Can South Africa’s Provincial Gambling Model Work in Nigeria?

South Africa is not new to gambling legislation and regulatory affairs. As opposed to relying on one singular gambling regulator, like the UK and Malta, South Africa opts for a provincial licensing system, meaning it allows state provinces to regulate gambling, with the model supported by a national legislation. As Nigeria continues to shape and reform its gambling industry, questions are arising.  Can Nigeria use South Africa’s provincial gambling model as a blueprint to monitor online gaming?

South African Gambling Model explained

South Africa monitors gambling both via its national gambling laws along with provincial regulators. Online gaming laws are outlined by the government on a national level, with each province in charge of licensing, compliance and enforcement within each region.

Although widely debated, the current South African market allows sports betting sites to operate legally, yet casino gambling is still regarded as illegal.  Having said that, sports betting sites do offer games of chance such as slot games, table games and quick games via their platforms.

Whilst the main legislation is laid out by the South African government, respective provinces are in charge of the following gambling elements with the region:

• License bookmaker sites
• Monitor games with fixed odds offered by platforms
• Tracks legal compliance and regulations
• Collects gambling taxes that are generated
• Promotes responsible gambling practices.

Nigeria’s current gambling framework

Just like South Africa, Nigeria has ample potential in the gambling industry. Currently, the country does not have any licensing procedures in place to legally operate an online casino. Having said that, no laws forbid Nigerian players to join offshore online gambling sites and tempt their luck at gambling.

Sports betting sites in Nigeria are legal. This means, players have the option to go online, register at a sports site and place bets. The National Lottery Regulatory Commission is in charge of the legal framework, with many states developing their own licensing bodies, or in the process of.

Latest court cases in Nigeria and South Africa are giving more power to provinces and states to outline gambling laws, with the government ready to support new laws and licensing bodies.

Could South Africa’s decentralized provincial system serve as a blueprint?

Nigeria and South Africa are very much alike in terms of territories. The latter has 9 provinces, with Nigeria having 36 states and the Central Federal Territory. The constitutional infrastructure of both aligns, with states and provinces having their own gambling territories to monitor. Both countries have a love for sports, with both participating in major sporting events such as the African Cup, Boxing and major athletic competitions. Several provinces in Nigeria have already established a foothold in the gambling market with Lagos being a major player. In recent years, we have seen many live events shown on DAZN, TNT and ESPN happening live from Nigeria. Can the country capitalise from that?  Having Nigerian provinces and regions regulate their own gambling laws just like South Africa will see the market grow, flourish and hopefully see also online casinos or fixed odds games being available to enjoy online.

South Africa’s sportsbetting sites have been working with legislators to officially legalize online casinos. Currently, South African players can register as betting sites and enjoy online games. In theory, they are the everyday online games we grew to love at online casinos, but they are called ‘ fixed odds games’ which in the eyes of South African lawmakers, this is not illegal to do.

Having Nigeria states set the gambling regulations for the region, will see the country move forward in terms of progress, and will also please many online punters. Each state can look at the numbers generated by the state and adapt laws and regulations in line with the customer’s gaming needs. Nigeria, can benefit massively from applying South Africa’s decentralized system as a model of excellence or blueprint.

How will Nigeria benefit from developing State gambling laws and regulations?

Having control of gambling within the state is an important factor to consider. The Nigerian states can develop laws based on customer feedback, activity and state needs. Currently, Nigeria players are allowed to visit offshore sites, register and play, so why not have the possibility of doing so within the state?  Nigeria would benefit massively by doing so, and here is what each state can obtain by legalising online casino gaming:

Revenue Opportunities

• Licensing Fees paid by each online casino / sportsbook site
• Collecting of taxes and contribution to the state’s GDP
• Vast employment opportunities for Nigerians
• Economic development by investing tax money into State development.
• Better control on gambling activities happening within the state
• Licensing online casinos will see operators flock to grow in a new and flourishing market.

Things to consider if Nigeria adopts the South African provincial model

Adopting the South African model of provincial licensing can also pose some challenges for Nigeria. With 36 states, 36 licensing bodies would need to be established, with a centralised body overseeing and setting national gambling standards. Whilst each state can opt to have different technical standards, Nigeria needs to find a way to adopt a compliance stronghold. Each license would need to be monitored, and this could be done adopting the South African model of a national legislation. Operators would need to have a closer look at each state, and ultimately decide on which license to acquire. The good news is that states will deal with licensing requirements at a state level, and thus the process would be easier from an operator standpoint.

Responsible Gambling regulations can be outlined at a national level, with each state having to abide by RG. Centralised RG rules will see Nigeria dealing and tackling illegal and problematic gambling, with states having a blueprint of how to help gamblers in need.

Next Steps for Nigeria

With sporting markets and gambling opportunities everywhere, Nigeria could adopt the South African model or go for a hybrid model of provincial gambling. A national gambling authority would set the minimum regulatory standards. Technical infrastructure and requirements can also be standard across all Nigeria. Ultimately, each state would be responsible in issuing licenses, and operators upholding their part by complying to compliance rules set by licensing states.

The above model can mirror South African’s model, improve enforcement and also attract new operators to Nigeria’s markets. Success is achieved when national standards are clearly set, promoting discussion and cooperation amongst Nigerian states.

Success would depend on creating clear national standards, promoting cooperation among state regulators, and ensuring consistent consumer protections across all jurisdictions. Online Gambling is indeed a growing market, with Nigeria benefitting massively by adopting a standard regulatory system within each state collaborating.