“Running a gambling business in Africa requires courage and determination”

With over 30 years of experience in the gambling industry, Iwo Bulski has witnessed its transformation from traditional gaming machines to the online era. In this exclusive interview, he shares his journey, from his early days in the 1990s to founding Buffalo Consultants in Uganda.

Your experience in the gambling industry spans over 30 years. How has the industry changed since you began your career?

I started working in the gambling business in the early 1990s when the first pusher or crane-type machines began to appear on the market. The entertainment industry was slowly evolving, with the introduction of other types of machines, including low-payout AWP machines, which allowed operators to generate better profits. While the types of machines changed, the hard and demanding operational work, aimed at maximizing player enjoyment, remained constant. Today, this is all history. From the thousands of operators back then, only a small handful remain. This is due to the widespread availability of this type of entertainment online, legal restrictions that devastated the industry, and the retirement or passing of most of my peers in the business.

What motivated you to establish Buffalo Consultants, and how did the company get its start?

The main reason for establishing Buffalo Consultants was my prior six-month experience running a gambling company in Uganda, where I was invited by friends. After half a year and successfully elevating the company to a high level, I decided to go independent. Collaborating with several European manufacturers and their machine support, combined with thorough market penetration, gave me significant opportunities to start my own business. Unfortunately, the pandemic struck, and all my plans fell apart. Later, it became difficult to return to the planned activities. This affected everyone, whether in Uganda, Poland, or elsewhere. It was a fair disruption.

What distinguishes the African gambling industry compared to the European market?

It’s a similar market with comparable challenges faced by operators in Europe. However, it’s a different continent with unique conditions. Africa and its countries still need to be regarded as part of the developing world. Significant issues include limited internet access, unstable electricity supplies, vast distances between gaming locations, and, most importantly, a different mindset than in Europe.

The prevalent principle here is “here and now,” meaning long-term planning is almost impossible. Local populations lack loyalty, view work as merely a source of income rather than a responsibility, and generally lack long-term thinking. Additionally, the morality of many locals is very low. Fraud, theft, and armed robberies are common. Coupled with widespread corruption at all levels, from legislators to regulatory institutions and police, it creates a challenging environment for running a business. This is the reality in most African countries, whether in Kenya, Zambia, Ghana, or Nigeria, as confirmed by my colleagues who operate in these regions.

What challenges and opportunities do you see in Uganda’s gambling market compared to other African countries?

The Ugandan market, where I operate, is highly unstable and uncertain. This is due to unclear gambling laws, unpredictable tax conditions, and pervasive inspections that can cripple any existing company. During my time in the industry, many companies, including major players, have exited the market because they couldn’t bear the burden of inspections, fines, or the bribes required to mitigate the impact of these inspections. Corruption and theft compound this bleak picture of an unstable business environment. Corruption is the worst aspect, affecting everything from obtaining permits and annual licenses to meeting ever-changing technical requirements and avoiding inspections initiated with corrupt intentions. Running a business here requires both courage and determination.

Do you think Uganda is an attractive market for international operators?

Absolutely not. Any new entrepreneur entering this market usually concludes within a few years that running a gambling business in Uganda is unfeasible. This applies to both land-based and online operations. The market is extremely risky and unstable. Moreover, operating costs are similar to those in Europe, while profits, for example from street machines, are four times lower. This is due to the impoverished population post-pandemic, a lack of player culture, insufficient venues for such activities, and widespread obstacles imposed by regulatory authorities. Inspections are as frequent as breakfast, often ending in bribes or the withdrawal of permits. Not everyone can understand or incorporate such realities into their business plans. Many foreign companies have left the Ugandan market, though some are still willing to take the risk. However, most change their minds after a few years.

What technological innovations do you consider crucial for the further development of Africa’s gambling market?

Greater internet access is crucial in the online era, as well as the electrification of more areas in every African country. Additionally, a change in mentality and morality among the local population is essential. People need to start looking at the forest instead of individual trees, which is unfortunately rare. Introducing innovations from Europe or the U.S. often misses the mark due to the unnecessary civilizational leap.

For instance, in Uganda, the LGRB (Lotteries and Gaming Regulatory Board) is mandating that, starting next year, all companies integrate their management systems with Comtrade’s CMS, which reports revenues to the tax office and gambling regulator. In a country where power outages are frequent, operating conditions are hindered by omnipresent dust, and internet access is expensive and inconsistent, such a requirement is highly impractical. While I understand the aim is to improve the collection of a 30% gaming tax, it is unrealistic given the technical constraints.

Do you miss the Polish market?

I miss Poland, but not the gambling business in Poland. That’s in the past. I’ve written extensively on my former portal, e-play, that the introduction of a state monopoly would spell the end of private business. The state will never allow a situation similar to the 1990s or a decade later, where the private sector generated four times more tax revenue than the state-owned Totalizator Sportowy at the time. Those days are over. It’s history, and I plan to write a book about it to preserve the memory of how things used to be.

Do you think Polish companies, as well as those from neighboring countries, can succeed in Africa?

No. Some have been in the market for many years and understand the local realities. The main obstacle is not technology or the lack of skilled personnel. It’s primarily the mentality of the African population, who have not been taught principles and operate with a different moral compass than Europeans. Combined with infrastructure challenges, lack of internet access, widespread theft, and poverty, the outlook for running a business is bleak. But fortune favors the bold, and I’m an example of that, having managed to persevere and grow over six years.

Do you think the African market could ever match the European one?

That will never be possible. Several reasons contribute to this, as I’ve mentioned, but the primary cause is poor infrastructure and, like in Europe, treating the industry as a cash cow to be exploited beyond its limits. In every country where gambling is legalized, a similar situation occurs, and not all African nations have legalized gambling. In more than half, gambling is not officially recognized, though it exists informally. Africa still resembles the Wild West, where untapped opportunities occasionally emerge. New, unexplored markets continue to arise here. This is no place for amateurs—it requires substantial knowledge, significant capital, and determination bordering on the miraculous.

Where do you see Africa in five years concerning iGaming?

I believe that, given the current state of affairs, little will change in terms of development. The online market is far more popular than land-based operations, but in terms of technology, iGaming lags behind other continents. Licensing and omnipresent inspections are common, often ending in hefty bribes or revoked permits. Few large online companies currently operate in African countries due to the high risk of losing investments and being forced to withdraw. Until African nations develop a sense of loyalty and consistency in their decisions and combat widespread corruption, these markets will remain inaccessible to major online companies.

This, however, presents an opportunity for smaller operators who knowingly take on this risk. In Africa, a fundamental shift in mindset is needed, but this is unlikely to happen in five or even several decades. Africans are not yet accustomed to cooperation and consistently adhering to established rules. They still carry the mindset of being oppressed and exploited, viewing developed countries primarily as partners for support and funding, rather than for conducting mutual business.

Source: africangambit.com

About Post Author

Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.

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Iwo Bulski

Issues related to the gambling business is engaged in more than 30 years. My empirical experience gives me the opportunity to present events and companies from this business with full knowledge and industry knowledge.