Source: The New Times
The Rwanda Development Board (RDB) is set to govern and regulate gaming activities in Rwanda, overseeing all gaming operations including licensing of industry operators, The New Times has learned.
The Ministry of Trade and Industry, which has previously been in charge of the responsibilities, will now assume the policy development of the sector under the new arrangement.
The development was confirmed by a highly placed source at the Ministry of Trade and Industry.
“The transfer process is in advanced stages and should be complete by August this year,” a source confirmed to The New Times.
“We are now under the transitioning phase where RDB will be licensing the operators. This has proven to be a better and more effective strategy under the RDB one-stop center,” the source added.
This means that by August any investor can apply for a license through RDB, after the requirements are reviewed and they qualify.
According to the source, the regulator (RDB) has been mandated to ensure that all gaming activities are administered in a transparent and accountable manner.
Why it matters
Speaking to The New Times in an exclusive interview, Safari Gahizi, the Chairperson of Rwanda’s Gaming Association, said that the development reflects the government’s recognition of the gaming sector’s importance to the country’s economy, and culture.
With RDB taking on the mantle, Gahizi argued that the body (RDB) “must seek to foster collaboration among industry players, address industry challenges, increase the market share of domestic game developers, reduce reliance on foreign revenue sources, while promoting growth and innovation within the national gaming industry.”
“There is a need to increase promotion and opening of access to the national gaming market and create an adequate and competitive technology infrastructure to support game developers,” he noted.
The gaming industry in Rwanda is divided into five categories: Lotteries (National Lottery or other forms), Gaming Machines Facilities (slot machines), Casinos (e.g. table games), Wagering/Sport Books (sports betting), and Internet Gaming (online gaming).
However, the law governing the sector includes considerable provisions to regulate and monitor gaming in a manner that seeks to control the growth of gaming but with limited provisions, preventing and minimising its harm.
This makes it challenging to efficiently regulate gaming in a continuously changing, integrated, automated, and user-friendly technological environment (due to the nature of gaming and the possibility of offering new games on a variety of electronic platforms).
“Increased illegal gaming activities make a case for the need to ensure legislation is up to date, close possible loopholes, and allow efficient combatting thereof nationally,” said out Immacule Ingabire, a casino operator based in Kigali.
She added, “Beyond the regulatory functions, RDB should also monitor the gaming industry and foster competition through licensing of operators both locally and on the international scene.”
According to Ingabire, revisiting the regulatory regime for the sector and streamlining operations in the gaming industry for fair competition is a step in the right direction.
Globally, the gaming industry has proven itself to be a vibrant and lucrative sector not only for private investors but also for governments.
In 2018, the gaming industry constituted $2.3 billion consumers, who spent nearly $138 billion on games alone. By 2021, the global gaming market was valued at $198.40 billion, and it was expected to reach a value of $339.95 billion by 2027, registering an annual compound growth rate of 8.94 percent over 2022-2027.
A new “gaming policy” in the pipeline
According to reliable sources, a new gaming policy that seeks to ensure proper industry regulation and boost the sector’s economic potential has reached “advanced stages,” and could soon be introduced on the local market.
While the country’s gaming sector is still in its infancy, there was no policy governing the existing regulations, and therefore no framework for monitoring socio-economic patterns of gaming activity.
“The national policy on gaming in Rwanda establishes procedures to ensure that participants in the gaming industry meet certain standards of character and fitness, or suitability,” reads part of the proposed policy document seen by The New Times.
Among other new changes, industry players will be expected to independently classify their gaming business before they can advertise and promote the games on the local market.
Others include operators including the business’ description, packaging, and advertising based on the categories.
The policy also imposes administrative sanctions in the form of a written warning, temporary suspension, or termination of the license to the operators who fail to classify their businesses.
THE AUTHOR: Edwin Ashimwe, (copyrights)The New Times Rwanda
