As regulators, government leaders, payment providers and gaming operators gathered for the summit (running June 2\u20136), Opoku-Asare\u2019s message cut through the noise: \u201cRevenue leakages aren\u2019t just theoretical. They are deeply personal. They represent clinics unbuilt, schools unfunded and infrastructure delayed.\u201d<\/p>\n\n\n\n
According to PawaTech, African punters wager hundreds of millions annually through unlicensed offshore websites, entities that pay no local taxes, create zero jobs and reinvest nothing into the continent\u2019s economies. If current trends continue, the estimated leakage could swell to $11 billion in just four years.<\/p>\n\n\n\n
At the heart of PawaTech\u2019s appeal is the concept of channelisation, the proportion of betting activity that flows through legal, licensed operators. Higher channelisation means more tax revenue, consumer protection and local reinvestment. But poor tax and regulatory structures are driving bettors to the shadows of the black market.<\/p>\n\n\n\n
Opoku-Asare made it clear that technology alone, like VPN or IP blocking, won\u2019t stop the bleed. The real fix? Smarter, more attractive tax policies for legal operators<\/strong>.<\/p>\n\n\n\n Currently, visible player-facing taxes and deposit fees<\/strong> are punishing licensed platforms and encouraging off-grid gambling. He explained that a 1 per cent deposit tax can eat up 10 per cent of operator revenue, a 4 per cent fee can wipe out as much as 40 per cent, and withholding taxes on player winnings further drive bettors offshore.<\/p>\n\n\n\n Despite the hurdles, PawaTech has contributed over $100m in taxes across Africa and remains committed to regulated markets.<\/p>\n\n\n\n Citing recent research from H2 Gambling Capital, Opoku-Asare pointed to a brighter future: Africa\u2019s iGaming industry could grow to $22 billion by 2029, if 90 per cent of activity is channeled through legal operators. That\u2019s achievable, he argued, but only with tax rates in the sweet spot of 15-25 per cent of Gross Gaming Revenue.<\/p>\n\n\n\n Ghana is already leading the charge. The country has scrapped its 10 per cent withholding tax on winnings and plans to abolish its 1 per cent mobile money levy in 2025, a clear move to boost legal market participation.<\/p>\n\n\n\n In closing, Opoku-Asare laid out a three-step playbook for African policymakers – tax operators, not players; tax revenues, not transactions; and prioritise channelisation to protect and grow the legal sector.<\/p>\n\n\n\n As Africa\u2019s gaming landscape evolves, the stakes have never been higher. The choice is clear: regulate smart or lose billions.<\/p>\n\n\nPunishment of licensed operators<\/h2>\n\n\n\n
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