## The African Regulatory Landscape – iGB
Yahya Maikori, the mastermind behind Law盟, has thoroughly investigated the existing and developing regulatory structures across numerous key markets on the continent.
The increasing appeal of wagering throughout Africa has spurred legislative changes, particularly in the online and mobile spheres. Concerns have arisen regarding the need to implement strategies to manage gambling addiction and its associated negative consequences, such as financial difficulties. From one perspective, this can be seen as a direct result of socioeconomic problems. From another perspective, it also highlights the need to harness the industry’s potential to enhance dwindling government revenue through gaming taxes.
While gambling is not a new phenomenon in Africa, remote gaming and the emergence of various new and evolving games and platforms have presented significant challenges for many nations that have only regulated lottery betting, slot machines, and, most likely, lotteries. Until recently, gambling has not been considered an industry; these games have been viewed, at best, as small-scale operations on street corners.
Although the rise of technology, the web, and online commerce has entirely reshaped the sector, transforming it into a multi-million dollar enterprise that permeates every facet of our lives, leaving authorities struggling to establish a functional regulatory structure. In most African regions, permits are still issued by tax agencies, lacking any legal or regulatory framework to support them.
Despite this, the anxieties of most regulators are apparent as the sector rapidly expands.
Even with their best efforts, the expenses and procedures involved in enacting legislation and regulations are not only costly but also time-consuming, especially when dealing with key stakeholders who are unfamiliar with the challenges posed by gambling. Furthermore, in some nations, the industry faces needless politicization and stigmatization, relegating it to a secondary position in matters of national significance. Luckily (or unfortunately), with the assistance of the media, gambling can no longer be confined. It has become part of our mainstream economic activity and is starting to receive the attention it deserves.
While extensive discussions are still ongoing across the continent, here is a brief overview of the current state of legal and regulatory reforms in some key markets.
Nigeria
The National Lottery Oversight Body (NLRC) was set up in 2005 by a law passed by Parliament. However, the Nigerian Constitution grants the 36 states the authority to independently control gambling within their own territories.
In 2016, Vice President Yemi Osinbajo chose to delay signing the National Lottery Act (Amendment) due to a legal dispute at the time concerning the National Assembly’s authority to make laws on the matter. Despite this challenge, at the national level, many states continued to follow the lead of Lagos State, which has been a pioneer in gambling regulation in Nigeria.
Oyo State enacted the Oyo State Gaming Law last year, while Anambra State has a revised Gaming Bill before its State Assembly, replacing its 2005 Gaming Law. Meanwhile, Lagos State has presented a draft to replace the 2004 Lagos State Lottery Law and combine it with the 2007 Casino and Gaming Law into the Lagos State Gaming Regulatory Authority Bill. Key features of the bill include online gambling, advertising, social responsibility measures, and the power to appoint investigators. Meanwhile, the National Lottery Oversight Body has formed a group to collaborate with state regulators to address the apparent disagreements between them.
Botswana
Botswana is one of the smallest nations in Africa with a model of gambling regulation.
Following the implementation of the Gaming Act in 2012 and the Gaming Rules in 2016, no additional legislation has been put into effect.
Since 2012, Tanzania has been the first nation in East Africa to regulate online gambling, with the Internet Gaming Rules being put into effect in 2012. The issuance of permits has slowed down significantly, as permits are issued through expressions of interest and applications for authorization. The auction of the National Lottery permit was considered a priority, but it has been caught up in a drawn-out legal battle with no end in sight. Parties are now getting ready to appeal the process, two years after the bidding ended. Meanwhile, the Gaming Board has issued public hearing notices for two casino permits – one to transfer a permit to a new operator and another for a new application. Despite the popularity of sports betting, the Board has yet to issue any sports betting permits, although it claims to be considering doing so. If permits are issued, the competition will be intense, as the world’s biggest brands will be vying for one of the four permits. Tanzania’s most recent legislation includes the Sports Betting Rules passed in 2016, as well as legislation enacted in 2018 on gambling equipment standards and the establishment of a central electronic monitoring system to monitor route operations.
The Gaming Authority, collaborating closely with the Treasury Department, has recently created a Gaming Regulatory Electronic Supervision System (GREM) that is presently in a trial period and is anticipated to be fully operational in the coming year.
The Gaming Authority is demonstrably dedicated to these regulations, as it has devoted substantial resources to examining the regulatory structures of leading jurisdictions like the Isle of Man and Malta. A preliminary online casino bill has also been presented, but it must be published in the official journal before it can be moved forward. It is heartening that the monitoring platform is being developed domestically, which will contribute to the expansion of the local software sector.
Kenya
Earlier this year, the widespread promotion by gambling firms reached intolerable levels until the Betting Control and Licensing Board intervened. It issued a directive prohibiting operators from promoting on social media platforms, banning celebrity endorsements, and prohibiting advertising between 6 am and 10 pm.
Moreover, it specified that all advertisements must include cautionary messages about the consequences of gambling, including its addictive nature. This warning message must occupy one-third of the advertising space and utilize the same typeface as the remaining text.
This praiseworthy endeavor comes at a time when the gambling sector is the nation’s top advertising investor, contributing to Kenya’s alarmingly high rate of underage gambling across Africa.
The governing body also refused to renew licenses for numerous operators due to outstanding tax obligations amounting to hundreds of millions of dollars. This tax predicament is not a recent development, but rather a longstanding issue. Out of twenty operators, only three successfully renewed their licenses, attributing the failure to “errors in withholding taxes on winnings.”
These significant reforms will establish a precedent for other East African nations; however, the effectiveness of this directive’s implementation remains uncertain.
Kenya has been a preferred destination for many European operators, potentially explaining the rationale behind these new regulations, which subtly target foreign entities profiting from the vulnerabilities of local residents. The 2019 Gambling Act, intended to supersede the 1966 Betting, Lotteries and Gaming Act, mandated that 30% of each licensee’s equity must be owned by local individuals.
Similarly, the specific framework outlined in the bill remains unclear following consultations with industry stakeholders.
Yahya Makori is a senior partner at Law Allianz, a prominent African gambling and entertainment law firm.
He also established Global Gaming Group, a firm that assists governments, enterprises, and startups in key locations for the burgeoning gaming industry in Africa.
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