The upcoming locale will be a totally independent operation catering to the emerging African market and its global citizens. It will serve multiple SSG licensees.

SSG’s Expansion Goals

SSG Co-Founder Albert Climent said that the new studio is part of his company’s continuous commitment to extending its global reach. He said that, as a global content provider, his firm’s priority is to keep their local and global services constantly improving. He added that increasing his organisation’s unique selling proposition over its competitors is key and was a large part of the decision to move the next venue to Africa.

Climent stated that not only will SSG be creating a range of jobs locally, the company will also be offering games customised to the tastes of African consumers, with a special focus on the Eastern and Western countries.

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The Current Infrastructure 

Gambling regulations currently operate under the exclusive scope of the Ghana Gaming Commission, which oversees regulation for both land-based and online casinos. The 2006 Game Act 721 is the basis for the laws as they stand at the present time.

As many as 45% of Ghanaians over the age of 18-years partake in some kind of licensed gambling, be it offline or on the internet. In land-based venues, the most popular choices of card games, table games like Roulette, and slots. Accra hosts the vast majority of land-based casinos offering these, with six full-fledged operations running as of 2021, but there are also locations within Kumasi and Thema.

Digital operators are also commonly found in urban centres, with the primary focus for these once again being slots, although card and table games are also popular. This is particularly true for more competitive, interactive games like poker, which allows for a deeper level of immersion online.

The Factors Driving Game Popularity 

The relatively recent legalisation of casino games in Ghana is a large reason for the demand for them. 

The emerging tourist market in this country is another important element. In 1996, around 300 000 international visitors came here annually, but this number has exceeded 800 000 more recently. This is thanks to an increase in investment in this sector and Ghana’s recent upgrade to a middle-income country. When important oil reserves were discovered offshore, the economy saw a massive boost and injected cashflow into a range of different industries. 

In terms of online operators, the most important driver is faster internet and improved connectivity. A 2019 study revealed that Ghana ranked eighth on the continent in terms of download speeds, and this, when combined with higher adoption rates, has seen an increase in engagement with internet-based casinos.

In 2019, Ghanaians average internet download speed was 3.2 Mbps, on par with the rest of Africa, but lacking when compared to the rest of the globe. Surprisingly, both virtual online casino games and those featuring live dealers, which require streaming, have incredibly low data requirements. When this is taken into account with incentivising offers like huge progressive jackpots and generous welcome bonuses, it becomes clear why so many Ghanaians are logging in so often.

The Way Forward

Ghana will likely keep developing along the lines it has already established, although there are certain elements that remain unclear. With wired internet connections continuous improvement and the increase in availability and speed, rural audiences will be able to enjoy the same quality entertainment as their more urbane counterparts.

Ghana’s already high adoption rate for mobile devices, 55%, is also predicted to improve. Lower prices and better 4G coverage will no doubt see connection numbers rising year-on-year. Cultural shifts will also play a role here, with the younger generation being more willing to explore the technological landscape. 

This generation will also be the cause of international operators seeking out Ghana. Getting a license to operate within these borders is not a particularly bright prospect right now, but more players mean more interest. This factor will also foster interest in local developers, and both will result in major economic benefits in terms of jobs and tax.

Physical casinos in the country will probably keep expanding as well, albeit to a lesser extent. The country’s desirability as a tourist destination will play a role, as will youth participation and the lay of the land economically speaking. A population with money to spend is a group looking for entertainment and this will drive the market until 2030 and beyond.

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The gaming market in South Africa is a robust one, with a gross gaming revenue of almost R35 billion expected in 2020 which is predicted to expand by a compound interest rate of 6% annually. Casino games total over 70% of gaming revenue, with one in every 10 South Africans enjoying these regularly. 

Vegas Lounge® Mobile Live Dealer Games

IGL is a first-rate supplier of management systems for retail gaming and they will be distributing Playgon’s proprietary Vegas Lounge® suite of live dealer games for mobile users. These titles have all been developed for beginners and seasoned players alike and provide fast functionality along with a range of in-game options. They have all been optimised for one-handed gameplay in portrait mode. 

Playgon Chief Executive Officer Darcy Krogh stated that the African gaming market presents a wonderful opportunity for his business’ product. He added that he’s thrilled to be partnering with one of South Africa’s foremost iGaming aggregators in IGL and revealed that he’s very excited about developing the products together in the expanding market going forward.

