By our reporter
Betting businesses are highly regulated in countries that are aware of their repercussions on the population, especially a young and vulnerable population like Uganda’s. For that matter, it is important that any business that deals in betting or gaming, should be scrutinised effectively before it is allowed to operate in any country.
In December last year, Lidtech Uganda a subsidiary of Lidtech Africa launched a new gaming product known as ‘Takula Cash’; a fun scratch-and-win-instantly game, with shs5 billion in Prizes.
Ugandans received the lottery with open arms and many of them bought tickets to scoop a chance of winning millions of cash.
The cash prizes ranged from shs2,000 up to shs10 million.
The lottery operator had promised that all low tier prizes below shs4 million would be instantly redeemable via Mobile Money whereas tiers above shs4 million would be paid from the company’s offices.
However, Lidtech Uganda has reportedly closed its operations in Uganda, without formally announcing to the public.
Games and betting are businesses known to be collecting millions of cash, and ‘Takula cash’ tickets, could have collected some millions before Lidtech Africa pulled out of market.
According to our source at Lotteries and Gaming Regulatory Board, Lidtech Uganda through its parent company Lidtech Africa failed to fulfill the national lottery license obligations, leaving several suppliers unpaid, as well as paying taxes to Uganda Revenue Authority (URA) late.
“Lidtech failed to fulfill national lottery license obligations, suspended operations without notifying the public who had bought tickets, failed to pay the National Lottery and Gaming Board, and suppliers,” said the source.
Owned by a South African investor Sybrand van der Spuy, Lidtech Africa is a pan-African Lottery company based in South Africa and it has been having the same issues across Africa, particularly Zambia.
Mr Sybrand van der Spuy contacted Watchdog Uganda on Saturday October 6, 2018, explaining that Takula Cash was frustrated by a local partner called Mena, they are contemplating suing, for breach of contract. Sybrand admitted that some suppliers have not been paid, but, they have paid statutory dues “albeit late”.
This is a developing story: