The Stress Test of Growth: When Responsible Gaming Struggles to Keep Pace
Africa’s gaming industry has entered a phase where regulation is no longer merely a statutory obligation. It is actively influencing how the market expands, who is permitted to operate, and the extent to which players are protected. Across the continent, online betting has continued its rapid ascent. However, this rapid expansion has exposed weaknesses in regulatory systems that were not originally built for large-scale digital wagering. Regulators are now trying to balance the need to encourage investment and innovation with the responsibility of preventing social harm and maintaining public trust.
In Nigeria, regulatory complexity is compounded by fragmentation. Oversight is divided across federal and state levels, creating variation in how responsible gambling standards are defined and enforced. Speaking in Issue Seven of the iGaming AFRIKA Magazine, Fisayo Oke, CEO of Gamble Alert, addressed this structural challenge directly noting that, “One of the persistent barriers in the industry would be the fragmented regulation of gaming activities across different states. So it means that across different states, you find different standards for responsible gaming enforcement. For instance, if Lagos State has a very strong and solid responsible gaming regulation, you may go to a different state and they don’t have it at all. So gaming operators may take advantage of that, go to a state where they have a relaxed responsible gaming framework, operate there without incurring any cost, continuing to get patronage from foreign populations.”
The consequence, as he explained, is weakened accountability. Even where policies exist, enforcement capacity remains uneven. Fisayo observed that “some of the states have come up with fantastic gaming policies. But then when it comes to enforcement, because of the limited amount of resources, enforcement may not extend to those environments.” In large jurisdictions, particularly in suburban and rural communities, regulatory reach often falls short of regulatory intent.
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Beyond fragmentation, Fisayo also identified a structural investment gap within the industry itself. He cautioned that insufficient commitment to responsible gambling undermines progress, stating, “Think about having twenty, thirty licensed gaming operators in the country, and only one or two of them are doing significantly well in terms of responsible gaming. It doesn’t encourage them because they think that if they invest some money and others are not doing it and there is no repercussion for not doing it, there’s no incentive for doing it.”
This imbalance, he argued, weakens industry-wide standards and discourages meaningful compliance. The absence of unified infrastructure further complicates the landscape. Prior to the introduction of Lagos State’s SafePlay initiative, Fisayo highlighted “the absence of a unified self-exclusion portal or framework” as a critical gap. The launch of SafePlay marked progress, but he emphasised that broader adoption remains necessary: “We want to shift responsible gaming from a long-term gesture. It should be shared accountability amongst all stakeholders.”
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Southern Africa illustrates how scale intensifies this tension. In South Africa, where the National Gambling Board reported gross gambling revenue of approximately R59.3 billion in the 2023/24 financial year, betting accounts for the largest share, with online sports betting dominating the segment. Yet in Issue Five of iGaming AFRIKA Magazine, Robin Bennett of the Western Cape Gambling and Racing Board acknowledged the regulatory gap saying “While the industry is rapidly expanding with new products and services, the measures for responsible gambling are not advancing at the same pace. We are nowhere near where we need to be in terms of responsible gambling practices.”
The National Treasury has proposed a 20% national tax on online gross gambling revenue, framed not only as a fiscal instrument but as a mechanism to mitigate harm. At the same time, reported advertising expenditure of approximately R2.6 billion and a roughly 40% year-on-year increase in treatment referrals have amplified debate within the Parliament of South Africa, where stricter controls including the possibility of advertising restrictions, have been raised.
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Provincial regulators in South Africa face their own operational constraints, particularly as betting activity becomes increasingly digital. In his interview with iGaming AFRIKA Magazine, Zuko Phandle, Manager: Audit and Compliance at the Eastern Cape Gambling Board, was candid about the structural limitations confronting enforcement authorities. He identified a core technological gap, explaining that there is an “absence of live and real-time data management, due to lack of RegTech that many jurisdictions, do not have.”
This deficiency has practical consequences. Without real-time monitoring tools, regulators are often responding after harm has already occurred. The challenge is compounded in geographically dispersed and rural areas, where illegal gambling devices continue to surface. He emphasised that enforcement is not solely a regulatory issue but a criminal justice concern, requiring co0rdinated intervention from law enforcement agencies and the courts to address the broader criminal networks that sustain illegal gambling operations.
“Illegal gambling is a crime and it steals from the poor, therefore it should be treated as such. While certain penalties under normal circumstances may be adequate, the regulatory framework must be strengthened in a manner that works in practice. Law enforcement agencies and the courts, as competent institutions mandated to deal with criminality, must be equipped and integrated into the process. Without that coordinated approach, illegal operators will continue to exploit vulnerable communities and undermine the integrity of the regulated sector, ” he stated.
Notably, these constraints exist despite the Board having achieved 11 consecutive years of clean audit outcomes, a record Zuko attributes to institutional stability and governance discipline. The contrast highlights a broader regulatory reality. Sound internal governance does not automatically translate into digital oversight capacity. Where technological infrastructure lags and enforcement resources are stretched, regulatory intent alone cannot guarantee player protection.
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For operators, this regulatory maturation is increasingly now being understood as a strategic necessity. Bwalya Noah, Regional Manager for Southern and Eastern Africa at betPawa in an interview with iGaming AFRIKA, described compliance as foundational stating, “At betPawa, our operations are built on a foundation of strict adherence to regulatory standards across all markets. We are deeply committed to fostering responsible gaming, a principle reflected in all our communications and activities.” Purpose-driven leadership across the continent echoes this sentiment.
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Olabimpe Akingba, Regional Manager Africa, Business Development & Regulatory at pawaTech, also speaking to iGaming AFRIKA, emphasised that sustainable growth within Africa’s gaming industry must be deliberately anchored in integrity, structured collaboration, and a firm commitment to player protection. “Responsible gaming is not a peripheral obligation or a regulatory checkbox. It is the foundation of long-term market stability. If we are serious about building a resilient gaming ecosystem across Africa, we must ensure that innovation, expansion, and profitability are consistently aligned with player wellbeing and community protection,” she stated.
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In Namibia, the Gambling Board of Namibia is embedding that philosophy institutionally. As John Erastus, the Acting CEO explained, “There is a new jurisdiction that is being put in place that speaks to treatment of addiction, public awareness campaigns, and making sure that we sensitize our continuous awareness on the effects of gambling and how much it can affect our socio-economic livelihoods.”
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Markets that strike equilibrium by combining enforceable standards with proportionate regulation and public education, are likely to prove more resilient than those that rely on restriction alone.
