Uganda's National Lottery operator ITHUBA ceases operations
Uganda’s National Lottery operator, ITHUBA Uganda Limited, has ceased operations less than two years after launching under a 10-year licence, prompting the country’s regulator to step in to oversee an orderly transition while safeguarding players, retailers and other stakeholders.
The National Lotteries and Gaming Regulatory Board (NLGRB) confirmed in a public notice issued on 2 July 2026 that ITHUBA Uganda Limited ceased operations effective 1 July 2026. “This is to notify the public that ITHUBA Uganda Limited, the National Lottery Operator, ceased operations in Uganda effective 1st July 2026,” the regulator said.
Players with outstanding claims or account balances have been advised to contact the operator through its official customer care channels by calling 0800 334433 or emailing [email protected]. The regulator did not disclose the reason for the operator’s exit in its public notice.
📣 PUBLIC NOTICE
— National Lotteries and Gaming Regulatory Board (@lgrb_uganda) July 2, 2026
This is to notify the public that ITHUBA Uganda Limited, the National Lottery Operator ceased operations in Uganda effective 1st July 2026.
Players with outstanding claims or balances are advised to contact ITHUBA Uganda Limited through its official channels (… pic.twitter.com/z493hAHF6f
Regulator overseeing transition
In a separate statement, the NLGRB said ITHUBA had formally notified the Board that it stopped offering National Lottery games on 30 June 2026 and ceased trading on 1 July 2026. The regulator said it is overseeing the cessation process under its statutory and regulatory mandate.
According to the regulator, it had been engaging with ITHUBA Uganda over the company’s financial and operational position before receiving formal notification of its decision to halt operations.
The Board stressed that the operator’s withdrawal does not remove its contractual or legal responsibilities. “The Operator’s cessation of operations does not relieve ITHUBA Uganda Limited of its obligations under the law, the National Lottery Licence, or the Concession Agreement,” the regulator said.
NLGRB said it has initiated the necessary regulatory and oversight measures to protect the interests of government, lottery players, prize winners, retailers, employees and other affected stakeholders.
It added that it is working closely with the operator and relevant institutions to ensure an orderly, transparent and legally compliant transition.
The regulator said all outstanding matters, including player balances, prize claims, operational records, liabilities and other obligations arising from National Lottery operations, remain under regulatory supervision and will be handled in accordance with the law.
The NLGRB said players with outstanding prize claims or account balances should contact ITHUBA through its official customer care channels while the regulator continues to oversee the settlement of valid claims and obligations.
The Board said it will issue further public guidance as the transition progresses, reaffirming its commitment to maintaining a transparent, accountable and well-regulated gaming industry.
National Lottery launched with ambitious targets
ITHUBA Uganda entered the Ugandan market in August 2023 after securing a 10-year National Lottery operating licence, subject to annual licence renewals.
The operator was appointed to establish and manage Uganda’s National Lottery as part of the government’s broader strategy to strengthen public revenue generation while promoting responsible gaming.
At launch, the company pledged an estimated US$14 million investment to develop lottery technology, retail infrastructure, operational systems and a nationwide distribution network.
At the time, the government estimated that the National Lottery would generate about UGX 87 billion (approximately US$23.8 million) in annual gaming tax revenue, as well as UGX 60 billion (around US$16.4 million) in non-tax revenue.
The initiative was also expected to create approximately 1,700 direct jobs, while supporting employment across retail, logistics, technology and related sectors.
The lottery was positioned as a mechanism to help fund public services including education, healthcare, sports and infrastructure development.
With the operator exiting less than two years into the concession, questions remain over the future of Uganda’s National Lottery and how the regulator intends to manage the next phase of the programme.
Closure comes amid regulatory activity
The development comes at a time when Uganda’s gaming regulator has been intensifying enforcement against illegal gambling operations.
Earlier in June, the NLGRB announced that it had confiscated more than 8,714 illegal gaming machines across Kampala Metropolitan, Greater Kampala, Northern, Eastern and Western regions. The machines were subsequently destroyed with support from the Uganda People’s Defence Forces’ National Enterprise Corporation (NEC-UPDF).
The regulator said it continues to work to eliminate illegal gaming operations, safeguard players from the risks associated with unregulated gambling and promote a safe, fair and responsible gaming environment across the country.
Gaming tax changes underway
ITHUBA’s exit comes as Uganda moves ahead with changes to its gaming tax framework. Earlier this year, Parliament approved the Lotteries and Gaming (Amendment) Bill, 2026, replacing the previous tiered tax system with a flat 30 per cent tax on gross gaming revenue across betting and gaming activities. The legislation was scheduled to take effect from 1 July 2026 as part of the country’s 2026/27 fiscal reforms.
According to EY’s Global Tax Alert, the 2026 tax amendment package includes a 15 per cent withholding tax on betting and gaming winnings, alongside changes to the taxation of betting and gaming activities.
The reforms form part of Uganda’s efforts to modernise taxation across the gaming industry while strengthening government revenue collection.
Another transition for ITHUBA in Africa
The Ugandan development follows another major transition for ITHUBA Holdings in Africa.
The Ugandan exit comes weeks after ITHUBA handed over the operation of South Africa’s National Lottery to Sizekhaya Holdings, which became the new operator on 1 June 2026.
While the circumstances surrounding the Ugandan exit remain unclear, the closure marks another significant change for one of Africa’s best-known lottery operators.
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