Nigeria has taken steps to significantly shift its gambling framework through a memorandum of understanding (MoU) with the UK.
The MoU was confirmed at the International Association of Gaming Regulators (IAGR) and International Masters of Gaming Law (IMGL) conference, which took place in Rome.
Central to the proposal is boosting protections for players in Nigeria, and tackling the surging black market that has come as a result of the increased internet accessibility in the country.
As a result of the MoU, Nigeria will increase how closely it works with partners to ensure that the country’s gambling framework is fit for purpose and adequate protections are in place.
Furthermore, the Lagos State Lotteries and Gaming Authority (LSLGA), Nigeria’s gaming regulatory body, Chief Executive Officer, will play a key role in continuing to govern the sector.
The body’s CEO, Bashir Are gave a key speech during the conference in Rome, where he drew attention to the significant threat of the black market.
He stated: “Illegal online gambling is a global issue, with estimates suggesting that this unregulated market generates between $40bn and $50bn annually. These figures are approximate due to the difficulty in tracking and reporting activities in unregulated markets. In certain regions, the illegal gambling segment can account for up to 20-30% of the total online gambling market, making enforcement all the more critical.”
Key to the mission of the LSLGA is “to regulate, protect and promote gaming activities in Lagos State by leveraging on technological innovation and global best practices to make Lagos State a preferred gaming business destination in Africa.”
Tackling unlicensed operators has been a key focus for Nigerian authorities, the LSLGA last week, previously identified 43 operators that it suggests have been operating betting and gambling services without a licence.
In a recent interview with CasinoBeats, Dmitry Starostenkov, CEO, Evenbet examined the state of play in the region: “This particular case aligns with the findings we discovered in our recent e-book on 2023 trends in igaming. Regulation was cited as the number one pressing issue by 29% of companies that we interviewed, with 16% of respondents also highlighting it as a top trend for 2024.
“Legislative frameworks for igaming in Africa are still evolving, and our report found that in such emerging markets, uncertainty around entry barriers, licence requirements, and acceptable business practices often exists. Companies will need to closely monitor developments and exercise caution when entering these complex, fluid regulatory environments across Africa.”
Ivo Doroteia, CEO of Playbook Engineering, added: “Grey markets and unlicensed operations aren’t just confined to Africa – they still maintain a place on the world stage. However, Africa unfortunately seems to be something of a hub for this at the moment and there needs to be a continent-wide clampdown.
“The quicker unlicensed activity is identified and targeted, the sooner regulators can get to work providing the various markets in Africa with the building blocks required for it to be a region for suppliers and operators to keep a closer eye on, and ultimately to take with the seriousness the market potential merits.”
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