Why some sports betting operators are failing to succeed in Africa

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You wouldn’t expect a pilot about to embark on a transatlantic flight to fail to run through his pre-take-off checks and review the weather forecast for the journey. So why would a business fail to engage in market research before setting out on a particular strategy, product launch, or important decision?

Pilots today face an increasingly complex array of factors they need to take into account — increased air traffic movements, gridlocked airports, more extreme weather events, and new technologies, which are supposed to make their lives easier and less stressful. Similarly, the business environment in Africa differs per market as each market has its own culture, beliefs, and traits which are faced by decision-makers today and are constantly changing.

We would like to extend our expert knowledge to all sports betting and online casino operators that have recently opened operations in Africa or plan to, due to tremendously increased mobile phone and internet penetration that came as a result of over 24 months of lockdowns that were brought about by the unprecedented outbreak of covid-19 to make sure you’re well prepared to succeed just like Pilots are always able to because they make sure to make checks prior their flights.

As fast as the iGaming industry in Africa is growing, please be advised not to jump on the train without taking your time to conduct feasibility market research about the market of your interest, to analyze key factors like what’s the ESTIMATED MARKET SIZE, KEY PLAYERS, POSSIBLE MARKET SHARES, BARRIERS TO ENTRY, LICENSING REQUIREMENTS AND COSTS, TAXATION & REGULATORY FRAMEWORKS, REPATRIATION OF FUNDS POLICY, DOUBLE TRADE AGREEMENTS, MARKETING & ADVERTISEMENT STRATEGIES among others. These feasibility market reports will help you make timely decisions while helping you mitigate the investment risk as well. We continue to see sports betting operators close shop after a few years or months of operations e.g., Betway Kenya & Uganda, 10bet Kenya, and Pulsebet Uganda among others as the list is long. While the factors are many that may have been the exact reason for their closure for example Poor marketing and advertisement strategies, product localization failure, wrong choice of market entry into Africa, gaming taxes etc. There’s no doubt most are avoidable if one takes time to prepare themselves and then launch when most boxes are ticked.

Allow us to assist you overcome all the obstacles that are hindering your revenues to take off if you’re starting to worry, for new operators let us assist you straight from feasibility market studies, license application & acquisition, marketing & advertisement, Operations setup, recruiting the right talent that will carry our experience & skills flagship for your long-term success.

The Influence of sports betting on the African Economies

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Betting on sports is currently the most popular form of gambling in Africa. Adults and young locals are particularly fond of wagering on European football, e.g., the English Premier League, Bundesliga, Serie A, and events like the World Cup. Other international sports also get a loyal following here, with many watching and supporting cricket, rugby, horse racing, and basketball. Sports, particularly the passion for soccer, is the bind for most regardless of their culture, language, religion, status, or political persuasion.

For example, roughly 60 million residents aged 18 to 40 actively bet on sports in Nigeria. According to the same survey, Nigerians bet an average of 3,000 Naira or $15 daily.

According to a South African government survey in 2017, sports betting grew 14% yearly from 2008 to 2016. Today, online sports betting makes up 45% of the country’s gambling market, a completely different picture from ten years ago when casinos had an 80% market share. And it’s the same trend in Southern, Central, East, and West Africa. So, it’s unsurprising that the African gambling industry was worth US$ 3,048.05 million in 2021 and will grow by 6.99% until 2030.

Betting on a $3bn gambling market and a dynamic African economy

While gambling and betting laws are contested issues in most parts of Africa, many benefit from its operations. Stories and anecdotes from the region reveal that many see the growing betting industry as a source of income. As betting grows, the economy benefits.

One segment that directly benefits from the industry is the group of small betting shops that often run promotions, including ‘betting points’ for every sports wager. With this regular promo, and during events like the World Cup, their sales go up.

Regional economies also benefit through a boost in employment opportunities. The sudden surge in betting companies has provided locals with employment options, with thousands of Africans working for local and foreign companies. Aside from direct employment, betting companies create jobs by allowing locals to become agents and run their betting outlets. There are partnerships and sponsorships also that benefit other stakeholders. For example, a few European bookmakers have partnered with the Nigeria Football Federation, while Bet9ja was a title sponsor for the Nigerian National League. The same bookmaker has a million-dollar partnership with Big Brother Naija, a popular reality TV show.

African sports betting is unique in that it grows not in isolation but in step with other industries, particularly IT, advertising, and banking. As a result, there’s a symbiotic relationship between the sectors as stakeholders, each benefitting from the other. And some even argue that sports betting has given more in return.