Intelligent Gaming CEO Marc Plaxton-Harrison was equally delighted about the partnership, commenting that his team is always on the lookout for fresh content to deliver to their South African customers. He described the Vegas Lounge® product as one obviously designed with players’ needs at the forefront and stated that he is sure that consumers are going to love it.

IGL Will Also Integrate Supabets 

Along with the Playgon Vegas Lounge® suite, IGL will also onboard its premier operator, Supabets. The noteworthy casino and bookmaking brand boast an extensive business in Africa, with digital and land-based operations in Ghana, Nigeria, South Africa, Tanzania, Zambia, and Zimbabwe.

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This latest deal follows Revolver Gaming’s distribution agreement with SoftSwiss. The latter gambling software developer provides complete solutions for opening online casinos and the deal sees this firm’s clients gaining access to the slots as well. 

Hollywoodbets is a leading brand, employing 5 000+ people locally and licensed to offer casino games and bookmaking products and services in Ireland, Mozambique, and the United Kingdom.

State-of-the-Art Slots

This agreement will allow Hollywoodbets to provide access to already-released reel games like The Big Deal, Dragon Coins, Irish Coins, Reign of Gnomes, and Robin Hood and His Merry Wins, as well as forthcoming attractions.

Additionally, Hollywoodbets will soon receive highly anticipated titles like Neon Blaze and Thor of Asgard to add to its already impressive portfolio.

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An Unequivocal No

In a media statement, the NGB has said that it is 100% illegal to engage in games of chance with online operators. This update was extended not just to the general public but to online operators as well. Anyone offering any kind of gambling product or service to South Africans are guilty of an offence and will be subject to criminal prosecution. 

The NGB cautioned citizens that any kind of participation is illegal and stands a criminal offence, with the punishment of a fine of as much as R10 million possible or a jail term of 10 years. Winnings will additionally be confiscated and absorbed by the state. 

The NGB referred to Section 11 of the National Gambling Act 2004 which states that unauthorised interactive gaming is against the law and people are not allowed to engage in these activities. While this law would have been lifted by the National Gambling Amendment Act of 2008, passed in July that year, it has never come into effect. It will only become operational when it is published by the Government Gazette, which has not yet occurred. 

Because this revision will only take hold when the President fixes a date to do so and it is proclaimed by the Gazette, it cannot be referenced in terms of iGaming. The 2004 Act stands supreme as a prescript in terms of online gambling in South Africa and in terms thereof, it remains forbidden.

Land-Based vs Online Gambling

Examples of interactive gambling in South Africa are defined as those available via smartphones, tablets, and desktop computers. While casino games at brick-and-mortar venues are lawful, these need to have a valid license prominently displayed by the necessary licensing authority. Any setting which does not have this permit in place will be deemed illegal and operating against national and provincial gambling legislation.

The onus is on both operators and would-be players alike to ensure that any games of chance are legally being provided because failure to do so stands as criminal conduct. The NGB went on to say that anyone found guilty of this kind of activity will be punished to the full extent of the law. 

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Widely held to be one of the most important and original brands in the nation, the sportsbook has an extraordinary online reach and a very powerful retail presence. The brand has firmly established itself as one of the most dependable, reliable, and up-to-date bookmakers in Nigeria and has once again broadened its horizons.

Soname’s Excitement

Kunle Soname, Chairman and Co-Founder of Bet9ja, spoke of how excited his organisation is to announce the LiveG24 partnership. He stated that everyone is eager to start delivery on the exciting, innovative games this company creates. 

Soname spoke of his business’ commitment to making sure Bet9ja customers can access market-leading casino games. He stated that the game catalogue coming to his company will give players the finest possible Live Dealer playing experience anywhere.  

De Gobbi is Thrilled

Chief Operating Officer for LiveG24, Angelo De Gobbi, echoed Soname’s goodwill. He revealed that his organisation is greatly anticipating its games’ being released on the Nigerian market. He said it’s a new one for his brand but he’s positive that players will immediately take to the clear user interfaces the live games feature and can fully trust their reliability. 

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This first-rate property has changed hands many times since it was initially leased to a gambling company with Italian links in 1968. The twisted tale ended up featuring court battles, suspicious changes of ownership, and the caveat emptor that led to its being razed. 

