IMGL Magazine November 2022

Emerging markets & culture

MAIN AFRICAN MARKET CONDITIONS South Africa has the most mature gambling market on the African continent, with gambling revenues reaching R34 billion ($US2.1 billion). Sports and horse-race betting, and land-based casinos have been licenced by the nine provincial governments since the mid-1990s. The country also regulates bingo and limited pay-out machines which have since grown in market share. Technological innovation and advancement within existing markets

However, the Act has never been brought into effect, leaving online gambling to be regulated by the earlier 2004 Act. A National Gambling Amendment Bill, 2018 was presented to Parliament and is up for mediation between two houses of parliament. Recently, a proposed Remote Gambling Bill has been tabled in 2022 and it remains to be seen when this will be enacted. Nigeria may not currently have the Continent’s largest economy but it has the largest population (200 million plus and many with a passionate interest in football) and the highest

economic growth rate. Gambling at the national level in Nigeria is regulated by the National Lottery Regulatory Commission (NLTC). The law distinguishes between games of skill (which are legal) and games of chance (which are illegal). Legal forms of

has presented the Continent with an opportunity to introduce new modes of gambling. The emergence of smart mobile devices and lower

gambling include the lottery, land- based casinos and sports betting, whereas roulette, dice games and non- skilled card games are considered illegal. There is no specific provision in the law to regulate online gambling but that has not

costs of data has reduced barriers to entry in the gambling industry and

enables operators to offer online sports betting, online gambling, fantasy sport and e-sports. South Africa’s parliament approved an Act well over a decade ago which was designed to bring online gambling within the law and make it safer for players. The National Gambling Amendment Act of 2008 introduced a number of definitions and clarifications required to regulate the online gambling space. It laid the foundations of a fair and secure environment regulated by the state in a way that protects citizens and ensures transparent operation by operators. The Act also specified the procedure of applying for and acquiring gambling licences, determining who has the authority to issue such licences, what prerequisites have to be met by the company and/or the person applying for the licence, and under what circumstances a licencing authority may cap the maximum number of gambling licences.

prevented operators from obtaining national licences from the NLRC. Whilst that may appear to be a functioning system of regulation, these licences don’t grant access to local retail

markets and that poses a real problem especially for start-ups and new entrants. COVID demonstrated that there will be a large and receptive market for online gaming in the future. Kenya’s current regulatory framework is governed by the Betting, Lotteries and Gaming Act 1966 and the Betting, Lotteries and Gaming Regulations 1966. A recent development is that the Finance Bill 2022 proposes the

IMGL Magazine • November 2022 • 11

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