 South Africa

The South African betting market contributes to the region’s economy, which can exceed $2.3 billion by the end of 2023. It’s a significant number since South Africa’s GNP is the third highest in the region. Moreover, with a bigger share per capita, local bettors have more regional purchasing power, allowing them to bet more significant amounts in online sportsbooks and betting shops.

Nigeria

It’s the same story with Nigeria, Africa’s second-biggest gambling market. According to auditing firm PwC, the Gross Gaming Revenue in the country was $58 million in 2018, and at that time, the team projected that it would rise by 16% over five years. But in 2020, it moved past the  $443 million mark. The massive growth of gambling in Nigeria started in 2004 when the ban was lifted.

Kenya

Kenya is another African country with a regulated betting industry. However, its growth slowed down with the introduction of restrictive tax laws. The Kenyan government introduced a 20% tax on bets and a 15% tax on the GGR. While it may benefit tax collections, it eventually backfired, with many operators leaving the Kenyan market.

In other African countries, sports betting’s contribution to their economies is not substantial or clear-cut due to strict laws and regulations. As mentioned, online gambling is illegal in 38 countries, and they still rely on colonial legislation.

 What’s ahead for sports betting and the African economy?

With these mindboggling data on bettors’ activities and revenues, it’s unsurprising that many African countries are looking to tighten tax laws and regulations and generate more revenues from the industry. As betting grows, so will its effect on the regional economy. So, the challenge for the governments and operators is finding a mutually beneficial arrangement for taxation.

And there are the social costs of sports betting, too. As one Uganda-based analyst suggests, the growth of sports betting “threatens to push young men and women into its fatal depths.” The government must consider the growing importance of betting to the African economy.

Source: African Business Communities

Sports Betting East African Summit 2023 is here!

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While Drums, wines, and cocktails along Brazilian cuisine are still in high gear at Grand Hyatt in Sao Paulo Brazil @ the Brazilian iGaming summit with massive networking accompanied by new business opportunities, making new friends, and romantic mistakes!

We at GGC have started sounding the alarms for the upcoming Sports Betting East Africa Summit (SBEA) by Eventus International taking place at Kabira country club in Kampala, Uganda from July 13-14 next month.

Eventus International is a gaming industry exhibition organizer that has been in the business of connecting gaming industry stakeholders for over a decade. With a proven combination of networking, sponsorship, and exhibiting opportunities across all its events that span the entire continent. These events bring industry insight, business development opportunities, knowledge sharing, and networking tributes bridging the gap between B2B and B2C operators thus bringing the gaming industry closer together and closer to achieving a collective goal.

Using their platforms, they offer bespoke sponsorship and exhibition opportunities that can easily position a brand to a targeted audience of professionals, and deliver a high ROI to companies looking to enter a market and/ or strengthen their brand presence.

Reach out for Sponsoring or Exhibiting opportunities at the upcoming Sports Betting East Africa Summit (SBEA+) 2023 for the opportunity to have one-on-one interactions with key East African gaming industry stakeholders, acquire new business ideas from so many professional speakers that range from Regulatory boards and its C-level executives, Sports betting, casino and lottery operators, consultancy firms, Africa centric media firms, law firms among other delegates that will grace the show.

For more info: https://www.sportsbettingevents.com/sbea

Massive blow out of online casino games in Africa

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While all football fans across the globe gear up for the crush of the Titans – Manchester City Vs Inter Milan on Saturday 10th for the UEFA Champions League finals in Istanbul’s Ataturk Olympic Stadium, we at GGC are taking you on a virtual tour into the rapid growth of online casino games in Africa.

Although Africa does not have a uniform set of gaming laws that govern the entire continent, online gambling is experiencing an incredible rise, and at the moment, the focus is on mobile. More and more gamblers are using their smartphones for wagering, and thanks to that, the online casino industry is expected to surpass traditional land-based gambling in revenue.

The Growth of Online Gambling In Africa

The growth of online gambling in Africa is mostly backed by the increased availability of smartphones on the continent and the increase in internet penetration which blew out during over 24 months of lockdown across most African countries that came as a result of covid-19 outbreak. By the end of 2020, there were close to 495 million smartphone owners, which is almost half of the population. Moreover, the rise continued during the pandemic, as the third quarter of 2021 faced the arrival of 26 million smartphones to the African continent.

