Key Moments:
- Unlicensed betting has reached P500 million, doubling the legal market’s size
- Botswana has approximately 550,000 active bettors, with less than half using regulated operators
- Super Group reported $646 million in African revenue between January and September, partly fueled by Botswana
Market Growth Accelerates Outside Official Channels
Botswana’s gambling industry is experiencing rapid expansion, but the most significant growth is occurring beyond the reach of regulators. According to a joint report from the Gambling Authority and the University of Botswana, activity in the unregulated betting sector has soared to P500 million – a figure that is two times greater than what is generated within the legal market.
Legalization Efforts and Persistent Challenges
Speaking at the Botswana Economic Forum, acting CEO Moruntshi Kemorwale noted the swift changes within the sector. For the first time, the Gambling Authority granted licenses to online sports betting platforms earlier this year, which sparked a spike in engagement, especially among younger bettors. Despite this progress, offshore operators have seen an even faster rate of expansion. Kemorwale emphasized that the gap between regulated and unregulated gaming continues to widen as a result.
Factors Driving Preference for Offshore Sites
Out of Botswana’s estimated 550,000 active bettors, only 220,000 currently favor licensed gambling operators. The majority are opting for offshore websites that are attractive due to rapid mobile payment processing, accessible interfaces, and generous bonus offers. Younger demographics, in particular, consider these international platforms more convenient and rewarding than their regulated counterparts. However, these sites operate without regulatory oversight, offering no assurance of fair gameplay, responsible gambling features, or restrictions for underage participants.
Regional Impact and Competitive Dynamics
The betting surge is mirrored across the region, as evidenced by financial performance from industry stakeholders. Super Group, owner of Betway, reported $646 million in revenue from Africa between January and September, with a portion attributed to strong activity within Botswana. Despite these gains, the legal sector has not kept pace, and many local bettors cite comparatively lower payouts and stringent regulations as reasons for turning to offshore alternatives.
Regulatory Approaches and Future Outlook
Kemorwale suggested that one way to address these challenges is to integrate currently unlicensed websites into the regulated market, effectively transforming them into licensed and supervised operators. This approach may help recapture lost tax revenue and provide greater protections for consumers. In the meantime, Botswana continues to manage parallel markets – one compliant with regulations, and the other operating beyond the established legal framework. Moving forward, the primary objective is to encourage more players to return to licensed platforms before the disparity increases further.
| Sector | Value | Notes |
|---|---|---|
| Unlicensed Betting | P500 million | Twice the size of the legal market |
| Active Bettors | 550,000 | 220,000 with licensed operators |
| Super Group Africa Revenue (Jan-Sep) | $646 million | Includes substantial Botswana contribution |
- Author
Daniel Williams
