Bid Process for South Africa’s 2025 Lotto Licence Begins

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South Africa’s National Lotteries Commission held a briefing session in September for prospective bidders for the National Lottery in anticipation of the license renewal in May 2025. The NLC issued a clarification in relation to the briefing session for the fourth national lottery and sports pools licence on 30 and 31 August 2023: “ Prospective applicants and interested parties who wish to attend the briefing session in relation to the Request for Proposal for the Fourth National Lottery and Sports Pools Licence (“RFP”)on 30 and 31 August 2023 are herewith advised that attendance of the briefing session is not compulsory for prospective applicants who intend to submit an application for the Licence. The briefing session is primarily an information session for prospective applicants and interested parties to obtain critical information relating to the RFP document and the application process. Prospective applicants may therefore be represented by one or more persons who may collectively or individually attend the briefing session on behalf of an entity to be formed in due course.

The NLC will record attendance at the briefing session and issue attendees with certificates of attendance which are to be submitted together with an applicant’s application. Failure to attend the Briefing Session or submit a certificate of attendance will, however, not result in the disqualification of a bid. Prospective applicants and interested parties are advised that after the conclusion of the briefing session, prospective applicants may only communicate with the NLC through the medium of a virtual data room or VDR to which access will only be provided upon the purchase of an RFP document and payment of the required fee. All enquiries and requests for additional information regarding the RFP, technical interpretation of the RFP or other matters requiring clarification by interested parties or applicants registered in terms of the RFP, must be made and submitted online via the VDR after the briefing session. The NLC will only respond via the VDR and no other form of communication will be accepted by the NLC. Engagement with the NLC regarding any matters concerning the RFP or application process after the conclusion of the briefing session will therefore require the purchase of an RFP document from the NLC. Prospective applicants are therefore encouraged to attend the briefing session for the full allocated time on both days.”

While the lucrative, and often controversial, licence renewal is only set for May 2025 the process has already kicked off and bidders can expect to pay R55 000 for access to documents and data around the lottery and access to a set of documents and a “virtual data room” that will tell them, in considerable detail, how money flows through the lottery system, from independent ticket vendors right through to payouts. Prospective bidders will then have five months to turn that information into proposals on how, given the chance, they would run the lottery when current operator Ithuba’s licence expires in May 2025.

In theory, those proposals must be submitted in early February in order for them to be properly evaluated and a winner announced in plenty of time for a smooth transition. But the odds of things going to schedule seem slim.

Ithuba won its licence in 2014 but was still fighting off a challenge from its predecessor Gidani into 2016. In 2007, the lottery was paused for half a year while Gidani’s predecessor and SA’s first operator, Uthingo, challenged being replaced. With every change of operator, the way the lottery runs and the secondary games around it have changed. Ithuba has indicated it hopes to be the first-ever operator to get a second term running the lottery, but Hosken Consolidated Investments (HCI) told shareholders it has already put together “an exciting bid”.

The scale of the opportunity the lottery represents has traditionally attracted a large number of interested parties, at least in the early stages of bidding, before significant investment is required. And that investment is significant. One insider has estimated that putting together a full bid can easily cost at least R15 million, and during the previous adjudication process bidders were required to put up a performance bond of R125 million.

The groups putting up that kind of money reconcile themselves with the possibility of further delays. Ithuba’s licence had been due to run only until May 2023 but was extended because, said the Department of Trade, industry and Competition (dtic), of the exceptional circumstances Covid-19 represented. As of last week, the dtic is committed to a timeline that includes the end-August briefings, a deadline of 31 October to pay for access to the data around the lottery, and the early-February deadline to submit bids. However, all those dates are subject to representations and legal challenges and, having extended the current licence once already, it could be hard to argue against further extensions.

Source: Gaming for Africa

International Gaming Standards Association expands to Africa

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The International Gaming Standards Association (IGSA) has created a new African division to serve the continent’s gambling industry. GSA Africa will run as a local office, promoting standards across land-based, online gaming, sports betting, and lottery in Africa. IGSA says the new division is one of its core strategic initiatives for 2024.

