Free Access | January 2026

Socio Economic Effects of Gambling: Evidence from Kampala City, Uganda

Authors/Editors: Corti Paul Lakuma ,  Gemma Ahaibwe ,  Joseph Mawejje ,  Miriam Katunze

Abstract:

Since 2000, the gambling industry in Uganda has grown rapidly, expanding from traditional casinos and lotteries to sports and online betting. Gambling tax revenues grew significantly from UGX 0.24 billion in 2002/3 to UGX 11.1 billion in 2013/14. However, concerns remain regarding harms such as addiction, loss of savings, idleness, and crime. To address these issues, this study investigated: 1) gambling participation in Kampala; 2) socio-economic and welfare impacts; and 3) the effectiveness of the current regulatory framework. An April 2015 household survey in Kampala revealed that roughly one in four adults had gambled in the preceding twelve months, with participation largely determined by age, income, employment status, and gender. The poorest spent a higher share of personal income on gambling, displacing spending on household necessities and savings while causing problem gambling. Although tax revenues are rising, gambling contributed just 0.15% to total revenue in 2013/14. Qualitatively, existing laws are obsolete regarding modern gambling modes, and the National Lotteries Board faces capacity constraints and limited statutory powers that hinder effective regulation. To address these challenges, the public should be protected from overstimulation by restricting advertising, enforcing age restrictions at gambling venues, and limiting opening hours. Parliament should expedite passage of the Lottery and Gaming Bill (2013) to grant the National Lotteries Board statutory power and resolve its financial and capacity constraints. Additionally, negative socio-economic impacts should be minimized by promoting responsible gambling and offering counseling and support to problem gamblers.