Nseobong Okon-Ekong and Iyke Bede focus on a session featuring Africa Regulators Forum, an important highlight of the recently concluded Africa Gaming Expo in Lagos, where discussants examined different methods of ‘Aggregating Gaming Standards in Africa’
The African gaming industry is maturing, reaching a stage where it serves as a significant source of internally generated revenue (IGR). This progress can be credited to the regulatory frameworks established by authorities across different African regions. These regulations not only safeguard consumers but also guarantee a consistent income stream and support worthy initiatives such as ‘Good Cause’.
Before now, the sector was loosely regulated, and due to this oversight, the full potential was not realised until recent decades. Countries such as Nigeria, Ghana, South Africa, Angola, Uganda, and Botswana, among others, have emerged as key players in this dynamic industry. In Nigeria, for instance, the gaming sector has experienced rapid growth, propelled by a burgeoning youth population and increasing access to smartphones and the internet that enables access to virtual versions of popular formats like lottery and sports betting, paving the way for emerging formats like eSports to thrive.
Similarly, Ghana’s gaming market has seen significant traction, with a rising number of local and international gaming companies entering the scene to cater to the growing demand for diverse gaming experiences. The regulatory framework there recently legalised online betting, further increasing revenue. Currently, the Ghana Gaming Commission reveals the sector has 33 licensed sports betting facilities and 24 casino operators.
South Africa stands out as a regional hub for gaming innovation and technology, attracting both local talent and global investors keen on tapping into its vibrant market for the past 30 years. With a revenue of $47 billion annually, the sector experienced a growth spurt following the pandemic, signifying a growth rate of 53 per cent (from 27 per cent.)
In Angola and Uganda, although still in nascent stages, the gaming industry shows promising signs of development, driven by a mix of local entrepreneurship and foreign investment. Uganda, which currently attracts a revenue of $700 million. The country has experienced 40 per cent yearly growth since 2017, and blossomed to 54 licensed operators. On the other hand, Angola is on a growth trajectory of 20 per cent each year culminating in a gross market share of $200 million.
At the inaugural Africa Gaming Expo (AGE), held in Lagos and drawing stakeholders from across the continent and beyond, gaming regulators from six sub-Saharan countries convened. Representatives from Nigeria, South Africa, Ghana, Uganda, Angola, and Botswana came together to discuss and address the evolving gaming landscape in a panel session tagged ‘Africa Regulators’ Forum’.
Chief Executive Officer of the Lagos State Lotteries & Gaming Authority, Bashir Are; Chief Executive Officer of the Gambling Authority Botswana, Peter Kesitilwe; Chief Strategic Adviser of the National Gambling Board, South Africa, Caroline Kongwa; Head, Corporate Affairs of Gaming Commission, Ghana, Beatrice Baiden; CEO of Uganda National Lotteries and Gaming Regulatory Board, Denis Ngabirano; Director-General of Instituto de Supervisão de Jogos, Angola, Paulo Jorge Ringote (represented by Clesio Vital), provided insights into the mechanisms adopted by their respective regulatory agencies to ensure compliance by operators, role of standardising regulatory framework, and the role of technology in the industry’s evolution.
“Standardisation could be a platform for the growth of the gambling industry across Africa. If the games have the same rules, why would you play it a certain way in different countries?” Vital noted as he described the different terrains that mark the African gaming landscapes.
He added, “If you set a standard across all jurisdictions on how the rule of the games punters play should be, then it would facilitate the implementation of standards in the market for investors, and players, and would deter people with not-so-good intentions or ideas to penetrate the market.”
Ngabirano also noted that the low-hanging fruit standardisation attracts, is the increased cross-border business and the exchange of information between regulatory agencies. Kongwa, on the other hand, further explained that if the diverse landscapes are considered in designing regulatory framework, it may lead to streamlining of certain processes like licensing of key personnel, enforcement measures, consumer protection, and legalising online gambling.
“When it comes to gambling addiction, we do not have a one-size-fits-all approach across the continent to protect consumers because consumers depend on a particular jurisdiction, and these regulatory models need to tap into other African countries, even beyond the African borders,” Kongwa explained.
