The AIA advocates for a sustainable level of taxation for online gambling

Smart Gambling Taxation for Africa: The Evidence

The African iGaming Alliance (AIA) advocates for a 20% GGR tax and no other taxes — the global standard for sustainable online gambling markets. 

Here’s why, based on H2 Gambling Capital’s May 2025 report:


Why 20% GGR?

  • Optimal balance: A 15–25% GGR tax maximizes tax revenue while keeping players in regulated markets.
  • Avoids player pushback: Taxes on winnings drive players to illegal sites, costing Africa $11 billion in lost taxes by 2029.
  • Fair competition: GGR taxes allow operators to compete with illegal markets, unlike stake taxes, which can result in 100%+ effective tax rates.
     

Key Findings:

  • Player taxes backfire: Withholding taxes and stake taxes push players offshore, reducing tax revenue and increasing risky gambling behaviour.
  • Hidden costs matter: Payment fees and monitoring levies can add 15–20% to effective tax rates, making legal operators uncompetitive.

AIA's Recommendation

Tax operators, not players. Use GGR taxes (15-25%) to:

*Source: H2 Gambling Capital, Optimum Tax Structure for Africa (May 2025).

Protect players (keep them onshore)

Grow tax revenue sustainably

Combat illegal gambling

AIA members are licensed in 20 countries across the continent

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