A comprehensive guide to gambling laws and the licensing authorities that regulate online gambling. Learn more about the legalities of your specific region. Thanks to MP Geordin Hill-Lewis, legalised South African online gambling could be around the corner.

The online gambling industry is a vast and expansive world of casino games, sportsbook odds, and sign-up deals all vying for your attention and patronage. With the growth of mobile connectivity, one can access an online gambling site from anywhere in the world. But is it legal to do so?

Well, that depends on where you are currently located and what site you are trying to bet with. The legalities of online gambling are an extremely complicated issue due to the multitude of jurisdictions and regulating bodies around the world. Some countries with legalized gambling allow citizens to access any online casinos while others only permit access to sites legislated by that state.

For this reason, we’ve designed this guide to help you determine what your options are relative to where you are located! Read a bit further down so that you may enjoy online gambling while staying on the right side of the law.

For those that want to jump to the chase, we have organized the information by region:

What Do We Mean by “Online Gambling/Licensing Jurisdictions”?

As we mentioned before, different regions of the world approach online gambling differently. Some have outright made the practice illegal, others have chosen to regulate the industry within their borders heavily. Some countries allow you to access offshore sites, where others do not.

For example, the United Kingdom once allowed bettors to access any online casino of their choice since gambling is legal there. However, in 2012 the laws were changed, and only casinos with equipment in the UK and duly licensed by the UK Gambling Commission are legal. So, depending on where you are, your options will change.

There is a wide range of jurisdictions and regulatory bodies out there, and as we saw with the previous example, they are always subject to change. It is forever a good idea to be current on local laws as they pertain to gambling, but that’s not all. You also want to be mindful of the various organizations out there issuing the licenses and enforcing the rules. You may find all of this information in this guide or on this site.

Why Is Online Gambling Regulation & Legislation Important for You?

The first reason learning about industry regulation and legislation is essential is for your financial safety. Many online gamblers get scammed by unlicensed, unregulated websites that look legitimate, then disappear with everyone’s money like an office in the movie Boiler Room. Depending on the jurisdiction, a licensed and regulated online casino can ensure you fair odds, the ability to withdraw your money at your convenience, and that they won’t just close up shop out of the blue.

But be warned! There are some regulating bodies out there, typically operating out of small, Caribean Islands that offer little more than a license in exchange for cash. They don’t police the sites themselves or provide any consumer protections.

Further, some gambling sites will follow regulations long enough to be granted a license from one of the governing bodies, which they will proudly display on their website, only to stop adhering to the rules shortly after. They lure potential gamblers into a false sense of security for the purposes of receiving more deposits. But don’t worry, sites like this one will help you select your sites wisely!

Below are some links to various licensing bodies you may encounter online. You will want to read these guides to confirm that any site you are planning to use is actually being regulated by the licensing authority that they boast on their front page:

The second reason to be mindful of regulation is merely to guarantee that you are operating within the law. While it’s rare for individual users to be tracked down and punished for using illegal online gambling sites, it can still be problematic. For instance, what happens if you hit the jackpot and win big? Receiving large amounts of money from an online account tied to gambling could raise some eyebrows, depending on the country you are in.

For a more thorough look at online gambling regulation, please see our guide dedicated to this subject:

Online Gambling Laws by Region

North America

United States

Online gambling in the United States operates in a bit of a grey area. On the one hand, it is not expressly illegal federally; but on the other hand, it is not legal either. In fact, in 2006 legislation was passed which made it illegal for banks to participate in transactions between online casinos and financial institutions.

In response, many gambling operators stopped allowing US customers to play on their sites. However, others persisted in accepting customers from the States, arguing that as long as they were licensed and regulated within their own jurisdiction, they were not being unlawful in receiving customers from there.

Currently, the legality of online gambling mainly depends on the state in which one is residing. Some have legalized the practice, offering their own licensing and regulation procedures within their borders. Others outlaw online gaming entirely, while many more continue to debate how they will handle the issue.

To learn the legality of online gambling in your state, please follow the links below:

Gambling Act South Africa

Canada

Similar to the United States, the providences in Canada regulate online gambling in their own regions. While some rely on the country-wide laws to cover gaming, others offer and operate their individual gambling institutions.

