Another challenge is ensuring compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. These issues require constant monitoring and collaboration with other agencies.
iGaming AFRIKA: If I wanted to acquire an online casino license, what would that process entail?
Bashir Are: The process is quite similar to that of obtaining a sports betting license. You need to be a registered business in Nigeria and meet the same local content requirement of 20%. For an online casino, the initial licensing fee is also 50 million Naira, with an annual renewal cost of 15 million Naira.
iGaming AFRIKA: Do operators need to have a land-based casino to run an online casino, or are these licenses separate?
Bashir Are: The licenses for land-based and online casinos are separate. However, operators looking to run both types of casinos may benefit from certain discounts when applying for combined licenses.
iGaming AFRIKA: What technological advancements is the board promoting for betting and gaming companies?
Bashir Are: Nigeria has made significant strides in technology, especially in fintech. For example, we leverage advanced Know Your Customer (KYC) systems to ensure that customers are adequately verified when entering the banking system.
Additionally, Nigeria benefits from extensive broadband infrastructure, supported by six Atlantic Sea cables, which provide strong internet penetration, particularly in major cities. This connectivity is crucial for the growth of online gaming platforms.
iGaming AFRIKA: How is taxation structured for operators and players in the betting and gaming industry?
Bashir Are: Taxation for operators is linked to their level of compliance. The tax rate ranges from 1 percent to 5 percent, depending on how compliant the operator is. For instance, operators with a compliance level of 85 percent to 90 percent enjoy lower tax rates, while those with compliance levels of around 50 percent are taxed at the higher end.
Players, on the other hand, are subject to a tax similar to income tax on their winnings. This ensures fairness and transparency in the industry.
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