East Africa’s esports industry is growing rapidly, but gaps in regulation are creating uncertainty for players, investors, and operators, according to Peter Mshikilwa, President of the Esports Federation of Tanzania.
Speaking at SiGMA Africa 2026, Mshikilwa said the absence of dedicated esports legal frameworks across the region remains one of the biggest barriers to sustainable industry growth. He highlighted concerns about player protection, tournament integrity, cross-border taxation, and dispute resolution. Mshikilwa also urged regulators and stakeholders to work together to establish clearer governance standards.
“Basically, there is no specific legal framework that is dedicated to esports,” Mshikilwa said. “But the establishment of esports federations is helping to fill that gap.” His comments come as Africa’s esports ecosystem continues to expand, attracting growing interest from investors, tournament organisers, sponsors and international governing bodies.
East Africa esports regulation remains fragmented
According to Mshikilwa, many African countries are still developing regulatory structures capable of addressing esports-specific issues such as tournament oversight, player welfare, integrity concerns and governance standards. “Different countries are coming up with regulations to monitor illegal tournaments, integrity issues, and other challenges,” he said.
The lack of harmonised regulation has created uncertainty for stakeholders seeking to operate across multiple African markets. This challenge is becoming increasingly important as esports evolves into a significant global industry. A Grand View Research report noted that the global esports market is projected to reach $7.46 billion by 2030, driven by rising investment, audience growth and increasing adoption in emerging markets.
Tax differences create challenges for esports investment
Mshikilwa identified inconsistent tax policies across African jurisdictions as another major obstacle for esports companies and investors. “Tax is a policy issue, and it depends on priorities between countries,” he said. “We don’t have a uniform tax regime.” The issue is particularly complex for online gaming and esports businesses that operate across multiple jurisdictions while maintaining physical offices in different countries. “The solution could be collaboration between countries,” Mshikilwa explained.
Industry observers note that regulatory consistency has played a major role in the development of esports ecosystems elsewhere. A recent PricewaterhouseCoopers’ (PwC) report on esports growth highlighted how coordinated government support, infrastructure investment and regulatory clarity have helped accelerate esports development in emerging markets.
Africa’s gaming sector is growing fast, led by Kenya, Nigeria, and South Africa. Together, they generated more than $600 million in 2024, according to the PwC Africa Entertainment and Media Outlook 2025–2029 report.
Player protection must become a priority
Mshikilwa, who also practises as a gaming lawyer, stressed that player protection remains one of the most urgent issues facing the sector. “We do have a lot of issues when it comes to protection,” he said. He urged regulators to develop stronger awareness programmes for players, operators and stakeholders, alongside more comprehensive legal safeguards.
“I think it is high time now to come up with programmes of safe awareness to both players and operators.” The issue has gained increasing attention across East Africa. In May, Esports Kenya Federation introduced new guidelines governing the participation of minors in professional gaming, citing concerns around education, health and player welfare. The measures were designed to strengthen protections for young esports athletes as the industry expands.
Kenya’s esports framework highlighted as regional example
One area where Mshikilwa sees progress is dispute resolution. The Tanzanian esports leader called on regulators across Africa to establish dedicated dispute resolution and arbitration mechanisms to improve trust among investors, players and international partners.“I would encourage regulators to come up with dispute mechanism platforms,” he said.
Mshikilwa specifically pointed to developments in Kenya, where esports governance has become increasingly formalised. “We have seen the current established legal framework in Kenya, which has introduced dispute mechanisms to protect players and address integrity issues.”
Recent developments support that assessment. In 2025, Kenya’s Sports Disputes Tribunal issued a decision recognising and licensing esports bodies under the country’s sports governance framework, providing greater legal certainty for the sector.
Kenyan iGaming industry
Kenya also holds a strong position in the Sub-Saharan African iGaming industry, ranking third behind Nigeria and South Africa. The strong performance of the country’s market is underpinned by several key drivers, such as a high internet penetration rate of over 40 per cent and a population that uses mobile devices. Together, these factors have helped drive the expansion of online gambling and betting across the nation.
The Kenyan iGaming industry recorded a compound annual growth rate (CAGR) of 12.3 per cent last year. The growing popularity of sports betting, online casinos, and esports helps to drive this growth. These sectors are managing to effectively target millions of young, technology-savvy individuals who comprise a large share of the gaming audience.
Esports governance will shape Africa’s future growth
As esports continues to professionalise globally, governance is becoming a key differentiator between markets competing for investment and international events. Research published by global market research and management consulting firm IMARC Group in 2026 estimated that the global esports market was worth approximately $2.4 billion in 2025. It also noted that it could exceed $10 billion by 2034.
Mshikilwa believes East Africa must act now to avoid regulatory fragmentation becoming a barrier to growth. “My takeaway is that regulators and stakeholders should now have a clear legal framework for dispute mechanisms,” he said. As governments across Africa seek to unlock opportunities within digital entertainment and competitive gaming, the debate around East Africa esports regulation is likely to become increasingly important for investors, operators and players alike.
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