No Canadian law explicitly makes gambling online illegal. However, there is a law that makes providing gaming services to Canadian citizens without a license from the government illegal. Like it’s neighbor to the South, online gambling is a bit of a grey area in Canada.

For a more in-depth understanding of gambling laws in Canada, check out our full guide at the link below:

South America

At least some form of gambling is legal in most South American countries, but there are some restrictions. Some nations only allow lotteries or betting on horse races, for instance. Most importantly, gambling on foreign websites is legal throughout most of the continent. Some countries even provide their own regulatory bodies to govern the industry.

For the gambling laws in each individual country, please read our full guide linked below:

Oceania

The laws governing gambling in Australia are stringent. Currently, only sports betting and lotteries are permitted to be wagered on legally. These rules are covered by the Interactive Gambling Act of 2001, which makes casino games and live betting illegal. Regardless, no laws are prohibiting Australian residents from accessing and utilizing overseas gambling websites, so there is a loophole.

New Zealand, on the other hand, has apparent and concise rules for online gambling. Since 2003, their law has stated explicitly that citizens of New Zealand may legally access overseas gambling operators. The only caveat is that the sites offering these services may not advertise in the country.

For more details about the country-specific laws in Oceania, follow the link below:

Europe

Online gambling laws in Europe vary from country to country. Some outright ban the industry, while several others heavily regulate and legalize the activity. One country with a comprehensive and well defined regulatory process is the United Kingdom.

The Gambling Commission in the UK licenses all gambling institutions available to the citizenry of the country. This includes online gaming. Citizens of the country may not access gambling websites operated or authorized outside of the country.

France has similar laws to the UK; only they allow overseas websites that meet their legislative criteria. For the specific gambling laws legislating each country in Europe, check out these individual guides:

Asia

When it comes to Asia, there is a lot of variance in the gambling laws from country to country. Unmistakably, Asia is an enormous continent, so it makes sense that opinions towards gambling should fluctuate. For this reason, here are some specific gambling law guides to individual Asian countries:

Africa

Gambling legislation of any kind is uncommon in Africa, with the notable exception of South Africa. Many land-based gambling operations operate throughout the continent, but specific laws for taking the activity online are rare.

Due to South Africa being the only country with specific online gambling legislation, we have focused our gambling law guide to this country alone.

For more information regarding online gambling law in South Africa, follow the link below:

Regulatory Bodies/ Licensing Authorities

Alderney

The licensing authority in Alderney is the Alderney Gaming Control Commission. They impose rigorous rules and regulations on the operations that wish to obtain gaming licenses. For this reason, they are one of the most respected online gambling jurisdictions.

Antigua & Barbuda

The Antigua Directorate of Offshore Gambling began issuing gambling licenses for online operations back in 1994. In fact, at one time this infamous offshore banking hub had more active licenses than any other gambling-based regulatory body in the world.

Belize

Similarly to Antigua & Barbuda, Belize entered the world of online gambling licensing very early. In 1996, the Belize Computer Wagering License Board was established. As of 2004, companies operating under one of Belize’s licenses must house their customer service operation in Belize, while the rest of the organization may be located elsewhere.

Costa Rica

While Costa Rica does offer general licenses, there is a distinct lack of actual regulation provided. Online casinos operating under only a Costa Rican license should raise some red flags for the potential customer. There are no specific betting or gambling licenses, just a general license that is easily obtained for a fee.

Curacao

This Carribean Island is famous for its expansive offshore banking industry. It has now also become a hub for offshore gambling operations as well. Their gambling regulation is handled by the Curacao e-Gaming Licensing Authority, which offers a single gaming license to cover all forms of gambling. They require gaming operations to use hardware located within the country’s e-zone, in exchange for staggering low taxation.

Cyprus

The Ministry of Finance overseas this country’s gambling regulation and licensing. The only forms of gambling allowed in this jurisdiction are fixed-odds betting and lottery-style games.

