During the Future of Taxation, Channelisation and Sustainable Market Growth panel at the Africa Summit, held as part of iGB Live in London, industry leaders discussed the evolving regulatory landscape across Africa. The conversation focused on how taxation and regulatory frameworks can support channelisation, strengthen licensed markets and promote long-term sustainable growth.The first part of the event coverage was published in the Global Gaming Insider August magazine issue, focusing primarily on the importance of balanced taxation.
Meanwhile, this article explores the broader channelisation debate, including taxation, with insights from PawaTech Chief Commercial Officer Dan Thomson. PawaTech is an iGaming technology provider offering sportsbook, lottery and player management solutions, as well as brand licensing services. The company operates across 15 African markets, including Kenya, Nigeria and Ghana, where Thomson draws on his experience.
Building competitive regulated markets across Africa
Regarding channelisation, panellists agreed that keeping players within licensed markets should be a central regulatory priority. While enforcement measures against illegal operators remain necessary, regulatory strategies cannot rely solely on blocking unlawful activity.
The digital nature of the industry allows illegal operators to quickly launch new websites, introduce alternative payment channels and adapt their strategies. Supply-side interventions alone are unlikely to resolve the issue. Instead, governments and regulators must also focus on creating competitive regulated markets that offer consumers safe and attractive alternatives. Without this balance, efforts to restrict illegal operators risk having limited impact, as consumers may continue to seek out unlicensed platforms.
Emphasising the importance of proper taxation, Thomson highlighted that “tax is the key.” He further elaborated that while many African governments are under increasing fiscal pressure, the gambling industry has significant growth potential over the next two decades. Thomson stressed that taxation must be approached carefully. Operators, he said, are willing to contribute to public revenues but warned that if tax rates become unsustainably high, businesses may choose to exit the markets altogether.
A sustainable approach, therefore, requires governments to balance revenue generation with the long-term health of the regulated industry. The regulated industry creates jobs, develops skills and supports local economies through sponsorships, corporate social responsibility programmes and wider investment.
Industry calls for predictable regulation to support long-term investment
Regulatory uncertainty was also identified as a major barrier to investment. Thomson urged governments to avoid frequent regulatory changes, noting that operators are sometimes given only a few days’ notice to implement new compliance requirements. For example, businesses may receive notification on a Friday that integration with a new payment system must be completed by Monday, creating unnecessary operational challenges for compliant operators.
Such rapid changes can make it more difficult for businesses to maintain compliance while also limiting their ability to commit to long-term investment in emerging markets. Thomson concluded that clear timelines, predictable regulation and greater dialogue between industry and policymakers are essential to building confidence.
Creating stable foundations for Africa’s future growth
Another concern raised was the fragmented nature of policymaking across some African markets. Gambling regulators often learn about tax increases at the same time as the wider industry, limiting their ability to assess the potential impact on market stability. Panellists agreed that closer cooperation between gambling authorities, finance ministries and wider government bodies was identified as a key requirement for developing effective and sustainable frameworks.
With improving broadband infrastructure, favourable demographics and increasing digital adoption creating new opportunities across Africa, the continent remains a region of significant potential. Growth across the region will depend on whether regulators can establish stable and sustainable environments that encourage investment while ensuring consumers remain within the regulated sector.