Slotegrator shares an overview of licensing in the African online gambling market

HONG KONG, July 8, 2021 /PRNewswire/ -- In recent years, Africa has become an attractive region for the future of iGaming. In this article, Slotegrator focuses on the online gambling licenses available in some of Africa's most attractive markets – Nigeria, South Africa, Kenya, Tanzania, and Uganda.

Economic growth and accelerating mobile internet penetration are transforming many African markets into viable iGaming investment opportunities. While many sportsbooks are already relatively established, online casino gaming is expected to become more accessible as the region's telecommunication infrastructure improves and the local population's disposable income increases.

Countries like Kenya, Uganda, and Zambia only issue licenses for land-based casinos, but online operators are also able to apply. These unregulated markets which offer licenses are worth a closer look.

Kenya's Betting Control and Licensing Board and Uganda's National Gaming Board issue licenses to both land-based and online operators, though online gambling is not formally regulated. For Kenyan operators, bookmaker licenses cost €2800 and casino licenses are €32,800, with costs rising for foreign-based businesses.

Costs are similar in Uganda, with similarly higher fees for foreign-owned operations. Companies must also have a minimum capital of about €60,000 and submit a security guarantee after obtaining the license: €46,000 for bookmakers, €117,000 for casinos.

In Nigeria, the lack of federal-level regulations creates friction between the National Lottery Regulatory Commission (NLRC) and the Lagos State Lotteries Board (LSLB), which both issue licenses. Each regulator has its own set of fees, and unfortunately, operators are sometimes subject to double taxation.

In South Africa, online sports betting is allowed, but online casino gaming is banned. Licenses are issued locally by provincial authorities, with the Western Cape Gambling and Racing Board (WCGRB) most widely used by operators.

The application fee for a WCGRB bookmaker license is about €750, and the same amount is charged in yearly fees. Prospective operators also have to keep in mind that, to obtain a license, they must pass a probity investigation, which can command its own fees.

Tanzania is a fully regulated market of great interest for online casinos and online sportsbooks. License fees amount to just over €500 per month; sportsbooks pay a 6% levy on all stakes. In order to get a permit, operators are required to make significant investments in the country – $300,000 for local companies, $500,000 for foreign-based or foreign-owned ones.