The Uncertain Landscape of Online Gaming in Africa

## A Growing Sector: Online Gaming on the African Continent

Lorraine Pearlin, a Principal at Global Betting and Gaming Consultants, provided a perceptive analysis of the online gaming landscape in Africa. With a population exceeding one billion, the continent’s wagering industry remains comparatively nascent when juxtaposed with other areas. Presently, Africa represents less than 2% of worldwide interactive gaming earnings.

Nevertheless, recent times have seen encouraging advancements across various African markets, suggesting a possible surge in the sector. As with any developing market, the trajectory towards expansion is not without its obstacles, particularly when it comes to managing governmental regulations and supervision.

South Africa serves as a key illustration of the sluggish pace of regulatory change in the online gaming industry. Despite the National Gambling Act of 2004, which encompassed provisions for the National Gambling Board to investigate and potentially implement legislation governing remote wagering, advancement has been excruciatingly slow.

At first, there were flickers of optimism. In 2007, the National Assembly’s Trade and Industry Portfolio Committee endorsed the National Gambling Amendment Act, clearing the path for the authorization and regulation of remote gambling. Providers assembled, keen to obtain licenses. However, political impediments stalled the procedure, and the bill never transformed into law.

A further endeavor was undertaken in 2014 with the Remote Gambling Bill, but its likelihood of triumph remains unclear.

Its a genuine disgrace, but it appears South Africa is lagging behind on internet gaming. While they’ve approved online sports wagering, which is positive, other types of internet gambling, such as virtual casinos and poker, remain in a state of uncertainty. This absence of defined rules is a significant lost chance for South Africa, as it’s deterring potential financiers and leading to job losses within the nation.

In 2014, Playtech, a prominent player in the online gambling sector, had its sights set on South Africa. They viewed it as a crucial market for expanding into Africa and even partnered with a local casino operator, the Peermont Group. However, without unambiguous gambling legislation, Playtech’s actions were restricted. Mor Weizer, Playtech’s CEO, aptly summarized the situation at the time, stating that they were prepared to launch operations in Africa, particularly South Africa, as soon as the regulations were clarified.

Conversely, other African nations, like Tanzania, have been much more swift in adopting online gambling. Tanzania legalized internet gambling back in 1999, initially permitting activities like sports betting and lotteries. Subsequently, in 2011, they began developing new laws to authorize online casinos, and by 2013, the first online casino, Dunia, was operational with the government’s approval.

Dunia Investments Limited, working under the moniker iplay8casino.com, debuted its webpage in October 2013 utilizing Microgaming’s Quickfire system for its offerings.

Notably, this Tanzanian-approved Iplay8 site is accessible in both English and Mandarin – mirroring how much of Africa’s financial expansion is driven by Chinese capital, which has ushered in a substantial contingent of salaried Chinese employees.

In the realm of sports wagering, both M-Bet and MeridianBet.co.tz are sanctioned by the Gaming Board of Tanzania. The latter is held by Gaming Africa (T) Ltd, which also manages physical betting ventures within the nation. Both platforms are significantly oriented towards football betting, reflecting the wagering inclinations of the local patrons.

## Eastern Africa: Kenya, Uganda, Rwanda

Tanzania belongs to a collection of East African nations that oversee internet gambling, a group that also encompasses Kenya, Uganda, and Rwanda.

Elite Bet, an entity with a footprint in both Kenya and Uganda, possesses licenses from the Betting Control and Licensing Board (BCLB) of Kenya and the National Lotteries Board of Uganda. The firm concentrates on football wagering and endeavors to surmount limited internet accessibility and payment hurdles by providing its services through mobile devices. Users can place wagers via text message, while funds are deposited in cash through M-Pesa, a mobile micro-loan service.

Kenya first explored the realm of lawful internet-based gambling in 2011. They collaborated with Amaya Gaming Group to initiate a trial program. This resulted in the creation of BetKenya.com, the country’s inaugural authorized gaming platform, in October of that year. Nevertheless, BetKenya’s moment in the spotlight was fleeting. By 2012, reaching the website became difficult, and ultimately, the domain appeared to disappear completely. Amaya subsequently indicated in a document that a change in direction towards more lucrative regions, such as North America and Europe, was the rationale behind their diminished presence in Africa.

