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Can four operators unite Africa’s fragmented gambling regulations?
The newly formed African iGaming Alliance (AIA) aims to harmonise regulations and tackle taxation pressures across Africa’s diverse gaming markets. Former Botswana Gambling Authority CEO Peter Kesitilwe will lead the trade body, which was established by Betway, BetPawa, 888Africa and Sportybet.
Kesitilwe brings over nine years of regulatory experience, including nearly two years as CEO of Botswana’s gambling authority. The alliance actively recruits additional operators whilst positioning itself as a collaborative partner rather than a competitor to regulators.
Regulatory fragmentation creates operational challenges
Why do operators need different licences for neighbouring African countries?
Regulatory fragmentation across Africa creates significant operational burdens for gaming operators. Companies must navigate different licensing frameworks when expanding between markets like Nigeria and Ghana, despite geographic proximity.
Kesitilwe advocates for the Gambling Regulator Africa Forum (GRAF) to help standardise licensing frameworks and improve cross-border coordination.
He said:
“There is regulatory fragmentation in Africa where you find one operator will be applying for a licence in Nigeria, while also applying for one in Ghana [but] the regulations are quite different.”
The AIA wants to serve as a bridge between operators and regulators to establish consistent gambling tax rates and avoid arbitrary increases. Recent examples include Kenya’s massive 400x hike in security deposits for betting firms, demonstrating the regulatory pressures operators face.
Illegal operators undermine consumer protection
How much tax revenue do African governments lose to unlicensed gambling sites?
Illegal and unregulated operators represent up to two-thirds of Africa’s gambling industry, according to Kesitilwe. This undermines consumer protection and responsible gambling standards whilst depriving governments of tax revenue.
Kesitilwe said:
“If we operate properly governments won’t be losing up to $2-5 billion yearly in unpaid taxes due to the black market.”
The prevalence of unlicensed sites makes it difficult for players to distinguish between legal and illegal platforms.
The AIA prioritises promoting responsible gambling frameworks across Africa, aligning with broader industry efforts like the BCLB’s call for unified responsible gambling approaches across the continent.
Banking costs drive crypto payment adoption
Can cryptocurrency solve Africa’s expensive payment infrastructure?
High banking fees represent a major operational challenge for African gaming operators. Super Group, Betway’s parent company, reported considering crypto payments to offset banking costs and attract new players.
“Banking is a really big cost in Africa, especially for us onboarding our customers and then payments across the continent,” Super Group CEO Neal Menashe said in August. Monopoly payment aggregators contribute to elevated fees across the region.
Kesitilwe confirmed the AIA will address payment infrastructure challenges through dialogue and research. He said:
“There still remain some inconsistencies, and in some regions it is very expensive due to issues of monopolies around payment aggregators.”
Alliance leverages regulatory expertise
How does regulatory background help operators influence policy?
Kesitilwe’s regulatory experience positions him to bridge gaps between industry and government perspectives. His background includes forming legislation, modernising regulatory frameworks and understanding compliance requirements around anti-money laundering and responsible gambling.
Kesitilwe said:
“I bring firsthand regulatory insight into how governments view compliance, issues of AML/CFT and responsible gambling.”
This credibility with African regulators could help the alliance achieve its harmonisation goals.
The AIA represents a strategic approach to addressing Africa’s gaming challenges through collective action rather than individual operator initiatives. The alliance’s formation coincides with significant regulatory developments across the continent, including Nigeria’s launch of single gaming licences across states.
Source: Gambling Insider
