a crucial requirement for operating in the market.