Seventy-seven per cent of Africa’s online betting and gaming marketplace, with an estimated $23bn in gross gaming revenue, remains in the unregulated sector, according to a report from Gaming Compliance International, which called for African governments and regulators to adopt standardised, outcome-based regulation to optimise the industry.
The organisation disclosed this in its 2026 report on Africa’s online gambling marketplace, which estimated that the continent’s online sports betting and casino market generated $23bn in gross gaming revenue in 2025, with only $5.2bn, representing 23 per cent, coming from regulated operators, while $17.8bn, or 77 per cent, was generated by unregulated operators.
The report also revealed that Africa had 4,129 unregulated online gambling operators in 2025, while 215 million people, representing 14 per cent of the continent’s population, interacted with online gambling platforms during the year.
According to the report, regulated gambling content accounted for only 11 per cent of audience exposure, compared with 89 per cent for unregulated gambling content.
Comparing Africa with other regions, the report indicated that Latin America recorded the highest regulated market share at 27 per cent, while Africa and Europe each recorded 23 per cent. North America posted 24 per cent, the global average stood at 22 per cent, the Middle East and Africa recorded 14 per cent, while Asia-Pacific had the lowest regulated share at six per cent.
Gaming Compliance International argued that effective regulation should focus on optimising the entire marketplace rather than concentrating solely on licensed operators, stating, “The purpose of regulation is not to exclusively regulate licensed operators. The purpose of regulation is to regulate the marketplace.”
The report said the objective should be to ensure that consumers choose regulated platforms over illegal ones, adding that regulatory success should be measured by marketplace outcomes rather than activity within the licensed sector.
It identified customer taxation, operator taxation, payment systems and product availability as the four major public policy areas that determine whether regulated operators can compete successfully against illegal platforms.
According to the report, “High taxes imposed directly on customers encourage migration to the unregulated sector where those costs do not exist.”
It added that excessive taxes on operators reduce their competitiveness in pricing, odds, bonuses, products and customer experience, while costly payment systems and restrictions on products create additional barriers that push consumers towards illegal operators.
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Gaming Compliance International urged regulators to adopt what it described as the MPEO framework, Monitor, Police, Enforce and Optimise, to improve marketplace outcomes.
The report stated, “MPEO recognises that effective regulation extends beyond licensing operators. It requires regulators to monitor the entire marketplace, police the unregulated sector and the ecosystem that enables it, enforce proportionate action against unregulated participation, and optimise the regulated sector so that it remains attractive, accessible and competitive for consumers.”
It warned that consumers who remain outside the regulated market lose the protections provided by licensed operators, including responsible gaming measures and self-exclusion programmes, while governments also forfeit tax revenue and public benefits.
In its conclusion, Gaming Compliance International said Africa’s online gambling industry should be viewed as an economic opportunity rather than a regulatory challenge.
It stated, “Africa’s online gambling marketplaces should not be defined by their challenges. They should be defined by their opportunity.”
The organisation noted that millions of Africans already participate in online betting and gaming, stressing that the challenge is not creating demand but ensuring that existing demand is captured within the regulated sector.
It further stated, “The future of African online gambling is therefore not a choice between regulation and growth. Well-designed regulation will enable growth. Well-optimised marketplaces should deliver stronger consumer protection, stronger local economies and stronger public confidence simultaneously.”
Gaming Compliance International added that relatively small improvements in taxation, payments, product availability, enforcement and regulatory collaboration could produce significant gains in consumer protection, tax revenue, public benefits and the competitiveness of regulated operators.
It concluded, “The purpose of regulation is not to exclusively regulate licensed operators. The purpose of regulation is to regulate the marketplace. Africa’s online gambling story is ultimately one of optimisation. The opportunity is not simply to regulate more. It is to optimise better.”