The increased smartphone ownership boosted the growth of online casino gaming, especially in countries like South Africa where the mobile device penetration is expected to reach 67% by 2026, the region is also experiencing more stable internet connections than ever, especially in countries like Nigeria, Kenya, Uganda, Tanzania, Morocco, Ethiopia, and Egypt where the coverage is booming. For example, in 2020, there were 154 million internet users in Nigeria only, and the number continues to rise.

What’s making online casino games so Popular?

Online casino games are getting more attention from African players than ever, mainly because the majority were forced to bet online for over 24 months as all retail operations in most markets were shut down to reduce the spread of covid-19 paving the way for online casino games and also tremendously increased both internet and mobile phone penetration.

Convenience Using a mobile app for online gambling allows the players to enjoy their favorite time on the go, any time they want, which is totally different from retail/land-based gaming where a player would have to dedicate time to go and visit a physical venue. Moreover, going to a land-based establishment sometimes also means waiting in lines to get a seat at a particular table or a slot machine, which is not the case with gaming on mobile phones. Digital gambling has no limits when it comes to the number of seats and the availability of games. As long as players have a proper mobile device and a stable internet connection, they can have fun whenever they wish. Also, internet gambling adds more privacy and a greater feeling of security to the whole experience, since players don’t have to be surrounded by fellow punters as they play.

Attractive Bonuses

Mobile gamers enjoy the incredible offerings of bonus rewards and promotions. From the moment a punter opens up an account, they continuously receive different prizes, and some of them do not even require real money deposits. All the top casino sites continue racing to attract new users and keep the existing ones with promotions like deposit bonuses, free spins, cash rewards, and many others. Some platforms also developed VIP programs where the members are treated with premium rewards that cannot be claimed by regular users. However, each operator has its own set of rules that control the use of bonuses, and before punters claim any of the rewards, they must follow all key terms and conditions.

Variety of Games

Players who stick to land-based establishments are always limited to the selection of games available on the floor, which may not be an issue for gamblers who can access a large list of online casino games from various providers, from classics like pokers, roulettes, slots, and blackjack, to more advanced options like video poker and live dealer sessions, everything at fingertips.

The future of mobile gaming in Africa definitely looks bright, and the continent is likely to continue pursuing its passion for gambling through smartphones and other devices. As technological advancements continue to boost mobile penetration on the continent, even more Africans will be able to enjoy the convenience and all the amazing benefits of internet gambling.

Conclusion: Africa is the future hub of online casinos

2023 International Association of Gaming Regulators (IAGR) Conference is in Action

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While most iGaming professionals are gearing up for the iGaming Next show in Valletta on 21-22 JUNE, The International Association of Gaming Regulators 2023 conference doors are open too!

International Association of Gaming Regulators (IAGR) is a leading international industry body for gaming and gambling regulators, that was established in the early 1980s as an adjunct to the International Association of Gaming Attorneys, IAGR became an incorporated non-profit association in 2011 and in doing so started to provide a voice for governments, gaming regulatory agencies and personnel, and representatives from the international gaming industry representing jurisdictions and regulators across the globe, IAGR informs, advocates educates, protects, and unifies members.

IAGR provides a forum for gaming regulators from around the world to meet, learn best practice techniques & strategies, network, and exchange views, share information, and discuss legislation, policies, and procedures which are the core structures that shape gaming markets through their respective regulators across the globe.

From Cape Town, South Africa in 2011, Singapore in 2012, Oslo -Norway 2013, Philadelphia – United States 2014, Lima – Peru 2015, Sydney – Australia 2016, Johannesburg – South Africa 2017, Copenhagen – Denmark 2018, Montego Bay – Jamaica 2019, Boston – United States 2021, Melbourne – Australia 2022 the IAGR conference is this year going to beautiful Botswana at the Grand Palm Hotel Casino Convention Resort from the 16th – 19th OCTOBER 2023.

With C-level speakers like Andrew Rhodes, Chief Executive – Gambling Commission, UK, Earle. Hall, Chairman, International Gaming Standards Association & CEO @ AXES.ai, Rachel Volberg, Research Professor, University of Massachusetts Amherst, Sibongile Simelane-Quntana, Executive Director, South African Responsible Gambling Foundation among others IAGR presents a chance to network with global peers.

