Africa is the world’s second-largest continent with a population of 1.3 billion people. Recently, the economies of many African countries have shown positive changes, and mobile Internet penetration is growing rapidly. Today, about two thirds of Africans use high-speed mobile Internet. All these points, along with a positive attitude towards the gambling sphere, are the reason for the great interest of iGaming operators in the African continent.
Today, virtual bookmakers are conquering the local market. Locals also love online casinos, but they are less widespread due to higher technical requirements. However, the telecommunications structure on the continent is gradually improving, and the population of the most economically developed countries is becoming richer. These trends allow us to make a positive forecast for the iGaming industry in Africa.
A gambling license is a cornerstone of each iGaming business. It is absolutely mandatory to get it. Without a permit, operators are not able to buy official software and games, implement widespread payment systems to their websites, and collaborate with other gambling companies. Moreover, operating without a license is simply illegal and can lead to serious legal problems.
The procedure of obtaining a license varies from jurisdiction to jurisdiction, however, there are several common requirements for almost all countries. Before applying you’ll need to collect detailed company documentation and prove your financial stability and professional skills. Most regulators also require operators to follow the AML policy standards and protect minors from gambling. Finally, each future licensee must pay licensing fees and submit the filled-in application.
LicensingAid has a rich experience in assisting with license acquisition and we are ready to share our knowledge. Let’s figure out which markets of the south continent are open to offshore operators, where gambling is still strictly prohibited, and where there are the best conditions to get a gaming license in Africa.
Features of casinos in Africa
In Africa, gambling regulations are akin to those in most Muslim-majority countries, with strict prohibitions especially in North Africa. Some areas like Morocco, Tunisia, and Egypt, allow casinos within large hotels to promote tourism, but only foreigners may enter. State-operated betting firms in Tunisia and Morocco help fund local sports entities.
In countries like Kenya, Uganda, and Zambia only land-based gambling is regulated. To launch an offline casino there it is mandatory to get a local license. At the same time, there are no rules regarding iGaming in local legislation. Nonetheless, ambiguous laws create confusion, necessitating local licensing for online platforms to avoid legal issues.
Tropical African countries lack specific online gambling regulations, allowing foreign operators to serve residents without local licenses.
Nigeria is a key player in Africa’s online gambling scene, despite confusing regulatory oversight by two bodies: the NLRC and the LSLB.
In South Africa, online casinos are banned, and licenses issued only for sports betting.
Contact our team to know more about how to get a gambling license in South Africa or other countries of the region.
How gambling is regulated in African countries
In the gambling industry, there is a division into black, gray and white markets. Black ones are those where casinos and betting are strictly prohibited, gray ones are markets where this sphere is not controlled, and white markets are the ones where gambling is regulated and licenses are issued. Africa in this sense is unique in the presence of another group of markets – unregulated areas which issue permits.
Black markets
A number of North African governments prohibit their citizens from all (or some) types of gambling. Thus, in Egypt, Tunisia and Morocco there are offline casinos, but they are located in hotels, and only foreigners are allowed to play. Morocco and Tunisia also have government-run sportsbooks, which aim to raise funds to finance local sports communities.
Despite the ban on online gambling, the authorities of Egypt and Morocco are not taking serious measures to combat foreign iGaming platforms. Such offshore virtual casinos and bookmakers happily accept players from North African countries.
Unregulated markets
A lot of countries in sub-Saharan Africa do not officially regulate iGaming or license operators. The good news is that there are no barriers for foreign gambling companies to provide their services to local residents.
Unregulated markets issuing permits
Another group of African countries does not regulate iGaming, but issues licenses to operators of virtual casinos and sportsbooks. How did this happen? The fact is that in these territories, only offline gambling is legal, and therefore the licenses issued there de jure apply only to offline gaming enterprises. However, local regulators also license online operators. Let’s tell you more about several of these unique locations.
Uganda
The National Lotteries and Gaming Regulatory Board of Uganda licenses both offline and online gambling projects. Although there is no official requirement for having a permit to provide iGaming services in the country, forward-thinking operators are choosing to legalize their business.
To get a casino license in Uganda you need to prove financial stability, impeccable reputation, and sufficient technical capabilities of your business. Your platform also has to meet all requirements and standards set by the local regulator.
