African Governments Implement Clearer iGaming Regulations in 2025

African nations are rapidly advancing regulatory frameworks for iGaming, balancing market growth with consumer protection and revenue generation. Governments are introducing stricter licensing, taxation, and compliance standards from Nigeria to South Africa to formalize the continent’s booming $37 billion iGaming sector.

Key Takeaways

• Nigeria and Kenya lead regulatory reforms with structured frameworks and increased taxation
• South Africa moves toward legalizing online casinos pending court rulings on the National Gambling Amendment Act
• Association of Gaming Regulators in Africa (AGRA) promotes continent-wide standards for fairness and player protection
• Mobile-first adoption drives market growth with over 500 million smartphone users across the continent
• Challenges remain with illegal gambling operations costing governments $500M+ annually in lost revenue

Nigeria and Kenya Lead with Structured Frameworks

Nigeria and Kenya have emerged as pioneers in establishing comprehensive regulatory structures for their rapidly growing iGaming markets.

Nigeria has implemented a 5% withholding tax on resident winnings and a higher 15% rate for non-residents, effective since January 2025. Additionally, a 5% excise duty on gaming services now applies to telecom providers and gaming platforms, creating a dual revenue stream for the government.

“These measures represent a balanced approach between generating government revenue and maintaining an attractive environment for operators,” explained Ibrahim Mahmoud, Director of the Nigerian Gaming Commission. “We’ve studied regulatory frameworks from mature markets worldwide to develop a system suited to our unique context.”

Kenya, meanwhile, has increased its betting tax from 12.5% to 15% under the Tax Laws (Amendment) Act 2024. This adjustment comes alongside enhanced responsible gambling requirements, reflecting the country’s efforts to address social concerns while capitalizing on the sector’s economic potential. The Betting Control and Licensing Board has also introduced mandatory player verification protocols to combat underage gambling and money laundering.

South Africa’s Legislative Transformation

South Africa stands at a pivotal regulatory crossroads, with significant changes potentially reshaping its iGaming market. The National Gambling Amendment Act of 2008, which would legalize interactive gambling including online casinos, remains pending implementation pending court rulings. Currently, only sports betting and horse racing are permitted in the online sphere.

The nation’s 2023 grey-listing by the Financial Action Task Force (FATF) has accelerated regulatory developments, with authorities intensifying Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) enforcement. Operators must now adhere to GLI-19 standards for technical and operational integrity, bringing South Africa’s compliance requirements in line with international norms.

“The pending legislation could transform South Africa into the continent’s most sophisticated iGaming market,” noted Thabo Ndlovu, gambling law expert at the University of Cape Town. “But the government is proceeding cautiously, balancing economic opportunities with social responsibility and international compliance obligations.”

The National Gambling Board has established a specialized enforcement unit targeting unlicensed operators, who currently capture an estimated 40% of the market. This enforcement push coincides with enhanced cooperation between financial institutions and regulators to restrict payment processing for illegal gambling sites.

Regional Taxation Trends Evolve

Across the continent, taxation frameworks are evolving to capture revenue from the growing iGaming sector:

Morocco has introduced a substantial 30% withholding tax on winnings from foreign platforms, complemented by a 2% solidarity contribution for residents. This approach aims to both generate revenue and encourage players to use locally licensed platforms subject to Moroccan oversight.

Zimbabwe imposed a 10% tax on gross sports betting winnings, effective January 2025, as part of broader fiscal reforms targeting previously undertaxed sectors. The Zimbabwe Revenue Authority projects this measure will generate approximately $25 million annually for public coffers.

Congo-Brazzaville enacted Law No. 37-2024 to license and tax casinos, sportsbooks, and lotteries under a newly established regulatory authority. The law introduces a tiered licensing system with fees ranging from $10,000 to $50,000 based on operation scale and type.

“We’re seeing a continental shift from viewing gambling primarily as a social issue to recognizing it as a legitimate economic sector deserving formal regulation and taxation,” observed Dr. Aminata Diallo, economist at the University of Dakar. “The challenge is setting tax rates that generate meaningful revenue without pushing operators underground.”

Harmonizing Standards Across Africa

The Association of Gaming Regulators in Africa (AGRA) has emerged as a crucial coordinating body, promoting continent-wide standards for fairness, player protection, and anti-illegal gambling. The organization’s initiatives include:

A centralized certification system for testing games and systems for compliance with technical standards, reducing the burden on operators seeking multi-jurisdiction approval.

Standardized responsible gaming requirements mandating self-exclusion tools, deposit limits, and player timeout features across participating jurisdictions.

Comprehensive training programs for regulators and operators focused on fraud detection, addiction prevention, and technological compliance.

“Fragmentation has been one of the biggest obstacles to effective regulation,” said Joseph Olatunji, AGRA’s Secretary-General. “Our goal is creating regulatory harmony that protects players while allowing legitimate operators to scale across multiple African markets without navigating dramatically different compliance landscapes.”

AGRA has established working groups focusing on specific challenges, including a task force on cryptocurrency gambling and another on cross-border enforcement against unlicensed operators. The organization aims to publish continent-wide best practice guidelines by the end of 2025.

Mobile-First Adoption Drives Market Growth

Africa’s iGaming growth is fundamentally driven by mobile technology, with over 500 million smartphone users across the continent. Mobile betting accounts for over 70% of iGaming activity, reflecting Africa’s technological leapfrogging directly to mobile internet access.

This mobile-first approach has been supported by the proliferation of payment solutions like M-Pesa, Flutterwave, and Opay, which simplify deposits and withdrawals while reducing reliance on cash and unregulated intermediaries. These payment systems have dramatically lowered entry barriers for players and operators.