For more info visit: https://iagr.org/botswana-2023/networking/

Online Sports betting from all key markets in Africa

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Sports have always been a big thing in Africa. Our continent is consistently plagued with issues surrounding poverty, drought, famine, sickness, and criminal activity. One can argue that living in Africa can be quite difficult. That’s why locals are constantly looking for ways to enrich lives and make them happier. Sports are a perfect example of an escape for people of our continent. Not only does it provide an avenue for people to be distracted from their problems, but it’s also an opportunity to pursue personal growth, fulfillment, and enjoyment which in turn has facilitated the huge growth of sports betting.

This article is fully sourced from GEOPOLL with key highlights that we believe will further broaden your perspective as far as online sports betting in Africa is concerned.

Betting, especially on mobile is a widespread pastime (and sometimes a highly perceived income generator) among the youth in Africa. Over the years, GeoPoll has conducted surveys, both in-house and on behalf of clients, that point to the importance of the gambling topic across the continent. The first of such surveys was a rapid survey they conducted in May 2017 to assess gambling among the youth in Ghana, Kenya, Nigeria, South Africa, Tanzania, and Uganda.

In December 2021, they ran the same survey in the same countries, and below were the results;

Most Africans have placed bets, but Kenya still leads in betting

Overall, 72% of the respondents answered in the affirmative when we asked if they have participated in betting or gambling. As with the GeoPoll 2019 study, Kenya led with 83.90% of Kenyans saying they have ever tried their hand at gambling or betting, followed by Nigeria (78%) and South Africa (74%). This percentage grew despite the Kenyan government taking far-reaching measures to curb betting in the country.

Gambling frequency

For the respondents who affirmed that they had ever placed bets, we followed up with a question on how often they were gambling. While on average 44.4% in the other countries said they bet only about once a month, the largest portion of Kenyan respondents said they bet at least once a week. Consequently, Kenya had the highest percentage of people betting once to several times a day (34%), followed by their East Africa neighbors, Tanzania (31%) and Nigeria (30%).

88% of those who bet do so on mobile phones

Football betting is the most popular

We also sought to know what people bet on most. Across all countries except South Africa, football (soccer) stood out, with 53% saying they mostly bet on football. In South Africa, lotteries (lotto) slightly edged football (29.3%).

While the majority of bettors across all age groups preferred football overall, lotteries gain more popularity with increasing age.

Average monthly spend

When we asked about average monthly spending on placing bets, a big majority (80%) said they spend below $5 USD. On average, Nigerians had the highest average spend, followed by Kenya and South Africa. Please note that we used rounded local currency amounts in the survey and used approximate USD bands only for context.

About this survey

This GeoPoll rapid survey was conducted in December 2021 among 3,463  youth in Kenya, Uganda, South Africa, Ghana, Nigeria, and Tanzania using the GeoPoll mobile app. The sample was not demographically representative and naturally leaned towards younger people in urban areas. The sample consisted of 70% males. Age groups were distributed as follows: 16-24 (35%), 25-34 (52%), 24-44 (11%), and Over 44 (2%).

Source: GeoPoll – https://www.geopoll.com/blog/betting-report-africa/

iGAMING SHOWS YOU SHOULDN’T MISS THIS YEAR

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We kicked off with a banger at ICE London in February which was one of the biggest Clarion events show we have attended so far, the previous one wasn’t so productive following its absence during covid-19 times and then postponements that forced some tier-one companies to cancel their attendance, nevertheless, we attended, this was followed by SBC summit North America and then Last week headliner by the Casino Beats summit which took place at the Intercontinental Hotel in St Julian’s, Malta.

So, what next after Casino beats? If you are looking to expand your knowledge, check out new products & services, get new clients, explore new trending technology innovations, and make new connections there are a couple of similar events to look out for as mentioned below;

  • Global Gaming Expo Asia (G2E Asia) is renowned as a key gaming and entertainment business hub across the continent. It is a must-attend marketplace for the Asian gaming-entertainment industry, offering a one-stop platform for industry professionals to network, forge fresh connections, source new products and solutions, and gain a deeper insight into the latest global industry trends. Every year, over 95% of Asian casino operators attend G2E Asia to look for cutting-edge products and solutions and gather upcoming industry trends. G2E Asia is the ideal hub where professionals network and conduct business. It will take place from the 30thof May to the 1st of June, 2023 at Marina Bay Sands, Singapore

  • SBEA, the 8th Annual Sports Betting East Africa+ Summit will be taking place from 13 – 14 July 2023 at Kabira Country Club, Kampala, Uganda. Sports Betting East Africa+ has been vital summits and exhibitions for African operators, regulators, manufacturers, payment and software providers, and other stakeholders to meet, share experiences, see the very latest gaming innovations and contribute to the overall development of the gaming industry across the region for the past 7 years. https://www.sportsbettingevents.com/sbea

