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Africa is Gambling: A Continent on the Brink of a Gambling Revolution

Africa is Gambling: A Continent on the Brink of a Gambling Revolution

21 May, 2025

    The African continent is on the brink of a gambling revolution. The gambling industry here combines vast economic potential with numerous unresolved challenges. The rapid growth of mobile betting, the widespread availability of the internet, and growing interest from international investors have shaped a promising yet still chaotic market, where legislation often lags behind technological advancement.

Once referred to as a "sleeping economy," Africa is waking up fast—at least in the world of gambling. Mobile phones have replaced traditional bookmaker offices, the internet has outpaced legislation, and a love for football has overcome bureaucratic hurdles.

All this is turning Africa into a new arena for the gambling industry.One of the key growth drivers is mobile sports betting—especially football. Popular European leagues such as the English Premier League and the Champions League attract millions of users placing bets through smartphones.

The online segment now makes up around 40% of the market and is growing faster than land-based gambling.

Looking at the numbers helps us fully grasp both Africa’s potential and its challenges—how much budget is lost annually, and how infrastructure could be developed by improving tax collection. The following country-by-country overview for 2024 highlights the Gross Gaming Revenue (GGR) where available, the current regulatory status, the estimated size of the illegal sector, and the projected compound annual growth rate (CAGR) to 2030:

  • South Africa: The market is offline regulated, with partial regulation for online gambling. It has the highest GGR at $3,370 million. The illegal sector accounts for 30% of the market. The projected CAGR to 2030 is 6%.
  • Nigeria: With a GGR of $895.7 million, Nigeria has partially legalized gaming. However, 65% of the market remains illegal. Its forecasted CAGR is 9%.
  • Kenya: Although exact GGR data is unavailable, Kenya has legalized gaming, but the regulatory environment is considered unstable. An estimated 60% of the market operates illegally, and the CAGR forecast is 10%, the highest on the list.
  • Ghana: Partial legalization exists, with a GGR of $57.4 million. Around 55% of the market is illegal, and the expected CAGR is 8%.
  • Uganda: GGR data is not available. The country requires mandatory registration for gambling operators. About 50% of the market is unregulated, and the CAGR is projected at 7%.
  • Morocco: No GGR data is available. Gambling is limited to casinos for tourists. The illegal sector accounts for 40%, with a CAGR forecast of 5%.
  • Egypt: Like Morocco, Egypt’s gambling is restricted to tourist casinos, with 40% of the market unregulated and a projected CAGR of 5%.
  • Namibia: Data on GGR is missing. The country has partial legalization, with an estimated 60% illegal market share and a 6% CAGR.
  • Mozambique: GGR data is not reported. The system is based on a state lottery and licensing model. Approximately 50% of the market is illegal, with a 6% growth forecast.
  • Botswana: Though GGR figures are not available, the country’s gaming sector is fully regulated. The illegal market share is 45%, and the CAGR is 7%.
  • Tanzania: Also fully regulated, Tanzania lacks GGR data. The illegal market is smaller at 35%, with an 8% projected CAGR.

The Shadow Market and Financial Losses

As we can see, despite the potential, 60–70% of the market remains in the shadows in several countries. This is a major issue at the early stages of development. Countries are losing significant tax revenues, crime is increasing, and it’s creating serious challenges for investors.

The key reasons include:

  • Lack of online regulation;
  • Technical weaknesses of regulators;
  • Shortage of iGaming experts in regulatory bodies;
  • Uncontrolled operations of offshore platforms.

All of this has led to an estimated annual budget loss of $1.5–2.5 billion across African countries—money that could have been invested in healthcare, education, and infrastructure. However, unless African governments change their perspectives and radically reform their approach to business regulation, these issues will become increasingly difficult to resolve. While some countries have partially addressed these challenges, most still face complete regulatory disarray.

Modern trends

Africa’s gambling industry is rapidly adapting to technological advancements. Mobile apps and platforms are taking the lead in user engagement, while payments are gradually shifting to digital wallets and cryptocurrencies. The demand for a regulated and secure ecosystem is rising, driving the popularity of KYC mechanisms and API integration. These trends show that technology is becoming a supportive partner in regulation, promoting transparency and player protection.

Major transformations currently underway on the continent include:

  • The massive popularity of mobile platforms and apps;
  • The transition to digital wallets and cryptocurrencies;
  • Growing demand for regulated, secure platforms;
  • Integration of APIs and KYC technologies for player identification and transaction monitoring.

The Future: What Lies Ahead for Africa’s Gambling Industry?
Steps That Could Transform Africa into a Global Gambling Capital:

  1. Standardization of Licensing and Operator Regulations
    New international-standard frameworks would improve regulatory consistency, simplify cross-border operations for operators, and increase market transparency.
  2. Technical Infrastructure and Databases for Regulators
    Many regulators lack the necessary technological infrastructure to monitor the market. Building digital infrastructure will enhance control and reduce illegal activity.
  3. Support for Local Operators — an Alternative to Offshores
    Offshore companies siphon significant financial value out of countries. Encouraging local operators can strengthen economies and create a more regulated, consumer-focused environment.
  4. Cross-Border Data Exchange for Effective Oversight
    Sharing information between regulators is essential to identifying illegal operators. Coordination will enable a stronger, safer gaming ecosystem across the region.

Africa’s gambling market is a volcano of economic opportunity, growing fast while combining immense potential with critical challenges. Though inadequate regulation and weak oversight mechanisms remain problems, the sector is steadily advancing. Moving from fragmented, reactive approaches to coordinated and consistent regulation could bring more than $2 billion in annual tax revenue to the continent. But this isn’t just about financial gain. the true opportunity lies in Africa’s ability to create a transparent, secure, and inclusive gaming ecosystem, where all stakeholders players, businesses, and governments can benefit.

 

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