Institute for Money, Technology & Financial Inclusion

The usage of mobile money payment systems has become a popular means of transmitting money across different regions in Uganda because of its low transfer charges, quick and easy process, and availability among the unbanked and rural communities of the population. Around 400,000 customers are currently using mobile payment facilities processing around UGX 1.3 billion (US$ 0.5 million) per day. In spite of Uganda’s rising youth unemployment, which would seem to indicate that the youth do not have spare cash, the reality is that the country’s youth--especially those in urban areas--increasingly participate in sports betting using cash as well as mobile money payments.

Nevertheless, there is a knowledge gap with regard to the drivers of sports betting (especially the mobile money payments system) and the socioeconomic implications of this phenomenon. Whereas some betters strike it rich, others continuously lose cash but are not about to stop participating, thereby keeping them in a vicious circle of poverty. This study examines the role of mobile money payments in the practice of gambling in general. Specifically, the study sought to examine the role of mobile money payments (making bets and receipt of payments) in the execution of sports betting in Uganda. An exploratory mixed- methods (qualitative and quantitative) research design was employed. We administered a questionnaire and collected more data using qualitative approaches.

The reasons for gambling among youth are not different from those for adult gambling. Young people who gamble report that fun, the opportunity to win money, and the excitement of gambling on games are the top reasons that they participate. Approximately 5.7% of shops offer online betting facilities. 55% of respondents use both cash and mobile money payments to place bets and to receive payments. Approximately only 25% (37) out of 104 sports betting shops in the country are licensed. This finding is corroborated by Okoth (2013) who reported that sports betting is a booming business in the country although most of the companies are operating illegally, which has significant policy implications for the regulatory environment within which sports betting takes place.