Shifting our attention to Nigeria. Possessing a population surpassing 175 million, Nigeria exhibits a thriving online wagering and gaming landscape, especially in Lagos State, inhabited by 21 million individuals. Football and simulated betting are the dominant forces here, with the majority of providers concentrating on these domains.

A noteworthy aspect of Lagos State is the mandate for operators to maintain both a tangible retail location and a digital platform. This strategy is quite astute as it addresses one of the most significant obstacles for online gaming in Africa: payment handling. The existence of physical betting establishments enables patrons to deposit funds and retrieve their earnings in cash. One pioneering enterprise, 1960Bet, even permits clients to assemble their betting slips online, produce a distinct code, and subsequently place the wager by presenting that code to a teller at a shop.

Africas digital entertainment sector, particularly online gaming, is undergoing a period of rapid expansion. This surge in interest can be attributed to several elements intertwined with the continent’s overall development.

Crucially, political tranquility and economic prosperity play a vital role. Investors are more inclined to inject capital into areas demonstrating peace and financial upswing. As Africa witnesses enhanced stability, enterprises become more amenable to investment, consequently bolstering the overall economy. This, in turn, translates into a greater amount of discretionary funds available for leisure activities, including engaging in online gaming.

Furthermore, Africa’s youthful demographic constitutes a pivotal factor. Younger generations exhibit a greater propensity to embrace novel technologies, thereby propelling the widespread adoption of mobile gaming throughout the continent. This trend is further magnified by escalating urbanization, as heightened population concentrations simplify the process for gaming corporations to connect with their intended consumer base.

Metropolitan areas often feature more advanced infrastructure, such as dependable power grids, high-speed internet access, and extensive mobile phone service. This makes urban growth a significant factor in the expansion of the gaming sector.

Soccer, wagering, and gaming are immensely popular throughout various African regions. However, penetrating these markets isn’t as easy as simply arriving. Daniel Kustelski, Chief of Sports Wagering at SunBet, clarifies: “Comprehensive background checks and thorough analysis of the intended country are crucial for triumph.” He notes that East Africa, with its greater prevalence of English speakers, offers a more accessible entry compared to West Africa.

Lorien Pilling, Director at Global Betting and Gaming Consultants (GBGC), a prominent Isle of Man-based gaming advisory firm, and editor of GBGC’s Global Gambling Report (currently in its 10th iteration), shares this viewpoint.

Allwyn Acquires Camelot Lottery Solutions in Surprise Move

The firm selected to manage the UK’s National Lottery, Allwyn, has formally acquired Camelot Lottery Solutions (LS Group). Previously, the Ontario Teachers’ Pension Plan held ownership of Camelot LS Group. This purchase signifies the conclusion of a protracted and heated dispute between Allwyn and Camelot, the UK National Lottery’s operator for nearly three decades.

Camelot had contested Allwyn’s victory of the fourth National Lottery license through legal means but ultimately retracted its legal actions. Nevertheless, IGT, Camelot’s technological associate, initiated a lawsuit against the Gambling Commission in January 2023 concerning the determination.

This shift in administration signifies that for the initial instance since its commencement in 1994, a company other than Camelot will oversee the UK National Lottery. Allwyn has affirmed that the leadership structure of Camelot LS Group will persist and be assimilated into Allwyn’s UK lottery activities.

Few anticipated the unexpected maneuver by Allwyn, who unveiled their intention to acquire LS Group, the entity that owns Camelot. This revelation followed Camelot’s tenacious battle to retain control of the UK’s National Lottery, a contract they were ultimately denied.

The UK Gambling Commission granted approval for the acquisition in the early months of 2023. Robert Chvátal, the top executive at Allwyn, expressed his view that incorporating Camelot would be mutually beneficial. He emphasized that it would guarantee a seamless handover from the third lottery license to the fourth, merging the proficiency and technological prowess of two well-established lottery powerhouses.

AffiliateCon: The American Gathering at Rhumbar

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Generously supported by Trafficology (libations are courtesy of them!) and TAG Media (who will be providing the hookah?), the festivities commence Tuesday, October 9th at 9:30 PM at Rhumbar, nestled within the Mirage Hotel.