The Origin Story

The story starts on October 1, 1968, with the Kenyan government awarding Tourist Paradise Investment Limited a 15-year lease for the I.587ha location. The terms and conditions attached to this agreement stated that, upon the expiry of the lease, all equipment would become the government’s and the buyer would not be compensated. The same rule was to apply for any improvements made to the area. 

The lease was renewed in 1982 and registered for seven years in 1983. On September 22, 1994, the rental agreement was again extended, this time for 19 years. 

Things Fall Apart

Tourist Paradise Investment Limited charged the property and buildings to the National Credit Bank Limited for a loan of KSh60 million in 1994 with consent from the Commissioner of Lands. In 2000, the asset management company additionally granted the location as a promissory note and guarantee to NCC Bank as extra security of their existing loan facility of KSh100 million. This time there was no consent given. 

Tourist Paradise Investment Limited then started subletting sections of its business at Museum Hill, again without permission, and then reneged on their remit of a 1.5% payment of monthly gambling wins as training fees. They ended up refusing to pay an amount which eventually totalled KSh11 million.

As of the end of June 2000, Tourist Paradise Investment Limited had also baulked at paying over their 12% Gambling Tax on monthly winnings, and this debt rose to KSh80 million. Rent had also not been paid and finally, the government stepped in, stamping the location with a caveat emptor. 

This did nothing to stop the tenants from continuing to conduct their business, however. But after Ketan Somaia had acquired an 80% stake in its shares, the organisation failed to service its KSh180 million loan. 

This saw the bank selling the complex to Galaxy Walker Ltd and the buildings being torn down, taking with them a circuitous tale of mismanagement and broken contracts.

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South Africa’s land-based casino industry has been a major source of revenue for decades. The rigorous lockdown measures that the country enforced had a huge impact on its brick-and-mortar gambling establishments, and thus contributed to the overall economic downturn related to COVID-19. However, there are signs that suggest a good post-lockdown recovery for the sector.

South Africa’s Impressive Market

Many countries in Africa are emerging as potentially prosperous gambling markets, and South Africa’s industry (which has shown year-on-year growth for the past decade) is among the most established and profitable on the continent. The only country that currently generates more revenue is Egypt; the North African country has gambling-related profits that are 35% higher than its Southern neighbour.

Hit Hard by COVID-19

South Africa imposed some of the world’s strictest social distancing and lockdown measures in response to the novel coronavirus, which caused the nation’s economy to grind to halt. Almost every industry was affected, and non-essentials like restaurants and casinos were hit the hardest. Tsogo Sun’s gambling arm, Tsogo Sun Gaming, lost an estimated US$11.6.05 million.

Staging a Serious Comeback

Happily, as social distancing regulations start to ease, it looks as if South Africa’s casinos are already bouncing back. While several businesses including smaller bed-and-breakfasts, beauty salons and eateries were forced to shut down permanently, casinos around the country are already showing renewed profits.

Lockdown has been relaxed into a curfew situation, allowing casinos and other businesses to operate between 9:00 am to 8:30 pm every day. And players seem to be benefitting as much as the operators themselves in the two weeks that this has been permitted, Powerbet Gaming has paid out 142 jackpots worth more than ZAR 50,000 (or US$ 3,000) and has even minted not one but two new millionaires.

Graham Wood, Chief Operating Officer for hospitality of resort hotel and casino chain Sun International, reported trading levels had already reached 50% to 60% of the previous year. And since the industry contributes around 1% to the country’s overall economy, this is good news for all citizens of South Africa.

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A South African clinical psychologist has warned that reopening casinos could cause some of the country’s more cash-strapped citizens try gambling as a quick solution to their financial troubles. Samukelisiwe Mthembu works at a specialist clinic treating drug addictions, eating disorders and other maladaptive behaviours including gambling addiction.

She asserts that the temptation of an easy fix with a gambling win could threaten family food security, which is already fragile, even further. Fuelled by alcohol, individuals’ inhibitions could be lowered even further causing them to gamble and argue more, potentially escalating into gender-based violence. The behaviour could also be used as a way to act out and avoid the current harsh reality.

New and Escalating Behaviour

Mthembu explains that during the toughest lockdown periods, a marked increase in new online bettors was noticed. Their stakes remained quite small, but 64% of established gamblers increased the amount of time, money or both that they spend gambling. In other words, more people were gambling than ever before, and those who had been doing it before increased their activity.

