How Illegal Gambling, Lack of Standardized Regulation in Africa Stunts Industry Growth

Bashir Are, CEO of the Lagos State Lotteries and Gaming Authority (LSLGA), has said that the African gaming sector is at a critical juncture with the rise of illegal gambling and a lack of standardized regulation.

He made this observation at the ongoing ICE gaming industry conference in Barcelona. Are sounded a warning that recalled Africa may become a haven for unregulated and exploitative gaming practices.

“Twenty, thirty years ago, Africa was a dumping ground for toxic waste from all over the world,”

Are said during a panel discussion titled ‘Navigating the Illegal Market: Cross-Jurisdictional Challenges in Identification & Enforcement’.

“I think we are experiencing that now in the gaming sector too.”

The session, which also featured high-profile speakers such as Gilbert Remulla, director of the Philippine Amusement and Gaming Corporation (PAGCOR); Isabelle Falque-Pierrotin, chair of the French Gambling Authority (ANJ); and Lisa Osofsky, managing director at AlixPartners and former director of the UK Serious Fraud Office (SFO), delved into the challenges of combating illegal gambling in a globalised market.

Are stated that the fight against illegal gambling cannot be won without unified efforts from regulators across Africa. He added that regulators have to come together and help each other in terms of standardisation, enforcement, blacklists, and responsible gambling.

The Lagos regulator underscored cross-border collaboration’s importance in creating standardised laws and reciprocal agreements.

“For example, Lagos State has a bilateral agreement with the country of Botswana. So if you are illegal in Lagos State, and you have a licence in Botswana, we can both enforce on that, and we’re doing that with so many jurisdictions right now. If there’s no collaboration, there’s no way you can fight illegal gambling,”

Are added, calling for partnerships with law enforcement and justice departments to address the issue comprehensively.

PAGCOR director Remulla shared the Philippines’ experience in tackling illegal gambling, noting that illegal operators once accounted for 90 per cent of the country’s gaming market. Through a mix of reduced taxes for legal operators, stronger law enforcement collaboration, and outreach to illegal businesses, the Philippines has since reduced illegal operations to less than 50 per cent.

Lowering taxes encouraged some illegal operators to come into the legal market, Remulla explained. According to him, those operators realised it wasn’t worth the risk of being blocked or stopped and reached out to get licensed.

However, he noted that challenges remain, particularly with high-net-worth individuals and crime syndicates who are attracted to the illegal market’s lack of Know Your Customer (KYC) protocols and its use of cryptocurrency to launder money.

Are also agreed that taxes are an important tool in combatting the black market.

“Our laws now state that even if you operate offshore, if you have players in Lagos, they are considered state customers. If you don’t pay taxes on those customers, it’s a criminal offence,” – he said.

The regulator also outlined Lagos State’s plans to introduce B2B licences in order to address an existing gap in supplier accountability.

“We discovered that without B2B licences, suppliers have no obligation to ensure compliance or responsible practices,”

– he said, pointing out that regulating operators and suppliers is key to cleaning up the market.

Source: thisdaylive.com

About Post Author

Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

See author's posts

Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.