Online-only licences accelerate Africa’s shift to digital gambling
Governments introduced online-only licences to encourage digital innovation while maintaining oversight through standards on anti-money laundering, player protection and tax compliance.
Nigeria.- Online-only licences have recorded a massive increase in implementation and usage since entering the African gaming landscape, driven by rapid digital adoption and regulatory shifts across the continent.
These licences allow gambling operators to offer services exclusively through mobile apps and websites, without the need for brick-and-mortar venues, covering sports betting, lotteries, and, in some cases, online casinos.
As mobile phone usage expands and internet access improvs, governments have introduced online-only licences to encourage digital innovation while maintaining oversight through standards on anti-money laundering, player protection and tax compliance.
What began as scattered approvals in the early 2010s has evolved into more structured regulatory frameworks, positioning online gambling as a fast-growing pillar of Africa’s gaming sector.
Online-only licences refer to regulatory permissions granted by government bodies in African countries that allow gambling operators to provide services exclusively through digital platforms, such as mobile apps and websites, without physical venues. These licences typically cover sports betting, lotteries and online casinos, with operators required to meet standards on anti-money laundering, player protection and tax obligations. They differ from traditional licences by focusing on remote operations, often with lower entry barriers to encourage digital innovation while ensuring oversight.
The adoption of online-only licences in Africa began gaining traction in the early 2010s, as mobile phone usage expanded and internet access improved. Kenya led the way, with the Betting Control and Licensing Board issuing permits under the 1966 Betting, Lotteries and Gaming Act, which was updated to include digital platforms. By 2015, operators like SportPesa had secured licences, capitalising on the popularity of football betting among young people.
In Nigeria, the National Lottery Regulatory Commission started approving online sports betting licences around the same period, with state-level boards adding layers of approval. South Africa’s provincial gambling boards, such as the Western Cape Gambling and Racing Board, began extending bookmaker licences to online formats without mandating physical presence, though full online casinos remain restricted.
Over the years, the landscape shifted from scattered approvals to more structured frameworks. By 2020, amid rising mobile money services like M-Pesa, more than 50 digital credit providers in Kenya held licences. Nigeria’s market grew with at least 60 licensed operators by 2023, focusing on youth-oriented sports betting. South Africa saw a 25.7 per cent year-on-year increase in gross gaming revenue from online betting in 2024, prompting discussions on a national Remote Gambling Bill to regulate broader online activities.
Other countries like Ghana and Tanzania followed, with Ghana’s Gaming Commission issuing licences under its 2006 Act, and the Gaming Board of Tanzania offering competitive fees to attract operators. By 2025, the continent’s online gambling market reached about US$1.85bn (€1.71bn), up from US$1.92bn (€1.77bn) in overall gaming the prior year, with sports betting accounting for the majority.
Ultimately, the rise of online-only licences reflects both the promise and the pressure facing Africa’s gaming sector. While digital regulation has unlocked new revenue streams, expanded employment and brought millions of bettors into formal markets, it has also exposed gaps in enforcement, consumer protection and regulatory coordination.
As governments balance economic gains against social risks such as addiction and migration to offshore platforms, the next phase of growth will depend on harmonised regulations, stronger safeguards and policies that keep pace with technology.
