CONFERENCE REPORT
technological expertise that is very valuable.”
operators that inhabits the grey market. Adam Bjorn of Plannatech urged legislators to be pragmatic when it comes to setting rules and tax rates. “Most operators want to be licensed.” he said. ‘They value the status and they would like to contribute to the society they are in. The problem is regulators make it so unattractive and not just marginally, but really unattractive. As a regulator, you should look at it as a business: your job is to capture market share. If you can gain market share for your licensed operators then you can do all the other things you want to do. So when it comes to regulations and tax the only real question to ask yourself is whether you are going to gain or lose market share to the grey market as a result. Growing pains and gains The conference was told that projections for the growth of legalized online gambling will see it reach US$153 billion by 2030, a compound growth of almost 12 percent. This will generated unprecedented levels of foreign direct investment, taxation and employment but will also lead to regulatory challenges. These will come from broadly three areas: gambling harms, criminality and technology. As well as discussing the models of regulation which might best suit these challenges, attendees enjoyed numerous sessions which were designed to help them gear up personally and organizationally for the challenges ahead. Lanre Gbajabiamila, Director General of Nigeria’s National Lottery Commission led the call for collaboration among African states to flight money laundering, the financing of terrorism and syndicate gaming. He laid out the dilemma for African regulators who, on the one hand, want to encourage investment and innovation whilst, on the other, seeking to address some big risks. Before they can collaborate to tackle organized crime, they must first achieve synergy in terms of regulation and law enforcement. Whilst there are still big differences between the ways nations regulate and combat crime, criminals are able to exploit cross-border loopholes. “Countries which are susceptible to exploitation due to weak or ineffective regulatory systems,” he said “empower and enable illicit practices through gaming platforms. We need to
President Mokgweetsi Masisi’s message did not attempt to minimize the potential harms of uncontrolled gambling growth. In fact, he was remarkably clear eyed. “Gambling is a thrilling activity where the desire for instant gratification and material gain can outweigh moderation and restraint,” he commented. “This is why it needs regulating. This conference is an opportunity for our infant gambling authority to learn from experts and discuss ways to better implement worldwide best practices in our gambling regulation. As we bring our expertise together, we will find ways to address issues of illegal, problem and underage gambling.” Peter Emolemo Kesitilwe of the Botswana Gambling Authority put some more flesh on the bones of an audacious plan to position gambling as a plank of the country’s development. ‘The key pillars of Botswana’s Vision 2036 will all be served by welcoming the gambling industry to Botswana,” he said. “We have heard about economic development, but there is also human and social development – responsible gambling, training and development of employees of the regulator. This will be paid for by the gambling levy used for development of the industry including a study on problem gambling which found 95 percent of players play without problems and contribute a lot. “Sustainable environment is part of the picture too. We will import 1500 limited machines but not grey imports. They must conform to standards and we will use education to avoid stigmatisation of gambling. Technology and digitisation with connected devices and service provider interoperability to identify problem gambling. We also expect a payoff in terms of governance, peace and security.” The conference heard from numerous experienced regulators on exactly these issues, with many able to describe models of regulation which can be adopted depending on the legal and cultural situation on the ground. Visiting speakers felt there was an opportunity for African regulators to anticipate better how their markets will develop and so avoid some of the mistakes made elsewhere. There were numerous calls for evidence-based regulation and the involvement of academics at the event leant weight to the value their inputs can provide.
One of the strongest messages came from one of the very
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IMGL MAGAZINE | JANUARY 2024
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