Sudden Exit of Premier Bet Rwanda Shocks Local Bettors

Ministry’s Decision Not to Renew Premier Bet Rwanda’s License

Premier Bet Rwanda, a prominent name in the local sports betting scene, stunned the market last month with an unexpected exit. The company, operating under Premier Betting Ltd and later Solidaire Rwanda Ltd, abruptly announced the suspension of all services.

Bettors were given a tight deadline to withdraw their funds by June 18, 2024, with scant information provided about the sudden closure. Despite The New Times’ persistent efforts to reach Apostolos Kalodoukas, Premier Bet Rwanda’s CEO, all inquiries went unanswered.

However, the publication did manage to obtain a crucial letter dated June 13, 2024, from the Ministry of Trade and Industry addressed to Solidaire Rwanda Ltd. The letter stated, “After review of your application files, we wish to inform you that your sports betting license renewal, and your request for an internet (online) gaming license, are not granted.”

As their existing license neared expiration, Premier Bet sought renewal from the Ministry of Trade, the gaming industry’s regulator. Despite their pleas, the Ministry decided not to renew the license.

Last month, after reviewing the company’s operations, the Ministry finalized its decision, leading to an immediate suspension of operations. “The authorization to continue betting operations granted in the aforementioned letter is hereby removed. You are therefore requested to suspend operations with immediate effect,” the letter read, without further details.

Allegations of Dubious Business Practices

Reports suggest Premier Betting Ltd had been engaging in dubious business practices, including misleading franchise owners and operating unauthorized products. “Premier Bet Rwanda had been licensed to operate sports betting services, but they went around and introduced lottery activities such as Spin & Win, Five90, and Keno, among others,” claimed a former employee who preferred anonymity.

Philbert Iradukunda, a franchise owner, detailed his negative experiences with Premier Bet. After signing a franchise agreement in January 2023, Iradukunda faced numerous challenges even before opening his shop. He identified three potential locations, and Premier Bet approved the one in Kimironko. However, after Iradukunda paid rent for three months, Premier Bet set up their own express shop next door, leading him to relocate to Musanze District in the Northern Province. He was eventually forced to close this shop as well.

Iradukunda then attempted to open another franchise in Nyabugogo, but his troubles continued. “One day, I woke up to find a team from Premier Bet had broken into my Nyabugogo shop and stolen three devices and other equipment,” he recounted.

Despite reporting the incident to the Rwanda Investigation Bureau (RIB) and seeking justice, mediation efforts failed. Iradukunda estimated his losses at Rwf30 million, with nearly Rwf10 million going towards rent for non-operational shops.

Regulatory Landscape and Legal Ambiguities

The case of Premier Bet losing its license renewal underscores the regulatory power of the Ministry of Trade. However, specific reasons for the denial remain unclear. Efforts to obtain more details from the Ministry were unsuccessful.

Rwanda’s current law governing sports betting and gaming, drafted in 2011, faces criticism for its ambiguity. While it mandates licensing for entities running sports betting, lotteries, casinos, and other forms of gaming, some argue that the law lacks clarity to effectively regulate the evolving industry. The law primarily focuses on traditional gambling forms, leaving potential gaps in regulation for newer technologies and online gaming.

The types of games categorized as “unlawful” might not be clearly defined, creating room for interpretation. Enforcement challenges are also notable. Although the law establishes fines, it does not detail investigation and enforcement procedures comprehensively.

This publication understands that the Ministry of Trade is transferring the gaming industry’s regulatory authority to the Rwanda Development Board. This move aims to address the issues plaguing the industry and modernize the regulatory framework.