Mozambique is quickly emerging as one of the most promising and lucrative lotteries, sports betting, and casino playgrounds for gambling firms in Africa. This is due to its favorable tax laws on betting, low operational costs, and clear legal framework. We take a look at the steps on how to Start a Gambling Business in Mozambique.
There are some factors to consider before starting a lottery and sports betting business in the country:
1. Incorporate a local company
A foreign company cannot, by itself, operate a gambling business in Mozambique. You must set up a new local company, with a Mozambican shareholder.
You will need the following documents:
- Reserve the Name of the local company;
- Articles of Association, to be signed by all shareholders;
- Shareholders’ documents (Passport copies if individuals or Certificate of incorporation, if parent company)
- Shareholder’s Resolution of the parent company, in which the shareholders have taken the decision of incorporating a new company in Mozambique;
- Powers of Attorney, if the shareholders are not traveling to Maputo. This document must be certified or notarized at the Mozambique Embassy.
- Company Registration.
- Company Publication in the Gazette.
- Company Registration at the Tax & Revenue Authority.
N.B.: Documents in other languages shall be translated into Portuguese by a sworn-in translator.
2. Apply for a License
Once the local company is incorporated, you will need the following documents to compile the gaming license application:
- Proof of Technical Capacity, e.g., a copy of a License from the country of origin or a CV of one of the shareholders who will be assuring the technical assistance in the country;
- Certificate of Good Behaviour for the shareholders, e.g., no criminal records in their countries or references issued by the Gaming Regulators of the country of origin;
- Proof of Financial Capacity of the shareholders, e.g., Bank statement, insurance or bank guarantee;
- Certificate of Tax Clearance from your Revenue Authority stating that you (or the parent company) pays taxes normally in the country of origin;
- Business Plan, of 5 years, showing the investment and expected profits and feasibility;
- Copies of the Platform Certification
- User’s Manual of the system;
- Disaster Recovery Plan.
- Modes of Games, Rules, and Pictures or Copies of the Devices or Equipment to be used;
- Responsible Gambling Policies and Anti Money-Laundering Rules; The license is issued with a maximum length of 5 years, renewable.
3. Know the duration of the application procedures
Company incorporation may take 1 week and application procedures may take between 3 to 5 weeks.
4. Know the costs and the fees
Cost of the license: US$6,000 covering due diligence, licensing fee, platform approval, and inspection on the gaming site.
Read Also: Betting on Africa: The success of gambling business on the continent
Consultant fees: U$ 3,000 for company incorporation, registration, and gazette; U$ 3,000 for gaming license application, following up, and reporting to the client.
5. Operating fees:
8% GGR, monthly, for retail operations;
- 10% GGR, monthly, for online operations;
- Corporate Income Tax: 32% on the profit, yearly;
- Individual Income Tax: 10% on cash prizes (withholding fee);
6. Know your competitors
There are some 10 operators (brands) in the Mozambique gaming market that you will have to compete with. They include:
- 888 Bet
- Elephant Bet
- Premier Bet
- Sahara Games
7. Online Betting
There is an increase in online betting due to the rise of smartphone usage and internet penetration. All popular betting companies in Mozambique provide an option for online gambling.
8. Know about your investment protection Acts or Laws
Foreign investments are guaranteed by law, in different ways:
- In case gambling regulations are tightened, they will not apply to the existing operators;
- Repatriation of capital and profit is allowed, as long as you have declared your investments at the beginning.
The sports betting business is a lucrative and profitable business and it’s fast rising in Mozambique.
People are ready to bring out millions of money to play and that’s why you need to be around, to tap into the commission that comes with that. Before you start up your business, do your own research.
Power Game, Lda is here to help you enter this promising market of Mozambique. Should you need to raise any questions, do not hesitate to contact FELIX MUKAXE on Whatsapp at +258843184440 or +27664098657 and by email via email@example.com.
Quotations for these and other services are available on request.
Post Sponsored By: POWER GAME, LDA Sede: Av Samora Machel (EN4) nº 286, Malhampsene, Matola Moçambique
NUEL 100915332 – NUIT 400832099
Telef. +258 87 318 4440 – Email firstname.lastname@example.org