Africa’s Gaming Sector Faces Threat From Illegal Operations

24.01.2025

The African gaming industry is facing increasing challenges due to the rise of illegal gambling and a lack of standardized regulations across the continent. Bashir Are, CEO of the Lagos State Lotteries and Gaming Authority (LSLGA), has warned that without coordinated efforts, Africa risks becoming a hub for unregulated and exploitative gaming activities.

The Need for Collaboration

Bashir Are, CEO of the Lagos State Lotteries and Gaming Authority (LSLGA), speaking at the ICE gaming industry conference in Barcelona during a panel discussion titled Navigating the Illegal Market: Cross-Jurisdictional Challenges in Identification & Enforcement, Are highlighted the urgent need for regulatory reform, stating:

“Twenty, thirty years ago, Africa was a dumping ground for toxic waste from all over the world. I think we are experiencing that now in the gaming sector too.”

Are stressed that tackling illegal gambling requires a collective approach among African regulators. He called for cooperation in areas such as enforcement, blacklists, responsible gambling measures, and regulatory standardization. He highlighted the bilateral agreement between Lagos State and Botswana as an example of effective collaboration.

“For example, Lagos State has a bilateral agreement with the country of Botswana. So if you are illegal in Lagos State, and you have a licence in Botswana, we can both enforce on that, and we’re doing that with so many jurisdictions right now. If there’s no collaboration, there’s no way you can fight illegal gambling.”

Lagos State to Introduce B2B Licensing

Are acknowledged that tax policies play a crucial role in curbing black-market activities. Under the new regulatory framework in Lagos, offshore operators serving local players will be considered state customers and subject to taxation.

Additionally, Lagos State plans to introduce B2B licenses to ensure suppliers adhere to compliance and responsible gaming practices. Are pointed out that the absence of B2B licenses has left a gap in supplier accountability, which needs to be addressed to maintain market integrity.

“If you don’t pay taxes on those customers, it’s a criminal offence. We discovered that without B2B licences, suppliers have no obligation to ensure compliance or responsible practices.”