Renowned for its exceptional cocktails and sophisticated cigar lounge, we’ve reserved the entire patio exclusively for our group – consider it your personal oasis in Vegas! With a laid-back Caribbean ambiance, it’s an ideal setting to unwind, forge new partnerships, and reconnect with familiar faces from the affiliate realm.

Therefore, escape the dazzling lights of the Strip momentarily and enjoy a complimentary beverage (or two). It’s the perfect method to decompress after a bustling day at G2E. Take our word for it, this is not to be missed.

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888 Holdings Reports Significant Revenue Growth in First Half of 2020

888 Holdings experienced a substantial revenue surge in the initial six months of 2020, primarily attributed to robust results in its poker and casino verticals. The firm announced a 37% year-over-year revenue climb, reaching $379.1 million.

This expansion was chiefly fueled by a spike in 888’s direct-to-consumer operations (B2C), which witnessed a 38% leap to hit $361.3 million. Poker emerged as the top performer, with revenue soaring by 56% to reach $361 million. Casino offerings followed closely, registering a 48% revenue increase, totaling $260 million.

Although sports wagering revenue experienced a minor decline due to the effects of COVID-19 on live sporting competitions, 888 observed a significant resurgence in June, with revenue in this segment surpassing pre-pandemic figures.

In summary, 888’s CEO Itai Pazner conveyed considerable contentment with the company’s performance, emphasizing the substantial growth in both revenue and earnings. He further indicated that the positive trajectory has persisted into the third quarter, with average daily revenue considerably outperforming the prior year.

The coalition’s triumph persists, driven by their talent for acquiring fresh clientele, a spike in online service requirements during the pandemic restrictions, and 888’s unwavering dedication to offering top-tier products.

FBMDS: A Year of Remarkable Growth and a Future Brimming with Promise

The year 2022 witnessed remarkable triumphs for FBMDS™, yet the horizon gleams with even greater promise.

FBMDS™, the digital gaming arm of the FBM® Group, brims with eagerness for the times ahead. Their ascent in 2022 was nothing short of meteoric, propelled by swift expansion, fortified regional alliances, notably in Latin America, and the unveiling of bespoke gaming offerings crafted for particular markets. Their engaged presence and acclaim at numerous industry gatherings cemented their accomplishments. However, this is merely a glimpse of what’s to come!

Latin America, specifically, emerged as a central point for FBMDS™’s growth, with impressive advancements achieved throughout the year. Their tight-knit cooperation with associates, founded on the bedrock of confidence established by FBM®’s legacy in the region’s land-based casino sector, has been pivotal to this rapid progress. They’ve intensified this collaborative strategy by providing tailor-made products that address the distinct requirements of both the market and its operators. Brazilian players, as an illustration, have reaped the rewards, relishing novel bingo, slots, and table games imbued with local cultural nuances, all realized through accords with prominent online casino operators and specialized promotional ventures.

2023 holds the promise of even greater exhilaration. With a lineup of new games poised for release, nascent partnerships in development, and an active role in major iGaming events on the agenda, FBMDS™ is primed to make an even larger impact on the worldwide gaming landscape, elevating both their influence and brand recognition.

Gaming aficionados in Mexico are in for a real fiesta right now! Thanks to strategic collaborations and special offers, they have a plethora of digital games that honor their vibrant culture.

The excitement extends beyond Mexico, with Peru joining the party through a novel pact that broadens the scope of internet-based gaming in the area. Globally, agreements are being forged at a rapid pace to introduce these games to a wider range of regulated territories, setting the stage for substantial expansion.

On the topic of cultural relevance, the online casino landscape in Portugal is flourishing. They boast Portuguese-inspired slot machines like Virá Festa™️ and even blackjack competitions that are a major draw for participants. It’s a mutually beneficial situation for all parties involved.

And the game releases keep on coming! FBMDS™️ launched a staggering 26 new titles in 2022 alone. We’re talking captivating slots like Virá Festa™️, Viking Journey™️, and Royal Trucks™️, in addition to their highly sought-after Bonus VIP video bingo collection that has captivated Brazilian players with its complimentary spins.

FBMDS™️ recorded an exceptional year in 2022, with user figures soaring by a remarkable 284% over 2021. This notable expansion speaks to the brand’s burgeoning standing within the digital casino gaming realm. It also underscores how their commitment to bespoke offerings for every patron results in heightened client contentment.

