The richness of natural resources in Africa has made the gaming business a billion-dollar industry today. Aside from that, the region’s young, mobile-first, tech-savvy populace has made it a hot market. The iGaming business has seen expansion in the previous five years, attracting international investment. Recently, the industry has seen an increase in iGaming betting and gambling owing to the recent coronavirus outbreak. But there are still many difficulties to overcome for Africa to reach the global gaming tipping point.
Because many in the industry believe the African gaming industry is almost there, regulators and stakeholders must take advantage of tech momentum to solve the pain points ravaging the sector over the years. Thus, it will highlight some of the region’s issues and solutions to make Africa a fully-fledged gaming sector.
Online Gambling Legislation
Most African nations allow gambling, and only five of the 55 governments recognized by the African Union do not. The area has had gaming regulations for a long time, but in the 50 states that allow gambling, the rules are either ambiguous or antiquated. Due to many factors such as lack of capacity and political will as well as the perennial problem most technology-based industries face, regulation has been slow to catch up with technology.
The region’s iGaming legislation and regulation is still in its infancy, since most nations lack explicit iGaming legislation. For example, offshore betting sites might target gamers from the area without being licensed. While more African regulators must speak with experts and embrace technology to address some of the industry’s challenges, revising the Gambling Act to match global standards is critical if the area is to reach a worldwide tipping point.
The tax system in Africa has been hotly debated, with certain nations in the continent having low tax regulations. However, certain gaming taxes are too high for operators to bear given the market’s state. Still, underlining the market, the gaming industry is a million-dollar company today. Regulators in Africa must evaluate numerous factors before determining gaming taxes. Identifying the amount of betting enthusiasts, average player stake, and what figure the firm in issue is making are some grey areas that need thorough market research. Regulators must perform appropriate study using the correct technologies to establish this number while doing this tax scheme might be defined in each nation depending on market size. For the sector to survive, Africa’s regulatory organizations must balance the tax system.
Process of Licensing
For Africa to attract large investors, each gaming board in the area must establish clear criteria and a timetable for processing gambling licenses. In most situations, it takes months and a rigorous procedure to license gambling enterprises. To achieve this, African regulators must embrace digitization in their services. Isn’t it time to update the licensing procedure to keep up with global best practices?
Based on studies, this area is vital for the African gaming sector. Shockingly, several nations in the area provide education and assistance to persons with gambling issues. Operators must adopt the correct tech to identify odd client behavior using current data such as (AI) artificial intelligence, while regulators must put in place foundations to accommodate for bettors. As my culture says, “excess of everything in life is bad,” we shouldn’t concentrate simply on the advantage involved. The region’s punters keep expanding year after year. The region’s population is expected to quadruple by 2050, increasing demand for everything. Africa’s economy is projected to be swamped, and the growing young population is likely to gamble passionately. Africa has more underage gamblers and addicts. To combat underage gambling and addiction in the gaming industry, immediate action is required.
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