Have you heard of statements like “one standing a chance to win a car, motorcycle or some money in cash after selecting a given winning number or group of numbers?” or “spin and win” Well that is what is called a public lottery and in case you need to organize one, there are a number of requirements put in place by the National Lotteries and Gaming Regulatory Board before one can lawfully engage in this activity.

The Lotteries and Gaming Act 2016 defines a Public Lottery as“…a game of chance, including a game such as draw lottery or bingo, in which— (i) a person chooses or is allocated numbers; (ii) certain numbers are subsequently selected at random as prizewinning numbers, and (iii) prizes are distributed to persons holding the prizewinning numbers; (b) a game of chance including an instant lottery in which— (i) certain numbers are designated as prize winning numbers; (ii) persons are allocated numbers that have previously been selected at random; (iii) prizes are distributed to persons holding the prize winning numbers;…”

And a National Lottery as a lottery conducted by or on behalf of the Minister responsible for Finance with the view of raising funds for a purpose defined by the Minister. 

Therefore, when a private individual (company or natural person) intends to organize a Lottery on his/her own behalf, the same is termed as a Public Lottery and such a person can only carry out a public lottery on condition that he/she obtains a License from the National Lotteries and Gaming Regulatory Board. It is a criminal offence to conduct and advertise an unlicensed public lottery under the Lotteries and Gaming Act.

However, there are exceptions, whereby a public lottery can be conducted without a license and these are; 

Where none of the prizes in the lottery is in monetary terms;

If the total value of the prizes does not exceed fifty currency points

Where the proceeds of the entertainment, including the proceeds of the lottery, after deducting the expenses of the entertainment, excluding expenses other than for prizes incurred in connection with the lottery and the expenses incurred in printing tickets of the lottery, shall be devoted to a social, charitable or sporting purpose and not for private gain

Where the result of the lottery is declared on the premises on which the entertainment takes place and during the progress of the entertainment.

Unfortunately, most people who organize public Lotteries do so for personal gains and the prizes to be worn are always over and above 50 currency points (UGX 1,000,000). This therefore implies that the intended public lottery cannot be organized without a license since it falls outside the exceptions where a public lottery can be organized without a license. 

The following documents and fees are required to be submitted to the National Lotteries and Gaming Regulatory Board on an application to conduct a public lottery; 

Fill in the Application Form

Proceed to pay the prescribed fees:

Application fees to conduct a public lottery - 10,000,000 UGX (Uganda Shillings Ten Million Only) 

License to conduct a public Lottery - 10,000,000 UGX (Uganda Shillings Ten Million Only) 

Please note that given the fact that the public lottery is for private purposes, the proceeds are taken as income to the organizer and shall be subjected to income tax as provided for in the Income Tax Act.

 Income tax is the tax charged on profits of a business. The rate charged varies with the amount chargeable and it is calculated according to the given tax rate.

Don’t forget to pay your taxes to URA after the public lottery.

Martin Kimbugwe

Casino manager 

0761985160