As we have discussed in detail throughout this cover section, the African gambling region presents significant growth opportunities; but these opportunities are increasingly matched by the need for more sustainable regulatory frameworks. As markets across the region continue to develop, regulators, lawmakers and operators face the challenge of supporting growth while limiting the expansion of illegal gambling activity. These issues were at the centre of discussion during the Future of Taxation, Channelisation and Sustainable Market Growth panel at the Africa Summit, held during iGB Live in London. The first-ever Africa Summit in London brought together regulators, operators and industry leaders from across the continent. Together, they examined the key issues shaping the future of gaming.

Taxation strategies central for regulated markets

Ed Birkin, Managing Director at H2 Gambling Capital, opened the panel by noting that, outside Africa, operators fall into two main categories: regulated businesses that pay taxes and meet consumer protection standards; and illegal operators that avoid both taxation and player protection measures. Africa, however, presents a more complex picture. Birkin pointed to a third category of operators: companies that hold licences but are still failing to make their full contribution through taxation. When combined with unlicensed activity, this creates a significant impact on government revenues and market integrity. Based on H2’s analysis, using a 20% gross gaming revenue (GGR) tax rate, which it estimates across 150 markets to be close to an optimal level, Africa is losing up to $11bn over five years.