There are palpable fears that operators of sports betting firms across Africa may be in for a shock if the developments in East Africa—Kenya and Uganda in particular is allowed to spread to other parts of the continent. Analysts say that the fast growing African sports betting business may face the sledge hammer which will most likely cut short the gaming market spreading in mostly South Africa, Nigeria, Kenya, Uganda and Tanzania.
This is against the backdrop of the recent order from the President of Uganda, Yoweri Museveni who directed the State Minister for Finance David Bahati to stop licensing sports betting, gaming and gambling companies in the country. As if this was not bad enough, the directive equally hold that for those already registered, there would be no renewal of licenses when they expire, signifying a stoppage for the industry which many see as an escape for many young unemployed people. The President according to source with knowledge of the issue took the decision to divert the attention of the youth away from sports betting and its harmful social impact. Moreso, the President is said to be uncomfortable with a situation where foreign-owned companies repatriating profits rather than re-investing them in Uganda. But critics say that instead of an outright ban, a review of the tax system to curtail repatriation of profits should have been considered. This is against the backdrop of the large number of young people whose daily activities revolve round sports betting.
President of Uganda, Yoweri Museveni
In a similar vein, Kenya followed the Ugandan example but while not an outright ban, the country gaming authority, the Kenyan Betting Control and Licensing Board (BCLB) tried to follow some of the lined towed by European countries by focusing on the widespread levels of advertising. According to the BCL, “outdoor advertising of gambling, advertising of gambling on all social media platforms, advertising gambling between 6am and 10pm, [and] endorsement of gambling operations by celebrities” would be banned. Even at that, this development led to an outcry in the country leading to a suspension of the ban as the legislators are currently considering policy amendments which would overhaul current state gambling laws by imposing significantly higher costs on licensed operators. Advertising of gambling seem to be one of the highest paying across Africa especially for radio and television, and the time space in question is regarded as prime by advertisers.
With these developments there are fears across the continent that politicians and government officials may start tinkering with ways of either squeezing more money from these firms, or an outright ban altogether, a move analysts believe may be popular with conservative religious groups that view gambling as unwholesome. And politicians forever playing to the gallery for political gains would easily latch onto such openings to gain favour and acceptance.
These conditions, intertwined with a youthful and growing middle class that has a ferocious passion for sports, has made the 2nd most populous continent on the globe an attractive opportunity for gaming operators looking to expand beyond existing mainstream and, often, saturated markets. However, after consistent year on year growth in a number of markets in the sub-Saharan region, the problems affecting their European counterparts have emerged in the promising market.
However, the moves from two of the significant sub-Saharan markets have led to many in the industry questioning both the severity and, more importantly, the effectiveness of the rulings. With regulated gaming prohibited, there is a high risk that white markets will be replaced by grey and black jurisdictions, threatening even greater risks to the punter.
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Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.