The inside story of Premier Bet Rwanda woes

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Premier Bet Rwanda, a company that once dominated the local sports betting scene, made a shocking exit last month. Under the cover of Premier Betting Ltd and later Solidaire Rwanda Ltd, the company abruptly announced the suspension of all services, leaving bettors scrambling to withdraw their funds by a tight deadline of June 18, 2024.

At the time, there was little or no information about why the company decided to suddenly close shop without further giving details. Despite persistent attempts by The New Times to reach Apostolos Kalodoukas, Premier Bet Rwanda’s CEO, all inquiries went unanswered. However, throughout the investigation, this publication obtained a letter dated June 13, 2024, from the Ministry of Trade and Industry addressed to Solidaire Rwanda Ltd.

“After review of your application files, we wish to inform you that your sports betting license renewal, and your request for an internet (online) gaming license, are not granted,” – reads part of the statement.

As their existing license neared its expiration, they contacted the Ministry of Trade, the gaming industry’s regulator, seeking renewal to continue operations, but their pleas fell on deaf ears. The company had been granted authorisation by the Ministry of Trade on October 24, 2023, to continue its betting operations until a final decision on the request is made. Last month after the review of the company’s operations, the Ministry made a final decision not to renew the license.

“The authorization to continue betting operations granted in the aforementioned letter is hereby removed. You are therefore requested to suspend operations with immediate effect,”

– it said without divulging further details.

Premier Betting Ltd has allegedly been operating shoddy business, including duping franchise owners and operating illegal products for which they had no license to operate.

“Premier Bet Rwanda had been licensed to operate sports betting services, but they went around and introduced lottery activities such as Spin & Win, Five90, and Keno, among others,”

– claimed one former employee who preferred anonymity.

Premier Bet Rwanda is part of Premier Bet International, which operates across more than 20 African countries, according to information from their official website. There is perhaps no better person who understands Premier Bet woes in Rwanda than Philbert Iradukunda who has lived and experienced them first-hand as a franchise owner. His story would become a microcosm of Premier Bet’s Rwanda gamble gone wrong.

Gov’t in process to build ‘slot machines regulatory system’ In Rwanda, Premier Bet operated two models: express shops in which it would directly work with individuals to set up its own sports betting shops, and a franchisee model where investors directly entered agreement to own Premier Bet branded shops.

Iradukunda decided to invest in a Premier Bet franchise, a model where individuals own and operate branded Premier Bet shops. However, his experience turned sour quickly. After signing the franchise agreement in January 2023, Iradukunda faced hurdles before even opening his shop.

The process involved the businessman conducting a site survey and proposing locations. Premier Bet would then choose the one they deemed most suitable based on foot traffic. Iradukunda identified three potential locations in Kimironko, Kanombe, and Remera.

Premier Bet approved the Kimironko location. However, after Iradukunda paid rent for three months and prepared to open, he discovered Premier Bet had already set up their own express shop right next door.

Disappointed, Iradukunda was then advised to relocate to Musanze District in the Northern Province.Unfortunately, he was forced to close his shop there as well. He then attempted to open another franchise in Nyabugogo, but things took a turn for the worse.

“One day, I woke up to find a team from Premier Bet had broken into my Nyabugogo shop and stolen three devices and other equipment,” – Iradukunda recounted.

He reported the incident to the Rwanda Investigation Bureau (RIB) seeking justice. Authorities attempted to mediate the situation between Iradukunda and Premier Bet, but these efforts were unsuccessful.

“This is a blatant scam,” – the businessman exclaimed, claiming Premier Bet’s actions cost him a staggering Rwf30 million and: “nearly Rwf10 million alone went towards rent for shops I could never even operate in.”

The case of Premier Bet losing its license renewal highlights the regulatory power of the Ministry of Trade. However, the specific reasons for the denial remain unclear. Efforts to get more details from officials at the Ministry of Trade were futile.

Drafted in 2011, Rwanda’s current law governing sports betting and gaming activities faces criticism for its ambiguity. While it mandates licensing for entities running sports betting, lotteries, casinos, and other forms of gaming, some argue the law lacks the necessary clarity to effectively regulate the evolving industry.

The law primarily focuses on traditional forms of gambling like casinos and lotteries. Newer technologies and online gaming might not be explicitly addressed, creating potential gaps in regulation. The specific types of games categorized as “unlawful” might not be clearly defined, leading to ambiguity and room for interpretation.

This is in addition to enforcement challenges. Although the law establishes fines, it does not go into great detail on investigation and enforcement procedures. This publication understands that the Ministry of Trade is currently transferring the gaming industry’s regulatory authority to the Rwanda Development Board as an attempt to correct issues the industry faces.

Source: msn.com