Matia Kasaija (Right), the former finance Minister issuing an operating license to Ithuba bosses two years ago
HABARI DAILY I Kampala, Uganda I The Ugandan government’s ambitious plan to use the National Lottery as a reliable source of funding for public development has suffered a major setback following the abrupt closure of ITHUBA Uganda Limited, just two years into its 10-year concession. The unexpected exit not only leaves millions of shillings in unsettled player claims and account balances but also threatens government revenue projections, infrastructure financing, employment, and the country’s growing fintech ecosystem.
When ITHUBA Uganda launched the National Lottery in June 2024, the initiative was promoted as more than a gaming venture. It was presented as a strategic financing tool that would generate billions of shillings annually for critical sectors including education, healthcare, sports and infrastructure while creating thousands of jobs and supporting local businesses.
However, the company’s decision to cease offering National Lottery games on June 30 before formally closing operations on July 1 has raised serious concerns about the sustainability of the government’s lottery strategy and its wider economic implications.
Loss of government revenue
One of the biggest immediate consequences is the loss of anticipated government revenue. Under the concession agreement signed with the Ministry of Finance in 2023, the National Lottery was expected to contribute approximately Shs 87 billion annually in gaming taxes and another Shs 60 billion in non-tax revenues. These projections had become part of the government’s long-term fiscal planning, with lottery proceeds expected to supplement funding for public services and development projects.
The closure creates a significant revenue gap that may force the government to identify alternative sources of financing or revise expenditure plans. Until a replacement operator is licensed and operational, the National Lottery’s contribution to the national treasury is expected to remain interrupted, placing additional pressure on public finances.
AFCON dent
The impact extends beyond government revenues. One of the major selling points of the National Lottery was its role in financing strategic infrastructure projects. Authorities had specifically indicated that lottery proceeds would contribute to national development priorities, including infrastructure linked to Uganda’s preparations for hosting the 2027 Africa Cup of Nations (AFCON).
Road upgrades, sports facilities and other public works earmarked for lottery financing could now face delays if replacement funding is not secured. Such delays would not only affect construction timelines but could also have broader economic consequences by slowing investment, reducing demand for construction materials and affecting employment in the sector.
The closure also represents a setback for job creation. The National Lottery project had been projected to create more than 1,700 direct and indirect jobs over the duration of the concession. These opportunities ranged from corporate positions at the company’s headquarters to regional operations in cities such as Mbarara, Mbale and Gulu.
In addition to formal employees, hundreds of lottery agents and retail businesses depended on commissions earned through ticket sales. Many invested in lottery terminals, trained staff and allocated business space based on expectations of a long-term partnership with ITHUBA. With operations halted, those income streams have disappeared almost overnight, leaving many small businesses facing uncertainty.
Digital financial services feel pinch
The ripple effects are also being felt across Uganda’s expanding digital financial services sector. ITHUBA had invested heavily in building a localized digital distribution network that enabled Ugandans to participate in the National Lottery through mobile money platforms, USSD codes and point-of-sale terminals.
This ecosystem relied on partnerships with local technology firms, payment service providers and digital infrastructure companies, including Tradelance. The sudden termination of lottery operations interrupts revenue streams for these businesses, affecting software providers, payment processors, system integrators and customer support services that had developed products around the National Lottery platform.
For Uganda’s fintech sector, which has increasingly positioned itself as a driver of financial inclusion and digital commerce, the closure highlights the risks associated with dependence on large concession-based projects whose continuity depends on regulatory and commercial stability.
The shutdown also raises questions about investor confidence. ITHUBA entered Uganda after securing a long-term concession intended to run for a decade. Its departure after only two years may cause prospective investors to examine more closely the commercial viability, regulatory environment and operational challenges associated with large-scale public-private partnerships in Uganda.
Investors questions
Although the reasons behind ITHUBA’s exit have not been fully disclosed, the early termination of such a significant concession inevitably prompts concerns among both domestic and international investors about long-term business certainty.
Meanwhile, the National Lotteries and Gaming Regulatory Board (NLGRB) has sought to calm public anxiety by assuring players that their outstanding prizes and account balances remain protected despite the company’s closure.
According to the regulator, ITHUBA remains legally obligated to honour all valid prize claims, player account balances and other financial liabilities arising from its operations. The Board has confirmed that it is actively supervising the transition while engaging the company and other relevant institutions to ensure that all outstanding obligations are settled in accordance with the law.
The regulator emphasized that the cessation of operations does not release ITHUBA from its responsibilities under the National Lottery Licence or the Concession Agreement. It has advised players with pending claims to continue contacting ITHUBA through its official customer service channels while the settlement process remains under regulatory oversight.
The intervention is intended to prevent panic among players while preserving confidence in Uganda’s regulated gaming industry. Failure to settle outstanding claims promptly could undermine public trust in future lottery operations, making it more difficult for any replacement operator to rebuild participation.
South Africa sucked in
ITHUBA’s departure from Uganda comes only weeks after the company also concluded its role as operator of South Africa’s National Lottery, where it had managed lottery operations for more than a decade before its licence expired in May 2026. Operations there were subsequently transferred to Sizekhaya Holdings through a government licensing process.
For Uganda, however, the closure represents more than the exit of a gaming operator. It exposes the vulnerability of relying on lottery revenues to finance national priorities and demonstrates the wider economic consequences that can arise when a flagship public-private partnership collapses prematurely. Until a new operator is appointed and confidence restored, the government faces the difficult task of filling the revenue gap, protecting consumers, supporting affected businesses and ensuring that development projects dependent on lottery funding remain on course.
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