Betting on Trust: Fraud, Regulation, and the Future of iGaming in Africa

By Richy Emah, Regional Business Development Director, Northand West Africa,  Sumsub

Africa’s iGaming sector is undergoing a transformation that few other regions in the world can match. Valued at $17.63 billion and projected to grow at a compound annual rate of 4.23% between 2025 and 2029, the industry is being fuelled by a youthful population, widespread mobile penetration, and a growing appetite for sports betting and online casinos. Studies suggest that between nine and fourteen percent of Africa’s 1.3 billion people actively participate in gambling, making the continent one of the most dynamic and promising frontiers for operators. Starting a gambling business in Africa is cheaper than anywhere else in the world, making the opportunity irresistible.

Yet, beneath this growth story lies a complex reality. Africa’s iGaming businesses find themselves playing in a high-stakes game where opportunities are vast but risks are equally formidable. Operators are contending with a long list of fraud risks: fake registrations, identity theft, money laundering, bonus abuse, money muling, chargebacks, and the rising menace of deepfakes. Between 2022 and 2024 alone, mobile casinos and betting platforms lost an estimated $1.2 billion to fraud. The most common tactic, selfie mismatches, accounted for nearly three-quarters of all detected fraud in 2024, while AI-powered deepfake attacks grew tenfold between 2022 and 2023.

Statistics paint a daunting picture. The continent has experienced a 167% rise in identity fraud, with almost 6% of all verifications in Nigeria alone flagged as fraudulent in 2024. While the iGaming sector has recorded a 14.7% reduction in fraud rates over the past two years, largely thanks to greater investment in verification technologies, the absolute levels remain high. Fraud attempts still represent 2.55% of verification attempts this year, significantly above the averages in more mature markets such as Europe and North America.

The verification challenge is another sticking point. Africa’s betting verification pass rates have improved from 65.76% in 2023 to 68.98% in 2025, but this figure still lags behind global benchmarks of 80–90%. For players, failed or delayed verification processes translate into frustration and churn; for operators, they mean lost revenue and weakened trust. Around 19% of African businesses continue to rely on manual verification, exposing themselves to inefficiencies and gaps that fraudsters can exploit.

At the same time, new fraud patterns are emerging that demand a fresh playbook. Operators report spikes in fraud attempts between 4 a.m. and 8 a.m., precisely when compliance teams are least likely to be active. More than 40% now say fraud attempts peak at the deposit stage rather than at registration, shifting the risk focus further down the player journey. Complicating matters further is the rise of AI-driven crime. Deepfake-based fraud grew by 700% globally between 2024 and 2025, forcing platforms to contend with attackers who use synthetic IDs, fabricated proof of address, and manipulated biometric data to breach systems that were once considered secure.

But it is not all bad news. Africa’s unique circumstances have also fostered innovation and resilience. Average KYC completion times are falling, down from 32 seconds to 25 seconds globally, thanks to technologies like non-document verification and reusable KYC. These advances are especially valuable in markets where traditional ID infrastructure is fragmented or difficult to access. 

Meanwhile, regulators are tightening oversight, signalling a move toward more mature compliance regimes. South Africa’s adoption of the Travel Rule in April 2025 has added new reporting requirements for crypto-linked gambling transactions. Nigeria’s National Lottery Regulatory Commission has stepped up enforcement by suspending licenses and prosecuting unregistered operators, while Kenya is moving to integrate betting verification with government databases such as the eCitizen portal. These developments underscore a broader shift toward stricter, tech-enabled regulation that operators must adapt to—or risk exclusion from key markets.

Against this backdrop, the solutions being deployed across Africa’s iGaming sector are becoming increasingly sophisticated. Seamless onboarding has emerged as a critical differentiator. By safeguarding every step of the player journey—starting with pre-scoring modules that detect anomalies before verification even begins—operators can filter out high-risk players early. Device intelligence, IP analysis, and risk scoring mechanisms make it possible to flag suspicious activity in real-time, creating a proactive defence against fraud.

Equally important is compliance with anti-money laundering and counter-terrorism financing requirements. Operators must be able to screen players against thousands of global sources, from sanctions lists to politically exposed persons and adverse media databases. The complexity of these obligations can overwhelm smaller teams, which is why solutions that automate case management and reduce false positives are gaining traction. Sumsub, for example, provides a system where alerts are not only flagged but also investigated, with final determinations delivered to operators; streamlining a process that would otherwise drain resources.

Perhaps the most powerful tool in the new fraud prevention arsenal is AI itself. Fraud Network Detection, powered by machine learning, can group suspicious players based on shared traits such as facial images, document templates, IP addresses, and device fingerprints. By mapping these networks, operators can dismantle coordinated fraud schemes that would be invisible at the individual account level. Meanwhile, document forensics powered by pixel analysis can detect even the subtlest manipulations, from Photoshop edits to template-based forgeries. These tools make it increasingly difficult for bad actors to get past the KYC stage undetected.

Over the mid-term, the challenges for Africa’s iGaming industry are not insurmountable. Regulatory complexity will continue to rise as governments seek to curb illegal gambling and protect consumers, while fraud tactics will become more sophisticated with the spread of generative AI. Yet the continent also has an opportunity to leapfrog legacy approaches and build compliance frameworks that are both robust and frictionless.

As Hannes Bezuidenhout, VP of Sales for Africa at Sumsub, puts it: “African operators have proven that robust verification isn’t a barrier to growth—it’s the foundation for it. But the same AI-driven threats testing mature markets are at Africa’s doorstep. To stay ahead, operators must build continuous, real-time verification and AI-backed fraud prevention into the entire player journey.”

In other words, Africa’s iGaming future will be defined not just by how well operators attract players, but by how effectively they can protect them. Success will belong to the platforms that can balance seamless user experiences with uncompromising security, creating ecosystems where genuine players thrive and. fraudsters are locked out. That balance will determine whether the continent’s iGaming boom translates into sustainable growth—or whether it falls victim to the very risks that shadow its rise.

About Sumsub

Sumsub is a leading full-cycle verification platform built to keep iGaming operators and platforms compliant, fraud-free, andgrowing—whether in regulated or emerging markets. From instant player onboarding to ongoing AML screening, our no-code platform adapts to your markets, risk levels, and regulatory demands without slowing down conversions.

Onboard players in seconds, even without documents, with localized flows in 50+ languages and Non-Doc Verification for select regions, achieving pass rates up to 95.86%. Detect andprevent all major iGaming fraud types, including multi-accounting, account takeovers, illegitimate chargebacks, and bonus abuse.

Automate up to 85% of routine compliance tasks, with AI-powered KYC/AML checks and centralized case management to save time for your agents. Protect the entire player journey—from registration and deposits to withdrawals—with real-time device, IP, email, and phone risk assessments.

Trusted by over 4,000 clients worldwide, Sumsub delivers higher pass rates for genuine players and robust defences against fraudsters—all in one platform.

For press & media enquiries or interviews please contact: Tishala Communications

Elize Engle– pr1@tishalacommunications.com  | 063 574 5249