Mthembu further elaborates that gambling addiction works in the same way as any other addiction does. The addicted individual will go to great lengths to access gambling facilities, just as the alcoholic will do almost anything when craving a drink. The added financial stress that COVID-19 and lockdown measures have imposed is likely to simply increase that.

The newer bettors who started out with relatively small amounts could escalate and start spending more when casinos reopen, and Mthembu also says a rise in illegal gambling operations is not unlikely. Acting out on their compulsive behaviour is also a quick way to induce feelings of pleasure for at least a short time, and this may be followed by shame, which could lead to aggression and violence.

The Cycle of Gambling Addiction

Any financial concerns or difficulties in interpersonal relationships, which have become more common over the pandemic, could cause pathological gamblers (and addicts of any kind) to increase risk-taking behaviour. With so much more stress and so much time being spent at home, Mthembu went on, it would be easier than ever to develop a destructive cycle of gambling, winning, losing and desperation.

As they try to desperately win back their losses and are unable to stop even when they do get the money back, life savings, family relationships and careers are all seriously jeopardised and often sacrificed. When individuals get really desperate, they may even turn to criminal activities in order to fund their habit.

Lockdown Increases Need to “Escape”

Gambling can also be linked to other addictions, of processes (such as shopping addiction or an eating disorder) or substances (such as drugs or alcohol). All of these behaviours cause dopamine to be released in the brain and chasing down that feeling of euphoria to “escape” reality becomes central to the addictive behaviour – especially during this difficult time.

Though gambling addiction is a complex issue that involves emotional, cognitive and physical elements, it can be successfully treated. However, Mthembu notes that this is much more successful in a long-term therapeutic situation. The seeds which might be sown during the desperation of lockdown, or the roots which continue to thrive, could take years to weed out.

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Until recently, South African casinos had no reason to believe that they would be able to reopen, post COVID-19 lockdown measures, any time soon. However, as Moneyweb reported on Friday the 12^th of June, that may have all changed.

With the country coming down to Alert Level 3, most economic sectors have been permitted to operate while taking certain precautions – to the extent that even professional sports have been allowed to resume.

However, the ban on entertainment venues and personal care services (including hairdressing) was expected to hold fast for the foreseeable future. Now a change in regulations, published on Thursday the 11^th of June in the Government Gazette, has given operators new hope.

What the Gazetted Regulations Say

Cinemas in the country submitted an application to collaborate on a coordinated industry opening with their competitors. The gazetted regulations don’t stipulate a timeline, but they do show that the government is working on a plan that will allow theatres to resume operations in this way.

From there, insiders believe it’s a small step to opening South Africa’s popular land-based casinos once again. There has been hope for this to happen as early as 1 July, and Tsogo Sun Gaming Chief Executive Officer Chris du Toit says there “is no reason” why they wouldn’t be able to.

Well-Position for Safety Measures

In many ways, casinos are well-designed for and very adaptable to efforts to control the spread of the novel coronavirus. The fact that they can be configured to minimise and mitigate infection is one of the arguments that proprietors are putting forward for reopening.

For example, as Du Toit explained to Moneyweb, every second slot machine could be switched off thereby ensuring social distancing among players. This was among the measures taken at Botswana’s Grand Palm Hotel, Casino and Convention Resort when it re-opened at the beginning of June.

In addition, casino floors are heavily surveyed with strong security and strict access control already – all of which should make it easier to limit the number of people on the floor at any given time. Establishments around the world have all introduced controls that South African casinos could apply.

In Illinois, casinos have refrained from offering food in the traditional buffet format, and Poker rooms (which involve players handing chips and cards) have been banned in Pennsylvania. Handwashing stations have appeared on some Las Vegas floors, and pool parties stipulate social distancing.

Bulgarian regulators have ruled that gamblers must wear gloves and masks at all time, and plexiglass dividers between each slot machine are being considered in Canada’s British Columbia province. These ideas could all be adapted as necessary and incorporated into South Africa’s plans.

Local operators have also suggested limiting crowds, enhancing cleaning routines, and regularly screening all patrons for fever. Reopening does need to be carefully planned out, but it could mean a major boost for the economy – which is causing as much concern as COVID-19 these days.

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