It is worth noting that license fees in Uganda are different for residents and foreigners. Thus, the legalization of a sportsbook will cost €2,300 for local residents and €4,600 for non-residents. As for the casino, for Ugandans, it is €4,600, and for foreigners – €11,700.
Once licensed, operators are also required to provide a deposit (as a security guarantee) of €46,000 for the betting platform and €117,000 for the casino.
Zambia
In Zambia, it is illegal to offer gambling services without a license, but nobody knows whether this also applies to virtual platforms. Some remote operators prefer to obtain a local license to protect themselves. At the same time, the confusion with the semi-legality of iGaming is the reason why many large foreign brands do not want to work with Zambians fearing problems with the law.
Kenya
The Betting Control and Licensing Board of Kenya offer permits to both offline and online operators. Let’s discover a gambling license cost in Kenya. A sportsbook permit will cost €2,800 for locals and €6,250 for non-residents. The yearly fee is €850. A casino permit costs more – €32,800 for Kenyans and €38,600 for foreigners. The yearly fee is €4050 for all.
Regulated markets
Now let’s talk about African markets where there is gambling regulation and official iGaming licensing. In this sense, the biggest players on the continent’s chessboard are South Africa, Tanzania, Ghana and Nigeria.
South Africa
In South Africa, only online betting is legal, while virtual casinos are prohibited. Licenses for operators in this jurisdiction are issued not by the state gaming authority, but by provincial regulators. So, how much does a gambling license cost in South Africa? The cost of the document will depend on the region in which you receive it. Usually the fee starts from about €1500 for applying.
Please note that obtaining an online gambling license in South Africa is not as easy as it seems. Applicants need to prepare a set of documents about the company, and also be prepared for close inspections by the licensing authority.
Tanzania
As a fully regulated market, Tanzania is a real godsend for iGaming operators. The Gaming Board of Tanzania licenses both virtual casinos and betting websites. The monthly fee for each platform is about €500. In addition, sportsbook operators are obliged to pay a 6% tax on each bet.
Remember that low licensing costs do not mean that getting a Tanzania permit is cheap. In order to apply for it, you must first make an investment in the jurisdiction of $300,000 for local enterprises and $500,000 for companies founded by non-Tanzans.
Nigeria
Nigeria is one of the biggest iGaming markets on the African continent. Unfortunately, the local licensing system is jumbled and decentralized. Due to the lack of government legislation, the role of the gaming regulator is shared by two bodies – the National Lotteries Regulatory Commission (NLRC) and the Lagos State Lotteries Board (LSLB). Both organizations issue their own licenses. How much does each cost?
The cost of a sports betting license is €100,379 (100 million NGN), with an additional €2,008 (2 million NGN) for applying. If you’re part of the Association of Nigerian Bookmakers, you’re eligible for a 50% reduction in the license fee. The validity of this license is 5 years.
Obtaining a lottery license is cheaper, priced at €10,038 (10 million NGN) and a €2,008 (2 million NGN) application charge. However, it’s required to maintain a statutory capital of approximately €100,379 (100 million NGN). This license remains active for a decade.
An online casino license demands the same financial commitment as the sports betting license – €100,379 (100 million NGN) along with a €2,008 (2 million NGN) fee for application.
In order to get a Nigerian license applicants must prepare company and key persons’ documentation, a detailed financial forecast for 5 years, and information about games provided. Last, but not least: operators must prove that their platforms fulfill international AML standards.
Ghana
The Ghana Gaming Commission issues gambling licenses, including to online operators. The main catch is that in order to legalize gambling in the country, it must be at least partially owned by Ghanaian citizens. In addition, the regulator sets strict requirements for the protection of minors from the harmful effects of gambling.
The main focus of iGaming in Ghana is sports betting. Local residents love betting and are a grateful audience for bookmakers.
