Africa’s Gaming Industry Faces Growing Pressure Over Tax Policy
African gaming firms are pushing for coordinated regulation as fragmented tax systems continue to raise operational costs across borders
Pressure is building on African governments to rethink how betting and gaming businesses are taxed as the industry expands deeper into mobile and digital markets. Officials and investors meeting in Nairobi said heavy or inconsistent fiscal policies could reduce formal participation in the sector and make some markets less attractive to international operators.
The issue featured prominently during discussions at the iGaming AFRIKA Summit 2026, where regulators, executives and policymakers examined how tax structures are influencing business decisions across the continent.
Kenya has emerged as one of the clearest examples of the sector’s economic weight. Data from the Kenya Revenue Authority shows betting and gaming activities generated Sh31 billion in the 2024/25 fiscal year, reflecting the growing scale of online wagering and related services.
Speakers at the summit said the industry is moving into a phase where regulatory predictability carries as much importance as consumer growth. Mobile internet access, digital wallets and a young user base continue to support expansion, but executives warned that unstable policy environments could slow momentum.
Jeremiah Maangi, chief executive of iGaming AFRIKA, said the sector is no longer being viewed as a speculative market by operators and investors.
“Africa’s gaming industry is no longer a frontier market, it is a growth market,” he said.
Participants argued that taxation policy now plays a direct role in determining whether companies remain within regulated systems. Multiple levies, abrupt policy revisions and overlapping licence obligations were cited as factors that can raise compliance costs and encourage unregulated activity.
Kenya’s Gambling Regulatory Authority said governments must treat licensing and taxation as long-term industry tools rather than short-term revenue measures.
“Taxation and licensing are not merely revenue instruments, they are statements of intent by governments about what kind of gaming industry they want to build,” said GRA chairperson Joseph Kirui Limo.
The Kenyan government is currently restructuring oversight of the sector following the replacement of the Betting Control and Licensing Board with the Gambling Regulatory Authority. Officials say the transition is aimed at improving supervision as gambling operations become more digital and interconnected across markets.
GRA Director General Peter Karimi told delegates that clear rules remain essential for maintaining investor confidence and limiting market disorder.
“Effective regulation is not the enemy of growth. It is the foundation upon which sustainable growth is built,” he said.
Executives from regional gaming bodies also pointed to regulatory fragmentation as a major operational burden. Firms operating across several African countries often face separate reporting systems, different tax rates and independent approval processes, making regional expansion more expensive.
Denis Mudene Ngabirano, head of Uganda’s National Lotteries and Gaming Regulatory Board, said countries with more coherent systems stand to capture a larger share of future industry investment.
“The fragmentation of African gaming regulation is one of the industry’s biggest challenges and one of its biggest opportunities,” he said.
Industry associations attending the summit proposed greater coordination between regulators to reduce duplication and improve efficiency in tax administration.
Peter Emolemo Kesitilwe, chief executive of the Africa iGaming Alliance, said closer alignment between jurisdictions could help African operators compete more effectively with established global markets.
“Harmonisation is not about surrendering national sovereignty, it is about creating the conditions in which African gaming can compete with the world,” he said.
The discussions in Nairobi reflected a broader concern among policymakers about how fast-moving digital industries should be governed. In the gaming sector, future expansion may depend increasingly on whether governments can combine revenue collection with stable operating conditions.
