The Legal Side of iGaming: Betting and Gambling Lawyer's Perspective on Global and African Markets

In this article, we dive into the complexities of the legal side of the gaming industry. 

Vivi Lucy, Head of Legal at Velex Advisory sheds light on the rewards of her line of work as well as the landscape overview and its intricacies. 

The Rewards of Leadership in Legal Advisory

Vivi Lucy, a seasoned lawyer, reflects on the multifaceted rewards of her role. She outlines some of the skills she has picked up along the way in her legal journey such as;

• Problem-Solving: A significant part of her job involves tackling complex legal issues. "Whether dealing with compliance matters, disputes, or contracts, the challenge of devising creative and strategic solutions remains intellectually stimulating and deeply rewarding to me," shares Vivi.
• Cross-Functional Collaboration: Working closely with departments like HR, Finance, and Operations, Vivi has developed strong relationships across the organisation. This collaboration not only enhances the company’s internal operations but also places her in a position to drive meaningful change.
• Managing High-Profile Legal Matters: Vivi highlights her involvement in critical legal areas such as licensing across jurisdictions, regulatory compliance, intellectual property, data protection, AML (Anti-Money Laundering), and responsible gambling initiatives. "Being able to successfully navigate these high-stakes matters provides me with a sense of accomplishment and prestige," Vivi tell us.

The Legal Landscape of iGaming: Global and African Perspectives

Vivi Lucy, provides a comprehensive overview of the current state of the industry, focusing on both global trends and the African context, since the iGaming industry operates within a highly regulated environment, marked by significant regional variations. 

In Africa, sports betting leads the iGaming sector, with a particular focus on football. Countries such as Nigeria, Kenya, and South Africa have experienced remarkable growth in platforms catering to European football leagues, reflecting the region's deep-rooted passion for the sport. In contrast, online casinos face more restrictive regulations across many African jurisdictions. Where permitted, operators offer games like slots, roulette, and poker, but lingering legal uncertainties often challenge their operations.

Lotteries enjoy broader acceptance across the continent, largely because they are typically government-run and contribute to public development projects. However, taxation policies vary widely, with some nations imposing high rates that deter operators from entering these markets.

"Player protection and responsible gambling measures are beginning to emerge, though enforcement remains inconsistent. While restrictions on advertising and youth gambling are becoming more common, the supporting infrastructure for responsible gambling is still underdeveloped in many African countries," Vivi told betting news site, SportsBoom.com. 

The role of technology and mobile gaming has been transformative, especially in nations like Kenya, Nigeria, and Ghana. Mobile payment systems such as M-Pesa have made betting far more accessible, driving the sector’s growth. However, social and cultural factors continue to shape the regulatory landscape. For instance, in Muslim-majority countries like Egypt and Morocco, strict prohibitions on gambling prevail, while Sub-Saharan nations generally display a broader acceptance.

Navigating Compliance in iGaming

For operators in the iGaming industry, compliance with legal and regulatory standards is paramount. This includes navigating licensing requirements, adhering to jurisdiction-specific restrictions, and implementing anti-money laundering (AML) and Know Your Customer (KYC) protocols. Vivi Lucy highlights the critical areas of focus:

• Licensing: The complex and varied licensing requirements across jurisdictions demand meticulous attention to detail and legal expertise.
• AML and KYC Compliance: Robust customer verification and ongoing monitoring are essential to prevent illegal activities and maintain trust.
• Player Protection: Operators must actively promote responsible gambling through measures such as self-exclusion programs, deposit limits, and educational initiatives.
• Data Privacy: Ensuring the security of player data through encryption, regular audits, and incident response plans is critical for both compliance and maintaining player confidence.
• Responsible Marketing: Adhering to advertising guidelines helps operators avoid targeting vulnerable groups or engaging in misleading practices.

AML and KYC in the Digital Era

"The digital transformation of the iGaming sector, especially here in Africa has amplified the importance of AML and KYC practices," Vivi shares. 

Enhanced customer verification methods, such as AI and biometric technologies, are now central to ensuring the authenticity of players. Advanced transaction monitoring systems analyze user behavior to detect potential money laundering or fraud. Additionally, AML tools are increasingly integrated with responsible gambling measures, helping to identify patterns that may indicate problem gambling.

Vivi Lucy’s insights emphasise the intricate balance required to navigate the iGaming industry’s regulatory frameworks. Success in this field demands more than legal compliance; it requires innovation, cultural sensitivity, and collaboration across stakeholders. As the industry evolves, the role of legal advisory teams like Velex remains crucial in shaping its future, ensuring that operators not only meet regulatory standards but also contribute positively to the broader gaming ecosystem.