Focus Gaming News recently discussed the rise in prominence of the African gaming market with the National Gambling Board of South Africa.Many gaming companies have established a presence on the continent.
The June 24 interview explored what the board does and what it thinks about the future of gaming in Africa.
Amanda Musandiwa, acting economic researcher for the board, asserts that increased access to customers is sparking interest in companies to invest in Africa. “While many African countries still face developmental challenges, increased internet connectivity in recent years means that companies can access customers. Customers that could not be reached before are now accessible to global companies online, particularly through smartphones.”
Africa has a young population, with most under age 35. “This provides a large potential market for entertainment services,” said Musandiwa. “Many parts of the world have aging populations which affects the types of products that will be demanded in future. African countries, on the other hand, will have large markets for consumer goods and services that are aimed at the youth.”
But to effectively compete in Africa requires “appreciation of each country’s laws and cultures,” she said. While information is readily available for countries like South Africa, which is regulated, it is less available for other countries.
The same problems associated with any kind of investment in Africa is true for gaming companies, she said. Such as infrastructure challenges and political instability.
Unregulated markets or markets beginning to regulate, create uncertainty. Musandiwa added, noting that the opposite is true of regulated markets.
“There are several advantages to regulation including gambling punter protection, tax generation and the achievement of developmental goals,” she said.
South Africa doesn’t yet allow online gaming. Nkoatse Mashamaite, chief compliance officer and Shelton Pagiwa, chief technology officer, were asked if that might change in the future.
They told Focus Gaming News that the National Gambling Amendment Act 2008, although signed by the president, is waiting for a proclamation of implementation. Regulations have also not been completed.
Parliament has introduced a Remote Gambling Bill. Mashamaite and Pagiwa noted: “As regulators, we are creatures of the statutes, which means we can only implement the approved legislation. We are strengthening regulation strategies to ensure that there is compliance with the gambling legislation across the country.”
Lynette Kamineth, communications and stakeholder engagement manager, talked about how the board enforces responsible gambling. She noted that The National Gambling Act (NGA, 7 of 2004) forbids gaming by anyone under 18. It also provides ways for addicted persons to self-exclude.
The board is also mandated to provide education about the risks and socio-economic harms of gambling.
Mashamaite and Pagiwa noted that the National Gambling Board oversees nine provincial licensing authorities. “The purpose of oversight is to ensure that the socio-economic factors are considered when licensing and monitoring license compliance by gambling operators,” they said.
