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Gambling Industry in Mozambique Understanding the Process

The gambling industry in Mozambique is a country located in the Southern Eastern part of Africa, and its capital and largest city are Maputo.

According to World Bank, the country’s GDP growth rate in 2020 was 1.3 annual change, and its Gross Domestic Product was 14.02 billion USD in the same year (2020). The country’s official language is Portuguese, and its currency is called Metical (MZN).

Gambling of all forms is legal in the country; on 11 January 2009, former President Armando Guebuza signed the amendment to the 1994 gambling law.

The Mozambique government’s enactment of the amendment erased strict restrictions on the establishment and operation of gambling in the 1994 law to boost tourism in the country. They introduced several changes, like cutting down the minimum startup capital to US$ 8 million from a previous US$15 million, legalizing slot machines for operators outside their primary business, legalized online gambling, to mention a few.

At the same time, online gambling has been legal since 2010, legalized by the 2010 gambling legislation Decree 64/2010. Foreign operators can also acquire an online gambling license. Due to its favourable tax laws on gambling, low operational cost, and transparent legal framework, Mozambique is quickly emerging as one of the most promising and lucrative lotteries, sports betting, and casino playgrounds for gambling firms.Industry

How to start a gambling business in Mozambique:

Gambling Licenses in the country are being issued by the Mozambican General Gaming Inspectorate (Inspectccao- Geral de Jogos), which is part of the Ministry of Economy and Finance. An investor or a foreign company willing to start a gambling business in the country must set up a new local company; the shareholder of this local company can be an individual, but I strongly recommend that it be the foreign company operating in the country of origin. After the company’s incorporation, the next step is to apply for a license along with the needed documents to compile the gaming license application.

When all requirements are met, it will take a week to incorporate, while procedures for application may take 3 to 5 weeks. The license issued has a maximum length of 5 years, renewable once the published years elapse.

Cost and tax in Mozambique Gambling Industry:

For prospective companies interested in getting a license, the cost of the license is US$ 1,700 based on the mode of the game, i.e. lottery, sports betting, virtual, amongst others. It is also mandatory to pay the premises licensing fee of US$ 500 for either website or the shop. As for the operating cost, 8% is being charged by the government monthly of Games Generated Revenue (GGR) for all retail operations in the country.

Also, 10% (GGR) for online activities, corporate income tax of 32% on the profit yearly, individual income tax of 10% on cash prices, and stamp tax of 5% on lottery ticket prices plus 5% for cash prices.

Payment methods in the country: The country’s most widely used payment system is still electronic: debit and credit cards. However, the mobile payment system is gradually growing. Mpesa is the most popular mobile payment in Mozambique, but others like ecoPayz, one of the leading e-wallets operating in the country. There are also others like eMola and Mkesh.

The attitude of Mozambicans towards gambling:

The generally accepted form of gambling across the country is still retail. Despite the growth in mobile and online betting, punters still place wagers through agents in many areas of Mozambique. Retail shops are often crowded, especially during match days. Giant flat screens showing various sports events are massive attractions to draw fans, and betting shops are strategically located in a densely populated city area where large and mainly unemployed sport-loving fans can find.

It is a fact to know that one current challenge for the retail consumer in Mozambique is queue times. Many customers spend over twenty minutes in queues, but they bear in because they feel more confident in staking their bets in front of the shop cashier than using their smartphones. Some bettors still want to feel sure about identifying where to top their accounts or redeem their winnings in shops.

Online Betting in Mozambique

Online gambling is legal and regulated in Mozambique; the law 2010 was put in place by the regulatory body. There is an increase in online betting due to smartphone usage. The availability of the internet has also helped propel the industry with easy ways to stake, deposit and withdraw at one’s convenience. Virtually all operators in the country provide an online betting option for punters; any punter with a mobile phone can place wagers easily.

Conclusively, the Mozambique betting industry is experiencing a remarkable rise, evident in the number of bookmakers launching their brands in the country. With a population of 31.26 million people and 3.5 million active bettors, sports betting in the country is a lucrative and very profitable business for any intending operator.

Azu Chima
Azu Chima
I am Azu Chima, a Content Writer, Reporter, and Sports analyst with over 4yrs experience in the African gaming industry in both B2C and B2B.

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