A dispute between Carousel Ltd, the operator of Inzozi Lotto, and the Rwanda Development Board (RDB), acting through its National Lottery and Gaming Commission (NLGC), has been referred to arbitration, even as a new operator has been appointed to run the national lottery.
RDB terminated Carousel Ltd’s license in September 2025, citing failure to meet contractual and regulatory obligations. The decision was publicly announced the following month. Carousel Ltd has challenged the termination and taken the matter to the Kigali International Arbitration Centre (KIAC). According to CEO Yggers Kristian Mortensen, the company is currently awaiting a hearing date.
Under a 2018 agreement with the Government of Rwanda, represented by the Ministry of Sports, Carousel Ltd was granted the right to operate the national lottery while contributing to sports development. The agreement required the company to remit 15.5% of its revenue in the first year, with a gradual increase to 24.5% by the ninth year. By 2025, contributions were projected to reach 18.5%.
The regulatory framework further required that 47% of revenue be allocated to prizes, while 20% was directed to the Government to support sports development. Taxes ranging between 18% and 21%, including Value Added Tax (VAT), were also applicable, with the remainder covering operational costs.
RDB maintains that Carousel Ltd did not fully meet these obligations. However, the company disputes this position, stating that it consistently fulfilled its contractual responsibilities. Carousel further argues that the Government failed to enforce a key exclusivity clause within the agreement, which granted it sole rights to operate lottery services in Rwanda.
The company alleges that other operators, including Ikubire Lotto, Tunga, and Tsinda Pe, were allowed to enter the market in breach of this provision. According to Carousel, this resulted in reduced revenues and significantly impacted its operations. The company reports that it incurred losses during 42 of its 44 months of operation, attributing this to what it describes as unfair competition and weak regulatory enforcement.
It has also questioned the legal standing of the NLGC and maintains that RDB did not have the authority to terminate the contract, as it was not an original signatory to the agreement. The Government, however, designated RDB as the national gaming regulator through Prime Minister’s Order No. 028/03 of June 28, 2024, published in the Official Gazette in July 2024.
RDB has reiterated its position that Carousel failed to comply with contractual and regulatory requirements and has not issued further comment, stating that its legal team is reviewing the matter. While arbitration proceedings are ongoing, Rwanda’s Cabinet approved a new agreement on April 2, 2026, appointing Moja Rwanda Limited as the new operator of the national lottery.
The Secretary General of KIAC, Victor Mugabe, confirmed that arbitration proceedings remain confidential and declined to provide further details, including timelines. Reports indicate that the Government is seeking approximately Rwf 680 million from Carousel Ltd for 2024. In October 2023, Inzozi Lotto paid around Rwf 640 million, representing 15.5% of its first-year revenue.
At its peak, the lottery generated over Rwf 600 million per month, with government earnings estimated at more than Rwf 100 million monthly, equivalent to over Rwf 1 billion annually. Between November 2021 and November 2022, more than Rwf 600 million was distributed in prizes, with over 200,000 winners recorded in 2022 alone.
By mid-2025, total prize payouts had exceeded Rwf 2.6 billion, excluding additional rewards such as motorcycles and mobile phones. Over the full 10-year contract period, projected government revenue was expected to surpass Rwf 10 billion.