  • Canadian Gaming Summit is the premier annual conference and trade show for gaming and betting professionals that offers the leading platform to network, share ideas and conduct business with key industry stakeholders from Canada and beyond. It will take place from the 13th– 15th of June 2023 at Metro Toronto Convention Center, Toronto, Canada. https://sbcevents.com/canadian-gaming-summit/

  • The All-American Sports Betting Summit presents a unique opportunity for businesses to expand their network, learn about emerging market opportunities, and engage with C-level professionals in the industry. Over three days, the summit will bring together key speakers, including leading authorities, operators, investors, and advisers from the gaming ecosystem, to share insights on the latest regulatory updates, the current state of the U.S. gaming market, and emerging trends within the industry. It will take place from the 27th– 29th of June, 2023 in San Diego US. https://www.eventus-international.com/aasbs

  • iGB L!VE 2023, is the only show that connects and celebrates the entire gaming community. Connect with 6,000+ of the industry’s best Affiliates, Suppliers, and Operators and take your iGaming business to the next level.  From 11th July 2023 – 14th July 2023 in RAI Amsterdam, Netherlands. https://www.igblive.com/igb-live-2023-register-interest

  • SiGMA Asia.With an eye toward new horizons, the SiGMA Group heads to Manila – connecting the sharpest minds in the sector, and bringing our vast network in the West closer to Asian suppliers, operators, and affiliates. From 19th July 2023 – 22 July 2023 Manila, The Philippines. https://sigma.world/asia/

 

  • SBC Summit Barcelona is a leading global betting and iGaming show with a comprehensive high-level conference, a program of major product launches, and a 300-booth expo. From 19th September – 21st September 2023. https://sbcevents.com/sbc-summit-barcelona/

 

  • Balkan Entertainment and Gaming Exhibition (BEGE Expo).BEGE is a meeting place, marketplace, debating forum, networking, and social hub for the gaming industry involving the demand and supply side, regulators, third parties, opinion formers, and industry leaders. Annually BEGE gathers more than 5000 visitors from 60+ countries. From 22nd November 2023 – 23rd November 2023 Inter Expo Center, Sofia, Bulgaria.

 

  • Eastern European Gaming Summit (EEGS).EEGS is the annual gaming conference, which keeps you on track with the latest regulatory and technological developments from the gaming and entertainment industry in the European region.

Tanzania igaming licensing requirements and costs

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Who is the regulator of the gaming business in Tanzania?

The gaming industry in Tanzania is regulated by the Gaming Board of Tanzania (the “Gaming Board”) established by section 4 of the Gaming Act CAP 41 Revised Edition 2019. The Gaming Board is responsible for overseeing, monitoring, and regulating gaming activities in Tanzania. It has the duty and powers to carry out operations and management of the gaming activities which includes issuing different types of gaming licenses and certificates in accordance with section 26 of the Gaming Act and Regulation 12 of the Gaming Regulations GN. No 385 of 2003.

Types of gaming in Tanzania that are regulated and licensed by the Gaming Board?

Sports betting (Retail and Online) is the major type of gaming in Tanzania followed by online and land-based casinos, virtual games, retail & SMS lottery, and street slot machine operations.

Types of legal online gaming accepted in Tanzania?

  • Sports betting
  • Online casino games
  • Virtual games
  • Scratch cards

Types of gaming licenses provided in Tanzania?

  • Casino license for conducting table games and slot machines;
  • Slot machines license for promotion of slot machines business in a shop;
  • Manufacturer’s certificate for manufacturing of gaming equipment including its spare part;
  • Seller’s or distributor’s license for supplying, selling, or servicing gaming equipment;
  • Accreditation license for a person engaged in non-gaming activity within gaming premises;
  • Support license, required for a person employed in the gaming activities or a gaming employee;
  • Online casino license for conducting casino games through remote devices with an internet connection;
  • SMS lottery license for conducting SMS Lotteries
  • Principal license for sports betting and slot machines operations;
  • Online sports betting license;
  • Retail sports betting license;
  • National lottery license to conduct national lottery;
  • Lottery licence issued pursuant to section 41(3) to conduct business lotteries;
  • Service provider license to provide services on gaming operations;
  • Gaming consultancy license;
  • Virtual games license

