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South Africa and Nigeria make major AML strides

Amid ongoing debates over tax policy and regulatory enforcement across Africa’s gambling markets, Nigeria and South Africa reinforced the credibility and stability of their regulated sectors this week.

With regulatory disruptions rife across Africa, the developments in two of the continent’s most significant markets have progressed the legitimacy of gambling across Africa.

South Africa was removed from the AML grey list after originally being added in February of 2023.

In its official announcement, the FATF stated that South Africa strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan.

This included a sustained increase in outbound mutual legal assistance (MLA) requests facilitating ML/TF investigations and asset confiscations aligned with its risk profile.

As well as this, the country took steps to bolster risk-based supervision of DNFBPs (designated non-financial business & professions).

Now that South Africa has been removed from the greylist, the country will have to adhere to stricter stipulations, however. Notably, the sanctions which could be implemented as a result of non-compliance with FATF frameworks have been heightened.

Amongst other issues, there was also a sustained increase in investigations and prosecutions of serious and complex money-laundering and the full range of TF activities aligned with its risk profile.

Nigeria spent the same length of time on the grey list, the country was lauded for demonstrating sustained increases in money laundering investigations and prosecutions, proactive detection of currency declaration violations, and maintained comprehensive data on frozen/seized/confiscated assets.

The South Africa gambling framework is potentially on the cusp of a period of transformation as the country seeks to find balance between enabling growth and ensuring player protection. This has included significant lobbying in the country for a tightening of restrictions on gambling adverts.

Nigeria has also taken steps to significantly tighten the frameworks around its crypto sector tackling the ability of the sector to engage with users in the country.

Discussions over the gambling framework in Nigeria remain prevalent, specifically concerning the impact of Nigeria’s Central Gaming Bill.

Many reports in the country suggest there are fears around the bill diluting the control of the lottery from the state, leading to a petition being put forward pursuing the rejection of the bill.

Pursuit of the rejection of the bill largely comes from the Federation of States Gaming Regulators of Nigeria (FSGRN), underpinning major concerns over the way the establishment of a Central Commission would have on fiscal federalism in Nigeria.

A petition was released aiming to ensure that a central regulator can’t provide state licenses to operators, ensuring that this remains the responsibility of the state.

Nonetheless, the government has continually put forward the case that because iGaming crosses borders this should be the role of a universal operators.

The protection of state revenue is also integral to the bill, with fears it would be lost in the result of the formation of a nationwide commission.

The petition is calling for the nationwide governmental regulation to only oversee the FCT, which is where Abuja is located.

Rallying against the bill, the case has been put forward that it is unconstitutional and simply doesn’t align with the country’s federal system.

However, no matter how fervent and vocal opposition to the bill is, it may well be futile as the Bill has already progressed beyond its third reading in the National Assembly.

There is still a level convolution to its progress though, which will provide state regulators with optimism that it can be halted with enough friction.

Proponents of the bill have argued that it can eradicate growth of illicit operations and boost efficiency within the licensing process.

Mozambique and Burkina Faso were also removed from the list as a result of the steps they have taken to clean their respective frameworks.

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Interview: 1xBet calls for communication, clarity and consistency from regulators

As regulated markets become more ubiquitous across the globe, there has been an increased focus on player protection measures. Operators are under more and more pressure to put all guardrails in place to ensure players don’t fall into problematic patterns.

But that is a challenge becoming increasingly difficult without effective and constructive dialogue with regulators, according to 1xBet’s Strategic Advisor, Simon Westbury.

Westbury, speaking exclusively to SBC News at SBC Summit 2025, warned that without open dialogue operators cannot possibly have the clarity or consistency to properly protect players.

He spoke as 1xBet collaborated with SBC Media on a research report on player protection in Western European markets.

“I think what we saw was regulators were viewed more like enforcement agents rather than people you could have a conversation with,” he said. “I’m talking about the three Cs. It was clear that we needed more communication between regulators and operators. Operators are asking for more clarity and also consistency.”

Confusion and uncertainty in western Europe
Some of the findings in the report include that 60% of operators marked the regulation in their primary jurisdiction as seven out of 10, with 43% saying they were unsatisfied, and 26% adding they were worried about the clarity of the information they had.

Some anecdotal data included that some UK operators are nervous to engage with the UKGC, because they didn’t want to look stupid, and Swedish operators looking at how enforcement was done in court cases to understand how the regulations should be applied.

Image: Simon Westbury/1xBet
“I think it’s slightly concerning,” Westbury added. “If we’re the standard bearer in Western Europe for player protection, then we’ve got a lot of work to do.”

