## 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.