Zimbabwe eyes tighter gambling rules

The Lotteries and Gaming Board (LGB) has announced plans to tighten regulatory controls over Zimbabwe's gambling industry following rising concerns about illegal gambling operations, financial crimes, and the social consequences of gambling addiction.

Speaking before the parliamentary portfolio committee on defence and home affairs last week, LGB interim secretary Misheck Chingozha highlighted the rapid growth of both local and foreign investment in the gambling sector, which has brought regulatory challenges and negative social impacts.

"The past few years have seen an upsurge of investment in the gambling industry by both foreign and local investors," Chingozha said. "As a result, gambling density became a cause for concern."

The board has been alarmed by reports circulating on social media linking gambling losses to suicides, a development that has spurred urgent action.

"Cases of suicide attributed to gambling have been circulating on social media," he noted. "The regulator is giving its all to ensure public awareness and promotion of responsible gambling where players are encouraged to know their limits, not chase losses, and to know when to stop and walk away."

In an effort to curb illegal gaming activities, Chingozha revealed that no new gambling shops are currently being allowed in Harare's central business district. Additionally, a stringent screening and due diligence process is in place before new licenses are issued to ensure only qualified investors are approved.

Beyond social issues, the LGB is also tackling the use of the gambling industry as a channel for illicit financial flows.

"The regulatory authority acknowledges the proliferation of illicit online gambling activities within Zimbabwe's gaming space, despite existing legal frameworks that do not explicitly prohibit such operations," Chingozha said. "This proliferation is facilitated by technological advances, increased accessibility, and the borderless nature of online platforms, presenting significant enforcement challenges."

He further noted that widespread illegal operations have led to substantial revenue leakages and loss of tax income for the government.

To improve oversight, the regulator is developing a gaming management system that will monitor and track operators' activities in real time to ensure compliance.

"Effective enforcement is hindered by limited manpower and resources to shut down illegal operators," Chingozha acknowledged. "However, working with stakeholders, we conduct joint operations with the police and the Financial Intelligence Unit to curb illegal gambling."

The regulator also plans to expand enforcement efforts nationwide to improve compliance.

"Gambling can be addictive and harmful if undertaken without restraint," Chingozha warned, underscoring the importance of responsible gambling measures.

The Lotteries and Gaming Board's push for stronger regulation aims to protect the public from the dangers of gambling addiction, safeguard government revenue, and stamp out illegal gambling activities undermining the industry's integrity.