Start an iGaming Business in Africa

The region is rapidly becoming one of the key centres for the development of the global entertainment niche. International brands are increasingly considering the continent as a promising direction for launching casinos, betting shops, and digital portals. Nigeria, Kenya, and the South African Republic, where legislation is liberalised and new technologies are actively introduced, came to the fore.

Rosloto experts discuss the features, prospects, and legal barriers that investors and entrepreneurs can expect in these countries over the next 3 years.

How to Launch a Virtual Casino in Nigeria

This state is the largest economy in the region, with a population of over 220 million people and a rapidly developing iGaming sector. The local market is demonstrating high dynamics and steady demand for digital formats. Sportsbook solutions, mobile products, and lotteries are particularly sought-after by a young and technologically savvy audience.

Legal Framework

The following types of gaming activities are allowed here:

• state raffles;
• betting sites and virtual casinos;
• offline establishments and small halls with slot machines, which are located mainly in large cities, such as Lagos, Abuja, and others.

As of early 2025, the country does not have a unified licensing system in the niche.

Regulation is divided between the federal and regional levels:

1. The National Lottery Regulatory Commission (NLRC). It oversees the raffles and the work of online bookmakers.
2. States. Local authorities can introduce different regulations. For example, Lagos has its supervisory bodies, Lagos State Lotteries and Gaming Authority, which often compete with the NLRC.

In 2024, the Supreme Court ruled that the regulation of casino activity is the prerogative of the provinces. This has strengthened the role of regional governments and destabilised the market.

It has become unclear to entrepreneurs who exactly issues the “legitimate” licences — the NLRC or local authorities. To protect themselves from legal risks, operators obtain 2 permits. This doubles the costs and tax burden on the business.

Features of Launching an iGaming Startup

Before becoming part of the industry, it is worth studying the specifics of the audience, its game preferences, and the peculiarities of regulation.

Key nuances that project owners who are planning to work in Nigeria need to consider:

1. Mobile-first approach. Most users place bets via smartphones, so the interface and UX should be optimised for personal gadgets. Players actively use Telegram and WhatsApp, which opens up opportunities for non-standard entertainment solutions, from mini-apps to bots.
2. Popularity of local lotteries and bids. Raffles, fantasy sports, and football bets are in the greatest demand. Casino solutions are less common but are showing growth due to the introduction of the Telegram program and cross-products.
3. Currency restrictions. Transfers in the national money — naira (NGN) — are complicated by high inflation. For this reason, many platform owners use digital assets or accept deposits in stablecoins. Most of them are microtransactions in the range of 100 to 1,000 naira ($0.1–1).
4. Interaction with banks. Nigerian financial institutions are under strict control. All payments must be made through licensed providers such as Paystack, Interswitch, and Flutterwave. Mobile operations are extremely popular.
5. Advertising restrictions. Since January 2025, Google has banned gaming ads in the jurisdiction. This made it complicated to access one of the key marketing channels and forced entrepreneurs to look for alternative ways to scale their startups.

A successful project launch in the country requires a flexible approach to advertising strategy, a deep understanding of the local customers’ behaviour, and adaptation to an unstable macroeconomic environment.

The Future of the Casino Business

In the next 3 years, a sustainable regulatory system is expected to form at the state level. Thanks to this, the Nigerian market can become the largest in Africa in terms of revenue in the iGaming segment.

One of its main advantages is the rapid growth of the audience (+ 15–20% per year). The majority of clients are men aged 20–35 with an average income, who are loyal to betting and digital solutions. They are most interested in football events (Premier League or La Liga), virtual simulations, and numerical lotteries.

Additional factors contributing to the industry’s development:

• more than 100 million smartphone users, which ensures a high level of mobile product penetration;
• wide distribution of Telegram, WhatsApp, and Instagram — key channels to drive targeted traffic;
• creation of the Progressive Web App (PWA) format — gaming platforms that do not require installation and can be accessed directly from the browser.

A significant step for international companies was the introduction of the Remote Operator Permit in 2024 — a document that allows foreign brands to legally work in the country. This simplified the launch of startups and increased the activities of technical partners: providers of content, payment software, and security systems.

Casino Business in Kenya

Kenya is one of the leading markets in East Africa with a dynamically developing online and mobile betting sector.

The population exceeds 55 million people. Up to 60% of residents are under 35. This demographic, combined with the widespread use of smartphones (about 70% of citizens have personal gadgets), makes the country a favourable environment for the appearance of digital sportsbook solutions and high-tech casino products.

Legislation and Regulation

This is one of the few jurisdictions in Africa with an officially supervised and certified gambling niche. Despite some legal contradictions and high tax rates, the region remains important for brands interested in expansion.

The main document that sets the sector’s functioning rules in Kenya is the Betting, Lotteries and Gaming Act 1966. The law defines acceptable formats of activity, the obligations of operators, the rights of clients, and the powers of local authorities.

The BCLB is a central regulator responsible for coordinating the sphere. It performs several tasks:

• issuance of licences to land-based and online firms;
• control over compliance with the legislation;
• suspension of violators activities;
• regulation of marketing challenges.

