Africa may be nearing a major regulatory shift. This message shaped the keynote delivered by Peter Emolemo Kesitilwe, Chief Executive Officer of the African iGaming Alliance (AiA), during this year’s Gambling Regulators Africa Forum (GRAF). His address, titled “The Economics of Regulation: Tax Models, Market Viability and Stakeholder Equity,” drew strong interest from regulators, ministries, and operators across the continent.
Tax design as the primary risk
AiA’s CEO Kesitilwe warned that tax design now stands as the biggest threat to the survival of legal gambling markets. He presented data showing that once total taxes and compliance overheads exceed 30% of Gross Gaming Revenue (GGR), legal operators begin losing market share to offshore competitors. He added that beyond 55%, regulated markets become structurally uncompetitive.
“We cannot regulate in a way that unintentionally collapses the legal market,” Kesitilwe told delegates. “Our tax systems must protect national revenue, safeguard players, and still allow businesses to operate sustainably. Anything else accelerates the growth of unlicensed offshore activity.”
His message reached an audience representing more than 20 jurisdictions, signalling widespread concern about current fiscal approaches. He stressed that technology is not the main pressure point. Instead, he argued that poor tax design weakens legal operators and strengthens offshore platforms.
Africa’s advantage in digital payments
Kesitilwe noted Africa’s digital payments ecosystem as a powerful competitive advantage. He highlighted mobile money as a defining feature capable of driving efficient oversight. With nearly all transactions digitally logged, he said, regulators hold a unique opportunity to integrate compliance, tax collection, and responsible gambling tools directly into the payment layer.
“We have something Europe doesn’t – real-time, nationwide digital payments. This is Africa’s opportunity to lead, not follow, in regulatory innovation.”
He argued that these systems can reduce compliance friction and cut unnecessary overheads. He added that African regulators can use these tools to improve supervision without slowing operators.
Push for continental alignment
Kesitilwe also called for continental alignment on key policy principles. He described fragmented rules, inconsistent tax structures, and multiple fees as major barriers to new investment. He urged regulators to rally around several core pillars: GGR-based taxation, removal of redundant intermediaries, cross-border harmonisation, and digital oversight tools.
These priorities reflect broader discussions across Africa as more countries move to regulate online betting, casinos, esports, and virtual gaming. He noted that this shift requires aligned priorities to protect growth.
AiA’s expanding influence
As the continent’s first iGaming trade association, the African iGaming Alliance now represents operators powering a US$5+ billion regulated market and employing more than 5,000 people. The Alliance has grown into a central force in regulatory development. It advises governments, supports industry dialogue, and promotes responsible gambling standards.
Kesitilwe closed with a forward-looking appeal. “Africa does not need to import regulatory models – it needs to build models informed by African data, African realities, and African priorities. If we get this right, we will unlock a generation of investment and safer gaming across the continent.”
With several countries reviewing legislation in 2025–2026, discussions at GRAF may mark the start of a more unified and sustainable regulatory era for Africa.
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