KAMPALA, UGANDA —:ITHUBA Uganda Limited, the company handed a 10-year licence to run the country’s first National Lottery, has collapsed barely two years into that agreement, stopping the sale of lottery games on 30 June and closing its doors entirely from 1 July, the industry regulator has confirmed.
In a statement issued on Thursday, the National Lotteries and Gaming Regulatory Board said it was managing the fallout of ITHUBA’s exit under its statutory and regulatory mandate and in line with the terms of the National Lottery licence and the underlying concession agreement. The regulator said it had been engaging ITHUBA over its financial and operational position before receiving formal notice that the company was walking away from the business.
The Board was emphatic that stepping back from day-to-day operations does not let ITHUBA off the hook. It said the company remains bound by its obligations under the law, its National Lottery licence and the concession agreement, and that it is now taking regulatory and oversight measures to protect government, players, prize claimants, retailers, employees and other stakeholders caught up in the shutdown.
The regulator said it is now overseeing an orderly transition and is engaging relevant institutions and the operator itself to ensure the process is accountable and legally compliant. It added that all outstanding matters, including player balances, unpaid prize claims, company records and other operational liabilities, remain subject to regulatory supervision and due legal process.
Players with pending claims or wallet balances have been told to reach ITHUBA through its official channels, on 0800334433 or by emailing info@nationallottery.go.ug, while the Board continues to monitor compliance and the settlement of valid claims. Further public guidance is expected in the coming days.
A Confident Launch, a Swift Collapse
The closure marks a striking reversal for a venture that was launched with considerable fanfare less than two years ago. Then-Finance Minister Matia Kasaija awarded ITHUBA Uganda Limited, a subsidiary of South African lottery operator ITHUBA Holdings, a 10-year licence to run the country’s first National Lottery, with the company publicly committing to operate the lottery until 2033. At its launch, NLGRB officials said the arrangement would keep more than 85 percent of lottery proceeds inside Uganda and pointed to ITHUBA’s pledge of over $14.5 million in start-up capital.
In its early months, ITHUBA Uganda reported paying out more than shs3.6 billion to over 520,000 winners and expanded into regional offices in Mbarara, Mbale and Gulu, while striking distribution partnerships, including with fintech firm Tradelance, to widen access to tickets through USSD, mobile apps and point-of-sale terminals. The company had also touted plans to channel proceeds toward public projects, including infrastructure tied to Uganda’s hosting role for AFCON 2027.
None of that groundwork prevented the sudden collapse announced this week, barely two years into a licence that was meant to run for a decade. The NLGRB statement did not detail the specific financial difficulties that led ITHUBA to cease trading, and the company had not issued its own public statement on the closure by the time of publication.
ITHUBA’s Ugandan exit echoes, in miniature, the more turbulent handover the parent company navigated in South Africa earlier this year, when its licence to run that country’s National Lottery ended after 11 years and was replaced by a new operator, a transition that was itself marred by disputes over data handovers and delayed prize payments. Whether Uganda’s transition to a new arrangement will follow a similarly rocky path remains to be seen, with the NLGRB signalling that more guidance will follow as it works through the wind-down.
This is a developing story and will be updated as more details emerge.
