Africa NEWS

In a dynamic , Cameron Green, Founder of F9 Media Group, took the stage alongside John Malam, Founder and CEO of 7QZ, and Martin Sack, Founder and Director of Brainstorm Online. The trio delved into strategic insights and innovation within the gaming sector of Francophone Africa, shedding light on the region's potential for sustainable growth.

Opening the Floor

The session kicked off with a lively welcome from Cameron Green, who introduced the panelists and set the tone for a discussion that promised both insights and engagement. Martin Sack began by probing the panelists on their views regarding entering the Francophone markets as international operators.

"If there is a region that excites me, it's definitely the Francophone region," expressed Martin. The panelists, Cameron Green and John Malan, highlighted the positive shifts in legislation, game growth, and increased revenue in Francophone Africa, making it an enticing prospect for gaming operators.

Defining the Francophone Market

To establish a common understanding, Martin sought clarification on what constitutes the Francophone market. The panel clarified that Francophone markets encompass French-speaking regions such as Senegal, Cameroon, DRC, Benin, and Burkina Faso.

Key Differences and Opportunities

Delving into the nuances, Martin inquired about the key differences between Francophone and East African countries. The responses emphasized factors beyond language, focusing on cultural distinctions, gaming preferences, and a community-driven approach in Francophone Africa.

Internet Penetration and Payment Methods

Addressing the crucial aspects of internet penetration and payment methods, the conversation turned to challenges and opportunities. Cameron Green noted that internet penetration in Francophone Africa, though growing, is still below optimal levels. However, he identified potential for growth, particularly in mobile payments, emphasizing the need for effective solutions that consider regional disparities.

Product Mixes for Success

When the conversation shifted to product mixes suitable for low-bandwidth areas, the consensus was clear – casino and sports betting. Cameron and John underscored the importance of community-driven games, lotteries, bingos, and horse racing, aligning with the local passion for these activities.

Localization and Community Engagement

The discussion unfolded into the significance of localization and community engagement. The panelists stressed the importance of incorporating local celebrities, influencers, and marketing strategies that resonate with the familiarity valued in Francophone countries. They highlighted the potential of community-driven competitions, fostering loyalty and user engagement.

The Role of Mobile Money and Payment Systems

Payment systems, particularly mobile money, emerged as a critical factor. The conversation explored the benefits of leveraging mobile money for KYC processes, marketing, and enhancing the overall gaming experience. The panel emphasized the importance of supporting agent systems and retail partnerships, particularly in rural areas.

Navigating Regulatory Challenges

Acknowledging potential regulatory challenges, the panelists underscored the need for adaptability, nimbleness, and listening to local feedback. Cameron Green emphasized the value of understanding the local context and being open to adapting strategies based on grassroots insights.

AI's Impact on the Gaming Industry

As the discussion drew to a close, the panel touched on the inevitable influence of artificial intelligence (AI) on the gaming industry. While acknowledging the impact, they emphasized that AI is not exclusive to the West and urged industry players in Francophone Africa to be mindful of its potential.

In closing, the panelists echoed the importance of embracing change, listening to local voices, and staying nimble in the ever-evolving landscape of Francophone Africa's gaming sector. The session provided a rich tapestry of insights, underlining the potential for sustainable growth with a keen understanding of local dynamics.

In a recent address delivered by Nkopane Tshehla, the Managing Director of Larocure, the focus was on the localisation of African land-based casinos and the challenges they face in the evolving landscape. Tshehla began by emphasizing Africa's youthful population, with a median age of 19, attributing it to decades of investment in human capital.

Cheshire highlighted the importance of investing in the youth to drive economic emancipation and cultural transformation. President Ramaphosa of South Africa echoed this sentiment, emphasizing the vitality of localisation in stimulating growth and transformation, creating an enabling environment for inclusive growth.

Gaming, he opines, will explode across the African continent, becoming a multi-billion-dollar industry, similar to its growth in the West.

Shifting the focus to land-based casinos, he delved into the historical origins of the casino, tracing it back to a gambling house in Venice in 1638. Over the centuries, the concept evolved into what we now recognize as a real casino. However, he noted that the traditional land-based casino is facing challenges in the modern era.

