Legislative Framework for the gaming industry in Zimbabwe

Gaming has become a key sector not only in Zimbabwe but worldwide, resulting in massive investments and the need to align legislation in most countries to suit technological trends in the industry.

In Zimbabwe, the government approved principles for amendment of The Lotteries and Gaming Act [Chapter 10:26] (hereinafter the ‘’Act’’) on the 28th of August 2024.

The bill seeks to transform the Lotteries and Gaming board into a Gaming Regulatory Authority.

Besides broadening the functions of the board, the bill will introduce the need to comply with anti-money laundering regulations and introduce additional sanctions for non-conformity with the new legislative framework.

There’s a heightened duty on the government to protect consumers in the advent of online gaming which has resulted in addictive behaviours linked to various social ills.

It is imperative to ensure the new bill is completed and gazetted to put the proposed changes such as establishment of an electronic, computer or communications system linked to gambling machine or device, betting or totalisator for the purpose of monitoring revenues and taxes due to the Board into operation.

The Act is the main legislative piece which regulates lotteries and gaming activities in the country. The other legislative pieces include the Betting and Totalizator Act [Chapter 10:02] (hereinafter the ‘’Betting Act’’) which provides for the licensing of bookmakers and operators of totalizators and the Pools Control Act [Chapter 10:19] (hereinafter the ‘’Pools Act’’) which provides for control of pool betting business and licensing of pool promoters. The gaming industry is therefore open to both local and international investors in Zimbabwe, yet very few appreciate how it is regulated and/or the requirements for establishing a business venture.

The Lotteries and Gaming Board (hereinafter the ‘’Board’’) licences casinos, gaming houses and bookmakers.

The businesses may be standalone and or operate as an added service complimenting operations in entertainment, tourism and hospitality industries. The new legislation is set to on-board online betting and set the stage for increased activity in the industry which now sustains livelihoods of both investors and punters.

The Cyber and Data Protection Act [Chapter 12:07] and Statutory Instrument (SI) 155 of 2024 imposes additional licensing requirements on gaming industry participants in that they should apply for a data controller licence with the Postal and Telecommunications Regulatory Authority who are the designated Data Control Authority in Zimbabwe and appoint a certified Data Protection Officer in line with global need to protect personal identifiable information.

SI 8 of 2023 prescribes the fees payable by both local and foreign investors who wish to enter the gaming industry in Zimbabwe.

A casino or lotteries licence will require payment of US$2 500 or its equivalent in local currency if one is a local investor whilst foreign investors should pay US$5 000 for similar licences strictly in USD. In addition to application letters, building plans and company documents, a casino licence applicant should maintain a hotel with a minimum of 50 rooms on the licensed premises.

The gaming device should be approved by the Board. The licence fees for a totalizator and gaming house are currently set at US$500 and/or local currency equivalent for local investors with foreign investor fees at US$4 000 with no option for payment in local currency.

All licences require a principal once-off fee of US$4 000 which applies to both local and foreign investors alike with only difference being that local investors may pay the fee in local currency equivalent.

A casino and gaming licence applicant also should provide six (6) months bank statement which shows financial capacity and/or bank guarantee of US$50 000 and/or equivalent covering exposure to sundry punters for prizes and jackpots.

Shareholders, beneficial owners, directors and associates of the applicant should undergo vetting which includes police and tax clearance from country of residence as well as clearance by the Financial Clearing Bureau. Bookmakers’ applicants should belong to prescribed betting associations in addition to already identified requirements.

The Act provides for inspections by the Board and penalties for non-compliance with licensing conditions. The existing legislative framework also provide for gaming operators to align with all other relevant laws including tax and labour laws. Section 30(3) and 31(2) of the Act provide for fines not exceeding level seven and/or imprisonment for a period not exceeding one year and/or both fine and imprisonment for offences by both operators and other stakeholders who knowingly partake in unlicensed activities .

These penalties are likely to be stiffer in the proposed amendment of the Act.

Bhekimpilo Mangena is a registered Legal Practitioner, Public Accountant and a Business Consultant at Zenas Consulting (Pvt) Limited and can contacted through bheki@zenasconsulting.co.zw

Fungai Chimwamurombe is a registered legal practitioner and Senior Partner at Chimwamurombe Legal Practice and can be contacted through email fungai@zenaslegalpractice.com.