East Africa: Gambling compliance and growth strategies – Part 1
East Africa has some of the best-performing markets in Africa’s gambling industry. Many companies entering the region often misread its complexity, failing to appreciate the nuances of the local context, regulatory timing and market alignment.
David Moshi, Managing Director of Velex Advisory, says, “The companies that scale well are the ones that listen to the market, adapt quickly and build with local relevance.” The insights he shares with SiGMA News highlight a critical reality: businesses that don’t localise their strategies and build trust with stakeholders risk stalling before they find meaningful traction.
SiGMA: You’ve worked extensively on market entry across East Africa. What are the most common strategic mistakes companies make when expanding into the region?
D. Moshi: The biggest mistake is confusing regional ambition with market understanding. Many companies say they are entering East Africa, but in practice, they have only built a slide deck, not a strategy. It is a connected region, but each country has its own regulatory pace, consumer behaviour and business realities. Companies that overlook that often struggle to gain traction. Another common mistake is trying to copy and paste a model that worked somewhere else. What succeeds in one market does not automatically work in another.
In this region, localisation is not optional; it is central to growth. I also see companies underestimate the cost of being misunderstood by the market. If regulators are unclear about your model, customers do not immediately see the value, or local partners do not know where they fit, growth slows very quickly. In this region, expansion is rarely defeated by lack of opportunity. It is usually weakened by poor preparation.
SiGMA: You have previously emphasised regulatory sequencing. Why is this step more critical than paperwork when entering markets like Kenya?
D. Moshi: Because paperwork alone does not make a business market-ready. The real issue is understanding what needs to happen first, what can happen next and how each regulatory step affects the business model. In markets like Kenya, companies often file documents quickly without fully understanding the regulatory landscape. This can cause unnecessary delays, costs, or compliance issues down the road.
Regulatory sequencing matters because it provides a framework for market entry. It helps a business to go in the right order, avoid costly mistakes and build credibility from the get-go. I think it’s the difference between entering a market and entering a market intelligently.
SiGMA: How do you help startups and scale-ups balance rapid growth ambitions with increasingly complex compliance requirements across African markets?
D. Moshi: The first step is helping businesses see compliance differently. It should not be viewed as something that slows growth down. Done well, it actually supports growth; it builds trust, reduces risk and makes the business more investable. For startups, the key is knowing what matters most at each stage. Not every compliance issue needs the same level of attention on day one, but leadership does need clarity on the big risks and the non-negotiables.
We also encourage businesses to establish good governance early, in a practical way. Steps like clear accountability, strong documentation and disciplined decision making go a long way. The businesses that scale well are often those that learn early that growth and compliance have to evolve together.
SiGMA: In your experience, what strategies separate companies that successfully scale in East Africa from those that stall despite strong business models?
D. Moshi: In most cases, it comes down to execution. A strong business model is important, but it is not enough on its own. The companies that scale well are the ones that listen to the market, adapt quickly, and build with local relevance. They understand that growth here is shaped not just by demand, but by trust, timing, and consistency.
The ones that stall often underestimate the importance of relationships with regulators, partners, and customers. In East Africa, credibility is a real growth asset. The businesses that do well tend to combine ambition with patience and move with both confidence and discipline.
Success in East Africa’s market
East Africa remains a promising gaming growth frontier, but it rewards preparation over speed and strategy over assumption. As David Moshi explains, companies that succeed are the ones that treat each market on its terms, align compliance with execution, and build credibility from the ground up. In Part 2, Moshi explores deeper operational strategies and practical frameworks for navigating growth across the region’s evolving regulatory landscape.
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