African Gaming Alliance Forms to Address Continental Regulatory Fragmentation
Four major gaming operators have established the African iGaming Alliance to standardize regulations and address taxation pressures across the continent’s diverse markets. Subsequently, former Botswana Gambling Authority CEO Peter Kesitilwe will lead the trade body formed by Betway, BetPawa, 888Africa and Sportybet, bringing over nine years of regulatory experience to the harmonization initiative.
Licensing Complexity Creates Operational Barriers for Market Expansion
Gaming companies currently navigate different regulatory frameworks when expanding between neighboring African markets, despite geographic proximity. Moreover, operators must secure separate licenses for countries like Nigeria and Ghana, which maintain distinct regulatory requirements. Kesitilwe noted that “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 alliance advocates for standardized licensing frameworks through the Gambling Regulator Africa Forum to improve cross-border coordination. Additionally, recent regulatory developments demonstrate operational pressures, including Kenya’s 400-fold increase in security deposit requirements for betting firms. Therefore, the AIA positions itself as a collaborative bridge between operators and regulators rather than a competing entity.
Unlicensed Operations Cost Governments Billions in Lost Revenue
Illegal and unregulated operators represent approximately two-thirds of Africa’s gambling industry, according to alliance leadership. Furthermore, these unlicensed platforms undermine consumer protection standards and responsible gambling frameworks while depriving governments of tax revenue. Kesitilwe stated that “if we operate properly, governments won’t be losing up to $2-5 billion yearly in unpaid taxes due to the black market.”
High banking fees across African markets drive operators toward cryptocurrency payment solutions to reduce operational costs. The AIA will address payment infrastructure challenges through research and regulatory dialogue to reduce monopolistic practices among payment aggregators. Kesitilwe’s regulatory background provides credibility with African governments, potentially facilitating the alliance’s harmonization objectives across continental markets.
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