Gibraltar

Gibraltar is a strict, well respected licensing authority. It has been providing gambling licenses since 1998 and has an excellent reputation for their regulatory practices. Their licensing in overseen by the Gibraltar Regulatory Authority, which investigates the eligibility and suitability of operations hoping to obtain a license.

The Isle of Man

The requirements to obtain a license in this jurisdiction are severe. Issued by the Gambling Supervision Commission, any operation boasting this permit has been thoroughly vetted and will continue to be so. They carefully monitor compliance which is very positive for potential patrons.

Kahnawake

This regulatory jurisdiction is operated out of an Indian reserve in Canada. The Kahnawake Gaming Commission was established in 1998 and began issuing gaming licenses one year later. They work in close cooperation with many other regulators throughout the world.

Malta

Malta’s Lotteries & Gaming Authority regulates one of the largest gambling jurisdictions in the European Union. They investigate applicants before approval, and are responsible for all regulations and licensing in the region.

Panama

Panama became a gambling legislation jurisdiction in 2002. Their regulations are executed by the Panama Gaming Control Board. This organization vets potential licensors and certifies that they meet the standards set by the board.

Many leading online casino operators are turning their attention to the continent of Africa as a lucrative region to expand their business in. Traditionally, Africa has always been thought of as a set of developing nations that mainly focused on agriculture and resource extraction. However, this old stereotype is finally beginning to lose steam, and rightly so. When you really begin to study the economic potential of countries such as South Africa, Nigeria, Uganda, Kenya, Ghana, and in particular, their enthusiasm for online sports betting, you will soon see the potential of this continent. The following article is aimed at providing information on legislation, taxation policies, popular trends and the development of online gambling across Africa.

An overview of Online Gambling in Africa

Home to 1.3 billion people and over 50 nations, Africa is the second biggest continent in the world. It spans 30 million square kilometers, six time zones, and has eight different types of climate.

Traditionally it was always assumed that Africa was technologically limited and disconnected from the rest of the online world. This tide has been turning in recent years, however, and this is where you can find potential, especially as this fact is not widely appreciated or known to the majority of investors and online casino vendors.

One of the biggest factors influencing the development of iGaming in Africa is the rapid expansion of mobile internet connectivity. Over three quarters of the continent has a SIM connection and two thirds of the population have access to mobile broadband.

During 2018, six new 4G networks were launched creating a total of over 120 mobile internet networks across the continent. This new infrastructure, combined with increasingly cheaper smartphones, are helping drive the transition to widespread mobile broadband access. The population of Africa now represents 11.5% of all internet users (Q1, 2020). This is in turn allowing far more new African players access to both online sports betting and online casinos.

Sports betting in particular seems to be especially en-vogue with young Africans betting on European football leagues in increased frequency. The homogenization of culture is an effect that historically always happens when nations develop and begin to adopt western ideals. If you need an example, just think of this paradigm as being largely in-sync with the wide-spread translation of Hollywood movies, the opening of fast food restaurant franchises, and of course, the adoption of western music and fashion. The end result? The African sports betting industry was estimated to be worth $37 billion in 2018!

Of course, traditional brick-and-mortar casinos are still quite rare across the vast majority of the continent, but that shouldn’t be too surprising considering that the construction of a physical casino requires significant investment compared to setting up an online operation.

There are of course a few challenges to be overcome before online gambling can begin to truly flourish across Africa. In many areas, gambling laws are either vague, outdated, or just unenforced. That being said however, it is a fair statement to say that a great deal of Africans are in support of it, with very few places being culturally against gambling, unlike other parts of the world. For investors, entrepreneurs, and stakeholders of online casino operations, this is obviously very promising news.

The three biggest gambling markets in Africa are South Africa, Nigeria, and Kenya. We’ll look closely at these three markets, as well as three other key markets, Ghana, Uganda, and Tanzania.

Gambling Licenses by Country

South Africa

South Africa is the largest gaming market on the continent with some predictions estimating that South Africa’s GGR will reach $2.5 billion by 2021. South Africa has the second-highest GDP on the continent.

A report issued by South Africa’s National Gambling Board recorded GGR for 2018 to be $1.9 billion. In recent years, sports betting has seen the highest percentage growth out of all forms of gambling within the nation. It accounted for 21.3% of gambling revenue in 2018, at $405 million. It should be noted, however, that the most popular type of gambling is its national lottery.

