Rwanda Change Gambling Regulations to Promote Responsible Gaming and Economic Growth

Strengthening Oversight in a Growing Sector

Following its assumption of gambling oversight responsibilities in June 2024, the RDB has committed to creating a well-regulated environment for all gambling activities. The new policy sets higher licensing standards, ensures compliance monitoring, and emphasizes protecting vulnerable groups, particularly young people who represent a significant portion of gambling participants.

Balancing Economic Growth with Social Responsibility

The gambling sector has contributed substantially to Rwanda’s economy, generating RWF 264.3 billion between 2013 and 2019 and creating around 2,000 jobs. Sports betting alone accounts for 79% of employment in the industry, highlighting its economic importance. However, rapid expansion has introduced challenges, such as rising gambling addiction, financial hardship, and mental health issues among vulnerable communities.

The policy aims to balance these economic benefits with the social responsibilities of curbing addiction and illegal activities, which have become more prevalent in recent years.

The new measures prioritize player welfare through self-exclusion programs, spending limits, and addiction support services. Educational campaigns targeting youth will raise awareness about the risks associated with gambling. Additionally, stricter advertising regulations will prohibit celebrity endorsements and restrict promotions near schools and religious institutions.

Revised Taxation and Funding for Social Programs

One of the policy’s most impactful reforms is a revision of taxation structures. Operators currently pay 13% of their gross revenue, while players are taxed at 15% on winnings. These rates are set to rise, aligning with international standards to increase government revenue. The additional funds will support critical initiatives in education and healthcare, ensuring broader societal benefits from the gambling industry.

Establishing Governance Structures

To ensure effective implementation, Rwanda will establish a National Gambling Authority and a dedicated Gambling Commission. These institutions will oversee compliance, monitor market dynamics, and promote ethical practices. Technological innovations, such as real-time digital monitoring of gambling activities, will further enhance enforcement and curtail illegal operations.

Acknowledging the broader societal implications of gambling, the policy seeks to mitigate its negative effects. Support hotlines and advisory services will assist individuals struggling with gambling-related issues, while efforts to curb illegal gambling aim to reduce social inequalities exacerbated by unregulated industry growth.