Gambling with our Future? The Benefits and Costs of Legalised Gambling in Uganda
Gemma Ahaibwe is a Research Analyst and Anita Ntale is a Research Associate at EPRC
The overwhelming proliferation of lottery, casinos and sports
betting in Uganda has seen the gambling industry develop in terms of
penetration and revenue generation. Gambling related tax revenue has increased
by about thirty-fold over the past decade, from UGX 0.24 billion in 2002/3 to UGX
7.4 billion in 2012/13. These revenues are set to increase even more with the
introduction of a new 15% tax levied on winnings as per the 2014/2015 budget.
As the government continues to search for more financing options for the
national budget, the gaming industry is fast being recognised as one of the more
underutilised potential tax bases.
In contrast to the welcome revenue and taxes,
gambling is also associated with undesirable socio-economic problems, which
makes it particularly problematic for policy makers. Excessive gambling can
result in financial family distress, and can be a trigger for other negative
externalities on communities like increased crime and higher individual debt.
Consequently, there is an increasing need to find the balance between
capitalising on potential revenues while also curbing socio-economic
costs. A major component of finding this
balance is in comprehensively regulating and supervising gaming
activities/institutions so as to hold them to a code of conduct and make them
more accountable.
Gambling booms amidst inadequate legal framework
Currently, the lottery and gaming industry is regulated by the
National Lotteries Board (NLB) and is guided by the National Lotteries Act of
1967, the Gaming and Pool Betting (Control and Taxation) Act of 1968, and an
addendum of statutory guidelines introduced in 2012/13. However, as
the gambling industry continues to flourish in both pervasiveness and
popularity, it is becoming increasingly evident that several facets of the
current laws and regulations are significantly out-dated with the introduction
of new games and technologies. With the relatively weak regulatory framework
and inadequate capacity of the NLB to regulate all gambling and betting
activities in the country, efforts are underway to amend the current laws and to
establish the National Lottery and Gaming Board to comprehensively regulate the
industry and raise revenue.
More often than not however, the push to legalise and regulate gambling
is primarily driven by the will to enhance tax revenues and not the need to
control and curtail the resultant social costs. This is underpinned by the
thinking that the generated revenue represents a significant net social gain. However,
this gain can be offset by increased government expenditure where additional
resources are redirected to address problem gambling/addiction induced problems
like crime, suicide, debt dispute settlements and costs incurred to ensure that
gambling operates according to government regulation.
Other
than the prospective revenue gains, development of the gambling industry has
the potential to increase employment opportunities through direct employment at
gaming venues and indirectly through gaming related sectors. However, most jobs
at gambling venues are low paying and part time positions and generally require
skills like accounting, computer operations, card dealing, crowd control,
security etc. hence growth in the industry is likely to pull
skilled workers from other businesses and professions. In addition, the skills
requirements would exclude rural less skilled dwellers from employment in the
industry.
Furthermore,
gambling has a differential financial impact on people of different socio
economic levels. It is largely
economically regressive and thus poses particularly different challenges in
developing economies. Research shows that poorer people spend/lose
disproportionately more income in gambling activities than those with higher
incomes, and the costs are not borne by gamblers alone. Only research can
ascertain whether this phenomenon holds for Uganda.
Critical
need for research to analyse the benefits and costs of gambling in Uganda
As the debate on the economic viability of
gambling and its effect on the society continues, the Economic Policy Research
Centre (EPRC), is currently undertaking a study to investigate the
applicability of lottery and gaming in the Ugandan context and its
socio-economic implications. The study seeks to understand how lottery and
gambling impact on various aspects of welfare and economy; What sections of the
population are most affected; and to benchmark Uganda’s regulatory framework
against other countries that have legalized gambling and reaped benefits from
the industry with minimal social costs. The findings of this study will inform
the policy formulation in the gambling industry in Uganda.
nice post
ReplyDeleteLATEST ADMIT CARDS EXAM HALL TICKETS
It is so nice content. I am very impress whit this content. I have experience of winning the betting games. I have won a lot betting on sports with the help of Sport Pick. I would love to recommend it to you.
ReplyDeleteThanks, that was a really cool read! 5Dimes Sportsbook
ReplyDeleteYour website is really cool and this is a great inspiring article.
ReplyDeleteOnline Gambling History
This oversight was characteristic of early research on gambling addiction because online casino
ReplyDeleteEarn Extra Money Tips . Why do as such a few individual fund destinations concentrate on costs LESS rather than earning MORE? Since most individual finance advices.
ReplyDeletejak można zarobić pieniądze
It is so nice content. I am very impress whit this content. I have experience of winning the betting games.
ReplyDeletethanks for sharing...
www.golden-slot.com
gclub
GCLUB CASINO
gclub online
This is really a nice and informative, containing all information and also has a great impact on the new technology. Thanks for sharing it,
ReplyDeletepoker online
Perfect example of speculation, empathy and expression. Here I learned a new way to speculate through author’s writing. It allowed me to feel a new way to speculate your thoughts and express them in an easy and clear way.
ReplyDeleteบอล สเต็ป
I really enjoyed reading this post, big fan. Keep up the good work andplease tell me when can you publish more articles or where can I read more on the subject?
ReplyDeleteSports Betting Tips
This is very interesting content! I have thoroughly enjoyed reading your points and have come to the conclusion that you are right about many of them. You are great.
ReplyDeleteDomino QQ
I don't think, however, that I could have utilized the PC and not played. The draw felt compelling.jetwin bitcoin casino
ReplyDeleteIf you want to earn money online you can join this app and its refer and earn program will give you daily basis income
ReplyDeletePart load Services
transporters in delhi
transporters in mumbai
An online gambling club blog would be a decent wellspring of this data and this data is only a couple of snaps from you. แทงบอล
ReplyDeleteI admire what you have done here. I like the part where you say you are doing this to give back but I would assume by all the comments that this is working for you as well.
ReplyDelete스포츠토토
ReplyDeleteAw, this was a very nice post. Taking the time and actual effort to produce a superb article… but what can I say… I procrastinate a whole lot and never manage to get anything done score prediction today.
predictionmania