African Regulatory Overview: Constructing a Legal Framework – iGB

## African Regulatory Overview: Constructing a Legal Framework – iGB

This second installment of our comprehensive exploration of significant regulatory changes occurring throughout diverse African regions features Yahaya Maikori, founder of Law Allianz, who delves into the advancements in several smaller markets.

**Eswatini**

Situated inland from South Africa, Eswatini boasts a population of just 1.45 million. The nation’s industry is overseen by both the Casino Act of 1963 and the Lottery Act of 1963.

A single sports betting permit, renewed annually, encompasses the entire nation, encompassing both online and physical betting operations. Nevertheless, the Southern African gambling sector is predominantly brick-and-mortar, indicating the need for increased investment to expand Eswatini’s gambling sector.

In 1998, one of the country’s land-based casinos, Piggs Peak, received authorization to provide products online. This initiative targeted South African patrons, as Eswatini itself is too diminutive to sustain a virtual market.

Considering the present situation of online gambling establishments in South Africa, the governing bodies there are not particularly hospitable. They have effectively fought against them in court, ultimately stopping operators from accepting South African participants. However, players from other nations are still accepted.

In 2005, Swaziland closed down its national lottery, the Swaziland Lottery. However, by 2013, it had granted a 15-year permit to V Slots Swaziland, a subsidiary of a South African business group, allowing it to offer lottery games in the nation.

Two additional slot machine licenses are available, one of which was recently taken away, effectively giving the remaining operators a monopoly. License holders currently operate around 300 machines in their gaming halls, although research suggests there is considerable potential for expansion in this number.

Additional changes may be on the horizon. In 2018, the Ministry of Tourism issued a request for proposals to consulting firms to examine Swaziland’s gambling laws, but there has been little information about the process since then.

**Cameroon**

In 2015, the Senate President submitted a draft bill designed to restructure the gambling industry, with the objective of implementing new controls on the sector.

This was in response to increasing concerns about underage gambling, as well as the possible harmful impact of the industry on household income, family stability, mental well-being, and government revenue losses.

The public forum included contributions from diverse groups and organizations. Nevertheless, the procedure appears to have stagnated, and the legislation has become entangled in the daily political maneuvering. In the meantime, the various misconducts and illicit actions the government is attempting to address persist.

The Ministry of Territory, in an endeavor to fulfill its responsibilities, has conducted a series of discussions with key participants to explore methods of regulating the industry, particularly focusing on an appropriate tax structure, without any tangible action.

Gambling establishments and gaming halls are prevalent throughout Cameroon, and the unchecked activities of unlawful operators and lack of enforcement have resulted in numerous socioeconomic difficulties.

Although there are no well-known local Cameroonian brands, illicit online platforms are readily accessible.

**Sierra Leone**

In 1969, a lottery act was enacted, granting a permit to the Sierra Leone National Lottery Company (SLSL) and authorizing it to operate all games of chance on behalf of the state.

The company has been in operation since 1969, initially functioning as a monopoly. In 2006, the then-President Ahmad Tejan Kabbah granted a permit to a second lottery operator, Mercury International. This permit was renewed for three years in 2018.

Some individuals believe the president approved a second operator because SLSL failed to fulfill its obligations.

Sierra Leone is just beginning to bounce back from years of civil conflict, and its economy is still fragile. Despite obstacles with internet connectivity, pricing, and accessibility, online gaming, particularly sports wagering which depends on a strong connection, is gradually gaining traction.

Payment remains a barrier. However, the country’s central bank recently authorized the first mobile payment operator as part of its financial inclusion strategy, which is anticipated to propel the industry’s growth.

At present, lotteries and pools are the most common forms of gambling, primarily through traditional retail outlets. While efforts to shift lotteries to mobile platforms are underway, their success remains uncertain.

**Ghana**

Until 2006, the primary legal framework for gambling in Ghana was the Lotteries and Betting Act of 1960. This act was superseded by the Gaming Act of 2006, which established the Ghana Gaming Commission (GCG) to regulate most gambling activities in the nation. Meanwhile, lotteries remain under the purview of the National Lottery Authority.

In Ghana, sports betting is the most prevalent form of gambling, while the National Lottery of Ghana provides crucial funding for the country’s public services through its weekly draws.

At present, the land-based gambling industry is under-served, with only four medium-sized casinos in the entire nation. Two of these are situated in the capital, Accra, while the other two are located in Tema and Kumasi.

Although there are no explicit regulations for online gambling, the Gaming Commission still grants licenses for internet gambling. However, currently, no new licenses are being issued.

Earlier this year, the Gaming Commission declared a rebranding effort to redefine its role in addressing issues like illegal gambling and money laundering. However, there is a general agreement that the rebranding should not have occurred before reviewing the gambling laws to grant the Gaming Commission more extensive enforcement authority, particularly for online gambling.

Despite these observations, Ghana is recognized for its stable gambling environment. The country has not experienced the industry fluctuations that many other African jurisdictions have encountered.

Four years ago, the Gaming Commission contemplated implementing a central monitoring system and even invited bids. However, changes in the organization’s leadership may have halted the process. Nonetheless, the CEO reassured stakeholders that the legislation will be thoroughly reviewed in the future.

**Mauritius**

In the early part of 2018, the Mauritius Gaming Regulatory Authority issued a notice seeking consultants to assist in reviewing its 2007 Gaming Act.

Its evident from the reference terms that Mauritius aspires to establish itself as the Malta or Alderney of the African continent. Sign up for the iGaming newsletter.

This approach isn’t far-fetched given that its population of 1.3 million isn’t sufficient to provide a sustainable industry development market. The nation is viewed as a tax haven and has inked 44 tax agreements with other areas. This could be a shrewd move for global operators seeking to utilize tax benefits to expand into the African market. Despite the consulting agreement being granted as scheduled, its execution was inexplicably halted. The legislation has remained largely unaltered since its enactment in 2007, despite some minor enhancements. Yahya Maicori is a senior partner at Law Allianz, a prominent African gaming and entertainment law firm. He also co-founded Global Gaming Group, which offers consulting services to regulators, corporations, and startups in key markets within the burgeoning African gaming sector.

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