Photo showing casino chips on a laptop with a world map showing Africa in the middle

Online Gambling in Africa: What you should know

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Understanding the online gambling industry in Africa involves recognizing its potential for growth, unique challenges, and opportunities. Here are key points to consider:

1. Market Growth and Potential
– The projected revenue of US$1.85 billion by 2024 and an estimated 8.4 million users by 2029 demonstrate significant growth potential for the online gambling market in Africa.
– Example: The increasing accessibility of smartphones and internet connectivity across Africa is driving the adoption of online gambling, particularly among younger demographics seeking entertainment and gaming opportunities.

2. Regulatory Landscape
– Each country in Africa has its own regulatory framework governing online gambling, ranging from outright bans to legalization with strict regulations.
– Example: South Africa’s online gambling industry is regulated under the National Gambling Act, which permits certain forms of online betting but strictly prohibits others.

3. Mobile Gaming Dominance
– Mobile devices are the primary access point for online gambling in Africa due to limited desktop penetration and widespread smartphone adoption.
– Example: Mobile-friendly gambling platforms and apps cater to the preferences of African users, allowing them to enjoy casino games and sports betting on the go.

4. Sports Betting Culture
– Sports betting is a dominant segment within the African online gambling market, driven by the continent’s passion for sports like soccer and rugby.
– Example: Platforms offering live betting and virtual sports experiences attract a large audience of sports enthusiasts seeking to wager on their favorite teams and players.

5. Challenges and Opportunities – Infrastructure limitations, varying internet speeds, and regulatory complexities pose challenges to online gambling operators in Africa.
– Example: Despite these challenges, the growing middle class and increasing disposable income in many African countries present lucrative opportunities for online gambling companies to expand their operations.

6. Localized Marketing Strategies
– Successful operators in Africa employ localized marketing strategies that resonate with diverse cultural and linguistic preferences across different regions.
– Example: Tailored promotions, partnerships with local influencers, and customer support in native languages enhance user engagement and trust.

7. Responsible Gambling Initiatives
– As online gambling grows in popularity, there is a need for responsible gambling measures to mitigate potential social risks.
– Example: Some operators collaborate with NGOs and regulatory bodies to promote responsible gambling practices, including self-exclusion options and education on problem gambling.

Understanding these aspects of the online gambling industry in Africa is crucial for stakeholders looking to capitalize on the region’s market growth while navigating regulatory complexities and addressing the diverse needs of African players. By leveraging mobile technology, embracing local preferences, and promoting responsible gambling, online gambling operators can establish a sustainable presence and contribute to the industry’s positive evolution in Africa.

“Sports Betting business is booming in Uganda”: Ugandans defy hard times to bet Shs2 trillion in six months

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Ugandans wagered at least Shs2.1 trillion in sports and related bets in the halfway year to 2023, according to the National Gaming and Lotteries Regulatory Board the amount is almost equal to the Shs2.4 trillion that the National Gaming and Lotteries Regulatory Board says was gambled in the 2022/23 financial year, and could double by the end of the current financial year in June.

Speaking in an interview in Kampala at the weekend, Mr Denis Ngabirano, the National Lotteries and Gaming Regulatory Board CEO said that the gaming and betting industry had grown both in turnover and tax contribution due to increased compliance and licensing.

The growth, he said, had also boosted tax revenue, which in the 2022/23 financial year had almost tripled, growing by an average of 25.3% in the last four financial years from the 2019/2020 financial year.

“In terms of the monies staked or turnover, last financial year Ugandans staked Shs2.4 trillion. That was the total amount. In this first half of the current financial year, we have a total of Shs2.1 trillion. We are seeing an increase in turnover, and also a tax increase. This is a result of our dedicated compliance activities with URA,” he said.

However, Mr Ngabirano did not indicate how much betting, gaming, and lotteries companies paid out against successful bets.

Betting and gaming have been growing, boosted by a rise in viewership of different sports activities in the last two decades. The growth, Mr Ngabirano said has also largely been due to an increase in the number of licensed betting and gaming houses, which currently stand at 45 companies.

During the 2022/23 financial year, according to the Uganda Revenue Authority (URA) Annual Data Book published last week, the government is increasingly profiting from betting and gaming, doubling projected revenue for the financial year ending June 2023.

During the period, URA data indicates, the government earned Shs 75b as taxable revenue from betting, which was 46.9% above the Shs35.2b target, and substantially above the Shs19b earned in the 2019/20 financial year. The growth has also been boosted by a shift in betting and gambling technology, with many companies establishing 24-hour online betting and gaming sites.

