African gambling industry keeps growing as never before


Today, most major gaming operators consider Africa as a jurisdiction for potential expansion. Why? The answer is very easy: due to the continent’s dynamic economy and increasing loyalty to online gambling, African gaming licenses offer many promising opportunities for investors. Did you think that Europe was still the focus of gambling? Not anymore! Let’s see how gambling works in each African country where gambling is allowed.


Overview of the African gaming market

Africa’s economy has been booming in recent years. The only exception was the period of consequences associated with COVID-19. The losses of African countries were significantly greater than those of other countries, but Africa is gradually regaining its economic independence and showing significant GDP growth – much to the relief of people watching this space!

Did you know that the increase in the state’s internal resources, coupled with the rapid development of the communications sector, makes Africa attractive enough to invest in the gaming industry? Whether it is poker, roulette online, blackjack or slots, gambling is already very common in African countries!

And in the last five years, the number of high-speed Internet users has grown exponentially, so many have gained access to various gaming products, as well as the ability to bet on sports.

Until now, betting in African countries prevailed as a business category, but today, more and more entrepreneurs want to open a virtual casino and obtain a gaming license in Africa. They need a bit of insight on the legislation to kickstart that, though!


Although sports betting dominates in terms of popularity – in particular, local people like to bet on European soccer – online casinos and various games are also becoming more and more popular!

How African countries regulate gambling

Here, things can get a little complicated! On the legislative side, Africa is now a collection of mixed rules and regulations. Some states, such as Tanzania, have contributed to the development of the continent’s gambling industry, while others are lagging behind. In general, gambling in Africa is not tightly regulated. On the one hand, this means that foreign entrepreneurs are free to offer their services almost everywhere on the continent. On the other hand, this has created some uncertainty in countries where the government is trying to enforce laws at the regional level, even in the absence of their approval at the federal level.

Nigeria

Such jurisdictions include Nigeria – the country which has the largest population in Africa, and the largest gambling market on the continent. And it’s a huge sports hub, too, with great football teams attracting a lot of betting interest from sports bettors (so if you’re the type who enjoys a flutter, why not check these out?).
And what about its legislation? Well, gambling is still not regulated at the regional level. There’s a pretty big conflict going on between the Council that oversees the Lagos state lottery and the Nigerian Lottery Control Commission, with each aiming to impose its own prerogatives and licensing rights.

Overall, then, the cost of obtaining a gaming license in this jurisdiction, as well as its renewal, depends entirely on which agency will regulate the business. You’ll have to do some thorough research into this, but it could prove valuable!


South Africa

South Africa is one of the largest gaming markets on the continent, and there’s a lot of discussion over the legislation of gambling here. They’re currently weighing up a draft law on this issue, but nothing has gone through yet. However, in terms of sports betting, this jurisdiction is considered the most attractive for investors, and many casinos are exploring this space with interest. Who can blame them? It looks promising!

Kenya

The industry in Kenya is regulated by the Betting, Lotteries and Gaming Act, which controls the gaming industry – and it’s seen a few odd turns over the last couple of decades. There was a big dip in 2019, when they tried to add a 20% tax to betting stakes (adding to the existing taxes on gambling!). They then had to undo this because they found it actually led to a decrease in gambling tax income, since some of the biggest players withdrew their business from Kenya.

There has been some talk of putting this tax back, but at the moment, it’s not in place, so this jurisdiction is ready and primed to accept incoming companies in this area. It should be noted that a Kenyan gambling license will cost about $4,000 for local entrepreneurs and almost twice as much for foreigners – not cheap, but potentially worth it.


Tanzania

The field of virtual gambling in Tanzania is expanding and developing rapidly, just like tourism throughout the country, which is trying to take full advantage of innovative high-tech mechanisms to attract more and more people.

Speaking of gambling, it is worth noting that Tanzania uses an API that automatically reports every wager that is placed on a virtual platform. The jurisdiction issues licenses for online casinos and bookmakers, although the tax on gaming revenues is quite something, at around 25% – pretty hefty!

Ghana

For several years, the Gaming Commission in this country worked to create a comprehensive regulatory framework that would be well-suited to gaming operators. Licenses in Ghana differ according to the services they cover. In particular, there is a difference in cost: the license for the casino will cost a little more than for the bookmaker, and the services are subject to VAT. That said, we still think Ghana could be a good investment opportunity if you’re looking for a new casino landscape.

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