  Application and gaming license fees

Type of license Application fee per year License fee per year
Online casinoTZS 1,000,000USD 40,000
Landbased casinoTZS 1,000,000USD 40,000
Online sports bettingTZS 500,000USD 30,000
Retail sports bettingTZS 500,000TZS 1,000,000
Route operations
(Slot machines in shop premises)		TZS 50,000TZS 500,000
Slot machines (clubs and bars)TZS 10,000TZS 30,000
Forty machines siteTZS 100,000TZS 4,000,000
SMS lotteryTZS 500,000USD 30,000
National lotteryTZS 1,000,000USD 50,000
Service providerTZS 500,000TZS 1,000,000
Key employeeTZS 10,000TZS 50,000
Support employeeTZS 10,000
Manufacturer certificateTZS 500,000TZS 1,000,000
Sellers/distributors/suppliersTZS 500,000TZS 1,000,000
Retailers on gaming premisesTZS 100,000 Casino

TZS 20,000 Forty machines

TZS 10,000 Slot shops & bars

AccreditationTZS 10,000

Key Notes

  1. Amount only applicable to casinos in Dar es Salaam (At the moment casino licenses aren’t issued for Dar es Salaam). In other regions of the country, the amount is USD 15,000
  2. Amount only applicable to casinos in Dar es Salaam. In other regions of the country, the amount is TZS 2,000,000
  • A company that already has a license to promote lottery for business purposes (not national lottery) and decides to apply for the national lottery as well the amount is USD 40,000

Eligibility criteria for obtaining a gaming license

An applicant for a gaming license has to meet the following criteria under Regulation 3 of the Gaming Regulations:

  • Has never been previously denied a gaming license in Mainland Tanzania or any other country
  • Has never had a gaming license revoked or suspended nor have they withdrawn an application for any gaming license in Mainland Tanzania or any other country;
  • The applicant must have a clean criminal record;
  • The applicant must provide evidence of adequate funding available to pay all obligations and gaming operations;
  • Must possess gaming premises that are deemed suitable by the Gaming Board. Unsuitable locations for gaming activities are places in the immediate vicinity of any school, place of worship, hospital, national security, residential areas, places allowing minor clientele, and places difficult to police;
  • Must comply with all the provisions of the Gaming Act and the Gaming Regulations.

The process of obtaining a gaming license

                                         The process to obtain a gaming license
 Steps Activities Timeframe
1.Submit documents to the Gaming Board to process the application1.     Two copies of the Business Plan/Feasibility
Study. Should contain a clear statement of project objectives, applicants’ profiles, details
of investment costs and how the proposed investment will be financed (name the specific sources of funds and their contacts, terms
and conditions of the loans if applicable), sources of technology if applicable and gaming equipment, market study, expected employment generation,

projected financial and economic analysis including projected annual balance sheets and income statements for the first four years, proposed implementation schedule, and

any other information that will useful for the determination of the application.

2.     Duly filled application forms and application fees paid

 

3.     Duly filled Personal Declaration Form for each Director

 

4.     A copy of the company’s Memorandum and Articles of Association

 

5.     A certified copy of the Certificate of Company Incorporation.

6.     Evidence of sufficient financial capital5 available for the implementation of the project.

7.     Proof of citizenship of every incorporator/ subscriber, and every director and senior officer. This includes a detailed Curriculum Vitae, a photocopy of the first five pages of a passport, a passport-size photograph, and historical background.

8.     Audited Balance Sheets and Income Statements of every incorporator/subscriber and every director and senior officer.

Within 30 days from the date of receipt of an application, Gaming Board will approve/ disapprove the application

Key Notes

  • All application fees are non-refundable
  • There should be a minimum investment capital for a foreign company of USD 500,000 proven to exist for the investment in Tanzania. Minimum investment capital for a local company of USD 300,000 has proven to exist for investment in Tanzania.

 

9. Tax Clearance from the Income Tax office of the country of origin of the applicant and every director and senior officer.

10. Statement from two persons (not relatives) vouching for the good moral character and financial responsibility of the incorporators/ subscribers and the proposed directors and senior officers.

11. Company Board of Directors’ resolution to invest in Tanzania.

For an internet gaming license, the addition of the following documents;
12. Anti-bribe pledge form.
13. Responsible gaming guidelines.

14. Application forms prescribed in the Internet Gaming Regulation for each director or shareholder with 5% of ownership or controlling interest in the applicant company.

