Gaming Restrictions in Uganda and Kenya: A Glimpse into the Future?
## Gaming Restrictions in Uganda and Kenya: A Glimpse into the Future? – iGB
Dan Taylor, a representative from Clarion Gaming, expresses concern that the expansion of gaming and gambling in Africa might be hindered due to the increasingly stringent regulations imposed by governments and regulatory bodies on gaming enterprises.
**Gaming Restrictions in Uganda and Kenya: A Glimpse into the Future?**
Dan Taylor, a representative from Clarion Gaming, expresses concern that the expansion of gaming and gambling in Africa might be hindered due to the increasingly stringent regulations imposed by governments and regulatory bodies on gaming enterprises.
In recent years, the African gaming market has witnessed significant growth, with nations like South Africa, Nigeria, Kenya, Uganda, and Tanzania emerging as key players in the continental landscape.
The confluence of emerging technological hubs, enhanced internet connectivity and digital adoption, and readily available payment solutions for individuals lacking traditional bank accounts has fostered a conducive environment for the online gaming sector. In Kenya, mobile phone companies boast a reach of nearly 90% of the population, with over 46 million individuals having access to the internet.
These favorable conditions, coupled with a burgeoning and youthful middle class exhibiting a keen interest in sports, have positioned Africa, the world’s second most populous continent, as an attractive destination for gaming companies seeking to expand beyond their often saturated existing markets.
Although numerous marketplaces in Sub-Saharan Africa have experienced steady expansion in recent times, difficulties that have been affecting their European counterparts are beginning to emerge in this hopeful area.
**A More Rigid Approach**
As wagering activities spread across the continent, particularly in East Africa, Uganda took the initiative in 2019. Based on local media accounts, the Minister of State for Finance, David Bahati, received directions from President [Yoweri] Museveni to suspend authorizations for sports betting, gaming, and gambling enterprises.
Moreover, businesses that had already been approved would not have their authorizations renewed upon expiration. In addition to wanting to redirect young people’s attention away from sports betting and its detrimental social consequences, President Museveni specifically mentioned the repatriation of profits by foreign companies to their home countries instead of reinvesting in Uganda as a reason for the prohibition – a reason that resonated with neighboring areas.
Kenya, a dominant force in the gambling industry, was the next market to take significant action, initially mirroring similar measures taken in Europe (especially Italy) by focusing on the extent of advertising. According to the Betting Control and Licensing Board (BCLB) of Kenya, “outdoor advertising of gambling, gambling advertisements on all social media platforms, gambling advertisements between 6 am and 10 pm, and endorsements of gambling businesses by celebrities” would be prohibited.
Although the prohibition on advertising has been temporarily lifted, the Betting Control and Licensing Board (BCLB) has taken steps to simplify the sector, striving to further regulate the availability, accessibility, and affordability of all forms of wagering.
In the early part of July 2019, the BCLB halted the renewal of operational licenses for 13 casinos, 6 lottery organizations, and 8 betting firms, signaling the beginning of this action while long-term regulatory measures were being contemplated. The list of operators whose licenses were revoked or delayed included prominent names such as SportPesa and Betin, two of Kenya’s largest betting companies, controlling approximately 85% of the market share. This suggested that the authorities were prepared to reform the industry resolutely.
These actions established a precedent for both regions, potentially extending across the continent and dampening the immense hope that the African betting industry had exhibited.
**A Gradual Fading**
However, the actions taken by these two significant Sub-Saharan African markets have prompted many in the industry to question the severity of these rulings and, more importantly, their effectiveness. With regulated betting prohibited, the legitimate market is likely to be replaced by unregulated and illicit jurisdictions, presenting a greater risk to gamblers.
This pattern has the possibility of becoming widespread, propelled by rising player interest and the regulatory market delivering substantial financial advantages to local economies. However, can nations afford to forfeit such substantial potential income to the illicit market?
The situation is still ambiguous, but one thing is clear: to create a stable, investor-friendly gaming environment in Africa, the sector must learn from the difficult experiences already encountered in Europe and other established markets globally.
Among other issues that require attention, problematic gambling and excessive advertising must be given priority. More effective Know Your Customer (KYC) checks, age verification protocols, and education should be implemented to stop young bettors from pursuing unrealistic high-yield accumulators. Lastly, regulatory and tax frameworks should be clearer, more contemporary, and consistent to benefit both local economies and foreign businesses operating in African jurisdictions.
Since the ICE brand debuted in Africa in 2018, the arrival of the gaming industry’s only pan-African B2B event in October 2019 marks a significant moment for the sector. With questions surrounding gaming regulation, operations, and public perception, ICE Africa 2019 will once again provide a platform for the industry to address these challenges and establish a course for future stability and success, enabling the realization of the immense potential of this exciting market.
Daniel Taylor joined Clarion Gaming in the early part of 2019 as a conference organizer, concentrating on African and North American territories. He is presently preparing for the 2019 ICE Africa event, which will take place in Sandton, South Africa this October. Explore the website for more information and to sign up for free.
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