Zimbabwe Turns to Online Gambling to Plug Economic Deficits

Zimbabwe is planning an overhaul of its existing gambling legislation, to wit the Lotteries and Gaming Act, and expand the existing gambling options available in the country. The news was confirmed by Information Minister Monica Mutsvangwa who said that the government had already approved the changes to welcome interactive forms of gambling that will include sports betting.

Liberalizing Gambling While Limiting Illegal Activities

The chief argument presented by officials was that the original version of the legislation was introduced in 1998 and it was no longer fit for the needs of consumers nor reflective of how the industry has evolved over the past two decades. The last time the Gaming Act was amended was back in 2001 and then in 2002.

Minister of Home Affairs and Cultural Heritage Kazembe Kazembe explained that the cabinet had received and approved the amendments to the Lotteries and Gaming Act in order to boost the revenue collection from the industry. Kazembe explained:

Essential amendments to the Act include provisions allowing online gaming and compelling operators to incorporate technology compatible with LGB systems for monitoring and control purposes.

Minister of Home Affairs and Cultural Heritage Kazembe Kazembe

Presently, the government is missing out on a lucrative sector that is taking place anyway, with the proceeds from which are remitted to unregulated gambling operators. This needs to be plugged, Mutsvangwa weighed in cited by Zimlive, a local media outlet. The regulator, the Lotteries and Gaming Board will continue to exercise oversight and guidance over the industry.

The new laws are not only meant to ensure that operators step into the light in terms of licensing, but also that there is no room for any entity to conduct money laundering activities through betting in the country. Mutsvangwa is confident that the changes will ensure healthier revenue for the state coffers while also mitigating money laundering risks.

Bringing the Right Partners and Investors to Make It Happen

Mutsvangwa already confirmed that the government has received offers from companies that will assist with ensuring that revenue collection is carried out in full. The delay in the expansion of gambling legalization has been privately attributed to private interests with some government officials stipulating that there has been a lobby on behalf of unlicensed gambling companies that are not obligated to pay taxes in the country but can still collect revenue from betting activities.

The amendment seems to be focusing on sports betting for the most part. This comes at an auspicious time for Zimbabwe as Entain and 888 have both begun building up their momentum in the region just as countries are looking to regulate gambling better.