15. Detailed information about the service provider, structure and equipment, and services to be offered.

16. Description of the technology and its source.

2.On receipt of the application, the Gaming Board will undertake an investigation to determine the applicant’s suitability1.     A vetting process of the shareholders, directors, and business

2.     Applicants (except support employee’s licenses) are to pay for the investigation costs6 as determined by the Gaming Board

3.     In addition, applicants shall pay to the Gaming Board for transportation and its related costs together with significant office expenses and other related expenses until the conclusion of the investigation.

The investigation shall be concluded upon the issuance of an initial order of grant or denial of the license by the Gaming Board.
3.Gaming Board to grant Gaming License1. On condition applicant has met all requirements including payment of fees and costsThe Gaming license shall be valid for one year subject to renewal.
  • The applicant shall deposit to the Gaming Board such amount as may be sufficient for that purpose.

Gaming Taxes for all types of gaming in TZ

The Gaming tax is charged on these types of gaming namely; Casinos, Sports Betting, SMS Lottery, National Lottery, Street slot Machines, Forty Machines Sites, Virtual games, and other gaming products.

  1. Sports Betting, online and retail is taxed at the rate of 25% of Gross Gaming Revenue with 15% on net winnings of players. The 5% of the tax remitted shall be allocated to the Sports Development Fund.
  2. SMS Lotteries, Forty Machines Sites, and Internet Casino operations are taxed at the rate of 25% of Gross Gaming Revenue (GGR) with 15% on net winnings;
  • Street slot machines are taxed TZS 100,000 per machine per month with 15% on net winnings;
  1. National Lotteries is taxed 20% of Gross Gaming Revenue with 15% on net winnings;
  2. Casino operations are taxed at the rate of 18% of the weekly Gross Gaming Revenue and all land-based casinos are taxed at the rate of 12% on net winnings.
  3. Virtual games are taxed at the rate of 10% of the Gross Gaming Revenue and a 15% rate on net winnings.
  • Other gaming products under section 51 are taxed at the rate of 10% of the Gross Gaming Revenue and 15% on net winnings.

Additional features can be found in our complete feasibility market reports which we can arrange at a request that includes but are not limited to;

  • Estimated Market overview
  • Main players, their products, and models of operations
  • Taxation frameworks
  • Repatriation of funds policy
  • Double Taxation agreements (DTAs)
  • Regulatory frameworks (Existing, new, and upcoming)
  • Business plan based on the type of gaming

Source: Shikana Law Group

 

Summary highlights of the Nigerian Sports betting industry

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Yesterday was a weekend mixed with emotions for all Arsenal fans across the world as they lost to Brighton their only ticket to the English Premier League title realm, it’s such football matches that have always made sports very unpredictable, entertaining, exciting, and very profitable on the other hand.

“As the saying goes signed, sealed, and delivered.…… that we did yesterday to the title” As usual let’s take you on another tour in Africa this time we are in Nigeria.

 Nigeria is a West African country bordered to the north by Niger, to the east by Chad and Cameroun, to the south by the Gulf of Guinea of the Atlantic Ocean, and to the west by Benin.  Nigeria is not only large in area, larger than the U.S. state of Texas—but also Africa’s most populous country with a population of over 200 million people so sports in Nigeria is big business.

The Draft 2020 National Sports Industry Policy estimated that the industry could generate 2 trillion Naira ($4.7 Billion) in average annual revenue, provide 5 to 10 million direct and indirect jobs and contribute about 1.5% to 3% of GDP over 10 years. The sports betting industry in Nigeria has enormously contributed to the growth of Nigerian sports, especially football that even some of the betting companies offer odds on matches played in the Nigerian Professional Football League (NPFL). But the majority aren’t because they are still skeptical or cautious about the competitive nature of the NPFL.

With over 52 licensed sports betting companies – Bet9ja, NairaBet, BetKing, Betway, Betpawa, Sporty Bet, Winners, and 1xBet are some of the key players fighting to have the biggest shares of the market where over 60 million Nigerians aged between 18 and 40 years spend about $5.5m on sports betting daily, or $2 Billion annually which explains the potential of the market even with over 47 licensed sports-books.

Key Highlights

The increasing adoption of technology by betting companies supported by progress in digital penetration across the country is stimulating sports betting among the educated and the middle class with widespread unemployment in has been and continues to be the main reason for increased sports betting.

  • Over 33% of working-age Nigerians have no jobs. Among young people, 63.5%, or over 19 million, are either unemployed or under-employed according to the country’s statistics office.
  • Many people made sports betting a source of their livelihood.
  • Poverty in Nigeria cuts across the young and old, rural and urban dwellers, and men and women. Nigeria has 70 million poor people, over 30% of the population so many have found relief in sports betting and the hope of a big win.