FK Fayad, CEO of SamPro Group, a holding in the Middle East and Africa, will be the managing director of GSA Africa. Fayad has worked across trade, technology, ICT business, regulation, and government consultancy in Africa, Asia, Gulf Region, and the Middle East.

Fayad also holds a number of other roles with various organizations. These include serving on a panel of advisory and strategic partners to the Nigerian Arab Gulf Chamber of Commerce and as a volunteer member of the United Nations High Commission for Refugees.

“The creation of GSA Africa is another leap forward for IGSA and for the gaming industry,” IGSA president Peter DeRaedt said. “Gaming is expanding rapidly across the continent and, appropriately, each jurisdiction has its own nuanced regulations.

“GSA Africa will function as a guiding voice, bringing the myriad benefits of standards to operators, suppliers, and regulators across the continent.

“We are thrilled FK Fayad will lead GSA Africa. His deep insights and extensive relationships will be crucial to GSA Africa’s success.”

Fayad adds: “It is an honor to lead the newly created GSA Africa. Africa is an exciting part of the global gaming industry, where growth is rapid and poised to continue at a strong pace.

“Bringing IGSA standards to the continent at this phase of its growth is essential; I’m thrilled to lead this charge.”

 IGSA launches cyber and responsible gambling committees

Establishing the new African division is the latest step in IGSA’s ongoing efforts to serve the wider industry.

Last month, IGSA also formed a new Cyber Resiliency Committee (CRC) to create cyber standards for gambling businesses. The committee is focusing on standards for cyber risk management, cybersecurity governance, and framework control standards for casino operators, IGSA members Aristocrat Technologies, Light & Wonder, and AXES.ai have all declared their support for the new committee.

Meanwhile, in June, IGSA’s board also approved the creation of a Responsible Gaming Committee. IGSA said the committee will offer support for regulators and operators with a “multi-tiered framework” called the Responsible Gaming Maturity Model (RGMM).

This approach, it says, will offer the industry a path from discovery to a “highly quantifiable and predictable” responsible gaming model. IGSA adds that the RGMM will help both regulators and operators grow from implanting a basic RG policy to managing a more precise dashboard of KPIs generated from quantifiable data.

 

Source: iGB

 

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Ban on Nigerian Gambling Operators Sparked Licensing Confusion and Called for Clarity

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In a surprising turn of events, more than 30 gambling operators were banned from conducting business. The public was cautioned against engaging with these brands as they were declared illegal by the Constitution of the Federal Republic of Nigeria 1999 and were found to contravene the provisions of the Lagos State Lotteries and Gaming Authority Law 2021 in its amended form.

The ban affected various sectors and forms of gambling in Nigeria, where strict regulations apply to both online betting sites in Nigeria and land-based gambling. The Lagos State Lotteries and Gaming Authority (LSLGA) accused these brands of failing to obtain the necessary licenses from LSLGA. As a result, that has put them in violation of Section 33(3) of the law.

This section explicitly states that “a person without a subsisting license or authorization from the Authority shall not conduct or operate any gaming activity in the State.”

List of banned Operators.

The list included the following;  Zebet, Betika, Gobet, MSport, 22Bet, Afribet, Bestbet360, Bangbet, Betwazobia, Netbet, Nairamillion, Western Lotto, Elliest Lotto, Riderlotto, Peelslotto, Setlotto, Hamabet, Koretbet, Paripesa, Megabet, Livescorebet, Blackbet/Bettybingo, Cloudbet, Sportbet.IO, Hallabet, Oddspedia, N1bet, Ngawin, Millionairepowerplay, Lottomania, Firstbet, Betxperience, Giveraffle, Konfambet, Wakabet, Betfarm, Scrath2win, Chopbarh, Naijabet, Plentymillions, Nairapowerbet, Gamespay and Xtragoalsfantasy.

Controversy that sparked after the Ban

The ban on over 30 gambling operators in Nigeria sent shockwaves through the industry, leaving both the public and operators puzzled and demanding answers. One of the major sources of confusion stemmed from the fact that several of the banned operators held licenses issued by the National Lottery Regulatory Commission (NLRC). This federal body oversees gambling activities in Nigeria.

