PawaPay Urges African Regulators to Support Licensed Gaming Operators

PawaPay has urged African gaming regulators to adopt policies that support licensed operators rather than discourage them.  Speaking at the Africa Gaming Regulators Briefing during the Africa Gaming Expo 2025 in Lagos, the company’s CFO, Aaron Markowitz-Shulman, warned against policies that could drive businesses out of the regulated market.

Markowitz-Shulman highlighted how ineffective or overly restrictive regulations could disrupt the gaming ecosystem, making it easier for unlicensed operators to thrive. He pointed out that stringent policies often increase operational costs for legitimate businesses, forcing them out of the market and reducing tax revenue.

“These bad actors have a lower cost base and start a vicious cycle where it is impossible for companies in your countries to compete with these operators. As a result, regulation fails, and the tax base suffers,” he stated.

He stressed that gaming plays a crucial role in Africa’s fintech sector, making regulatory stability essential for economic growth. “Disruptions in this sector do not only affect tax revenues but also the critical financial infrastructure that supports several other services,” he added.

Markowitz-Shulman warned that flawed tax policies and monitoring systems could have unintended consequences. Poorly implemented transaction monitoring, for example, could lead to a decline in volumes, while lack of competition in payment processing could drive up costs for operators.

“If monitoring systems cannot handle industry-wide traffic, transaction volumes will drop. Lack of competition in payments can also increase costs, making it less attractive for compliant operators to continue business. This, again, benefits the grey market,” he explained.

He called for a collaborative approach, urging regulators to work closely with industry stakeholders to develop clear and operationally viable policies. “Responsible operators want regulation, and they want to work with regulators to protect competition. Strong regulatory oversight ensures local, tax-paying companies can compete with unlicensed offshore firms that evade taxes,” he noted.

The Role of Technology and Regulatory Harmonization

Several regulatory leaders at the event echoed the need for more effective frameworks. Olajide Boladuro, Vice Chairman of the Federation of State Gaming Regulators in Nigeria, emphasized a unified approach to prevent illegal gambling and ensure compliance. “The African market must be well-regulated to reduce underage and illegal gambling. We also need to use technology to strengthen enforcement,” he stated.

Barbara Kelly, Vice President of the International Association of Gaming Regulators, underscored the importance of collaboration. “Regulators need to keep the conversation going and work with gaming operators, who have deep knowledge of their customer base and products. Collaboration is key,” she said.

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Meanwhile, Clésio Dias, Head of Technological Innovation and Service Modernisation at Angola’s Gaming Supervision Institute, stressed the role of digital tools in regulatory efficiency. “Technology should be the backbone of all gaming regulation. Standardisation across jurisdictions and adaptation to local realities are essential for regulatory success,” he remarked.

The Africa Gaming Expo 2025 highlighted the increasing need for strong yet balanced regulatory frameworks to support Africa’s gaming industry. Key topics included market structure, responsible gaming, and licensing innovations such as QR-coded registration. Regulators and industry stakeholders alike recognized that fostering a stable environment for licensed operators is essential for long-term growth and consumer protection.