Overview of iGaming regulation and sports betting in Africa in 2023

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[Photo by Michał Parzuchowski on unsplash.com]

The increase in popularity and demand for online gambling and sports betting has gained momentum in Africa in recent years, following a global trend that began in Europe and Asia. The diversity of African nations is also evident in online gambling and sports betting, which remains illegal in 38 of the 54 countries. Many of these prohibitions have their origins in colonial-era legislation that aimed to curb illegal gambling practices and have not been able to keep pace with progressive gambling legislation.

More and more players are registering on sports betting sites and online casinos in the hope of winning money or simply enjoying no deposit bonus. However, this boom in activity is riskier in Africa than in other parts of the globe, due to less regulation of online betting.

Over the past 12 months, several African regulatory authorities have updated their legislation, while the number of online resources dedicated to responsible gaming continues to grow.

South Africa: the biggest nation waiting for a revamping iGaming bill

South Africa, the country with the highest GDP per capita on the continent, plays a fundamental role in the industry. Approximately half of all gambling revenue in Africa is generated in this country, with sports betting being the biggest contributor. The popularity of betting on sports such as rugby, horse racing, football and cricket is expected to double in the next five years, making it a prime African jurisdiction for betting.

Its National Responsible Gambling Program (NRGP), established after the Apartheid era, is one of the most progressive regulators in Africa and successfully regulates offline gambling activities. However, its scope does not extend to most forms of online gambling, creating a regulatory gap in this fast-growing sector.

There are hopes that the 2014 Remote Gambling Law could be revisited, which could lead to the full legalization of Internet gambling, something that still generates discussion in the country.

Kenya: a leader in progressive legislation

Kenya has emerged as a key player in progressive African legislation on online gambling.

Since 2011, online gambling, including sports betting, has been legal. Notably, online sports betting was legalized in 2010 – before European countries like Protugal – which began the vibrant industry that Kenyans enjoy today.

The country's approach involves privatizing its online gambling sector, promoting healthy competition among the nearly 100 operators. The Betting Control and Licensing Board regulates and licenses gambling activities, maintaining player integrity and protection, while unlicensed platforms are blocked to ensure player safety.

A transparent 20% tax on gross gaming revenue and a 15% tax on winnings contribute to the country's revenue.

This player-oriented approach implemented in Kenya allows both locals and tourists visiting Kenya's top tourist attractions, can play online gambling games.

Botswana: an underrated gaming industry

Botswana may not stand out as an obvious candidate among states with the most progressive gambling laws, but it outperforms most other African nations in the region.

Gambling has been legal since 1961 and the 2012 Gambling Act unified the industry under the jurisdiction of the Botswana Gaming Authority. The entity supervises licensing, emphasizing legality and transversal rules. Although online gambling lacks specific regulations, players can currently bet freely, encouraged by a rapidly growing wave of players in the digital environment, both locals and tourists.

“Blood sports”, which involve hunting or mistreatment of animals, as well as betting on these sports are prohibited. Still, the country's annual average of 1,8 million visitors is a reflection of its gaming-friendly environment.

The Botswana Gambling Authority licenses various forms of gambling, but online gambling licenses have not yet been issued. A transparent tax applies to gross receipts, while details on the taxation of gambling winnings remain unclear.

Botswana's adaptive stance means that the existing legal framework places the country well-positioned to implement responsible gaming practices for players, including the provision of online educational material.

Ghana: an example of responsibility

Ghana has distinguished itself as a nation interested in embracing offline and online betting and gambling activities through comprehensive legislation. Regulated by the Ghana Gaming Commission (GGC), both online and offline gambling are fully legal and regulated, with licenses issued to casino and sports betting operators.

This approach ensures a controlled and responsible gaming environment for players who continue to generate high demand for iGaming solutions.

GGC's involvement extends to online gambling. This entity provides a regulatory framework that promotes fair gaming, responsible gaming practices and industry integrity.

Many experts believe that Ghana has managed to bridge the legislative gap between offline and online gambling, so that online gamblers now benefit from the same protection and regulatory oversight as in-person gamblers.

The fight for more regulation

Many African countries ban gambling and refuse to accept the idea of ​​a regulated iGaming industry due to fears that such lead young Africans into gambling addiction and unscrupulous betting sites.

In some of these countries, a fervent push for better gambling regulation is gaining momentum. Concerns around player protection have led to collaborative efforts like the Gaming Regulators Africa Forum (GRAF), which is bringing nations together to implement effective regulatory frameworks.

This collective effort brings together national gambling regulators from several African countries at an international conference, including Namibia, Botswana, Swaziland, Zimbabwe, Kenya, Malawi and South Africa. It operates under a Memorandum of Understanding (MoU), emphasizing decision-making based on consensus among its members.

In action since 2003, GRAF is one of the continent's biggest hopes for a safer gaming industry for its players. If their ideas and proposals are approved, we could see more progressive positions in Africa very soon.

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