Identifying challenges such as dwindling footfall, economic downturn, online gambling, government taxes, slow technological advancement, and inflexible regulatory space, He proposed countermeasures to sustain the casino industry. These include investment in research and development (R&D) for the future, localization of casino technology, fostering local identity in technology, and integrating corporate social investment into R&D initiatives.

Tshehla underscored the potential of Africa's youthful population, citing 716,000 registered gaming developers on the continent. He suggested partnering with and investing in local talent, developing games and hardware that resonate with individual countries. The goal is to create a prototype cabinet, evolving organically over the years, similar to the development of casino slots.

The proposal also included localization in the casino space, urging African developers to create their own casino cabinets. Tshehla emphasized the economic impact, suggesting that giving African developers an opportunity would result in the development of hardware that identifies with local culture.

Furthermore, Tshehla encouraged the integration of corporate social investment into marketing initiatives, utilizing it as a part of enterprise development to sustain the business. He argued that investing in local games and tools of trade would help maintain the social hub aspect of land-based casinos, despite the rise of online gambling.

In conclusion, the future of African land-based casinos, according to Tshehla, lies in an organic growth driven by the proposed strategies. Strengthening the development of software and hardware, fostering a sense of identity, and addressing language barriers through regional languages are key elements in revolutionizing the casino environment in Africa.

In a recent discussion featuring Oliver De bono, CEO of Quantum Gaming, Arnold Karanja, partner at Mwenje and Karranja Advocates, and John Kamau, founder of Betconsult Africa, the focus was on betting big and understanding the nuances of financial planning as operators and platform providers enter the African market. 

Financial Planning Considerations:

The panelists emphasized the importance of strategic financial planning, particularly in diverse African markets with varying jurisdictions. Just like European markets, Africa's GEOs exhibit different approaches to taxation, VAT, and regulatory fees. Oliver De bono, a legal expert with experience in multiple African countries, highlighted two critical considerations for operators:

• License Acquisition vs. Company Acquisition: Operators must decide whether to obtain a license in a specific territory or acquire an existing company. Due diligence is essential, and timelines for financial planning may differ based on the chosen approach.
• Tax Advisory: Engaging a reliable tax advisor is crucial to navigating the complex landscape of taxes, including excise, withholding tax, corporate tax, and gaming tax on Gross Gaming Revenue (GGR). Mistakes in tax registration can lead to unexpected financial obligations.

John Kamau added insights on market selection, recommending operators choose countries with stable regulations, good internet and mobile penetration, and favorable payment models.

Gaming Taxes in Kenya:

The panel delved into specific examples from Kenya, shedding light on the gaming tax structure. In Kenya, gaming tax is set at 15% of GGR, with additional withholding tax on winnings. The challenge arises when certain taxes, like withholding tax and exercise tax on Pankas (platforms), are imposed on customers, potentially favoring illegal gambling sites that avoid these taxes.

Learning from International Markets:

The panelists highlighted the importance of learning from international market experiences to avoid pitfalls. They commended Kenya for maintaining reasonable license fees, acknowledging the negative impact excessive fees could have on the industry and operators.

Licence Costs in Kenya:

Licenec costs in Kenya were discussed, revealing that a bookmaker license may have government fees around 10,000, but the overall cost could be five to six times higher. Casino licenses, on the other hand, may have government fees around 80,000, with the total cost potentially doubling. The panelists recommended engaging local experts and considering the acquisition of existing companies with due diligence.

As the African betting industry evolves, operators and platform providers must navigate complex financial and regulatory landscapes. Insights from experienced professionals underscore the importance of strategic financial planning, tax advisory, and learning from both local and international market experiences. Operators looking to enter the African market should prioritize due diligence, engage local expertise, and adapt their strategies based on the specific challenges and opportunities presented by each jurisdiction.

In a thrilling showdown at the SiGMA Africa Startup taking place in Cape Town’s SunWest Exhibits, Betlabs secured a resounding victory, clinching the coveted trophy for their groundbreaking sports betting innovation, Boost Bets. 

