H2 Data: 15–25% Tax Range Is the Sweet Spot
Supporting the call for smarter regulation, Opoku-Asare cited research from H2 Gambling Capital, recently published in iGaming Africa. The report forecasts the African iGaming industry could reach $22 billion in size by 2029, but only if 90% of betting activity is channelled through legal operators.
H2’s analysis warns that tax rates above 30% of Gross Gaming Revenue (GGR) render the market unprofitable and ineffective. Instead, 15–25% is identified as the optimal tax band—maximizing both tax receipts and legal market participation.
Ghana Takes the Lead
Ghana was spotlighted as a country embracing forward-thinking reform. The government plans to abolish its 10% withholding tax on player winnings and eliminate the 1% mobile money levy in 2025—moves designed to boost channelisation, support legal operators, and increase tax revenues.
A Three-Point Agenda for Reform
Opoku-Asare concluded with a clear roadmap for policymakers across Africa:
1. Tax Operators, Not Players – Remove visible customer-facing taxes.
2. Tax Revenues, Not Transactions – Avoid taxes on stakes, deposits, or withdrawals.
3. Prioritize Channelisation – Structure tax rates to encourage legal betting activity.
About PawaTech
PawaTech is a leading African iGaming technology provider, powering the betPawa brand across 17 African countries and serving over 7 million customers. With a commitment to transparency, local partnerships, and responsible growth, PawaTech is a strong advocate for regulated, sustainable gaming ecosystems on the continent.