- Africa’s gaming industry is rapidly expanding, with mobile phones driving participation—94% of bettors use mobile devices, and countries like South Africa, Kenya, and Nigeria report betting rates above 70%.
- By 2026, improved internet access, cheaper smartphones, and fintech integration will boost digital gaming, while governments are modernizing regulations to support responsible growth and investor confidence.
- South Africa, Kenya, Nigeria, Tanzania, Uganda, and Ghana are top destinations for gaming businesses, each offering unique advantages in infrastructure, consumer engagement, and regulatory clarity, despite challenges like tax variability and compliance demands.
Africa’s gaming and betting industry is expanding at a pace few other sectors can match. With mobile phones now the primary channel for participation, GeoPoll reports that 94% of bettors across the continent place wagers via mobile devices.
The industry has become deeply integrated into daily digital life. South Africa, Kenya, Nigeria, Tanzania, Uganda, and Ghana have all seen betting participation rates above 70%, highlighting just how widespread and mainstream gaming has become.
Looking ahead to 2026, several forces are set to unlock even greater opportunities. Rising internet penetration, cheaper smartphones, and broader fintech integration are making digital platforms more accessible than ever.
At the same time, governments are modernizing regulatory frameworks, introducing reforms that balance growth with oversight and responsible gaming. For investors, operators, and entrepreneurs, these shifts signal a new chapter where Africa is no longer an emerging market for gaming; it is becoming a global leader in adoption and innovation.
In this article, Gaming Advisory Africa highlights the best countries to start a gaming business in 2026, and the opportunities and challenges each presents.
Best Countries to Start a Gaming Business in Africa
South Africa
South Africa has emerged as one of the most lucrative markets. With over 118.6 million active smartphone subscriptions, a penetration rate of nearly 195%, the infrastructure for online and mobile betting is unmatched.
More than 90% of households own a cellphone, and 58.8% of the 60 million population engages in sports betting, making the consumer base both deep and highly engaged.
From a regulatory perspective, South Africa requires dual licensing: approval from the National Gambling Board and a provincial licensing board. Operators pay a 6.5% provincial gambling tax, but this structured framework offers predictability, a rare advantage compared to fragmented regimes elsewhere.
Kenya
Kenya’s gaming sector has grown rapidly thanks to the dominance of mobile money systems like M-Pesa. In 2025, the government slashed excise duty on bets from 15% to 5% and passed the Gambling Control Act, replacing outdated laws from 1966.
This act introduced new consumer protections, financial oversight, and licensing clarity, making the market more attractive to investors.
With 79% of Kenyans reported as active bettors, and nearly every transaction facilitated through mobile phones, Kenya is one of the most tech-ready gaming environments in Africa.
Nigeria
Nigeria offers scale unlike any other. With a population of 220 million, there are an estimated 168 million active bettors. While only 44% of the population owns smartphones, the overall mobile penetration rate stands at 85%, making the digital market massive.
The regulatory landscape has also become clearer: in 2025, 28 states created the Federation of State Gaming Regulators, paving the way for unified licensing. Alongside Comprehensive Online Gambling Regulations, operators can now anticipate global-standard oversight covering licensing, consumer protection, and compliance.
Tanzania
Tanzania has taken bold steps in compliance and oversight. In May 2025, the Betting Board launched a Central Electronic Monitoring System that requires operators to upload real-time data.
Taxes are automatically calculated and settled through the Bank of Tanzania’s real-time payment system, ensuring transparency and accountability.
While the 25% Gross Gaming Revenue (GGR) tax is high, the system offers operators certainty. With 74% of adults reporting active betting, Tanzania remains a strong growth market for mobile-led gaming.
Uganda
Uganda is fast becoming an East African hub. With a population of 51 million, around 81% actively participate in betting, representing nearly 44.4 million sports bettors.
Mobile penetration is strong, with 43.2 million active mobile subscribers and 18% smartphone adoption. Data costs in Uganda are among the lowest in Sub-Saharan Africa, fueling online gaming growth.
Regulators impose a 20% tax on sports betting and 30% on other gambling activities, but the scale of participation keeps the market attractive.
Ghana
Ghana continues to show steady growth, with 19.6 million sports bettors in a population of 33 million. Smartphone adoption is high, and mobile internet is the primary access point for most citizens.
By the end of 2025, data costs are expected to fall further, fueling online betting participation. Operators face a 20% GGR tax, but the Gaming Commission of Ghana provides a relatively clear regulatory environment compared to some neighbors.
Ghana is also an important gateway to West Africa, offering regional expansion opportunities.
Challenges Gaming Businesses Should Prepare for in Africa
While these countries offer significant potential, challenges remain that investors and operators must account for:
- Regulatory Volatility – Laws and tax regimes can change quickly, as seen in Kenya’s tax adjustments and Tanzania’s real-time monitoring mandates. Operators must be prepared for constant compliance adaptation.
- Taxation Pressures – Rates vary widely, from 5% excise duty in Kenya to 30% on some gambling activities in Uganda. Profitability depends on careful financial structuring.
- Responsible Gaming Enforcement – With mobile betting dominating and a youthful customer base (ages 18–40), regulators are increasingly mandating player protection measures. Failure to integrate these into platforms could mean lost licenses or heavy fines.
- Infrastructure Gaps – While smartphone adoption is rising, rural areas still face patchy internet. Operators must balance advanced apps with lightweight options like USSD integration to capture underserved demographics.
Conclusion
Africa’s gaming market in 2026 offers both unprecedented opportunities and clear challenges. South Africa, Kenya, Nigeria, Tanzania, Uganda, and Ghana stand out as leading destinations for gaming operators, each with unique strengths in mobile adoption, consumer engagement, and regulatory progress.
For investors and businesses, success will depend not just on choosing the right market, but also on navigating regulation, integrating fintech solutions, and embedding responsible gaming.
Gaming Advisory Africa supports businesses with licensing, compliance, risk management, and cross-border expansion strategies. With presence in more than 25 African markets, we ensure operators don’t just enter Africa, but scale sustainably.