Industry exhibitions proved to be indispensable for FBMDS™️, enabling them to interact with numerous individuals throughout the year. They took part in a series of esteemed European and international gatherings, including sector leaders like ICE London, G2E Las Vegas, and SiGMA Malta, alongside more niche assemblies such as FIJMA Madrid and SBC functions.

This dedication to interaction has not been overlooked. FBMDS™️ has garnered praise from customers, collaborators, and gaming entities alike, acknowledging their distinct value proposition. Their awards collection now features the “Best Bingo Provider of the Year” accolade from the 2022 5 Star & Co Starlet Awards. Additionally, they secured nominations across various categories at the 2022 SBC Awards, encompassing “Leader of the Year” and recognition for their prowess in bingo, lottery, casino, and iGaming sectors.

Looking ahead, FBMDS™️ views 2022 as merely the outset. Roberto Regianini, the Chief Executive Officer of FBMDS™️, stressed their objective to furnish casino operators with inventive, customized, and lucrative products. The ultimate aspiration is to enthrall and engage players globally, and this ambition will undoubtedly propel their continued triumphs in 2023 and beyond.

Cyprus Casino Race Narrows to Three Finalists

The Republic of Cyprus has shortened the list of potential developers for its inaugural integrated casino resort to three candidates: Bloomberry Resorts Corporation, the Melco-Hard Rock partnership, and NagaCorp. These firms will now proceed to the subsequent phase, presenting more comprehensive plans for the government’s evaluation.

The successful bid will yield an opulent destination, featuring a minimum of 500 five-star accommodations, over 100 gaming tables, and an impressive 1,000 slot machines. As a component of the agreement, the selected operator will also receive authorization to manage four smaller auxiliary casinos throughout the island nation.

This progression follows the Cypriot Parliament’s recent approval of the casino resort project, clearing the path for the government to commence final discussions. The vote, although not without dissent, displayed considerable backing for the endeavor.

The Cypriot administration has conveyed contentment with the substantial interest from prominent industry participants and maintains a positive outlook on concluding the selection process promptly. The triumphant bidder will secure a three-decade license, with the initial 15 years ensuring their sole rights within the market. The government intends to bestow the license by September of this year.

Crown Perth Under Fire for Alleged Illegal Credit Lines and Suspicious Financial Activities

The Crown Perth gaming establishment has been alleged to have furnished illicit lines of credit to its premium clientele, encompassing both foreign and local patrons. This activity was exposed during the Royal Commission’s investigation into the casino’s business dealings.

Lonnie Bossi, the head executive of Crown Perth, acknowledged during his sworn statement that he had sanctioned the practice of granting credit to these players. This constitutes a blatant breach of Western Australia’s Casino Control Act, which unequivocally forbids such actions.

Further intensifying the situation, the Royal Commission also disclosed that Crown Perth had initiatives underway to implement China UnionPay. This mechanism would have empowered gamblers to directly move funds from their Chinese bank accounts to the casino. Although this system obtained preliminary authorization from gaming regulators, it was never completely rolled out due to the prominent apprehension of multiple Crown personnel in China in 2016.

Adding another layer of complexity, the inquiry unveiled that Bossi was an authorized signatory on a financial account associated with Riverbank. This is particularly troubling because the Bergin Inquiry, which concluded earlier this year, designated this specific account as potentially being utilized to cleanse hundreds of millions of dollars. These suspicions surrounding Riverbank prompted both the Australia and New Zealand Banking Group (ANZ) and the Commonwealth Bank of Australia to shut down their respective accounts linked to Riverbank in 2014 and 2019.

When questioned regarding the closure of these accounts, Bossi remarked, “It transpired numerous years ago, and I was not privy to the daily banking operations at the time. In retrospect, I ought to have investigated further than I did at the time to make inquiries, which is a positive takeaway.”

ComeOn Group Appoints Sherwin Jarvand as Chief Data Officer

The ComeOn Group has named Sherwin Jarvand as their new Chief Data Officer. He will be responsible for guiding the company’s data approach moving forward.

Jarvand is already familiar with ComeOn, having served as their Director of Customer Engagement for the past couple of years. His remarkable achievements in that position, where he utilized data to enhance customer marketing efforts and tailor the user journey, make him a perfect candidate for this new role. In his capacity as CDO, Jarvand will join the leadership team, showcasing ComeOn’s dedication to making decisions based on data insights.

