Africa Focus
PREPARING
FOR LAUNCH
IN AFRICA
Susan O’Leary discusses some of the key things operators and suppliers
need to consider before entering the African market
Susan O’Leary is the CEO of Alderney
eGambling. An experienced lawyer, she has
represented some of the world’s leading online
gambling operators and service providers,
including many of Alderney’s licensees. She is a
regular speaker on the international conference
circuit and has longstanding relationships with
lawmakers, regulators and key decision makers
in regulated and pre-regulated markets all over
the world.
Online gambling organisations are looking to diversify their business
models, now more than ever. Regulated markets such as here in
the UK are increasingly volatile, with the Gambling Commission of
Great Britain issuing eye-watering fines and a general nervousness
within the industry as to where things are going.
Furthermore, tried and tested unregulated markets such as
Southeast Asia are also in a state of flux, something that was a
factor in Playtech’s recent significant profit warnings. Businesses
are under pressure to ensure returns follow an upward trajectory.
As such, they are evaluating up and coming markets and some
African countries feature on this list.
I’ve been focusing on the African market for the last 18 months
and overall I’ve been impressed. Given that there are 54 countries
in Africa, the levels of experience and interest in the remote
gambling sector differ significantly from country to country.
Having worked and engaged with many local regulators,
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iGamingBusiness | Issue 112 | September/October 2018
advisors and operators, I have learned a lot about the market. It
is incomparable to any regulated market or any market that the
industry is familiar with. However, the knowledge is there.
For a market that is predominantly unregulated in the online
gambling sector, the professional advisors and regulators are
very well versed. There is an understanding that blacklisting or
prohibiting online gambling is futile. Regulators are keen to bring
in regulation that is fit for purpose, user-friendly for the consumer
and operator alike, technologically flexible, and built in line with
industry best practice yet tailored to the local market. That’s no
mean feat without experience in the field.
Some countries have frameworks in place; the likes of Nigeria,
Ghana and Kenya permit land-based and online betting in some
capacity while others are on the cusp. These first movers are
helping to establish a blueprint for the wider African market and to
understand and overcome the challenges faced by those looking to
launch businesses across the continent.
There is a sense that the regulators are prepared to work
collaboratively to regulate the sector and increase revenues. In most
African countries there is no restriction on foreign investment. As
such, there are opportunities for regulated businesses to enter the
market. However, introducing regulation takes time, so what can a
business do to enter any of the markets in Africa in the interim?
Of course, there are a number of essential factors operators and
suppliers need to consider, understand and be comfortable with
before entering any pre- or newly regulated market, and Africa is
no different.