Several factors have contributed to the recent and sudden surge in gambling activity across various African markets. However, ineffective regulations across many jurisdictions have created an environment ripe for exploitation by predatory operators. With gambling-related crime on the rise, affected countries are hard-pressed to find a solution, or the issue will continue to escalate.

Africa Presents a Golden Opportunity

Sub-saharan Africa’s vast population, growing middle class, and increasing internet penetration have fueled the demand for online entertainment and gambling options. However, the lack of clear regulations has allowed some businesses to operate without proper oversight, raising concerns about consumer protection, money laundering, and addiction.

A recent report by The Guardian explored the deteriorating situation in the countries worst affected by these worrying trends. Official data and anecdotal evidence paint a concerning picture, highlighting the need for immediate action like age verification procedures, self-exclusion options, and awareness campaigns. Safeguards and support systems are also vital to a healthy gambling ecosystem.

Many Countries Suffer Similar Problems

Zimbabwe is one of the more notable jurisdictions, relying increasingly on its gambling industry to shore up budget deficits. Despite updated legislation, enforcement is still severely lacking, and stories of youth resorting to wagering to fund their crystal meth habits are increasingly common. With Zimbabwe’s employment rates suffering and half of the population considered impoverished, many are forced to gamble to earn a living.

Recent studies discovered that 9.6% of urban Ethiopian youth suffered from compulsive gambling. Countries like Uganda, Ghana, Malawi, and Nigeria have fared little better, with anecdotes of gambling-related crimes like theft, suicide, and prostitution becoming frequent occurrences. If left unaddressed, such societal burdens can more than offset any potential economic benefits from an otherwise thriving gambling market.

Improvement Is Unlikely without Significant Effort

Gambling in Africa often has roots abroad, with foreign suppliers and operators significantly bolstering the industry’s growth. European sporting events like Premier League football drive new products, and local athletes feature in various promotions. According to Uganda addictions psychiatrist and researcher Dr. Mark Mohan Kaggwa, the primary problem for many African nations remained a lack of enforcement.

Regulations look nice when you see them on paper, but on the ground, things are escalating.

Dr. Mark Mohan Kaggwa

While Uganda law prohibits individuals under 25 from gambling, such restrictions are often disregarded, and many children depend on wagering as a source of income. With governments in the area preoccupied with other pressing issues, only a collective effort from all stakeholders can hope to break such worrying trends.

Regulatory bodies, online gambling operators, civil society organizations, and the public must work together to establish a regulatory framework that protects consumers. Foreign companies, in particular, must be more selective in their choice of partners, refusing partnerships with predatory businesses. However, with easy money on the line and little chance of repercussion, there will always be those willing to ignore the human cost of gambling.

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Endeavor and World Wrestling Entertainment (WWE) have agreed to merge into a new, publicly listed company consisting of two iconic, complementary, global sports and entertainment brands: UFC and WWE. 

Endeavor to Hold Majority Stake in New Company with WWE Merger

Endeavor will hold a 51% controlling interest in the new company, and existing WWE shareholders will hold a 49% interest. Together, UFC and WWE expect to deliver an estimated $50 million to $100 million in annualized run-rate cost synergies by leveraging Endeavor’s back office and robust infrastructure. 

“The new company will be well-positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands,” said Vince McMahon, executive chairman of WWE. 

Endeavor further expects significant growth across revenue areas, including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing, and premium hospitality.

Endeavor and WWE Announce Executive Team for New Publicly Listed Company

A new company will be formed with Ariel Emanuel as CEO, who will continue to serve as CEO of Endeavor. Vince McMahon will be the executive chairman of the board, and Mark Shapiro will be the President and COO of both Endeavor and the new company. The new company will have Dana White as the President of UFC, and Nick Khan as the President of WWE. The Board of Directors will have 11 members, with six appointed by Endeavor and five by WWE, and their names will be announced later on.

The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. The listing of the new company, which is currently referred to as NewCo until a new name is chosen, will expand the collective investor base to allow for broad market participation across Endeavor and NewCo. 

Endeavor and WWE CEOs Open up about the Biggest Deal in Sports Entertainment History

WWE co-founder and executive chairman, Vince McMahon, and Endeavor CEO, Ari Emanuel, spoke exclusively to CNBC’s Scott Wapner on Monday, revealing the details of Endeavor’s $21 billion deal to merge its UFC brand with WWE. The deal will eventually see the new company go public on the New York Stock Exchange. 

McMahon confirmed that this was the biggest thing he and Emanuel had ever done, combining forces like this has never been done before. When asked why he was willing to sell a controlling stake in WWE, McMahon stated that it was the right time and the next evolution of the company. Emanuel stated that the deal was a win-win for the shareholders of both WWE and Endeavor, as they were not getting the pure value of their assets independently.

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