## Restrictions on Wagering in Uganda and Kenya: A Glimpse into Future Patterns? – iGB
Dan Taylor of Clarion Gaming states that the growth of the wagering and gaming sector across Africa is encountering a challenge from policymakers and officials adopting a stricter approach towards operators.
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Restrictions on Wagering in Uganda and Kenya: A Glimpse into Future Patterns?
Dan Taylor of Clarion Gaming states that the growth of the wagering and gaming sector across Africa is encountering a challenge from policymakers and officials adopting a stricter approach towards operators.
In recent years, the expansion of the African wagering market has been driven by a number of nations, with South Africa, Nigeria, Kenya, Uganda, and Tanzania being the continent’s key markets.
Due to emerging technology centers, increased internet access and digital penetration, and viable payment solutions for a largely unbanked population, the conditions have been ideal for supporting online markets. In Kenya, mobile operators cover nearly 90% of the population, with over 46 million individuals having access to the digital realm.
These conditions, combined with a young and expanding middle class with a strong passion for sports, have made the world’s second-most populous continent a prime target for wagering operators seeking expansion opportunities beyond existing mainstream markets, which are often saturated.
Although numerous marketplaces in sub-Saharan Africa have witnessed steady expansion in recent times, the difficulties that have hampered their European counterparts are beginning to arise in this hopeful market.
**A Firm Position**
As gambling activities spread across the continent, particularly in East Africa, Uganda took the initiative in 2019. According to local news outlets, the Minister of State for Finance, David Bahati, received directives from President [Yoweri] Museveni to halt the granting of permits to sports betting, gaming, and gambling enterprises.
Moreover, licenses for businesses that have already been authorized will not be renewed upon expiry. In addition to wanting to divert the focus of young people away from sports betting and its detrimental social consequences, President Museveni specifically cited the repatriation of profits by foreign companies back to their home countries rather than reinvesting in Uganda as a reason for the prohibition – a justification that has resonated in neighboring regions.
Kenya, a gambling center, is the next market to take substantial action, initially mimicking similar measures in Europe (especially Italy), focusing on the widespread extent of advertising. The Betting Control and Licensing Board (BCLB) in Kenya declared that “outdoor advertising of gambling, gambling advertisements on all social media platforms, gambling advertisements between 6 am and 10 pm, and endorsements of gambling operations by celebrities” will be forbidden.
Although the prohibition on advertising was briefly suspended, the BCLB promptly took action to simplify the industry, aiming to further control the availability, accessibility, and cost of all forms of wagering.
In the early part of July 2019, the BCLB postponed the renewal of operating permits for thirteen casinos, six lottery enterprises, and eight betting companies, the first sign of this action, while considering long-term regulatory policies. Included in the list of operators whose licenses were revoked or postponed to a later date were SportPesa and Betin, two of Kenya’s largest betting companies, controlling approximately 85% of the market share. This indicated that the authorities were prepared to reform the industry resolutely.
These actions set a standard for both regions and could spread across the continent, stifling the great promise the continent’s gambling industry has shown.
However, the actions taken by these two significant sub-Saharan African markets have caused many in the industry to question the seriousness of these rulings, and more importantly, their effectiveness. With regulated gambling prohibited, there is a high risk of the legitimate market being replaced by unregulated and illicit jurisdictions, which would pose greater dangers to bettors.
This pattern has the possibility of becoming widespread, with rising player demand and a controlled marketplace bringing substantial financial advantages to local economies. Can nations afford to forfeit such substantial potential revenue to the illicit market?
It’s uncertain at this time, but one thing is clear: to construct a stable and investor-friendly gaming environment in Africa, the sector must learn from the difficult experiences already encountered in Europe and other developed markets globally.
Among other issues that require attention, problematic gambling and excessive advertising must be prioritized. More effective Know Your Customer (KYC) checks, age verification procedures, and education should be implemented to prevent young gamblers from pursuing unrealistic high-yield accumulators. Finally, regulatory and tax frameworks should be clearer, more modern, and consistent to benefit both local economies and foreign companies operating in African jurisdictions.
Since the ICE brand made its mark in Africa in 2018, in October 2019, the only B2B pan-African event for gaming will return at a crucial moment for the industry. With inquiries surrounding gaming regulation, operations, and perception, ICE Africa 2019 will once again provide a platform for the industry to address these challenges and establish a path for future stability and success, capable of realizing the immense potential of this exciting market.
Daniel Taylor joined Clarion Gaming in the early part of 2019 as a conference organizer, concentrating on the African and North American regions. He is presently getting ready for the 2019 ICE Africa event in Sandton, South Africa, this coming October. Check out the website for more details and to sign up at no cost.
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