The African iGaming Alliance (AIA), a trade association representing licensed and regulated betting and gaming operators across the continent, has warned that Africa’s rapidly growing iGaming industry risks falling short of its full potential unless governments address fragmented regulations, inconsistent licensing frameworks and excessive taxation, according to CEO Peter Emolemo Kesitilwe.
Speaking to SiGMA News, Kesitilwe said regulatory fragmentation remains one of the biggest obstacles facing operators and investors seeking to expand across multiple African markets.
“Operators face inconsistent licensing frameworks, taxation models, compliance standards, and technical requirements,” Kesitilwe said. “In some markets, excessive taxation and outdated legislation are unintentionally driving consumers toward illegal operators.” His comments come as several African jurisdictions continue reviewing gambling legislation amid rapid growth in online betting, mobile gaming and digital payments across the continent.
African iGaming market continues to expand
Africa is becoming one of the fastest-growing digital gaming markets, driven by increased smartphone use, better internet access, and the widespread use of mobile money.
Research from multiple industry analysts has highlighted markets such as South Africa, Kenya, Nigeria, Ghana and Botswana as key growth centres for online betting and gaming. Mobile-first consumer behaviour and a young demographic profile have further strengthened the sector’s long-term growth prospects.
Kesitilwe believes these structural advantages position Africa to become a globally competitive gaming market. “Africa has enormous potential due to its young population, increasing smartphone penetration, mobile money adoption, and growing digital economies,” he said. However, he argues that growth can only be sustained if governments modernise regulatory frameworks and provide greater certainty for investors.
Regulatory reform gains momentum across Africa
The interview comes at a time when several African governments are reviewing gambling regulations, taxation frameworks and responsible gaming requirements.
Kenya has continued discussions around gambling advertising restrictions and consumer protection measures, while South Africa’s regulated betting market has been deemed one of the continent’s most mature regulatory models. Nigeria’s online gaming sector has also expanded rapidly following legal and regulatory reforms in recent years. Nigeria’s rising online gaming sector has been fuelled by population demographics, increased internet access, and the popularity of football.
Stakeholders across the industry are calling for regulatory approaches that incentivise compliance and reduce reliance on unlicensed or offshore operators. “Good regulation is balanced, practical, and evidence-based,” Kesitilwe said. “It should protect players, ensure market integrity, prevent criminal abuse, and generate economic value without overburdening compliant operators.” He added that regulators should focus on channelisation, directing consumers toward regulated operators.
Excessive taxation remains a key industry concern
Tax policy is still a major point of debate in Africa’s iGaming industry, with many operators saying turnover-based taxes can be hard to sustain, especially in competitive online markets.
Industry groups have increasingly advocated for taxation based on Gross Gaming Revenue (GGR), which is widely used in mature regulated markets globally. The AIA advocates for a Gross Gaming Revenue (GGR) tax in the range of 15 to 25 per cent. They have specifically identified a 20 per cent GGR tax as the optimal balance for maximising public revenue.
Kesitilwe echoed those concerns. “Regulators should prioritise developing clearer taxation models based on Gross Gaming Revenue rather than turnover,” he said.
Responsible gambling and AML compliance under scrutiny
Beyond taxation and licensing, responsible gambling and financial crime prevention remain major priorities for regulators. The African iGaming Alliance has positioned responsible gaming as a core pillar of its policy work, engaging with operators, regulators and governments on player protection standards.
According to Kesitilwe, effective player protection requires more than regulatory compliance. “Responsible gambling requires a combination of education, technology, and operator accountability,” he said.
Among the measures he highlighted were affordability checks, behavioural monitoring systems, age verification tools, self-exclusion programmes and data-driven intervention processes.
The AIA has also been working with stakeholders on anti-money laundering and counter-terrorism financing (AML/CFT) standards as digital gaming ecosystems become increasingly sophisticated.
Calls grow for greater regulatory harmonisation
One of the most significant long-term themes emerging across African gaming markets is the prospect of greater regulatory cooperation. While no continent-wide gaming framework currently exists, industry observers increasingly support harmonised standards covering responsible gaming, AML compliance, technical certification and integrity monitoring.
Kesitilwe believes such cooperation could strengthen Africa’s attractiveness to international operators and investors. “I do believe there is long-term potential for greater regulatory harmonisation across Africa,” he said. “Increased cooperation and alignment can reduce inefficiencies, improve compliance standards, and make Africa more attractive for responsible international investment.”
Investment potential hinges on regulatory certainty
According to the AIA chief executive, attracting greater foreign direct investment will require policymakers to deliver consistent and transparent regulatory environments. “Investors need regulatory certainty, policy consistency, and transparent licensing systems,” Kesitilwe said.
He warned that sudden policy changes, unclear compliance obligations and excessive tax burdens can discourage long-term investment decisions.
Industry analysts broadly agree that regulatory predictability remains one of the most important factors considered by international gaming operators when entering new markets.
At the same time, investors are increasingly evaluating market maturity, responsible gambling frameworks, payment infrastructure and regulatory enforcement capabilities before committing capital.
Despite the challenges, Kesitilwe remains optimistic about the sector’s future. “My vision is for Africa to develop into a globally respected, sustainable, and well-regulated iGaming market that prioritises consumer protection, innovation, integrity, and economic growth,” he said.
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