Obtaining a license from a third-party jurisdiction
As we have already mentioned, in many African countries gambling is prohibited and licenses are not issued. However, this does not stop locals from gaming and betting online. In case you want to enter such markets, the best solution is to obtain a recognizable and prestigious license from a third-party jurisdiction. Some of the most popular options include Malta, Curaçao, Anjouan and Costa Rica. Let’s compare the main features of licensing in these locations.
| Malta | Curaçao | Anjouan | Costa Rica | |
| Advantages | Solid regulatory framework and reputation Access to European markets Tax incentives and player protection measures | One license for all gambling types, cost-effective Quick licensing process, favorable tax laws Greater operational flexibility with less stringent regulations | Affordable and fast licensing Privacy for business owners, low taxesMinimal regulatory constraints | No specific gambling legislation, lower costs All you need to do is to register a company on the island Stable political climate and favorable tax environment |
| Requirements | Rigorous due diligence checks on company owners and key personnel Comprehensive business plan including financial forecasts Implementation of anti-money laundering (AML) and player protection measures | Company must be registered in Curacao Installation of server equipment within the jurisdiction to meet technical requirements Compliance with international AML regulations | Company registration within Anjouan Basic due diligence documentation to prove legitimacy of the business Compliance with local financial regulations | Company registration on Costa Rica Compliance with local tax regulations, though specific gambling regulatory requirements are minimal |
| Application fee | €5000 | €8,500-€21,000 | €17,000 (this amount already includes annual fee) | No application fee |
| Terms of issue | 6+weeks | 4-8 weeks | 3 weeks | 8-12 weeks |
Cost of gambling license in African countries
Let’s now compare the costs of gambling licenses in regulated African markets. We have prepared a brief table for your convenience.
| Country | Application fee |
| Nigeria | Sportsbook/online casino license – €100,379 Lottery license – €10,038 |
| Kenya | Sportsbook license – €2,800 (for locals) and €6,250 (for foreigners) Online casino license – €32,800 (for locals) and €38,600 (for foreigners) |
| Tanzania | About €390 |
| South Africa | From €1500 |
| Ghana | Sportsbook license – $40,000Casino license – $50,000 |
| Uganda | Sportsbook license – €2,300 (for local residents) and €4,600 (for non-residents) Online casino license – €4,600 (for locals) and €11,700 (for foreigners) |
| Zambia | About €390 |
What awaits the African gambling market?
Facts speak for themselves: the iGaming market in Africa will grow, and more and more countries will introduce gambling regulations. There are several reasons for this:
– Economic growth and, accordingly, an increase in income of the population;
– The spread of the mobile Internet, as well as smartphones, computers and other gadgets where you can play;
– Positive attitude towards the gambling industry, lack of prejudices;
– Improvement of legislation in general.
The LicensingAid team follows the news of the gambling industry on the African continent and is always ready to answer your questions on this topic.
Conclusion
The African gambling market is complex, multifaceted and interesting. Today, many countries in the southern continent still prohibit gambling for various reasons. However, more and more jurisdictions are turning to gambling and introducing gamштп regulation, as well as licensing of operators.
In order to enter one of the gambling markets in Africa, you need to either obtain a local license or apply for a license from a third-party jurisdiction. Before making a choice, carefully study the legislation of the selected territories to understand what is necessary to legally operate there.
If you still have any questions, contact LicensingAid specialists, whose many years of experience will become your support on the path to obtaining the long-awaited license.
Frequently asked questions
In this part of the article, we will give you concise answers to the most common questions about the gambling markets in Africa.
How is gambling regulated in Africa?
African gambling markets are divided into four groups: black (where gambling is strictly prohibited), white (where gambling is legal and licensed), gray (where there is no regulation of gambling or it is very vague) and the last group is a mixture of white and gray categories – unregulated markets that, however, issue licenses.
Why do bookmakers want to operate in Africa?
The African betting market is every bookmaker’s dream. Residents of the southern continent love betting on sports and do it regularly and passionately. Additionally, some major African markets (such as South Africa) allow sportsbooks, although online casinos are strictly prohibited in the country.
What’s next for the African gambling market?
Industry experts are positive about the future of the African gambling market. Many countries on the continent are experiencing consistent economic growth and continued adoption of technology, the Internet, and smartphones. All this cannot but affect the growth of the iGaming sector. In addition, governments of jurisdictions are also looking towards legalizing gambling. It is likely that in the coming years, more and more countries will introduce regulation and licensing of online casinos and bookmakers.
LicensingAid services for iGaming operators
LicensingAid is here to help you get started with your iGaming project and get a gambling license in Africa. Our services include:
- Assistance in obtaining a license;
- Opening a high-risk merchant account;
- Consulting on design and trademarks;
- AML compliance.
Contact us to get answers to all your questions about regulated markets, gambling licenses, our services, etc.