With all the above facts there is no doubt Uganda is one of the leading markets in Africa and therefore it’s ripe for business, get in touch if you would like to acquire a feasibility market report about Uganda, Kenya, South Africa, Zambia, DRC, Ghana, Nigeria, Cameroun, and Ethiopia or any other African Market. Our reports include;

  • Estimated market size
  • Main Players, their products, and models of operations
  • Regulatory frameworks (Existing, new, and upcoming)
  • Taxation frameworks
  • Repatriation of funds policies
  • Pricing and payments
  • Barriers to entry
  • Inflation etc.

We are also experts in License application and acquisition having acquired 32 licenses so far across different markets so get in touch and we shall have all the answers to your needs.

 

Uganda Gaming Board introduces a Central monitoring System

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In a move to revolutionize gaming oversight, the Government of the Republic of Uganda, represented by the Ministry of Finance, Planning and Economic Development (MOFDED) and the National Lotteries and Gaming Regulatory Board, has entered into a transformative partnership with M/s Comtrade D.O.O and MTA Computers Ltd. The collaboration has resulted in the development of a National Central Electronic Monitoring System, a strategic initiative in line with Section 61 of the Lotteries and Gaming Act, 2016.

The system will address key challenges within the gaming and betting industry, and offer solutions that range from enhanced compliance and increased revenue collection, improved enforcement and prioritising responsible gaming.

Key Features of the National Central Electronic Monitoring System:

Enhanced Compliance Mechanisms:

Standardized reporting through various modules will ensure regulatory compliance across the gaming and betting sector.

Increased Revenue Collection:

Real-time monitoring of financial and non-financial transactions closes gaps in revenue collection, curbing tax evasion, and increasing financial transparency.

The Revenue

Collections from the sector have grown from shs 17.4Bn in FY 2015/2016 to 151.9Bn in FY 2022/2023. It is projected that UGX 160Bn will be collected in FY 2023/2024 and UGX 300Bn in FY 2024/2025.

Strengthened Enforcement Measures:

The system’s modules provide detailed insights into both online and offline gaming activities, empowering the National Lotteries and Gaming Regulatory Board to enforce effectively.

Commitment to Responsible Gaming:

The Player Protection Module will  emphasize responsible gaming, protecting citizens from the adverse effects of gaming which is the main mandate of the National Lotteries and Gaming Regulatory Board by offering timely intervention measures.

Implementation Timeline and Milestones

The Online Reporting Module is already complete, with operators integrating onto the system.

Comtrade D.O.O, the consulting partner, has commenced the land-based assessment and is set to develop the associated module.

The entire system is expected to be fully operational by the end of June 2024.

The Board, in collaboration with strategic partners, continues to champion innovation for a more secure, transparent, and responsible gaming environment.

Source: National Lotteries and Gaming Regulatory Board Uganda (NLGRB)

Tanzania’s Gaming Industry Licensing and Regulatory Framework

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Who is the regulator of the gaming Industry 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 under section 26 of the Gaming Act and Regulation 12 of the Gaming Regulations GN—no 385 of 2003.

Types of gaming in Tanzania 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 parts;
  • 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 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
Retail 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 premise)		No Longer issuedNo Longer Issued
Slot machines (clubs and bars)No Longer issuedNo Longer issued
Forty machines site
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
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 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 licence in Mainland Tanzania or any other country
  • Has never had a gaming licence revoked or suspended nor have they withdrawn an application for any gaming licence 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 of immediate vicinity of any school, place of worship, hospitals, 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

                                         Process to obtain a gaming license
Steps Activities Timeframe
1.Submit documents to the Gaming Board to process application1.     Two copies of Business Plan/Feasibility
Study. Should contain a clear statement of project objectives, applicants’ profile, 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 finance capital5 available for the implementation of the project.

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

8.     Audited Balance Sheets and Income Statement 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 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. A minimum investment capital for a local company of USD 300,000 proven to exist for the investment in Tanzania.
9. Tax Clearance from the Income Tax office of a 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 internet gaming licence, 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 technology and its source.

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

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

3.     In addition, applicants shall pay to the Gaming Board 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 licence by Gaming Board.
3.Gaming Board to grant Gaming License1. On condition applicant has met all requirements including payment of fees and costsThe Gaming licence 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 Site, 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 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 not limited to;

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