Regulatory Void Threatens Africa's $23 Billion Gaming Sector; Four-Fifths Escape Oversight

Africa’s online gaming market generated $23 billion in gross gaming revenue during 2025, yet nearly four-fifths of that activity falls outside government oversight and consumer protection frameworks. That regulatory gap is the defining governance challenge the continent’s policymakers now face.

The scale of unregulated activity is stark. The regulated sector grew from $4.4 billion to $5.2 billion between 2024 and 2025, but unregulated gaming revenue expanded faster, from $15.6 billion to $17.8 billion, according to Gaming Compliance International’s latest continent-wide study. Unlicensed operators targeting African consumers increased from 3,644 to 4,129 in a single year. The unregulated market now accounts for 77 percent of all gaming activity across the continent.

The fiscal consequences are direct. Africa forfeited an estimated $3.55 billion in potential tax revenue during 2025 because gaming activity occurred outside regulated markets, resources that could otherwise support healthcare, education, infrastructure and digital transformation. That figure alone explains why regulators face mounting pressure to expand licensed operator reach and draw more consumer activity into transparent, taxable marketplaces.

Matt Holt, Chief Executive Officer of Gaming Compliance International, frames the data as a turning point for regulatory strategy. “For the first time, we can see the whole of Africa’s online gambling market clearly. Nation by nation, across two full years, the picture is encouraging. The regulated sector is growing, and in several countries, it is starting to gain ground. That tells us these tools work,” he said. “Our job is to give regulators a complete and honest view of their own market, so they can build on the progress this data now shows.”

Meanwhile, consumer participation has expanded significantly. Between 2024 and 2025, the number of Africans engaging in online gaming rose from 198 million (13 percent of the population) to 215 million (14 percent). Exposure to licensed operators improved only marginally, from 10 percent to 11 percent, while exposure to unregulated operators declined slightly from 90 percent to 89 percent. Demand is not the constraint. The challenge is redirecting existing consumer activity toward regulated platforms where governments can enforce protections and collect revenue.

The findings, detailed in the Online Gaming 2024-2025: Africa report published at https://www.forbesafrica.com/brand-voice/2026/07/16/africas-18-billion-blind-spot-why-smarter-regulation-is-the-next-frontier-for-its-gaming-economy/, challenge conventional regulatory thinking on two fronts. First, success should not be measured by the number of licenses issued or enforcement actions taken, but by whether consumers are choosing regulated markets. Second, tax frameworks should encourage compliance and attract investment rather than simply maximize revenue. Overly burdensome policies push consumers and operators toward unregulated alternatives, compounding the oversight problem.

Regulators must also recognize that the modern online gambling ecosystem extends well beyond licensed operators. Consumers discover betting platforms through search engines, affiliate websites, streaming platforms, app stores, payment providers and social media. Effective oversight therefore requires addressing the wider digital ecosystem, not focusing exclusively on the operators that already hold licenses.

Progress is evident despite the scale of the challenge. The regulated market expanded by $800 million in a single year, demonstrating that evidence-based regulation can shift marketplace outcomes. Several jurisdictions have improved policy clarity, licensing frameworks and regulatory coordination, showing that structured approaches can influence market behavior even as total market size continues to grow.

Ismail Vali, President of Gaming Compliance International, places the accountability question squarely on institutional actors. “Africa’s online gambling marketplaces should not be defined by their challenges; they should be defined by their opportunity. Millions of consumers already participate in online betting and gaming, creating substantial economic activity and the potential to deliver sustainable local commerce, public revenues, and safer consumer outcomes. The challenge is not creating demand; the challenge is ensuring that demand is captured within the regulated sector.”

Whether governments and regulators can coordinate effectively enough to bring more of the continent’s $23 billion gaming economy into transparent, competitive and well-regulated markets remains the open question. The regulated sector’s $800 million gain in one year shows the direction of travel. The question for policymakers is how quickly they can close the remaining 77 percent gap, and which jurisdictions will move first.