Speaking to SiGMA News, Founder and CEO, Johnny Coetzer, shared his experience, remarking on the nerve-wracking yet immensely gratifying nature of pitching to a room brimming with enthusiasts.

Coetzer attributed their success to the exceptional potential of their product, describing it as a game-changer set to revolutionize the sports betting industry. Drawing parallels to the popular concept of crash games, he expressed pride in Boost Bets being likened to the "crash game of the sports industry."

Hailing from South Africa, Boost Bets injects a surge of excitement into conventional wagering, offering a unique sports betting experience. Unlike traditional markets, Boost Bets dynamically adjusts payouts based on the margin of victory, creating a slot-like betting atmosphere. Coetzer emphasized the adaptability of their product to various live and virtual sports, designed for both punter enjoyment and operator profitability.

Key Features of Boost Bets:

• Innovative Market Approach: Unlike traditional sports betting, Boost Bets focuses on the margin of victory, offering punters larger payouts for significant wins by their chosen teams or players.
• Versatility: Boost Bets transcends the boundaries of a single sport or event type. Their API seamlessly integrates with various sports, including soccer, NFL, NBA, and Virtual Sports.
• Reliable Margins: Behind the scenes, Boost Bets employs a sophisticated, patented algorithm, verified through extensive Monte Carlo simulations, ensuring a trustworthy margin for operators.
• Engagement: Unlike conventional markets that may lose appeal before the final whistle, Boost Bets keeps punters engaged until the end, as each goal for their team potentially results in a bigger payout.
• The Slot Machine of Sports Betting: Introducing the Variable Rate of Return (VRR), Boost Bets pioneers the first fixed odds market with VRR in the sports betting industry, adding an enticing and unique dimension for both operators and bettors.

As Betlabs celebrates their victory, the industry eagerly awaits the transformative impact of Boost Bets, anticipating a new era in sports betting with this innovative and engaging platform.

Want to participate in upcoming pitch competitions? Visit our website for more information on how you could become one of the finalists.

A panel at today's SiGMA Africa Summit explored Kenya's recent online gaming tax adjustments, their implications and what makes gaming in Kenya attractive for investors. Moderating the panel was SiGMA conference presenter Lilly Douse, with panellists Frank Deya, Director at Betcoin.Social, Phillip Onyango, Managing Partner at P.I. Onyango & Co. Advocates, and Purity Wahiu, Operations Manager at Palms Bet.

The conversation began with a breakdown of the Kenyan tax structure as it affects the gaming sector. The panel covered the array of taxes imposed on the industry, including a 20% withholding tax on winnings, a 12.5% excise duty on bets, and the regular corporate tax. Additionally, operators are subject to a 15% GGR tax, with a new mandate from the 2023 Finance Act stipulating a 24-hour period for tax remittance. The panellists discussed the recent proposals, which would require a 30% local ownership of betting companies. The implications of this and higher tax regime could see a shift in player behaviour, with a potential move towards unregistered or offshore platforms due to reduced winnings.

There was a shared sentiment among the panellists that the new regulations offer much-needed clarity which could lead to market stability and bolster investor confidence. Emphasising the importance of a predictable regulatory environment, they suggested that such transparency could elevate Kenya's position as a mature market within the East African region.

The discussion touched on Kenya's tendency to set trends in policy that other African nations follow. The panel mentioned the social benefits of tax revenue, such as contributions to the development of sports and culture and highlighted the public's appreciation of their taxes being used for social good.

The conversation moved to the importance of finding a fair balance between taxation and allowing players to keep enough of their winnings. The need for proactive industry self-regulation and collaboration with regulatory authorities was emphasised, rather than reacting passively to government tax policies.

The panel agreed that in the face of new tax regimes, operators can stay competitive by offering incentives and ensuring adherence to tax regulations. Keeping abreast of tax requirements and maintaining an efficient operational team was pointed out as crucial for operators.

The panel concluded with a discussion on the potential of gaming in Kenya, citing the youthful population and ongoing infrastructure developments as key advantages. The sentiment was that Africa is poised for significant growth, driven by innovation and technological advancement, and is an attractive destination for investment.

