By Benadetta Chiwanda Mia:
The Malawi Gaming and Lotteries Authority (Magla) is set to issue six new licences to operators, bringing the total number of licensed operators in the country to 18 by the end of 2024.
Magla Director General Rachel Mijiga said the move underscores the significant investment opportunities within Malawi’s gaming sector.
“The good news for Malawi is that the new regulations provide for a 20 percent local shareholding in real equity for any investment coming into Malawi in the sector. This ensures that Malawians begin to invest in the sector and contribute to their own GDP per capita growth,” Mijiga stated.
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Mijiga highlighted the gaming industry’s resilience, noting significant growth driven by strategic partnerships and constant engagement with license holders.
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“The industry has quadrupled over the past 24 months and the authority has increased its staff numbers by 200 percent during the same period. Gaming is poised to be the next big thing for the next decade, and we anticipate revenue growth of over 80 percent year on year,” she added.
In 2023, the industry grossed $70 million in Gross Gaming Revenues (GGR), representing 0.5 percent of Malawi’s GDP and currently directly employs 6,000 people.
The authority projects the industry’s growth to average 70 percent in 2024 compared to the previous year.
To keep up with industry advancements, the authority says it is moving towards digital transformation.
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An electronic monitoring system has been deployed to enhance regulatory adherence by operators and prevent unchecked and unaffordable spending by players, with four out of the six sports betting operators already connected.
“The gambling landscape has changed significantly, starting with the repeal of the Gaming Act of 1996 and the Lotteries Act of 2004 and the introduction of the Gaming and Lotteries Act of 2022. This has led to a new package of policies and regulations designed to make our gambling laws fit for the digital age,” Mijiga explained.
Despite the industry’s growth, Mijiga has acknowledged the emergence of a parallel illegal market, with unlicenced websites proliferating globally.
The development is said to present an increased risk to players, especially with online platforms contributing to 80 percent of GGR.
“This competitive edge poses a challenge for us as regulators to innovate constantly. We actively monitor the digital space and work with the communications regulator to block unlicensed websites,” Mijiga said.
Magla is also conducting sensitization campaigns to educate communities on the benefits and risks of gambling. These efforts aim to help individuals identify signs of addiction before it becomes severe.
“We have established a toll-free line, 4252, dubbed ‘Tiyankhuleni,’ accessible from both networks. This line provides counseling and allows citizens to seek clarification on gambling-related matters,” Mijiga said.
Currently, Malawi has twelve licenced gaming and lotteries operators, including six in sports betting, four operating casinos, and two licences issued under a wide area network.
