Payment service provider pawaPay has called on gaming regulators across Africa to develop policies that support licensed gaming operators rather than drive them away.
Speaking at the Africa Gaming Regulators Briefing of the Africa Gaming Expo 2025 held in Lagos, Chief Financial Officer of pawaPay, Aaron Markowitz-Shulman, underscored the impact of regulations on the betting and payments markets.
“We have seen firsthand how poorly planned policies—whether the result of overly bureaucratic or short-sighted decision-making—can disrupt the entire (gaming) ecosystem,” Markowitz-Shulman stated.
“These bad actors have a lower cost base and start a vicious cycle where it is impossible for companies in your countries to compete with these operators. As a result, regulation fails, and the tax base suffers,” he added.
Markowitz-Shulman highlighted that effective regulation is crucial for driving thriving markets that benefit businesses and boost tax revenues, remarking, “Africa is on track to become the largest consumer market on the planet. Betting is the backbone of Africa’s fintech and payments infrastructure.
“Disruptions in this sector do not only affect tax revenues but also the critical financial infrastructure that supports several other services.”
pawaPay’s CFO also cautioned against poorly designed policies, stating that they create unnecessary barriers for compliant local businesses, making it easier for unlicensed foreign operators to dominate.
“The wrong regulation or tax policy makes it too expensive for local companies to operate. It drives them out of the regulated space, allowing bad actors to take over, harming both the tax base and regulatory power,” he warned.
According to Markowitz-Shulman, flawed monitoring systems aimed at improving tax compliance can also be counterproductive if not properly executed.
“If monitoring systems cannot handle industry-wide traffic, transaction volumes will drop. Lack of competition in payments can also increase costs, making it less attractive for compliant operators to continue business. This, again, benefits the grey market,” he explained.
Markowitz-Shulman urged regulators to collaborate with industry stakeholders to develop fair, transparent, and operationally viable policies, noting, “Responsible operators want regulation, and they want to work with regulators to protect competition. Strong regulatory oversight ensures local, tax-paying companies can compete with unlicensed offshore firms that evade taxes.”
He explained how gaming was interconnected with fintech in Africa, commenting, “In 2024, pawaPay processed 740 million transactions—nearly 25 transactions per second—totalling more than $2.5bn. Betting is still our biggest segment. We processed a billion dollars in betting payouts, corresponding to an estimated $400m in gross gaming revenue.
“Because these transactions flow directly through us, we see what legit operators stand to lose (and the tax base that will disappear) when it comes to poor legislation.”
He added that payments are the conduit that ties together betting companies, consumers, financial institutions, central banks, and government agencies.
Regulatory agency heads, including the Director-General of the Oyo State Gaming and Lottery Board.
Vice Chairman of the Federation of State Gaming Regulators, Olajide Boladuro, emphasised the need for a unified regulatory approach.
He said, “The African market must be well-regulated to reduce underage and illegal gambling. We also need to use technology to strengthen enforcement.
Boladuro noted that Nigeria’s Supreme Court decision in 2024 established the Federation of State Gaming Regulators as the country’s gaming authority, requiring all operators to register with the body.
“Every operator must comply with our rules. The framework is the same across the country, and we invite both local and foreign operators to do business within the legal framework,” he said.
Vice President of the International Association of Gaming Regulators, Barbara Kelly, called for continued cooperation among regulators to address illegal operators, stating, “Regulators need to keep the conversation going and work with gaming operators, who have deep knowledge of their customer base and products. Collaboration is key.”
Meanwhile, the Head of Technological Innovation and Service Modernisation at Angola’s Gaming Supervision Institute, Clésio Dias, stressed the role of technology in regulation, explaining, “Technology should be the backbone of all gaming regulation. Standardisation across jurisdictions and adaptation to local realities are essential for regulatory success.”
Dias also proposed moving betting operations from kiosks to small shops with surveillance to curb underage gambling.
Other speakers at the briefing included representatives of the Western Cape Gambling and Racing Board, Lagos State Lotteries and Gaming Authority, the International Gaming Standards Association, and Kenya’s Betting Control and Licensing Board.
Discussions covered regulatory harmonisation, market structure, responsible gaming, and licensing innovations, including QR-coded licensing.
The Africa Gaming Expo 2025 showcased the growing need for strong regulatory frameworks to support the gaming industry while protecting consumers and ensuring compliance across the continent.