At the SiGMA Africa panel, moderated by Daniel Robus, - CRO of Stay Contactable and experts included Imran Bukhari -Partner at WA Africa, Solomon Goodwin - Head of Booming Games Africa, Cameron Green - Founder F9 Media Group. The panel discussed the significance of developing winning strategies for game development and marketing in Africa.

Imran Bukhari said that he anticipates that numerous international operators will venture into African markets, predicting that the upcoming decade will be dominated by Africa and emphasizing the value of dialogues with international partners. He foresees that will be a key focus for the next decade due to its potential for partnerships and growth.

Cameron Green, a Cape Town resident, who began his career in the industry 24 years ago in Norwood, has been drawn to Africa by the expansion of mobile payments, and his deep affection for the continent has led him to invest time in comprehending its needs. He highlighted the importance of understanding Africa's unique needs and opportunities, particularly driven by the expansion of mobile payments.

Solomon Goodwin likened Africa to a new baby with vast untapped potential, stressing the importance of long-term investment and acknowledging Africa's professionals and investors. The discussion emphasized the need for tailored approaches to the African market, respecting players, and addressing specific regional preferences. He stated that the commitment of professionals and investors to the continent should be recognised and long term.

Transparency, honesty and strategic partnerships

Imran Bukhari highlighted the excitement and potential growth opportunities presented by conferences such as SiGMA. He believes that Africa has evolved beyond being a low-value, high-volume market, and said that it is important to recognise the unique nature of its market. He questioned the focus of investment—whether it should be in Africa as a whole or in specific countries in Africa. Ultimately he said, businesses entering belief in genuinely helping customers, recounting how they started with a simple, lightweight proposition seven years ago to overcome data-related challenges.

Regarding attracting investors, the panel emphasized the importance of transparency, clean books, and regulatory compliance. They suggested that businesses focus on defining clear unique selling propositions (USPs) and being honest about capabilities rather than overstating abilities. They also stressed the significance of building networks and partnerships to navigate challenges in the African business landscape.

To attract the right technology and investors, African businesses, according to Solomon Goodwin, need to maintain clean books and be direct and open. He emphasizes that clean books are a prerequisite for attracting investment and ensuring fair play in any territory. Imran adds that his company collaborates with global partners and stresses the importance of clear Unique Selling Propositions (USPs) and propositions. He advises companies to be honest about their capabilities and to build platforms based on user requirements. Being part of the right network is also crucial.

In summary, the panellists highlighted the need for strategic alignment, understanding of local dynamics, and ethical business practices to thrive in Africa's gaming industry. They emphasized the importance of transparency, adaptability, and honesty in attracting investment and fostering sustainable growth.

In a conference panel discussion taking place at the SiGMA Africa expo today, panellists tackled South Africa’s responsible gambling journey: assessing progress, international perspectives, and new developments with moderator Jason Foster, the Managing Director for 1337ProBet, and Annalisa Samuels, the Product and Biz Dev Specialist for Bitville Holdings, Garron Whitesman, Founding Partner from Whitesman Attorney, and Robert Bennett, the Head of Department for Regulatory Compliance, Western Cape Gambling and Racing Board.

Jason initiated the conversation by reflecting on the past 10 years as a supplier to the industry and the changes witnessed since the early days of licensing in the nineties.

Robin Bennett, with over 20 years of experience at the Western Cape Gambling Board, expressed the need for stronger legislation in responsible gambling. He highlighted the limitations of focusing solely on addressing problems at the rear end, emphasising the importance of imposing specific requirements on licensed holders and providing training for employees. The aim is to raise awareness and education about the dangers of problem gambling while promoting responsible gambling practices.

According to Bennett, the challenges escalated during the lockdown in 2021, creating a breeding ground for certain issues. To combat this, the panel aims to introduce specific legislation in the upcoming year, intending to reduce the number of individuals transitioning from social gamblers to problem gamblers.