Zebet, a prominent betting operator on the banned list, was quick to respond, emphasizing their federal license granted by the NLRC. They invited the public to review their official federal license on the NLRC website, further confirming that their authorization covers the entirety of Nigeria, not just Lagos.

This revelation ignited a crucial debate about the regulatory framework in Nigeria. Some users have raised valid questions regarding whether these operators, despite having federal licenses, need additional licenses at the state level to operate within Lagos. The ambiguity lies in whether these companies require physical offices within Lagos to necessitate a state license.

For example, 22Bet, one of the banned operators, does not maintain physical offices in Lagos. This led to speculation that they might not need a Lagos State Lotteries and Gaming Authority (LSLGA) license. Such complexities in licensing procedures highlighted the need for greater clarity and transparency within the regulatory landscape of Nigeria.

The ban didn’t only create confusion but also brought to the forefront the importance of streamlining licensing procedures and ensuring that operators fully understand their compliance requirements at both federal and state levels. As the industry navigates these challenges, it is clear that regulatory authorities and operators must work together to establish more precise guidelines and promote a more cohesive and transparent regulatory environment for Nigeria’s gambling sector.

Clarification by the National Lotteries and Regulatory Commission (NLRC) on the whole situation

Following the witnessed frenzy by the Nigeria betting industry following the ban that was imposed by The Lagos State Lotteries and Gaming Authority (LSLGA) on more than 30 betting operators. The public was warned against engaging with these brands, declared illegal under the Federal Republic of Nigeria 1999 Constitution, allegedly contravening provisions in the Lagos State Lotteries and Gaming Authority Law 2021.

The ban left operators and the public perplexed, as many of the banned operators held licenses issued by the National Lottery Regulatory Commission (NLRC). This confusion led several operators to provide evidence of their licenses obtained through the NLRC to operate nationwide in Nigeria, not just within Lagos.

In response to the controversy, the NLRC has issued a statement aimed at providing clarity on the situation. The NLRC expressed regret for any misunderstanding caused by the ban announcement, stating, “NLRC deeply regrets any misconceptions the unfortunate publication may have caused national gaming licensees operating within the ambit of the law in Nigeria.”

According to the NLRC statement, the following gaming operators, previously listed as “unlicensed and illegal” by the Lagos State Lotteries and Gaming Authority (LSLGA), are indeed licensed to conduct lottery and sports betting business throughout Nigeria: ZEBET, BETIKA, GOBET, MSPORT, AFRIBET, BANGBET, BETWAZOBIA, KORETBET, 22BET, PARIPESA, LIVESCOREBET, BLAVKBET/BETTY BINGO, CLOUDBET, HALLABET, N1BET, KONFAMBET, SCRATCH2WIN, NAIJABET, LOTTOMANIA, AND MILLIONAIRE POWERPLAY.

 

Source: Betting Companies Africa

From the East African Coast to Nigeria: Champions of Africa in Gambling

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Kenya leads in African gambling with 83.90% participation, Nigeria closely follows with 78%, and South Africa boasts 74% participation. Football dominates as the preferred sport for betting in most African countries. In the vibrant tapestry of Africa, gambling has emerged as a cultural phenomenon, especially among the youth.

GeoPoll’s surveys conducted in May 2017 and December 2021 have unveiled intriguing insights into the gambling habits of African nations.

Kenya takes center stage in African gambling, with a remarkable 83.90% of Kenyans admitting to trying their luck with gambling or betting. Surprisingly, this percentage has continued to grow despite regulatory measures.

Nigeria closely follows, with 78% of Nigerians confirming their participation in gambling. Notably, Nigerians also have the highest average monthly spending on bets.

South Africa, known for its diverse betting options, boasts 74% of respondents who indulge in gambling. Intriguingly, lotteries slightly edged out football (29.3% vs. 53%) as the most popular choice for betting.

For the East African coast, Tanzania, where 63% of respondents engage in betting, with football remaining the top choice. Uganda, too, has seen a surge in its betting culture, with 59% participating.

See key highlights below from all key gaming Markets in the continent

CountryPercentage of GamblersPreferred Betting Choice
Kenya83.90%Football
Nigeria78%Football
South Africa74%Football
Ghana70%Football
Tanzania63%Football
Uganda59%Football

 

Source: Business Insider Africa