Overview
Mozambique Online Gaming Overview
Regulated
Gambling was legalised in Mozambique in 1994, under the Gambling Law. Online gambling has been legal since 2010, with the implementation of a new gambling framework. Under the applicable framework, only companies licensed in Mozambique may accept players from the country; it’s illegal to place bets on unlicensed websites.
The elements of a game that constitute gambling depend on the category of the game, as follows:
- Games of chance are defined as «games exploited and practised in casinos or in specially authorised and equipped machine rooms, whose results are contingent, due to depending exclusively or mainly on the player’s luck» (Law. no. 1/2010, 10 February). The regime for the exploitation of games of chance is very restricted and, as a rule, granted via public tender.
- On the other hand, operators can apply for a licence to explore social and amusement games, which does not exclusively have to be for non-profit. To be eligible for a social and amusement games licence, the operator must be either a:
- Limited liability company with a registered office in Mozambique
- Non-profit social organisations, with the social object of supporting welfare, social action, culture and sport
- Entity pursuing public interest purposes
- Natural or legal person who prove to be suitable and have the technical, economic and financial capacity to conduct the activity
Social and amusement games are games which offer the possibility of gaining goods, money or rights with economic value, based on probability, randomness and/or luck, whether associated or not with certain skill or mastery skills. The social and amusement games can be grouped as follows:
- Social games: bingo, lotteries, totobola (sports betting), totoloto, lotto, raffles, mutual bets, contests and virtual games (if any of the referred)
- Fun games: billiards, table football, prizes and amusement machines
Market Size
Note that the Mozambican General Gaming Inspectorate (Inspecção Geral de Jogos) does not divulge the gross revenues generated by the sector. However, the growth in online gambling is visible through the increase of diverse operators and platforms available.
Mozambique GDP growth is projected to rise to 4.8% in 2023 and 8.3% in 2024, pushed by extractives and agriculture, leading GDP per capita growth to jump from 2.0% in 2023 and 5.5% in 2024. Along with a young, growing population and abundant natural gas reserves, the third largest in Africa, Mozambique has bags of potential, provided it can continue to attract foreign investment, which still plays a crucial role in the development of the Mozambican economy.
Competitive Landscape
There are currently 17 licensed Sports Betting operators in Mozambique. The Inspecção Geral de Jogo does not provide information on licensed entities for other online gambling modalities.
Localisation
All payments must be processed based on the legal currency in Mozambique (Meticais), however, it can be replaced by conventional symbols that represent its value.
The most common method of payment is through mobile money transfer systems, such as M-PESA and e-Mola, while credit cards are also significantly used with Visa as the dominant credit card and owns a market share of over 90%.
All advertising of gambling, its equipment, materials or utensils requires prior authorisation from the Mozambican General Gaming Inspectorate.
Top Key Attractions and Challenges
Attractions
- Open market with a simplified licensing process
- Fast growing market, with a population of around 30M with 52% smart mobile phone penetration
- Mozambique is one of the fastest growing economies in Sub-Saharan Africa
Challenges
- There is a high minimum investment required for Casino operators, together with a very limited/restricted licensing regime for casinos
- Operators must implement a local company and infrastructure
- A minimum of 26% of the social capital must be local
Products
Licensing & Regulation
Mozambique Online Gaming Licensing & Regulation
Licence Triggers
All operators with websites accessible from Mozambique who offer online gambling and betting must hold the necessary licence, which means that the decisive licence trigger is the susceptibility of the gambling products to be accessible by the general public in the Mozambican territory.
Array / Type of licence needed
There are two different licences available in...
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Enforcement
Mozambique Online Gaming Enforcement
Regulating bodies
Ministry of Economy and Finance, Mozambican General Gaming Inspectorate, the Gaming National Commission, INAE – Economics Activity National Inspection, and the Mozambican Central Bank.
Supervision by Regulator
The supervision body, especially the Gaming General Inspectorate, may at all times conduct inspections aiming to verify the compliance of the operators with the law.
Enforcement against licensed operator<br...
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Marketing
Mozambique Online Gaming Marketing
Gambling adverts are subject to the general advertising rules contained in the Advertising Code, approved by Decree 38/2016, of August 31, and the specific gaming rules contained in Law 1/2010, of February 10, Decree 64/2010, of December, Law 9/2012, of February 8 and Decree 17/2012, of July 5.
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Fees
Mozambique Online Gaming Fees
Application fees
Licensing social and amusement games are subject to fees, as follows:
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Taxes
Mozambique Online Gaming Taxes
Licence taxes
Licensing social and amusement games are subject to fees (see previous section) and taxes based on 20% GGR.
For games of chance, licence costs are defined on a case-by-case basis on each public tender or concession and the operators must pay an “Award Tax” at the moment of the award of the concession.
Sales taxes
Operators...
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Future Outlook
Mozambique Online Gaming Future Outlook
We are not aware of any upcoming change or developments to the gambling legal framework, despite the increasing number of operators and interested parties currently analysing and considering the Mozambican market.
Recently, amendments were introduced to regulate AML and anti-corruption provisions.
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Legal Expert
MDR Advogados
MDR Advogados is a Mozambican firm integrated by locally registered lawyers with relevant expertise in several practice areas, particularly in foreign investment, banking and finance, regulation, business and corporate and project finance support.
Through our network of partners, Morais Leitão, provides specialised legal assistance in all areas related to gaming and wagering. Its in-depth experience allows the firm to assist a wide range of sector clients, such as casinos, gaming operators and online providers, software and EGM manufacturers, publicity, and media content agencies, among others.
With leading offices in Mozambique, Portugal, Angola and Cape Verde, the Gaming Law Practice of the Morais Leitão Legal Circle is in a unique position to advise gaming sector clients in several jurisdictions, presenting an international and multidisciplinary team of experts that represent a wide range of industry players operating on a global marketplace in both matured and emerging markets.
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