Garron Whitesman, representing various operators, provided an operator's perspective on responsible gambling. He acknowledged the complexity of negotiating responsible gambling measures between regulators and operators. Whitesman emphasised the delicate balance between commercial imperatives and regulatory compliance, expressing doubts about the influence stakeholders can have on the decision-making process. He underlined the industry's commercial interest in avoiding problem gamblers due to potential legal issues and refunds.

Annalisa contributed to the discussion by suggesting ways to go beyond self-exclusion in managing players. She emphasised the importance of utilising information within systems to analyse player behaviour and identify potential risks. Annalisa proposed the development of software to categorise and assess player risk, considering psychological triggers that may indicate a propensity for problem gambling. Additionally, she highlighted the need for implementing bet limits and capping to empower players to manage their own spending responsibly.

The proposed legislation, operator perspectives, and innovative approaches to player management underscore the industry's commitment to evolving practices for a safer and more responsible gambling environment.

Cape Town recently played host to the SiGMA Africa Summit, a pivotal event where industry veterans convened to dissect the fast-evolving landscape of internet sports and affiliate marketing in South Africa. The expert panel discussion, entitled “Unlocking the potential of South Africa’s internet sports scene and affiliate marketing opportunities,” was moderated by Gali Hartuv, CEO at WarriorLab Consulting. The session featured panelists Sasha Boerma, Head of Affiliates at Coastline Gaming; Martin Sack, Founder & Director at Brainstorm Online; and Vasilii Gamov, CMO at 888starz.

The conversation set off with an examination of South Africa’s sports betting scene, which has seen a significant shift to include fixed odds betting casino games. Martin Sack commented on the transformative impact of allowing casino-themed games under sports betting licenses, likening it to the global online casino markets. The inclusion has notably widened the scope for casino affiliates, who boast a larger base than their sports counterparts.

The panelists discussed the role of affiliates in the current ecosystem, contrasting the situation faced by onshore and offshore entities. Gali Hartuv offered insights into the complexities that offshore affiliates encounter when considering the South African regulated market, which is also home to unlicensed operators already active in the country.

Boerma shed light on the practical challenges, such as the unclear regulatory frameworks complicating affiliates’ SEO efforts and the increasing costs, which might necessitate in-house affiliate teams for operators. Gamov contributed to the dialogue by underscoring the substantial offshore market in South Africa, advocating for enhanced education and support for affiliates to aid their transition to the regulated market.

Martin Sack provided a counterpoint, emphasising the fair tax regime and the absence of stringent play limits in South Africa, suggesting a relatively affiliate-friendly market. He affirmed that the influence of unlicensed operators is on the wane as the regulated market burgeons, providing a comprehensive range of products at par with international standards.

The panelists converged on the potential for aggregators to catalyse support for affiliates in South Africa. Hartuv posited that this could be an avenue for new players to facilitate affiliate market entry. Collaboration was a resonant theme, with Sasha Boerma echoing the sentiment that regulated operators are receptive to aiding affiliates in their business development, signaling a burgeoning area for joint efforts.

Closing the discussion, the panelists underlined the need for greater clarity and support from the regulatory bodies. The establishment of institutions or services to streamline licensing processes was suggested to enhance South Africa’s appeal as a market for international and local affiliates.

The SiGMA Africa Summit panel underscored the necessity for a proactive approach towards legislative constraints, underpinning the surging demand for sports betting and casino gaming in South Africa. The discussions put forth a vision for a robust affiliate marketing framework that can sustain the growth trajectory of this vibrant market, emphasising innovation, collaboration, and regulatory refinement.

SiGMA Africa hosted a panel this week moderated by Daniel Robus, CRO of Contactable with expert specialists joining the panel. They were Solomon Godwin, Head of Booming Games in Africa, Victor Sakushenko, Head of Sales - Sportsbook at SOFTSWISS and Hamed Rahini, Regional Manager Africa for Amusnet. The discussion explored crucial aspects in the African market ranging from investment strategies to regulatory challenges.

Daniel Robus opened the discussions and posed several thought-provoking questions.

He asked, “If you had a million dollars, where would you invest it?” and “What should we be reading before we venture into a new area in Africa?” and "What was the biggest mistake one should avoid when entering Africa."

