Inzozi Lotto, whose operations have been halted following the termination of its lottery license by the Rwanda Development Board (RDB), is seeking to clarify the circumstances behind this development. On October 6, 2025, during a press conference, company officials shed light on the difficulties they face, attributing their setbacks to intense competition, various market barriers, and sustained financial challenges.
The RDB’s decision to revoke the license was grounded in breaches of contract, legal regulations, and compliance standards, effectively bringing an abrupt end to Inzozi Lotto’s activities. These operations commenced in 2020, backed by a five-year exclusive license granted to Carousel Ltd.
Patrick Kaka, the Head of Commerce at Inzozi Lotto, disclosed that the company had remitted over Rwf 600 million (€355,457) to the government since its inception. Despite these substantial payments, the company faced significant hurdles in realizing profitability, illustrating a persistent struggle in balancing financial obligations with operational viability.
The exclusive license that Inzozi Lotto held offered little in terms of shielding from competition. Kaka highlighted that even with exclusive rights, the company faced formidable competition from other service providers who operated with minimal restrictions. He mentioned that some of these competing operators were even officially sanctioned, creating an uneven playing field.
This scenario placed an unfair burden on Inzozi Lotto as the ostensibly sole operator, failing to deliver the anticipated market advantage. “We continued operating at a loss, while the government still demanded over Rwf 680 million from us,” Kaka explained, indicating that this situation stirred conflicts on both sides of the table.
Kalisa Dylain Chris, Head of Marketing and Digital Operations at Inzozi Lotto, echoed Kaka’s concerns about the mushrooming of new lottery providers. He observed that the frequent emergence of competitors every six months led to consumer confusion, as multiple companies presented similar offerings. “Their arrival discouraged us from fulfilling the financial obligations placed on us; it simply killed our confidence that the situation could improve,” Chris noted.
Furthermore, Chris emphasized that despite the unstable market conditions, the government insisted on full tax payments from Inzozi Lotto, which included a 20% share of profits in addition to a 15% tax on prizes. Tensions heightened when the company decided against paying an extra Rwf 640 million (€379,154) due to financial constraints, a decision that resulted in the termination of their license.
Niyibiza Remmy, a lawyer representing Carousel Ltd, argued that the license termination inflicted substantial harm on the business, with losses estimated at Rwf 3 billion (€1.7 million). He contended that the RDB exceeded its powers by revoking the license unilaterally, without the involvement of the Ministry of Sports in the decision-making process.
Determined to overcome these challenges, Inzozi Lotto remains resolute in its quest to reestablish itself within the lottery sector by aligning with all regulatory requirements. Company officials are appealing to the RDB to honor the preexisting agreement with the Ministry of Sports, which provided them with exclusive operational rights in the country. “We are urging authorities to uphold the agreements made and ensure fairness so we can regain our place in the market,” Kaka asserted.
While Inzozi Lotto seeks engagement in mediation, the RDB’s plans to initiate a bidding process for new licenses suggest a potential reconfiguration of the country’s lottery sector, possibly excluding Inzozi. However, given the current revelations, prospective investors might be hesitant to invest in the Rwandan lottery market, wary of the challenges faced by their predecessors.
This situation in Rwanda’s lottery industry presents a dichotomy: on one hand, there is the aspiration for a more open and competitive market that could drive innovation and consumer choice; on the other hand, the existing operators are left grappling with the realities of market saturation and stringent regulatory demands.
A second viewpoint emphasizes the potential benefits of opening the market to more operators. Proponents argue that increased competition could stimulate growth and lead to better services for consumers. They suggest that a dynamic market environment fosters innovation and efficiency, benefiting all stakeholders in the long run.
However, this optimistic outlook must be tempered with the acknowledgment of the realities facing current operators. The experience of Inzozi Lotto serves as a cautionary tale of how market liberalization must be carefully managed to ensure a level playing field and fair treatment of all players involved.
As the Rwandan lottery sector stands at a crossroads, the outcomes of these developments could set a precedent for how similar markets in the region evolve. The balance between competition and regulation will be crucial in determining the future landscape of gambling in the country, with the ultimate goal of achieving a fair and sustainable industry.
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