Further stats within the body of research included that 30% of respondents said they apply the most stringent regulation if they’re multi-jurisdictional.

Westbury said that this simply isn’t conducive to being a global gambling operator.

“Now that’s mental,” he exclaimed. “In terms of personalisation and localisation for players, you have to suit people individually. Someone in Spain is different from someone in France.”

One consistent theme that Westbury identified was that there are clearly improvements required in operators’ dealings with regulators in most western European markets.

He explained: “I think it’s clear that everyone’s working towards the same goal on player protection, but there’s different rulebooks and different standards.

“Operators are confused and I don’t want to be too critical of regulators, but you can’t have an operator in a highly regulated market scared to engage with the regulator. That doesn’t make any sense to me.”

Who takes responsibility for responsible gambling?
In some quarters, particularly throughout media reports and political lobbies, there are accusations that the gambling industry doesn’t do enough on player protection leaving certain segments of consumers vulnerable to the risks of problem gambling.

When SBC News put the question to Westbury, he didn’t outright refute the claims, but noted that operators cannot be solely responsible for any harm.

“I think sometimes there’s a facade that we’re trying to do enough, but this report actually shows quite clearly there’s some challenges,” he said. “Maybe that isn’t a facade. Maybe we are trying to do everything we can.

“But when you read a regulation that’s written in beautiful legal language and you engage with a regulatory body and they just send you back the guidance, it’s not really helpful. You have to understand these guys are civil servants; they are enacting the regulation, but if it’s not clear, how can you enact it?

“That’s the challenge. It’s not that we’re not doing enough. I think at times we’re trying and failing, but I’m not going to put that on anyone’s responsibility.”

So if there is no responsibility for some of the failings, who should take responsibility for player protection. While a nuanced discussion, Westbury did outline that players cannot be held responsible for addictive personality, whether that is for gambling or alcohol or any other addictive behaviour.

He added that certain regulator actions mean that in certain circumstances they must bear the brunt.

For example, in Spain – one jurisdiction in which 1xBet is licensed – the DGOJ regulator is introducing an algorithm to act as a standardised form of risk detection for problem gambling.

He said: “I think this is why this algorithm that they’ve developed in Spain is going to be very interesting, because the onus really isn’t on the operator, it’s on the regulatory body to develop that algorithm and make that algorithm effective. If the operator has that algorithm and the algorithm doesn’t work, it’s not on the operator. It’s not our algorithm.”

Ultimately, though, Westbury did note that operators must take the majority of the responsibility, adding: “The onus has to be on the operator but the problem is when you put the onus on the operator and the regulations aren’t clear, there becomes a grey area which can be exploited, positively or negatively.”

Measuring responsible gambling efficacy
The conversation turned towards best practices for responsible gambling and while tools like deposit limits and interventions are commonplace, 1xBet’s advisor noted that dialogue between all stakeholders can help improve things even more.

That is why 1xBet decided to publish research – to begin a wider conversation around player protection in western European jurisdictions, often touted as some of the leading lights for responsible gambling measures.

Westbury noted: “We are a global company, but we have to have local specificity and that varies from market to market, because our edges are different, and also the regulations are different. We’re not asking for uniform regulations, but we just need more dialogue.

“I don’t think there is a best standard at the moment. I think this report shows that, and I think that this isn’t a one off that we’re doing.”

Finding best practices also include identifying the measures that are most effective in the player protection sector. But how can the industry actually measure this?

Westbury acknowledged that this can be a difficult task, but he pointed out that ensuring that keeping players in regulated markets can be a good barometer and this is driving 1xBet’s interest in acquiring licences around the world.

“The effectiveness is in identifying problem gamblers at the earliest stage so that nothing gets out of control,” he said. “How successful we are is pretty indeterminable to understand, because if you stop one and you find one problem gambler, that’s a result.

“It’s like everything, you can’t stop everyone and people in this day and age always find a way. That’s where we really need to work as an industry, because the black markets are growing in all countries and when the player goes there, they lose all aspects of protection.”

1xBet’s report into player protection in Western European markets is the first of a series of reports that the operator is producing on player protection in different regions. The company is looking to further its commitment to player protection and hopes that by producing research, it can provide valuable input into the conversation.

“You’re never going to make regulation and player protection sexy, but I think this report is interesting,” he said. “I’m looking forward to our other regional reports because the findings are going to guide where we go as an industry, and actually they give us a platform to elevate our performance as operators and regulators.”

You can download the International Player Safety Index by heading here.

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