Solomon Godwin, provided an insightful response. He noted thatis still in its infancy stage in terms of development. He cautioned that what has succeeded in Europe will not necessarily work in Africa and explained that it’s not just about localizing the platform and content or finding a local partner.

Godwin pointed out that people often discuss what it takes to succeed in Africa, but rarely do they talk about what it takes to fail there. His perspective offered a fresh take on the surge in Africa, questioning whether it’s a pickup from the COVID-19 pandemic or a trajectory for the next decade. His insights certainly added depth to the conversation, prompting further exploration of these critical issues. He carried on to speak about the unique nature of the African market, cautioning against the assumption that European models of success would seamlessly translate. He stressed the need for deep localization and understanding of local preferences, highlighting the importance of recognizing potential pitfalls.

Hamed Rahini shed light on governmental attitudes, noting a shift towards supportive regulatory frameworks post-COVID, which opened up avenues for expansion across the continent.

 Hamed highlighted that governments across Africa are aiding business expansion, becoming more adaptive since COVID-19.

Daniel Robus hinted at the diversity of regulations in different countries on the continent.

Victor Sakushenko emphasized the importance of understanding local regulations and focusing on player needs. He cited the popularity of crash games in South Africa as an example. Solomon advised new entrants to be patient with their strategies, emphasizing the importance of understanding the local context and building trust. He suggested that believing in your team could lead to local success. This discussion provided valuable insights into the complexities of doing business in

He pointed out the paramount importance of customer-centric approaches, tailoring offerings to meet the preferences of a predominantly young, tech-savvy demographic. He identified mobile betting, simplicity, and fast-paced gaming experiences as key drivers of success.

Throughout the discussion, the panel discussed the necessity of adapting strategies to local cultures and market dynamics, cautioning against overcomplication and advocating for a deep understanding of each region's unique landscape.

Ultimately, the session covered the immense potential of the African market while emphasizing the need for careful navigation and an understanding of the complexities and challenges of each location. As the industry continues to evolve, embracing local insights and developing a strategy for simplicity could be key to unlocking success in this vibrant and dynamic realm of the sector across Africa.

Speaking at the SiGMA Africa conference taking place in Cape Town today, Simbarashe Absolom Murondoti starts his keynote with an amusing anecdote about an uncomfortable encounter in an elevator he once had. He makes the point that life is full of uncertainties and odds, and chances- the very concepts on which the gambling industry thrives. 

Uncertainty and improbability, he maintains is responsible for this growing industry in Africa - an industry projected to be worth 1.85 billion in revenue.

The human race, he says, has managed to gamble with just about everything under the sun. However, “there is one thing we cannot afford to gamble with and that is the laws with which we govern our gambling industry.” And yet, he goes on to say - it seems we have been gambling with these laws.

From 1998 to 2024

Internet penetration in Zimbabwe is at 61% as of 2022 - yet the law that governs gambling dates back from as far as1998. 

“In the mind of the innocent drafter from 1998 it was inconsiderable that people would gamble, transact or even meet their soulmates online. It was unthinkable and yet that is the law that still governs us. 

He goes on to explain that the law as it currently stands (Section 31) inextricably links licensing with a physical brick and mortar location. Yet, in real time people are gambling away online. There is no framework for an application for a licence for gambling online. The result: the law as it extends today is a grey area. 

“We are missing a tremendous opportunity to regulate an industry that can generate tremendous growth for Zimbabwe. The default human response to something they don’t understand is to ban something. Ask Uber. Bitcoin. Ask any innovation in the history of everything.” 

Zimbabwe - the way forward

Despite this, there is a silver lining. The Zimbabwean government has embarked on a process to amend laws. The question of whether we need responsible gambling frameworks is crucial - we need to find ethical ways to enhance and protect our gambling sector, he continues. Taking a question from the audience, he delves into the key components for a responsible framework for online gambling in Zimbabwe, which he notes, would be to protect minors online. AI and machine learning can be particularly useful tools used to protect vulnerable people he opines. 

He ends his talk on a sober note, reminding us of people who have lost their lives to gambling.

“What is the real cost of our failure to regulate online gambling, he concludes.”