Lagos state gaming regulator boss warns over-regulation could fuel black market growth

Lagos state gaming regulator boss warns over-regulation could fuel black market growth

Bashir Are, CEO of the Lagos State Lotteries and Gaming Authority, warned that regulatory environments must not be overly restrictive to avoid pushing activity underground.

Nigeria.- Bashir Are, the CEO of the Lagos State Lotteries and Gaming Authority (LSLGA), has called for a careful balance in regulatory frameworks to prevent operators from being driven into the black market. Are made the remarks while speaking during a panel session at the Africa Gaming Expo (AGE) 2026 in Lagos on March 26.

The panel, sponsored by Policy Vault Africa, examined the challenges posed by unlicensed gambling operators across African markets. It was moderated by Damilola Atiri, Country Manager and Principal of the Gaming Practice at Policy Vault.

Are acknowledged the difficulties illegal operators pose for regulators and licensed businesses but warned that regulatory environments must not be overly restrictive to avoid pushing activity underground.

Other panelists included Adewale Akande, Head of Legal and Compliance at KC Gaming Networks Ltd, Moruntshi Kemorwale, Acting CEO of the Gambling Authority of Botswana, Peter Emolemo Kesitilwe, CEO of the African iGaming Alliance and Paulo Claudio Daniel Mario, Deputy Director General of the Instituto de Supervisão de Jogos in Angola.

Kemorwale shared findings from research conducted with the University of Botswana. He said the illegal gambling market in Botswana is twice the size of the regulated market and shows higher rates of problem gambling. The unregulated sector is valued at around P500m (about €34m).

Kesitilwe identified three main reasons why unlicensed operators continue to operate, including advances in technology, regulatory differences between countries and the financial incentives available outside the licensed system.

Echoing Are’s views, Daniel Mario called for a balanced approach, saying regulations must be strong enough to reduce risks such as addiction and financial harm to players while ensuring that licensing costs and requirements do not create barriers that push companies into the unregulated space.

The session ended with a call for regulators and industry players to establish a common blacklist of unlicensed operators as a practical first step.

The Africa Gaming Expo 2026 was held from March 24 to 27 at the Eko Convention Centre in Lagos. The event convened regulators, operators and other stakeholders to discuss regulation, compliance and growth in Africa’s gaming sector.

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