Africa’s gaming sector is experiencing unprecedented growth, driven by mobile technology, digital payment systems, and a young population eager to engage in online entertainment and betting. For investors and entrepreneurs, the continent offers diverse opportunities — but each market has its own strengths, regulatory frameworks, and unique drivers of success.
South Africa: Scale and Stability
South Africa leads with one of the most structured gaming environments on the continent. With over 118 million smartphone connections — nearly twice its population — the digital betting space is thriving. More than half of South Africans participate in sports betting, and although licensing is rigorous, the clear 6.5% tax structure gives businesses regulatory certainty and long-term stability.
Kenya: Mobile-First Innovation
Kenya’s market is powered by its world-famous mobile money system, M-Pesa, which dominates betting transactions. Recent tax reforms — cutting excise duty from 15% to 5% — alongside the modernized Gambling Control Act, have enhanced transparency and encouraged growth. With around 80% of adults betting regularly, Kenya stands out as a digitally prepared and mobile-first market.
Nigeria: Power in Numbers
Nigeria boasts Africa’s largest gaming audience, with about 168 million active bettors out of a population of 220 million. Smartphone ownership is below 50%, yet mobile penetration ensures platforms can reach a massive consumer base. The 2025 creation of the Federation of State Gaming Regulators unified licensing and boosted compliance, giving investors more confidence in Africa’s biggest market.
Tanzania: Transparency Through Technology
Tanzania has built its market on transparency. Since 2025, operators must feed real-time transaction data into a central electronic platform connected to the national banking system. This ensures instant tax calculation and payment. Although the 25% tax on gross gaming revenue is one of the highest in Africa, it comes with the advantage of clarity and predictability, making Tanzania a model for secure operations.
Uganda: Rising East African Hub
Uganda is fast becoming a hub for gaming in East Africa. With 44 million active bettors out of 51 million citizens, participation levels are strikingly high. Low data costs and growing internet penetration fuel accessibility, while taxes remain steep (20% on sports betting, 30% on other gaming activities). Still, the scale and affordability of access make Uganda one of the region’s most attractive frontiers.
The Bottom Line
Africa’s gaming industry is not just expanding — it’s diversifying. South Africa offers structure, Kenya leads with digital innovation, Nigeria thrives on volume, Tanzania prioritizes transparency, and Uganda delivers affordability and scale. Together, these markets reveal how Africa is shaping the future of gaming through a mix of technology, regulation, and consumer demand.
