Commences operation of nationwide lottery managed by private entities in Uganda
Freshened-Up Article:
The East African nation of Uganda is bustling with excitement as the long-awaited National Lottery officially gets underway. With the 2027 Africa Cup of Nations (AFCON) on the horizon and Uganda, Kenya, and Tanzania hosting the event, the funds raised by the lottery are expected to be a game-changer in developing the essential infrastructure needed for such a massive event. But, as with most betting enterprises, there's a cloud of controversy lurking.
Prime Minister Robinah Nabbanja exudes optimism, saying, "I reckon the National Lottery is going to be a win for our country, providing opportunities for every social class. I got faith we'll see growth and integrity in the lottery operations under ITHUBA." The official launch took place on July 26, with lottery ticket sales already underway since June.
A Helping Hand from South Africa
ITHUBA Uganda, a subsidiary of the South African National Lottery operator, landed the exclusive 10-year license to run the National Lottery. The company has already invested over $41 million into Uganda's lottery endeavor. Kabonero, chairman of ITHUBA Uganda, assures that the operations will follow international best practices, supporting Uganda's development through transparency and significant benefits.
Cause for Concern Among Lawmakers
The decision to bring a private company aboard to manage the national lottery has stirred quite a commotion among politicians. MP Joel Ssenyonyi, the opposition leader, expressed his discontent, "We've yet to work out standards, and suddenly a massive national lottery pops up. We used to have Premier Lottery and JADA, and they turned some folks wealthy."
Problem Gambling: A Thorny Issue
Experts have raised concerns about the prevalence of problem gambling among Ugandan secondary school students, with multiple studies revealing alarming statistics. They urge changes to protect the population from gambling-related woes: "Policy-wise, we propose that the public should be shielded from excessive gambling temptation by implementing stricter advertising regulations, tighter age restrictions for gambling establishments, and shorter operating hours," they advise.
A Fortune Awaits: The Pros and Cons
In disregard of these concerns, the CEO of ITHUBA Uganda, Chairman Mabuza, gladly touted the company's potential financial gains. He shared the inspiring story of Phionah, a mother of two who won a life-changing sum in the lottery, making her dream of owning land a reality. However, gamblers who view gambling primarily as a means to make money rather than a form of fun are more likely to develop problem gambling behaviors.
Revenues on the Rise
The Lotteries and Gaming Regulatory Board reported a tax collection of approximately $52 million over the past fiscal year and projects this figure to reach over $80 million with the introduction of the National Lottery. This significant increase is attributed to the launch of the National Central Electronic Monitoring System (NCEMS) in January 2024.
Expecting 1,700 direct jobs and over 100,000 indirect jobs, the partnership promises to serve as a catalyst for socioeconomic transformation. The government intends to allocate the lottery funds towards sectors such as education, healthcare, and infrastructure development, with a focus on the upcoming AFCON 2027 preparations.
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Footnotes:
- Excessive gambling fostering problematic behaviors, particularly among secondary school students, is a concern.
- Researchers argue that aggressive advertising, coupled with inadequate safeguards, could lead to an increase in gambling-related harms among young people.
- Ugandan secondary school students are at risk of problem gambling due to the prevalence of the issue, as multiple studies have revealed alarming statistics.
- As Uganda prepares for the 2027 Africa Cup of Nations (AFCON), the funds raised by the newly launched National Lottery, operated by ITHUBA Uganda, a subsidiary of the South African National Lottery, are anticipated to play a significant role in funding the essential infrastructure needed for the massive event.
- Despite concerns about the potential for problem gambling and criticism from politicians, ITHUBA Uganda is highlighting the social benefits of the lottery, such as the life-changing fortune won by Phionah, a mother of two, who became the owner of land through the lottery.
