Sports Betting

The article that follows was in a local newspaper. I am must admit I have not read it yet but I felt this is something worth talking about from an economic perspective. One of the challenges the country has is creating jobs for the youth and if a country has got to improve these jobs will be in value adding agricultural production and technology jobs. One of the thugs in town today is gambling also know as sports betting. Those with money go and bet who is going to win a specific game may be a football match, boxing tournament, horses even goat and dog races. 

From the government point of view, gambling is the source of revenue. It finds a way of taxing those who have money and want to waste it on gambling. This is a lottery which is worldwide. For those who get the licences from government, they normally make a killing out of the gambling. Government may collect 30% as tax from every shilling spent and the organizer may give back 10% to those who are betting and after expenses, pockets the difference. Those who run it can take away a lot of money. The unsuspecting public enjoys the fun while the organizer enjoys the profit. Life is not sympathetic to poor people. It is mostly the poor that go into betting. Reports in Kampala are that the majority of the boda boda riders spend part of what they earn on betting. Poor lads just lose the money which is hard earned. Many are even reported to even sell their motor cycles or to run away because they cant face the owners of the motorcycle when they continuously make a loss. For an economy like Uganda, the poor are becoming poorer because of their ignorance. What always amazes me is why does the national lottery fail and the international ones succeed.