It’s estimated that approximately 50% of South African adults place sports bets on a regular basis, with most placing bets at least once a month.

As recent surveys arguably prove, around three quarters of the population has gambled at least once in their lifetime. In the same survey, more than half of respondents declared gambling as an “interesting pastime”. Typical favorites include football, cricket, rugby, and golf. Some of the most popular online sports betting outlets in South Africa are Betway, Golden Race, Scorebet SA, Sportingbet, Betvictor, World Sports Betting, and Sunbet.

Despite all this good news, it must be noted that the development of the industry has also been hindered by the nation’s disjointed regional bureaucracy.

Most African countries have a centralized authority, or regulatory body, that oversees its gaming industry. However, South Africa’s nine provinces have their own gambling board which independently rules on the legality of gambling specifically within that province.

It should be noted that throughout the country, online gambling is illegal, except for the online branches of licensed, land-based bookmakers.

The types of commercial activities regarded as illegal are listed in the National Gambling Act of 1996 under the general notion of “interactive games”. These include bingo, poker, and the rest of “games of chance”, including slots.

The only types of gambling considered to be legal are online sports betting and horse racing. Land-based casinos have also been legal since 1994, however, there are only four big casinos (typically offering more than 180 tables for card games, as well as numerous slots).

For the aspiring online casino vendor, the only way to enter the market is to obtain a special license. According to current South African laws, money won in online casinos is considered to be obtained illegally. Such financial operations are tracked by banks and gamblers can be severely fined.

However, despite prohibitions and preventive legislative initiatives, South Africans still continue to gamble in both offshore and illegal online casinos or poker rooms.

According to the laws of September 2011, no online casino operator can legally offer gambling services within the borders of South Africa. However, there are still a wide choice of operators who continue to attract players from South Africa. Understanding this difference is crucial because finding “safe online casinos” will always still be a priority for South African gamblers.

Despite all of this, there have been a lot of discussions regarding the improvement and future legalization of online gambling within the nation’s borders. So, just watch this space.

For your reference, some typical tax liabilities include:

• Value-added tax accounting for 5-10%
• Tax from wins accounting for 15%
• Standard corporate income tax rate in Africa accounting for 29%

Uganda

Home to 43 million people, the land-locked nation of Uganda uses English and Swahili as its national languages.

For prospective online casino vendors, the good news is that online gambling within Uganda is typically regarded as a legal and commercial activity. Among its legal gambling activities, it mainly includes lotteries, casinos, and sports betting. Because of this, Uganda has more than 670 online casino operations and betting offices.

We know that the regulation of gaming in Uganda generated more than $3 million for the state budget in 2013-2014. According to statistical data, during 2016 this amount then rose past $5 million. Using this data, it’s easy to see how the region’s gambling revenues are exponentially growing.

On average, Ugandans spend $42 million on gambling annually. Gambling operators pay a tax of 20% on gaming revenue and withhold 15% of players’ winnings.

Much like South Africa, the most popular form of gambling is sports betting, usually on football. However, basketball, tennis, cricket, volleyball, and rugby are also very popular. Typical sports betting companies include Elite Bet, Worldstar Betting, Betin, SBA Uganda, ABA Uganda, and Simba bet.

As outlined in this article’s introduction, an increasing number of Ugandans are placing their bets online, as mobile connectivity and increased payment method options continue to expand across the country.

According to a report from the Lotteries and Gaming Regulatory Board, the Ugandan government received about $12 million in sports betting tax revenue in 2017-2018, compared to $3 million in 2013-2014 and $66,000 in 2003-2004. So again we are seeing the same upward trend in spending and player participation.

Recently a new law on gambling in Uganda has been adopted. According to this legislation, operators now have to obtain three licenses:

• License as a promoter
• License as an official distributor in Uganda
• License from the industry

License fees account for $300-$1500. At the same time, it is necessary to pay the National Lottery Directorate around $60 thousand as a deposit for future payoffs and tax liabilities. Apart from taxes, the corporate income tax rate on revenue equates to 29%.

