Africa's Path to Gaming Unity: Hurdles for Pan-African Regulation

The debate over Pan-African regulatory harmonization in gambling is gaining momentum, yet the path from theoretical discussions to actual implementation remains arduous. Experts from various regions emphasize that borderless online gambling and illegal operators are putting increasing pressure on national authorities. A unified framework is intended to help improve consumer protection and combat money laundering more effectively. Nevertheless, national sovereignty and deep-rooted legal traditions often stand in the way of a swift agreement.

In a recent panel, leading figures such as Arinze Arum, executive secretary/CEO of the Enugu State Gaming and Lotto Commission, and Wendy Rosenberg of Werksmans Attorneys discussed the necessary steps. A clear picture emerges: a copy of European models is hardly possible due to the lack of a supranational architecture in Africa. Rather, it is about finding a common denominator that respects the diversity of the 54 African states while synchronizing protection mechanisms.

Numbers and facts

Market fragmentation is one of the biggest obstacles. In South Africa, there is a national board plus nine provincial regulatory authorities, often working with outdated legislation dating back to the late 1990s. These internal tensions mean that provincial regulators permit online betting, while the National Gambling Board regards certain offerings as unlawful. Moss Gondwe, a board member of the African Lotteries and Gaming Association (ALGA), warns that without cooperation, revenue losses to illegal operators could spiral out of control.

A look at other sectors such as healthcare shows that harmonization is possible. The African Medicines Regulatory Harmonization (AMRH) project, launched on March 30, 2012, often serves as a benchmark. In the East African Community (EAC), joint assessment procedures for medicines were able to shorten approval times to just seven months. The industry hopes for similar efficiency gains in the licensing process for the gambling sector.

Background

For Arinze Arum, the problem lies in the different governance models. Nigeria and South Africa use decentralized systems, while other countries act centrally. He suggests managing cooperation through multilateral treaties focused on core areas. According to Arum, these include responsible gaming, information sharing, and anti-money laundering measures. However, he rejects a "one-size-fits-all" model, as each country has its own economic realities.

Olabimpe Akingba of pawaTech does not see the solution in identical laws, but in common goals. She emphasizes that cultural nuances and different levels of market maturity must be respected. Harmonization does not mean giving up independence, but creating a fair competitive environment.

"Harmonisation is not about removing the independence of each African country; rather, it is about creating an environment where compliant operators can compete fairly, players are better protected and regulators can work together." - Olabimpe Akingba, Head of Responsible Gaming at pawaTech

Moruntshi Kemorwale, CEO of the Gambling Authority of Botswana, adds that a principles-based regulation is the key. She calls for minimum standards for cybersecurity, data governance, and ESG reporting (Environmental, Social, Governance). In her view, regional bodies could act as pilot projects before a continent-wide rollout occurs.

Why it matters for German players

For players in Germany, the development in Africa is an interesting comparison for the challenges of regulation. While Africa seeks a minimum level of uniformity, Germany has already created a very strict national framework with the State Treaty on Gambling 2021 (GlüStV 2021). German customers enjoy a high level of protection through the Joint Gambling Authority of the States (GGL), which many African states still need to build.

In Germany, rules such as the monthly deposit limit of 1,000 euros via the LUGAS system and the maximum stake of 1 euro per spin for slots are firmly established. These strict requirements serve to prevent gambling addiction. When African markets discuss minimum standards for player protection, they often look at established systems in Europe. German players should ensure they play exclusively at operators on the GGL whitelist, as only there do the strict German legal norms apply. Offers from Africa or other regions without a German license are illegal in this country and offer no legal certainty.

What it means for GGL-licensed casinos

For operators with a German license from the GGL, the African debate highlights the importance of international standards. Companies operating globally must adapt to a variety of different regulations. Harmonization in Africa could lead in the long term to reputable European providers having easier access to these growth markets, provided they meet the local minimum standards.

Currently, the German market remains a protected space through the GGL license. Providers must connect to technical interfaces such as LUGAS and OASIS. Cooperation between regulators worldwide, as called for by the African experts, could improve the exchange regarding illegal black market providers in the future, which ultimately benefits the legal German market as well.