Available types of permits:

• Bookmaker’s Licence — for sports betting (including digital and offline solutions);
• Gaming Licence — for entertainment and slot platforms;
• Public Lottery Licence —for public and private raffles;
• Online Gaming Licence — for digital casinos and integrated platforms;
• Promotional Lottery Permit — for trade campaigns.

The main challenge is the high tax burden.

The Kenyan system of levies is considered one of the toughest in the region:

• 35% is collected from gross gaming revenue (GGR);
• 30% is the standard corporate tax;
• 15% is withheld from the winnings of users.

Additionally, all certified brands are required to submit annual financial statements in accordance with the regulator's requirements.

The Future of the Gambling Niche

Let us consider the development prospects of the sector in the next 3 years:

1. Accelerated digitalisation. Today, 80% of betting activity falls on personal gadgets. Most bids are made through USSD services, SMS, and PWA applications. Soon, Telegram and Web3 casinos with a convenient UX interface, synchronisation with messengers, and instant settlements will become the leaders in terms of traffic.
2. Increased interest from foreign operators. It is expected that entertainment firms from Europe and Asia will enter the market in 2026–2027. Cooperation will be fulfilled through White Label platforms or partnership schemes. Besides, the government is negotiating the issuance of joint licences with enterprises from South Africa, Great Britain, and Malta.
3. Localisation of products. This includes the creation of Swahili-language games, local jackpots, tournament mechanics, lotteries, and themed slots. The main emphasis is on the interests of a young audience aged 18–35.

The Kenyan government is working on a new legislative package that will:

• reduce the current tax burden to 25% with GGR;
• develop a transparent online certification portal;
• launch a centralised anti-money laundering (AML) and self-regulation (RTP, KYC, and self-exclusion) system;
• provide direct supervision of Telegram casinos and blockchain portals.

The changes are expected to stimulate the regulation of the crypto division and simplify the work of Web3 operators.

iGaming in South Africa

There is one of the few with a well-developed and formalised regulation system in this region. But at the same time, it faces some challenges, especially in the digital segment.

Legal Landscape

The key legislation that regulates the local entertainment niche is the National Gambling Act.

The document covers the following activities:

• offline casinos;
• sports betting;
• lotteries;
• bingo;
• locations with slot machines.

The law allows offline entertainment and online bids on sporting events but prohibits virtual casinos. The exception is certain projects operating under a licence within the framework of an interactive gaming trial — a limited legal experiment.

There are more than 40 legitimate themed establishments in the country, including large complexes Sun International, Tsogo Sun, and others.

As of 2025, virtual casinos in the traditional format remain illegal. However, in practice, foreign websites work in South Africa, access to which is granted through VPN and cryptocurrency gateways.

All entrepreneurs wishing to provide services in the region must obtain a provincial permit, with the possibility of federal control. The Gauteng Gambling Board and other similar structures are responsible for the issuance of permits.

Development Prospects

An important transformation of the sector is expected over the next 3 years. The main directions of growth include:

1. Possible legalisation of virtual casinos. Against the background of significant tax losses and the audience’s high interest in digital products, the authorities are considering a scenario of partial validation of virtual betting. The launch of pilot projects with limited access is being discussed. The first bills are planned to be submitted by the end of 2025.
2. Integration of cryptocurrencies and Web3 mechanics. Since 2024, this kind of money has been officially recognised as a regulated financial instrument. The state plans to create a register of blockchain portals permitted for use in the industry. The authorities are also discussing the implementation of the Digital Gambling Regulatory Framework, a national analogue of the European MiCA directive to control crypto transactions in the market.
3. KYC automation and fight against fraud. Operators are investing in AI solutions for Know-Your-Customer and anti-fraud services that comply with international AML standards. This will reduce illegal turnover and increase platforms’ transparency.
4. Regional leadership. South Africa is becoming a key hub for project scaling in the region. The republic provides access to the markets of Botswana, Namibia, and Zambia, which strengthens the country's position as the centre of the online casino ecosystem on the continent.

The Main Things about the African iGaming Business

Nigeria, Kenya, and South Africa are promising directions for the opening of such companies.

Key aspects that entrepreneurs should take into account:

• Nigeria is a high-potential but legally fragmented market. Operators should implement their projects with an emphasis on localisation, digital payments, and legal flexibility. Success depends on the ability to work with regulators and use mobile channels to communicate with the audience.
• The gaming sphere in Kenya is in the midst of transformation. The sector is rapidly changing: from a local format to a flexible ecosystem with an emphasis on the integration of cryptocurrencies and modern technologies. The growth potential is high, especially with the right localisation, marketing, and partnerships with domestic structures.
• The market is considered the most mature on the continent. It has a clear structure, developed regulations, and a solvent audience. Despite the official ban on online casinos, the legal system is gradually transforming, including via the influence of the growth of cryptocurrency and Web3 initiatives.

Launch a profitable iGaming business with Rosloto specialists. Our studio offers turnkey solutions: from White Label platforms to professional software for lotteries and poker.

A team of experts will accompany the project at all stages. We are responsible for the development of a strategy, help with the licence, customisation of marketing tools, and provision of an effective tax model.