In terms of interagency collaboration within a jurisdiction, Baiden highlighted the importance of cooperation between regulatory bodies. With the lifting of the ban on online gambling, ensuring the protection of punters has become paramount. Consequently, the gaming commission has forged a strategic partnership with the National Communications Authority. This collaborative effort aims to implement robust measures that safeguard the interests and welfare of online gamblers, thereby fostering a safer and more regulated gambling environment.
Are noted that similar processes have been initiated and led by the Federation of State Gaming Regulators in concert with the National Communications Commission (NCC) and the National Information Technology Development Agency (NITDA).
“The easiest way to demarket such an operator is to label it in a national newspaper or any reputable media platform as an illegal operator, the moment you do that punters or stakeholders are warned and they become more careful,” Are stated. “How does demarketing work? If you are a licensed operator in say, Enugu State, you are an illegal operator in Lagos State. We give them 30 days’ notice to regularise after that we demarket them.”
Are pointed out that another route has been the Lagos State Signage and Advertising Agency.
“If you are operating online and you are not able to advertise, it limits your market. We are also working with Google to make sure we send the list of illegal operators, however, the most important part of the reciprocity of enforcement.
“In the last two years, we have signed agreements with two provinces in South Africa. We also initiated the same with the Malta Gaming Authority in Europe. The reciprocity of enforcement is more valuable, so that I can report operators in Nigeria to the UK Gambling Commission, and they can enforce there,” he said.
To this end, Are emphasised the importance of increasing participation of African gaming regulators in the activities of the International Gaming Standards Association culminating in the recent establishment of an African head office of the IGSA in Lagos, Nigeria. The ultimate goal is to have some kind of harmony in gaming standards within Africa.
While Kongwa agrees that there a noticeable cross-border operations in Africa that demand basic enforcement measures, not different kind of standards, she argued that the sovereignty of each country must be respected. She said a good way to start is to take away the red tape and administrative burden that operators go through. The Angolan representative, Vital also sees no reason for different standards.
“Once you set a standard, it can be adopted by all because we have similar challenges,” Vital said. “I am a strong believer in harmonised standards and exchange of information. This will help the sector grow.”
Detailing an example of how Ghana dealt with illegal operators, Baiden said licences have been issued to online operators to regulate their operations and that her office is working closely with the country’s National Communication Commission that has the capacity to shut down illegal operators.
Baiden said, “We also have a team that monitors social media and websites. And we carry out sensitisation and advocacy in the media to warn punters and other stakeholders of the risks in patronising illegal operators.”
Across diverse markets, notwithstanding the varying sociocultural and economic landscapes, a shared trend of growth persists. This growth has prompted operators to embrace cutting-edge technologies to enhance the gaming experience for punters. While praised for these innovations, regulators remain vigilant in enforcing compliance with laws to prevent any breaches.
“Operators constantly introduce new products. They want to ensure that punters are engaged,” Kongwa pointed out. “As regulators, we get the criticism that the laws are outdated. But our primary objective is not to focus on regulating the tech because I don’t think any regulator should regulate the technology, but what’s important is to ensure you regulate how the tech is used. Oftentimes, what happens when tech is introduced to the market, we look at whether the implications of using such will amount to a breach in legislation.”
The panellists also expressed concerns about the ethical use of artificial intelligence which may influence the forthrightness of operators. However, they reckoned that these advancements in tech can also contribute to enhanced regulation of the sector.
Overall, the panellists noted the importance of a central monitoring system in effectively regulating each aspect while upholding a sense of cohesion.
WORDS ON MARBLE
It is just that ‘e go soon done no dey kill person’ mentality that gaming brings to keep social peace. I can tell you if there was no gaming, Nigeria would not be this peaceful with all the pressures that we have. The fact that he is expecting a miracle when he wakes up in the morning means he’s got a brighter hope. If he loses, he has contributed to society through good causes. If he wins, his spirit is lifted. Gaming is a way of society venting, right? That’s why it’s regulated by governments because all over the world, without regulation, gaming gets abused, just like alcohol, sex trade, trafficking and the rest.
Prince David Omaghomi, National Treasurer, National Union of Gaming and Lottery Workers (NUGLOW)
 | ReplyReply allForwardYou received this via BCC, so you can’t react with an emoji |