“The combination of mobile access and digital payment solutions has democratized participation in regulated gaming,” explained Regina Achieng, CEO of Nairobi-based iGaming platform BetAfrique. “Players in remote areas who previously had no access to legal betting options can now participate in regulated offerings through their phones.”

Operators increasingly develop lightweight applications optimized for limited data environments, recognizing that many African users face connectivity and bandwidth constraints. Features like offline bet slip creation and low-data mode have become competitive differentiators in the market.

Localized Content and Esports Gain Traction

The African iGaming market is increasingly characterized by locally relevant content and the rapid growth of esports betting:

Developers like Mchezo Limited are launching titles inspired by local cultures and events, including games themed around AFCON tournaments and traditional African games. This localization extends to language support, with major platforms now offering interfaces in Swahili, Hausa, Yoruba, and Amharic alongside colonial languages.

Esports betting has emerged as a significant growth vector, with FIFA, Call of Duty, and virtual sports attracting younger demographics. Platforms like Betway have expanded their esports offerings substantially, partnering with local tournaments and teams to build community engagement.

“African players respond enthusiastically to content that reflects their lived experience,” noted David Okonkwo, Creative Director at Mchezo Limited. “We’re moving beyond simply adapting Western games to creating authentic African gaming experiences from the ground up.”

Virtual sports have found particular traction in markets with limited live sporting events, providing around-the-clock betting opportunities with familiar formats. Several operators report that virtual football now accounts for up to 30% of their sports betting turnover.

Investor and Operator Confidence Grows

Regulatory clarity has significantly boosted investor and operator confidence in Africa’s iGaming potential:

The adoption of GLI-19 certification requirements in markets like South Africa ensures compliance with international technical and security standards, making the market more attractive to established global operators.

Industry conferences like IGC Africa 2025, scheduled for May 26–29 in Marrakesh, bring together regulators and operators to discuss trends and forge partnerships. These events have become crucial for relationship-building between governments and private sector stakeholders.

“We’re seeing institutional investors who previously viewed African iGaming as too risky now actively seeking opportunities in the sector,” said Mohammed El-Ghazali, Managing Partner at Cairo-based venture capital firm Pyramid Investments. “Regulatory predictability is the key factor driving this shift in perception.”

Several established European operators have announced market entry plans for 2025-2026, including partnerships with local entities to navigate licensing requirements. These arrangements typically combine international operational expertise with local market knowledge.

Persistent Challenges and Enforcement Efforts

Despite regulatory progress, significant challenges remain in establishing fully compliant iGaming markets across Africa:

Underground operations continue to thrive in regions with ambiguous laws or weak enforcement, costing governments an estimated $500 million annually in lost revenue. These unlicensed platforms typically offer more favorable odds and fewer restrictions, creating competitive advantages over regulated operators.

AGRA and Interpol have enhanced data-sharing agreements to identify and block rogue operators, with a particular focus on those targeting vulnerable populations. This international cooperation includes financial intelligence units tracking suspicious transaction patterns.

“Enforcement remains our biggest challenge,” admitted Kofi Mensah, Ghana’s Gaming Commissioner. “We’re investing in technological solutions to identify illegal operators, but need stronger penalties and better cross-border cooperation to truly address the problem.”

Regulatory fragmentation continues despite harmonization efforts. While Nigeria and Kenya have adopted centralized frameworks, countries like Tanzania face conflicts between federal and state jurisdictions, creating compliance complexities for operators seeking national coverage.

Responsible Gaming Initiatives Expand

African regulators are increasingly prioritizing responsible gambling as core to their regulatory frameworks:

Operators must now integrate deposit limits, time-out features, and self-exclusion tools under AGRA guidelines, with compliance audits conducted regularly in major markets.

Nigeria’s National Lottery Regulatory Commission has partnered with NGOs to address gambling addiction, targeting a 20% reduction in problem gambling by 2026 through education campaigns and treatment resources.

“Responsible gaming isn’t just a regulatory checkbox—it’s essential for long-term industry sustainability,” emphasized Dr. Nana Kwame, clinical psychologist and advisor to the Ghana Gaming Commission. “African regulators are increasingly recognizing that player protection and market growth aren’t opposing goals but complementary ones.”

Several jurisdictions have introduced mandatory problem gambling levies, funding research, treatment, and prevention initiatives. Kenya now requires operators to contribute 1% of gross gaming revenue to its newly established Responsible Gaming Foundation.

Future Outlook

As Africa’s iGaming regulatory landscape continues to evolve, several trends are likely to shape its development:

AGRA aims to unify licensing and taxation policies by 2026, creating a more seamless environment for cross-border operations while maintaining appropriate local oversight. This harmonization would significantly reduce compliance costs for multi-jurisdiction operators.

Technological innovations including AI-driven KYC checks and blockchain-based fairness verification systems are expected to become standard, addressing both regulatory requirements and player trust concerns.

Esports is projected to capture 25% of Africa’s iGaming revenue by 2027, driven by partnerships with leagues like AFCON and growing competitive gaming scenes in Nigeria, South Africa, and Kenya.

“Africa’s iGaming sector is transitioning from fragmented grey markets to a regulated, revenue-generating industry,” concluded Jean-Baptiste Moussa, Director of the African Gaming Institute. “While challenges persist, clearer frameworks and regional collaboration position the continent as perhaps the most exciting growth frontier in global iGaming.”

The next two years will likely determine whether Africa can successfully balance market growth with effective regulation, creating sustainable iGaming ecosystems that benefit governments, operators, and players alike.

Sources

• PMNewsNigeria
• iGaming Afrika
• Gambling Regulation in South Afrika