In 2023, few industries can match the global outreach and influence of gaming, thanks in part to decades of collaboration and innovation from multinational organizations such as the International Gaming Standards Association (IGSA). Over the course of the last 25-plus years, the IGSA has grown from a U.S.-focused manufacturers’ group to an expansive powerhouse intent on helping regulators, operators and players reap the benefits of standardization.
Since its inception, IGSA has branched out several times to establish footholds in key regions around the world, including Europe, Macau and Japan. At its recent annual meeting at Las Vegas’ Global Gaming Expo, the organization announced one of its boldest moves yet, the formation of a new African division known as GSA Africa.
“Our overarching objective is to help improve the gaming industry in Africa,” Mark Pace, vice president of IGSA and managing director of GSA Europe, told GGB News. “We expect that a first step will be to continue dialogue and information sharing regarding how IGSA standards can provide regulators with efficient tools that provide the oversight they are responsible for.
“We also look to help educate local operators on how IGSA standards can benefit them, by eliminating duplicative processes, using technology to streamline reporting, and implementing tools to help reduce operational risk,” he added.
Pace explained that the idea to establish a base in Africa arose late last year, when he and his colleagues began “actively engaging in understanding and quantifying the value that GSA Africa could provide the gaming industry there.” This then led to a wide range of conversations with “regulators from across the continent, IGSA members who are actively working in various African jurisdictions, and with individuals and companies with whom we could potentially partner,” eventually culminating in last month’s announcement.
From a global perspective, the African continent is perhaps the least recognized in terms of gaming regulation and standardization, but there’s no doubt that the market is growing, and quickly.
According to data from Statista, Africa’s online gaming market as a whole is projected to post revenues of US$1.63 billion for 2023—just about half ($750 million) will come from online sports betting, with the rest split between iGaming and iLottery ($650 million and $220 million, respectively). By 2027, that overall figure is expected to grow to $2.26 billion.
This is despite the fact that internet access across the continent is vastly lower than most other regions around the world—Statista notes that as a whole, the internet penetration rate in Africa was just 43 percent as of mid-2022, compared to the global average of 68 percent.
Land-based gambling is legal in 45 of 54 African countries, per Gambling Insider, but just like the U.S. and Europe, regulations and standards vary dramatically. One of the benefits of setting up roots in Africa at this point, Pace said, is that a lot of the work the organization has already completed can be easily implemented, but over time, it will be crucial to communicate effectively with all parties to build the best framework and support network for that market specifically.
“In conversations with regulatory authority representatives from across the continent, we realized that this was an area that could really benefit from the use of standards that IGSA had already developed,” Pace said. “We find that in many cases, regulators are more comfortable discussing issues with an entity that is local, and gaming companies are more likely to join the association if they are governed by local laws, as opposed to those of say Europe or the U.S.”
In addition to IGSA’s efforts, Pace noted that the help of another multinational group, the International Association of Gaming Regulators (IAGR), has also been instrumental in organizing and executing the vision that eventually became GSA Africa.
“In the short term, we want to establish closer working relationships with regulatory authorities and to have open communication channels, either directly or through our relationship with the IAGR,” he explained. “IGSA President Peter DeRaedt and I just came back from attending the annual IAGR conference in Gaborone, Botswana and we had the pleasure of meeting and speaking with many African delegates there. We want those conversations to continue.”
The office will be located in Nigeria in space provided by SamPro Group, whose CEO F.K. Fayad was named GSA Africa’s first-ever managing director.
Fayad’s background and experience in both trade and diplomacy make him a well-suited candidate to lead a startup initiative such as GSA Africa—in addition to his duties with SamPro, Fayad also serves as a panel of advisory and strategic partner to the Nigerian Arab Gulf Chamber of Commerce (NAGCC), economic advisor to the Commonwealth of Dominica, volunteer member in the UNHCR (United Nations High Commissioner for Refugees), and executive board member/director of international affairs and business diplomacy in the Leaders Without Borders Development Centre.
The other feather in Fayad’s cap, as Pace noted, is that he wasted no time in volunteering for the position.
“F.K. Fayad has an very interesting and varied background, and he and his companies have been involved in the industry within Africa for quite some time,” Pace said. “One of the companies within the group he oversees is a member company of IGSA, and when we started discussing setting up a GSA Africa office, he immediately volunteered to help set it up. We went through a months-long vetting process which culminated in the IGSA Board of Directors approving both the creation of the office and of Mr. Fayad being the managing director.”
In the release announcing the new division, Fayad said, “It is an honor to lead the newly created GSA Africa. Africa is an exciting part of the global gaming industry, where growth is rapid and poised to continue at a strong pace. Bringing IGSA standards to the continent at this phase of its growth is essential, and I am thrilled to lead this charge.”
Now that the foundations have been established, Pace said that the only thing left to do is roll up the sleeves and have pertinent conversations with local leaders both inside and outside of the gaming industry to establish the key issues that need to be addressed first.
From there, they can start plotting the best course of action, one that is tailored to best fit the needs of an African market that is young and vibrant but also rapidly evolving and somewhat in flux.
“In the long term we want to understand from the industry, regulators and legislators whom we refer to as the Policy Domain and suppliers and operators whom we refer to as the Industry Domain, to tell us what their challenges are,” Pace explained. “This will allow us to work within our technical and non-technical committees, composed of volunteers from our member companies and from regulatory authorities, to determine how to address them.
