In a shock move, the Zimbabwean government has announced its decision to severely increase the amount of money required to run a casino, lottery or betting shop within the southern African country.
Not only that, but they also gave operators very little time to react to the news, making the announcement in late February and stating the new licensing fees and costs would come into effect immediately. However, they did not state how it would affect applications that have already been made and are pending approval.
“It is hereby notified that the Minister of the Interior and Cultural Heritage within the meaning of Section 65 of the Lotteries and Gambling Act [Chapter 10:26] as read in Sections 16 and 23 of the Betting and Totalizator Control Act [Chapter 10:02], made the (verified fees) regulations,” read the government gazette.
Under the new rules, the review and processing of an application for a permanent license for a casino or lottery operation increased to $250 000. Review, processing or renewing a Totalizator license can now cost up to $50 000, while review, processing or renewal of a gaming house license has also been set at $50 000; this includes bookmakers as well.
According to the World Casino Directory, Zimbabwe has 22 legal gambling facilities spread across 11 cities, and every single one of them will be subject to the new charges. There has been no indication of how this increase in fees will affect these facilities, especially the smaller ones in more remote locations that might not generate revenue as the bigger venues.
This appears to be the next step by the Zimbabwe government in an already heavily regulated gambling market. The Zimbabwe Lotteries and Gambling Board regulate gaming activities inside the country, and players that win money via gambling need to pay 10% of it to the government in tax.
Gambling and online gaming is becoming a huge industry in Africa, and similar heavy-handed regulation can be seen across the border in South Africa but a bit less stringently enforced. For example, online gaming activities are not officially legal in South Africa. However, players are still allowed to play casino games on sites outside of the Rainbow Nation, with many international brands that have no deposit bonus offers, such as Europa and Spin 247 Casino.
Betting shops in Africa have become more than just a place to take a punt. Not every household on the continent has the privilege of owning a television or personal computer, yet there is still enormous interest in international sports, especially football competitions. In Europe, like the Premier League and Champions League. So betting shops have become a place for people to gather and watch the game with like-minded sports fans.
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One of the biggest influences on the development of iGaming in Africa has been the widespread adoption of mobile telephones. The continent is home to 1.3 billion people and 50 countries, making it the second biggest globally, and the vast majority of those people’s primary connection to the internet is their phone. In Sub-Saharan Africa alone, predictions indicate there will be as many as 475 million mobile internet users by 2025.
This is why, over the past 12 to 18 months, while everyone has been cooped up at home, many betting shops in Zimbabwe have invested a great deal of money into creating online platforms to allow gamers to place bets from anywhere they want as long as they have a phone.
There is no doubt southern Africa and the continent as a whole is experiencing a surge in popularity for online gaming and gambling activities with no real slow down in sight. The Zimbabwe government is looking to cash in while they can.