Nigeria

Nigeria's GDP amounted to $410 billion in 2019, recording the highest gross domestic product in Africa. This figure is certainly understandable when you consider the population size is nearly double of any other African nation at over 200 million people.

Nigeria holds the second place in terms of share of gambling distribution in South Africa. A central hub of the African economy, Nigeria offers enormous potential for online casino and sports betting vendors. The nation’s appreciation for gambling has soured since its gambling ban was lifted in 2004.

According to a 2014 estimate, roughly 30% of Nigeria’s 200 million people place sports bets daily. That equates to roughly 60 million Nigerians, between the ages of 18 and 40, actively participating in sports betting every single day. Estimations are that Nigerians bet roughly $5.5 million every day, totaling about $2 billion a year.

As you may appreciate, that’s a very strong participation and turnover rate. These are great reasons why you should include Nigeria as a nation to focus on if you are considering expanding your iGaming enterprise into Africa.

In 2013 the first legal online casino was launched, which as you may appreciate, is still quite recent in the grand scheme of the iGaming world. The online sports betting and gaming explosion has also been fueled by locally developed payment systems.

One example is Paystack, a Nigerian fintech start-up. Paystack now processes over $11 million a month and became the most-used fintech system for those betting on NairaBet, Nigeria’s second-biggest online sports betting firm, after being added as a payment method.

According to international accounting firm KPMG, Bet9ja has an average monthly turnover of $10 million and NairaBet has a monthly turnover of $3-$5 million. NairaBet alone has an estimated 2 million regular customers. Some other providers are Surebet 247, Merrybet, Betfair, Betway, 888sport, and Golden Race, which is available in 90% of Nigerian betting shops.

It’s no secret that European football is incredibly popular in Nigeria. A tremendous amount of sports betting focusses on leagues such as Spain’s La Liga and the UK’s Premier League.

Ghana

Ghana is home to 31 million people. Its capital and largest city is called Accra. The nation’s official language is English, and the Ghana Cedi (GHS) is its official currency. Ghana has three bordering countries, Côte d’Ivoire, Burkina Faso, and Togo.

Most importantly for prospective vendors, the nation’s gambling legislation allows for all types of land-based and online gambling.

Within the country, there are several casinos, lotteries, and betting offices. Citizens of Ghana are also legally allowed to access any foreign gambling websites that they wish. As a consequence, the popularity of online gambling in Ghana continues to grow year on year. We have to say though, online gambling is still in its relative infancy because of the nation’s slow adoption of internet connectivity. Wise online casino investors and entrepreneurs will understandably see this as a positive not negative.

The most popular type of gambling in Ghana is sports betting because much like Nigeria and South Africa, the nation has a serious love for European football. Betting providers accept bets both in betting offices and through online websites, as well as via telephone calls. The rest of the popular types of gambling in Ghana include online casinos, bingo, and online poker.

The official licensor is the Gaming Commission of Ghana. Three important notes on Ghana’s taxation include:

• Interest rate on gambling is 18%
• VAT on winnings equals 17.5%
• Corporate income tax rate on revenue in Africa equals 29%

Kenya

Kenya is a multi-ethnic nation located in the Great Lakes region of East Africa. It has a population of approximately 47 million people and uses two official languages, English and Swahili.

Most types of gambling are legal within Kenya, although much like Ghana, the online casino and iGaming world is largely in its infancy because of the nation’s slow adoption of mobile internet connectivity (but also like Ghana, this shouldn’t necessarily be seen as a negative thing, but as an opportunity to entice new players to your platform).

In 2018, according to data provided by PwC, the average growth of revenues from gambling in Kenya accounted for 6.8% (approximately $25 million USD). Also according to PwC, Kenya had a GGR of around $20 million in 2014, but that number was projected to hit over $50 million in 2020.

Like many other African nations, the most popular sport to bet on in Kenya is football, with the European leagues accounting for a huge portion of Kenyan betting.

According to a 2017 Geopoll survey, 79% of young Kenyan gamblers regularly placed bets on football. According to industry executives, 7 million Kenyans are currently registered for gambling services.

