Betting companies operating in the country have expressed frustrations over unexplained hindrances experienced in attempts to set up virtual platforms to keep them in business while physical platforms are closed.

Following the Covid-19 outbreak which saw businesses across the country close physical operations, enterprises were urged to move online to maintain jobs and service delivery.

However, all but one betting operator say that they have not been able to do so citing lack of support from the Ministry of Trade and Industry, the sector’s regulator.

Only one betting company, Gorrilla Games is licensed to operate online gaming in the country, enjoying a monopoly. The New Times understands that the firm’s license is set to expire in July this year.

One of the firms, Premier Bet, told this paper that the firm had already set up a platform, integrated with payment solutions such as Mobile Money as well as applied for approval from authorities but had not received any feedback yet.

Alex Wehbe, the Managing Director of Premier Bet said that while the Gaming Law provides for operations under the various categories including lottery, casino, gaming machine, sportbooks and internet gaming, the regulator has not opened the space for other firms (with the exception of Gorilla) to commence online betting, which would improve survival chances.

Wehbe said that there has not been clarity or information on necessary prerequisites to be allowed to online gaming.

With the firms foregoing revenue due to the closure for months and at the same time incurring expenses, Wehbe said that online gaming would allow firms to stay afloat and maintain employees.

Some argue that the lack of options in online betting could have seen a section of Rwandans bet on unregulated platforms hosted outside Rwanda on Private Networks. This is problematic as the platforms are not regulated and in the event of malpractice, there is no formal avenue to make complaints.

The businesses in the gaming sector say that the challenges in transitioning to virtual platforms can be traced back to lack of adequate policies, lack of consultative forums and gaps in the framework governing the sector.

The players say that while Article 6 of the Gaming Law sets out for the establishment of a Consultative Gaming Committee which is responsible for advising the Government on gaming policy, they are not aware of the existence of one despite numerous attempts to engage the regulator.

Kamil Babic, the General Manager of Forte Bet said that an active committee they said would serve to enable the growth of the sector, improve quality of regulation to weed out fraudulent operators as well as allow the operators find ways to stay afloat during tough times such as during the pandemic.

"At the moment, there is not much framework driving the sector beyond the gaming law of 2012. The lack of a consultative committee also means that investors in the sector are not able to share business insights and challenges with the regulator and consequently not involved in consultations on sector development,” he said.

Babic said that with the growth of the sector in terms of players, revenue and employees in recent years, having an agile and responsive committee would enable the sector to have ideal policies and regulatory framework.

He said that this would also enable the sector to identify and put up safeguard measures against fraudulent operations and irregularities that would undermine growth.

As of 2018, the sector had revenue of Rwf47B (from 6.9 in 2013) with taxes of over Rwf1.8B (from 0.47B in 2013) paid in various government taxes.

The operators pay taxes at the 13% on the gross gaming revenue of operators as well as a 15% withholding tax is applied on players’ winnings. Some operators said that they are not opposed to even raising the taxes from 13 per cent to 15 per cent to finance the establishment and operations of a consultative gaming committee.

Eric Rutayisire, the Managing Director of Baron Sports Gaming which operates Forzza a betting company said that the operators are ready to work with the regulator bringing on board their experience from other markets in developing the sector to align it for future profitability and growth as well as welfare of stakeholders such as employees, landlords etc. The sector prior to the pandemic estimates to have about 5000 employees and renting over 800 premises across the country.

With all revenue avenues currently closed, the firms say that they are having to incur monthly losses in paying bills uncertain on when operations will resume. The New Times understands that about two firms have since wrapped up operations unable to survive.

Ministry speaks out

Commenting on the operators complains and concerns, Samuel Kamugisha, the Director-General of Industry Promotion and Entrepreneurship Development, said that with regard to internet gaming, so far, there is no internet gaming law in place.

"The regulator of gaming industry (MINICOM) is in the process of revising the gaming policy and developing a specific law to regulate internet gaming in Rwanda and which will complement the existing Gaming Law. The enactment of this law will provide a framework for proper regulation of the sector and open room for the entrance of other players into the internet gaming business,” he said.

Kamugisha explained that with regard to challenges cited in a consultative committee the ministry had an interim Gaming consultative committee set previously.

"Besides, since the Ministry is putting in more efforts in reviewing all laws governing the gaming industry in Rwanda and developing the gaming policy, MINICOM is also considering establishing a substantive gaming board which will oversee the gaming sector,” he said.

He committed that the Ministry of Trade and Industry will work closely with Rwanda Gaming Association to see that they are involved in all matters concerning the gaming industry.