Inzozi Lotto row with RDB escalates to arbitration

A dispute between Inzozi Lotto, operated by Carousel Ltd, and the Rwanda Development Board (RDB), through its National Lottery and Gaming Commission (NLGC), has escalated to arbitration, even as a new operator has already taken over the national lottery. In October 2025, RDB, through the NLGC, announced the termination of Inzozi Lotto’s licence to operate the national lottery. ALSO READ: RDB terminates Inzozi Lotto’s licence to operate National Lottery Carousel Ltd has since taken the matter to the Kigali International Arbitration Centre (KIAC), where it is awaiting a hearing date, according to the company’s CEO, Yggers Kristian Mortensen. On September 2, 2025, RDB formally terminated Inzozi Lotto’s licence, citing failure to meet contractual and regulatory obligations. Inzozi Lotto was expected to contribute significantly to sports development in Rwanda under a 2018 agreement signed with the Government, represented by the Ministry of Sports. Under the deal, Carousel Ltd was required to remit 15.5 per cent of its total revenue to the Government in the first year, rising gradually to 24.5 per cent by the ninth year, an annual increase of 1 percentage point. By 2025, the contribution was projected at 18.5 per cent. Regulations also stipulated that 47 per cent of revenues would be paid out as prizes, while 20 per cent would go to the Government to support sports development. Additional taxes, ranging between 18 and 21 per cent, including Value Added Tax (VAT) were also applicable, with the remainder covering operational costs. RDB maintains that these obligations were not fully met. However, Mortensen argues that the Government failed to honour key provisions of the agreement, particularly the clause granting Carousel exclusive rights to operate lottery services in Rwanda. According to Carousel Ltd, it was meant to be the sole lottery operator. The company cites Article 6.1 of the agreement, which obliges the Government to enforce exclusivity in the sale of lottery products. “Instead, other companies, including Ikubire Lotto, Tunga and Tsinda Pe were allowed to enter the market, contrary to the agreement,” he said. Carousel claims that the failure to enforce exclusivity enabled unlicensed operators to sell lottery products, significantly reducing revenues and undermining its operations. It further argues that such operators should have contributed a share of their revenues under its exclusive licence. ALSO READ: Why Rwanda is raising the stakes on gambling regulation In a letter dated September 18, 2025, addressed to the Minister of Justice and Attorney General, Carousel stated that it had consistently met its contractual and regulatory obligations. “Carousel has never defaulted on its obligations or its willingness to pay the Government all its due revenue share,” the letter reads. The company says weak enforcement of exclusivity reduced sales to the point where operating costs could not be covered. It claims to have incurred losses for 42 of its 44 months of operation due to what it describes as unfair competition from unauthorised operators. Carousel also says it held five meetings with RDB CEO Jean-Guy Afrika in an attempt to resolve the dispute, but no action was taken. The company further disputes the legitimacy of the NLGC, arguing that there is no law formally establishing the commission, despite the existence of a policy framework. “To date, Carousel maintains that RDB did not have the authority to terminate its contract, as it was not a signatory to the original agreement,” the company states. However, the Government designated RDB as the regulator of gaming activities through Prime Minister’s Order No. 028/03 of June 28, 2024, published in the Official Gazette on July 3, 2024. While arbitration proceedings are pending, the Cabinet on April 2, 2026 approved a new agreement between the Government of Rwanda and Moja Rwanda Limited to operate the national lottery. When contacted, KIAC Secretary General Victor Mugabe said arbitration proceedings are confidential and declined to provide timelines. RDB had not commented on the arbitration process by press time, saying its legal team was still reviewing the matter. However, it has previously cited Inzozi Lotto’s failure to meet contractual and regulatory obligations. Reports indicate that the Government is seeking approximately Rwf 680 million from Carousel Ltd for 2024. In October 2023, Inzozi Lotto paid about Rwf 640 million, representing 15.5 per cent of its first-year revenue. At its peak, the lottery reportedly generated over Rwf 600 million per month, suggesting potential government earnings of more than Rwf 100 million monthly, equivalent to over Rwf 1 billion annually. During its first year of operation, from November 2021 to November 2022, more than Rwf 600 million was awarded in prizes. Each month, over 15,000 players won, with more than 200,000 winners recorded in 2022 alone. By mid-2025, over Rwf 2.6 billion had been distributed as prizes, excluding additional rewards such as motorcycles and mobile phones. Projections indicate that over the 10-year contract period, the Government could have generated more than Rwf 10 billion in revenue.

News

Inzozi Lotto row with RDB escalates to arbitration