URA TAX BIG WIN! Gaming Revenue Explodes 12-Fold to Shs173Bn

Uganda Revenue Authority’s (URA) aggressive use of technology to track digital transactions is paying off, with taxes collected from the booming betting and gaming industry shooting up more than 12-fold to Shs172.8 billion in five years.

The dramatic revenue jump has been linked to improved monitoring and greater visibility of betting collections and payouts, particularly transactions conducted through mobile money.

Data from the monitoring programme shows that gaming tax collections rose from approximately Shs13.9 billion in the 2020/21 financial year to Shs172.8 billion in FY2025/26.

This represents an increase of almost Shs159 billion, equivalent to about 1,147 percent, turning the gaming industry into an increasingly important source of domestic revenue.

The massive growth is being hailed as another sign that URA’s shift towards technology-driven tax administration is helping government capture revenue that could previously have slipped through the cracks.

The transformation coincided with the introduction in FY2020/21 of targeted betting and gaming transaction-extraction support provided to URA by technology company Global Voice Group (GVG).

Through the technology, URA can access transaction-level information on betting collections and payouts, particularly those processed through mobile money, and compare the data against declarations made by gaming operators.

Tax consultant Deus Arinda said the ability to independently verify transactions makes it increasingly difficult for operators to under-declare their business.

“When the authority can compare what an operator declares with transaction-level data, it becomes much more difficult to under-declare,” Arinda said.

“That improves compliance without necessarily increasing tax rates.”

TECHNOLOGY BOOST

URA’s monitoring is conducted through the Telecom Monitoring System (TIMS) and Data Monitoring System (DMS), which provide information on activity across telecom and digital financial services.

GVG has also provided URA with a dedicated Business Intelligence platform and credentials that give tax officials direct access to query and visualise customised reports covering betting, gaming and Pay-TV transactions.

This has done away with the previous practice of manually sharing reports for some categories, enabling URA officials to interrogate the data themselves and detect unusual transaction patterns much faster.

The development is particularly significant in Uganda’s gaming industry, where mobile money is extensively used to deposit betting funds and pay winnings, leaving behind a digital trail that can be analysed for tax purposes.

Economist Richard Otema said the surge in collections could give government additional fiscal space to fund development programmes.

“Moving from about Shs14 billion to more than Shs170 billion is significant,” Otema said.

“If government can collect more of the revenue already due from growing sectors such as gaming, it creates additional fiscal space for infrastructure, health and education without continuously turning to new taxes or borrowing.”

DIGITAL TAX NET WIDENS

The gaming windfall mirrors a broader increase in taxes captured through Uganda’s expanding digital economy.

URA data previously showed that combined VAT and Local Excise Duty collections from telecom services, value-added services and mobile money increased by 79 percent, rising from Shs836 billion in FY2019/20 to Shs1.59 trillion in FY2024/25.

Financial analyst Susan Akurut said direct access to transaction data is helping URA improve both revenue forecasting and enforcement.

“Giving URA direct access to query and visualise the data improves the quality and speed of decision-making,” Akurut said.

“Officials can identify trends and anomalies much earlier and focus audits where the revenue risk is highest.”

GVG continues to provide 24-hour technical support to URA, alongside targeted training for officials using TIMS and DMS applications.

URA Commissioner General John Rujoki Musinguzi has repeatedly emphasised the importance of technology in expanding Uganda’s fiscal space by sealing revenue leakages and improving taxpayer compliance without necessarily increasing tax rates.

The latest figures provide a strong indication of what can be achieved when technology is deployed to track economic activity and strengthen revenue collection.

However, the increase in gaming tax collections cannot be attributed to technology alone. Growth in Uganda’s betting market, changes in tax policy and stronger enforcement may also have contributed to the dramatic rise.

Even so, the figures represent a major revenue-collection victory for URA as the Authority continues its push to ensure that businesses operating in Uganda pay the taxes legally due to government.