CEO Juergen Reutter conveyed his trust in Jarvand, emphasizing his successful history and stressing the significance of customization and user engagement in delivering an enjoyable and secure gaming environment. Reutter also proudly mentioned that Jarvand’s advancement reflects ComeOn’s dedication to cultivating talent internally.

Jarvand is enthusiastic about taking on this new management position and sees a significant chance to utilize ComeOn’s extensive data resources to further propel the company’s expansion.

This appointment follows closely on another strategic maneuver by ComeOn. In November of 2022, they teamed up with Splash Tech, a complimentary gaming platform. This partnership represents a considerable stride towards ComeOn’s objective of enhancing engagement among their sports wagering clientele.

Lets go, a top digital entertainment provider, has inked an agreement with Splash Tech to deliver their thrilling sports titles to a wider audience. This collaboration will showcase Splash Tech’s offerings across numerous ComeOn platforms in diverse markets. This development follows closely on ComeOn’s recent alliance with German game creator Apparat Gaming, demonstrating their dedication to providing the newest and best in the online gaming sphere.

Churchill Downs Expands Gaming Empire with Chasers Poker Room Acquisition in New Hampshire

Churchill Downs Incorporated expressed immense joy in declaring their formal acquisition of the Chasers Poker Room situated in Salem, New Hampshire. This purchase, which had been under discussion for some time, received approval from the New Hampshire Lottery Commission.

Chasers has gained popularity as a destination for poker and other table-based games, and its strategic position near Boston enhances its appeal. Churchill Downs has ambitious aspirations for the venue. They intend to convert it into a sprawling charitable gaming hub, featuring up to 800 of those captivating historical horse racing terminals, alongside all the traditional table games. Imagine the excitement of Las Vegas, but within the borders of New Hampshire!

This grand endeavor, encompassing the acquisition cost, is projected to require an investment of approximately $150 million. However, Churchill Downs Chief Executive Officer Bill Carstanjen appears optimistic about the venture. He eagerly anticipates introducing their proficiency in historical horse racing to Salem and crafting a premier gaming destination. He also underscored their dedication to aiding New Hampshire charitable organizations through this initiative.

This expansion into New Hampshire signifies the fourth state where Churchill Downs will manage historical horse racing operations. They already hold a significant presence in Kentucky and Louisiana, and with their latest acquisition of Peninsula Pacific Entertainment, they are poised to make a notable impact in Virginia as well.

The famed Kentucky Derby’s home, Churchill Downs Incorporated, is experiencing a banner year. Their trifecta of horse racing, internet wagering, and casino operations are thriving! The company recently declared record-breaking Q2 earnings for 2022, amassing a hefty $582.5 million. This represents a significant surge of $67.4 million over the corresponding period last year.

Much of this triumph can be attributed to the return of the Kentucky Derby to its full glory, following pandemic-related limitations in 2021. The Derby generated an astounding $2.313 billion more this year – a remarkable resurgence!

Catena Media Acquires Dreamworx Online to Strengthen German Market Presence

Catena Media is strengthening its German market foothold through the €9.5 million purchase of Dreamworx Online. This tactical maneuver involves Catena providing an initial payment of €4 million in newly minted shares, with the balance of €5.5 million settled in cash.

Dreamworx Online holds a prominent position within the German market, overseeing well-known websites such as Sportwettenanbieter.com, Fussballwetten.info, and DeutscheFXBroker.de, specializing in sports wagering, casino entertainment, and financial offerings.

Catena anticipates this acquisition to be instantly profitable, contributing an estimated €600,000 in revenue each quarter with a robust 80% profit margin.

This acquisition will result in the integration of Dreamworx Online’s resources into Catena’s sports department, led by Baybets, an entity Catena obtained in December 2017.

Henrik Persson Ekdahl, Catena’s current CEO, conveyed his excitement about the agreement, noting that Dreamworx’s holdings solidify Catena’s standing as the top affiliate in Germany, ideally timed for immediate gains during the 2018 FIFA World Cup and guaranteeing sustained expansion in this profitable sector.

The finalization of the acquisition is projected by the months end.