Regulatory Gaps in African Markets Create a Haven for Unscrupulous Operators

Several factors have contributed to the recent and sudden surge in gambling activity across various African markets. However, ineffective regulations across many jurisdictions have created an environment ripe for exploitation by predatory operators. With gambling-related crime on the rise, affected countries are hard-pressed to find a solution, or the issue will continue to escalate.

Africa Presents a Golden Opportunity

Sub-saharan Africa’s vast population, growing middle class, and increasing internet penetration have fueled the demand for online entertainment and gambling options. However, the lack of clear regulations has allowed some businesses to operate without proper oversight, raising concerns about consumer protection, money laundering, and addiction.

A recent report by The Guardian explored the deteriorating situation in the countries worst affected by these worrying trends. Official data and anecdotal evidence paint a concerning picture, highlighting the need for immediate action like age verification procedures, self-exclusion options, and awareness campaigns. Safeguards and support systems are also vital to a healthy gambling ecosystem.

Many Countries Suffer Similar Problems

Zimbabwe is one of the more notable jurisdictions, relying increasingly on its gambling industry to shore up budget deficits. Despite updated legislation, enforcement is still severely lacking, and stories of youth resorting to wagering to fund their crystal meth habits are increasingly common. With Zimbabwe’s employment rates suffering and half of the population considered impoverished, many are forced to gamble to earn a living.

Recent studies discovered that 9.6% of urban Ethiopian youth suffered from compulsive gambling. Countries like Uganda, Ghana, Malawi, and Nigeria have fared little better, with anecdotes of gambling-related crimes like theft, suicide, and prostitution becoming frequent occurrences. If left unaddressed, such societal burdens can more than offset any potential economic benefits from an otherwise thriving gambling market.

Improvement Is Unlikely without Significant Effort

Gambling in Africa often has roots abroad, with foreign suppliers and operators significantly bolstering the industry’s growth. European sporting events like Premier League football drive new products, and local athletes feature in various promotions. According to Uganda addictions psychiatrist and researcher Dr. Mark Mohan Kaggwa, the primary problem for many African nations remained a lack of enforcement.

Regulations look nice when you see them on paper, but on the ground, things are escalating.

Dr. Mark Mohan Kaggwa

While Uganda law prohibits individuals under 25 from gambling, such restrictions are often disregarded, and many children depend on wagering as a source of income. With governments in the area preoccupied with other pressing issues, only a collective effort from all stakeholders can hope to break such worrying trends.

Regulatory bodies, online gambling operators, civil society organizations, and the public must work together to establish a regulatory framework that protects consumers. Foreign companies, in particular, must be more selective in their choice of partners, refusing partnerships with predatory businesses. However, with easy money on the line and little chance of repercussion, there will always be those willing to ignore the human cost of gambling.