The African iGaming Alliance (AIA) has been established with Peter Kesitilwe, the former head of the Botswana Gambling Authority, at its helm. This organization, formed by major market players including Betway, BetPawa, 888Africa, and Sportybet, aims to foster collaboration among operators and stakeholders. The ultimate goal is to influence policymakers to avoid heightened taxation and other unfavorable measures that could stifle the industry’s growth.
Kesitilwe, who brings over nine years of experience in the gambling sector, including nearly two years as the CEO of the Botswana Gambling Authority, emphasizes that the African iGaming Alliance is not meant to compete with existing regulatory bodies or independent operators across the continent. Rather, the AIA seeks to complement these entities. “We’re not competitors,” Kesitilwe insists, “but a pan-African trade alliance committed to collaboration. We must harmonize tax issues and promote responsible gambling through our alliance, speaking with one voice.”
A critical priority for the AIA is addressing problem gambling by employing a sector-wide approach. Kesitilwe underscores the importance of establishing responsible gambling frameworks throughout Africa. He warns that policymakers and governments, in the absence of such frameworks, might resort to increasing taxes as a response to an upsurge in problem gamblers.
On the topic of taxation, Kesitilwe advocates for a standardized gambling tax rate. By doing so, the sector can resist pressures from policymakers who might demand higher contributions to government revenues. Kesitilwe expresses confidence that the AIA will serve as a bridge between operators and regulators to achieve this goal, amid the rising player activities driven by increased smartphone usage and improved internet connectivity across Africa.
However, the continent’s diverse market maturity levels present a challenge in the form of regulatory fragmentation. Kesitilwe foresees this as a significant issue for the burgeoning sector. He calls for a centralized body to standardize regulations across neighboring markets, noting the current scenario where operators face disparate licensing requirements in countries like Nigeria and Ghana. “We have the Gambling Regulator Africa Forum (GRAF), which can significantly aid in standardizing licensing frameworks and enhancing cross-border coordination,” he points out.
The presence of illegal and unregulated operators, which Kesitilwe estimates to constitute two-thirds of the African market, undermines consumer protection and responsible gambling standards. From a consumer standpoint, distinguishing between legal and illegal sites is challenging, and regulators need to exercise caution before labeling operators as part of the black market. Proper operation within the industry, Kesitilwe suggests, could prevent governments from losing as much as $2 billion to $5 billion annually due to unpaid taxes linked to the black market.
Beyond regulatory issues, the sector also grapples with high costs related to banking and payment services. In August, Super Group, the parent company of Betway, indicated it was exploring cryptocurrency payments in Africa to mitigate these banking costs and attract new players. Super Group CEO Neal Menashe highlighted the significant expense associated with banking in Africa, particularly concerning customer onboarding and payments across the continent. Kesitilwe concurs, noting that monopolistic payment aggregators and exorbitant fees are hindering the sector’s growth. He emphasizes the need for ongoing dialogue and research to address these challenges.
Kesitilwe is optimistic about the advantages his regulatory background brings to the African iGaming Alliance. “Leading the gambling authority in Botswana, I offer substantial regulatory experience,” he reflects, acknowledging his firsthand insights into governmental compliance perspectives, anti-money laundering and counter-terrorism financing issues, and responsible gambling. His experience in forming legislation and modernizing regulatory frameworks allows him to bridge the gap between the industry and regulators across Africa, adding a layer of credibility to the AIA’s endeavors.
Despite Kesitilwe’s optimism and the AIA’s ambitious goals, there are contrasting viewpoints within the industry. Some stakeholders argue that the focus should be on cutting-edge technology and innovation to drive the market forward rather than solely on regulatory and tax issues. They believe that while harmonization of regulations is crucial, the industry must also prioritize adapting to new technological trends to remain competitive on a global scale. Balancing these perspectives will be essential as the African iGaming sector seeks to expand and solidify its presence on the continent and beyond.
In conclusion, the African iGaming Alliance, under Kesitilwe’s leadership, aims to unify the fragmented regulatory landscape of Africa’s gaming industry while advocating for reasonable tax rates and promoting responsible gambling. As the sector continues to grow amidst technological advancements and increasing connectivity, the AIA’s collaborative approach may well shape the future of iGaming on the continent.
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