The percentage of those who bet with N500 ($1) to N1000 as against bettors who spend far higher tells you that sports betting is largely fueled by poverty, the state of the economy, and the need for people to make ends meet.

iGaming in Ethiopia

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While rich markets promise healthy revenues, smaller markets have their own appeal. Less competition means there’s plenty of room for new operators to get their foot in the door. With only a handful of domestic operators, Ethiopia is still a wide-open field.

Emerging markets in Latin America and Africa have been one of the biggest stories in iGaming in the past few years. Growing economies and a wave of liberal regulation are creating opportunities for established brands looking to expand as well as new entrepreneurs looking for the right market.

When it comes to Africa, most eyes slide over Ethiopia on their way to countries like Kenya, Nigeria, and South Africa. Kenya and Nigeria have, in some ways, modeled what the Ethiopian market could become in a few years. Both have larger economies (and in Nigeria’s case, a much larger population) but there’s a similar love of sports and betting.

Challenges but Potential: igaming in Ethiopia

Success is possible for online casinos in Ethiopia, but the road to get there is very bumpy. Despite being one of the world’s poorest countries, Ethiopia’s economy has grown by an average of 10% over the last 15 years, and overall poverty levels have been decreasing, however, it still lags behind other African nations that have taken their place on the international iGaming stage. Ethiopia’s GDP per capita ($936 in 2020) is half that of neighboring Kenya, but with a population of over 115 million, there are over twice as many Ethiopians to potentially place a few bets.

Sportsbook operators facing the Ethiopian market would have to count on players betting far less than the average in other regions, though maybe with a higher frequency. This falls in line with the main betting habits that operators can expect from players in this part of the world; a high volume of low-value bets. In Kenya, for example, players wager much less than in European markets but do so a few times a week or even several times a day.

Internet penetration also presents a challenge. Only an estimated 25% of the population is connected to the internet, and less than 40 individuals per 100 have mobile cellular subscriptions. This puts a limit on the number of possible players, though this should be viewed in the context of the country’s sizable population; 25% of 115+ million is still a significant audience.

Recent liberalization in the payments sector is creating more room for decentralized payment options, a positive development in a country where only an estimated 38% of adults 25 and over have an account with a financial institution or a mobile-money service provider.

Gambling Regulations in Ethiopia

Basically, Ethiopia is a classic gray market for online gambling. While land-based casinos and sportsbooks are legal, online gambling in Ethiopia is still in the gray-market stage of its development.

The National Lottery Association is responsible for setting regulations and issuing licenses. Reportedly, there is only one licensed casino, in Addis Ababa, that slot or roulette lovers can go to. That leaves the door open for online casino operators, either domestic or offshore; most potential Ethiopian players simply don’t have many options.

The only lottery is a state monopoly. However, as with casino betting, players aren’t prevented from playing lotteries run by offshore companies.

Ethiopian bettors

The balance between online sports betting and online casino gaming tilts decidedly in the former’s favor.

Sports bettors — an estimated 60% of the country’s gambling audience — usually log on to local online sportsbooks or online branches of land-based bookmakers. Casino players, without any domestic options, frequent offshore platforms, often looking for a Curaçao license to verify the brand can be trusted.

A gambling license from Curaçao will let your casino cooperate with financial institutions and leading software developers, as well as give it legitimacy in the eyes of the players.

It’s even possible that Ethiopian bettors prefer the Curaçao license to that of the country’s official regulator. While the charges were eventually dropped, several members of the National Lottery Association were accused of corruption in 2015.

As yet, there are only a handful of domestic operators. Some of the most popular local sportsbooks are Harifsport, Hulusport, Axumbet, Bestbet, and Gihon Betting.

Ethiopian punters primarily bet on football, but tennis, basketball, and (surprisingly) ice hockey can all be found on Ethiopian sportsbooks. Cricket, boxing, and MMA are also popular. European leagues like the Champions League, the Premier League, and Bundesliga all have their odds displayed on the front page of Ethiopian betting sites, and scrolling further down will yield even more worldwide options.

As always, localization is key. Most betting sites will be available in the local language, Amharic, as well as in English. Some sites offer other languages, such as Turkish or Portuguese, as well.

As mentioned above, operators would have to adjust their business model and expectations to players’ average income. With a GDP per capita of just over $900, Ethiopians simply don’t have much disposable income, and as such, the average bet will inevitably be lower.