Some important notes on taxation include a new draft bill which outlines the following taxation conditions for online casino operators:

• 7.5% from net profit (betting offices)
• 5% turnover tax (lottery operators)
• 12% from revenues minus wins (online casino operators)
• 15% from gross turnover (lottery providers)

There are also the following types of taxes that need to be acknowledged:

• Taxes on winnings 20%
• Corporate income tax rates are 29%

Tanzania

Home to over 56 million people, Tanzania has also seen a rapid uptick in online casino and sports betting as its internet connectivity has increased. It has two official languages, English and Swahili.

The boom in sports betting has also been aided by the increase in the number of sports betting shops, which are present throughout the country, especially in Dar Es Salaam, the nation’s capital. Some of the most popular online sportsbooks are Sportpesa, Meridianbet, M-bet, Mkeka bet, Princess Bet, Premier Betting, and Throne Bet.

Sports betting revenues, which are taxed at a rate of 25%, provided the government with over $5 million in 2016. In that same year, sports betting revenue overtook casino revenue, generating over $15 million. In 2017-2018, gaming and betting brought the government of Tanzania $36 million in revenues.The gaming board of Tanzania projected that government revenues from gambling would reach almost $42 million in 2019, up from the previous year’s figure of $34 million.

Predictions for Africa

Having explored Africa’s Gambling Licenses and Taxation Legislation, we hope that you are now seeing the potential for online casino and sports betting participation across the continent.

We firmly believe that online gambling is going to develop exponentially in the upcoming years due to the following factors:

• Increase in disposable income as a bigger middle class emerges
• Enhanced connectivity combined with lower-cost computers and smartphones is allowing more people to get online
• Increased sociological gravitation towards western ideals, which would naturally include online gambling
• Improvement of gambling taxation and legislation overall

With all this in mind, combined with Africa’s generally open tolerance for gambling of all forms, we think it’s a fair statement to say that the entire continent holds huge potential for success within the iGaming world.

How can Slotegrator help?

Slotegrator’s mission is to facilitate growth within the iGaming sector specifically for its partners and clients. Essentially, we act as a bridge that connects various sectors of the iGaming industry together, especially when it comes to helping vendors launch new projects or enter new markets. We take your vision for an online gambling project and then help turn that vision into a reality.

Founded in 2012, we have spent over eight years working with the online gambling market, have 100+ employees worldwide, and have launched over 80 iGaming projects worldwide. We pride ourselves on being able to offer entirely customizable designs and features for online casino games, offer 24/7 tech support, and can get most projects fully online and running within 4-12 weeks.

There are several ways we can assist your operation, these include:

Payment Systems Integration

For seamless PSP integration into your online casino project, we recommend using Moneygrator.

Moneygrator is a solution that combines multiple payment systems for the iGaming industry within a single application. It delivers a smooth online payment experience to your website visitors and allows you to keep track of revenues in real-time.

Gambling Legislation South Africa News24

Games Integration

For seamless games integration, we recommend usingAPIgrator.

Just as the name suggests, APIgrator is a solution for seamless integration of a diverse range of online casino games and sports betting content into online casino platforms. The cross-functional API solution allows you to launch more than 5,000 games from multiple game developers.

Gambling License Acquisition

Slotergrator can assist you in acquiring a gambling license for your online casino project. Obtaining a gambling license will help you gain the trust of your players, cooperate with leading game developers, enter profitable markets, and successfully grow your business.

To learn more about Gambling License Acquisitions, click here.

Online Casino Solutions

If the entire online casino start-up process is beginning to sound too daunting to you then fear not. Slotegrator offers several packages that allow for complete online casino projects to be launched. This include:

• Turnkey - consisting of technical solutions only.
• White Label - consisting of technical solutions and sublicenses.
• Casino Kit - consisting of backend + WordPress frontend solutions.

To compare our range of solutions, click here.

Still unsure?

Leave it to the professionals

As a leading software developer in the iGaming industry, we are always ready to share our industry knowledge and advise operators on any complicated issues they may face. Moreover, our solutions for developing and launching online projects, as well as our gambling license acquisition services, can save you both time and money. Fill out the form and our managers will contact you shortly.