Mozambique moves forward with regulation for online gambling

Mozambique's Council of Ministers has approved a new legal framework, the "Regulamento de Exploração e Prática de Jogos de Fortuna ou Azar através de suportes eletrónicos ou informáticos," specifically targeting online gambling. This regulation aims to establish a distinct legal regime for digital gaming platforms, separating them from traditional physical casinos. The move comes in response to a significant decline in tax revenues from the conventional gambling sector, which the government attributes to the rise of online gaming. The new framework seeks to provide clarity, enhance regulatory oversight, and potentially boost state revenue by formalizing and licensing online operations, recognizing them as an autonomous modality with unique requirements.

Mozambique has taken a decisive step towards modernizing its gambling regulatory landscape with the approval of a new legal framework for online games of chance. The Council of Ministers recently sanctioned the "Regulamento de Exploração e Prática de Jogos de Fortuna ou Azar através de suportes eletrónicos ou informáticos" (Regulation for the Exploration and Practice of Games of Chance through electronic or IT supports), marking a significant shift in how the Southern African nation approaches digital gaming. This development is poised to create a specific legal regime for online platforms, distinguishing them from the existing regulations governing physical casinos.

This regulatory update is not merely a bureaucratic exercise; it is a strategic response to evolving market dynamics and a pressing fiscal challenge. The Mozambican government has explicitly linked the expansion of online gaming to a noticeable decline in tax revenues from traditional casinos. By establishing a dedicated framework, the authorities aim to bring online gambling under formal control, ensuring proper licensing, oversight, and, crucially, a more reliable stream of tax income. This article will delve into the background of Mozambique's gambling laws, analyze the implications of this new regulation, and consider its potential impact on practitioners and the broader industry.

The core thesis of this article is that Mozambique's new online gambling regulation represents a pragmatic and necessary adaptation to the digital age, seeking to formalize an increasingly popular sector to address revenue shortfalls and enhance regulatory control. While online gambling was previously permissible under a general regime, the new specific framework is expected to provide greater clarity for operators and robust protection for players, positioning Mozambique as a more structured market for digital gaming in Africa.

Gambling in Mozambique has historically been governed by Law no. 1/2010, of 10 February, known as the "Gambling Law," and its subsequent regulations, including Decree no. 64/2010, of 31 December, which has seen amendments over the years, notably by Decree no. 4/2017, of 1 March, and Decree no. 65/2022, of 30 November. This foundational legislation primarily addressed land-based operations, such as casinos and specially authorized machine rooms. Additionally, social and amusement games like lotteries and bingo fall under a separate framework, Law 9/2012 of 8 February ("Social Games and Amusement Law") and Decree 17/2012 of 5 July ("Social Games and Amusement Regulations").

While online gambling was implicitly legal in Mozambique since around 2009/2010, there was a notable absence of a specific licensing system tailored for online operators. This meant that online activities largely operated under the general gambling regime, lacking the distinct regulatory provisions necessary for the unique characteristics of digital platforms. The General Gaming Inspection (Inspecção Geral de Jogos, IGJ), operating under the Ministry of Economy and Finance, has traditionally served as the principal regulatory authority, responsible for licensing, inspection, and compliance across the gambling sector.

The impetus for the new regulation stems directly from a significant decline in state revenue from physical casinos. The Ministry of Finance's 2025 budget execution report revealed that only 54% of the projected tax revenue from casinos was collected, representing a 7.3% reduction compared to 2024. This shortfall was explicitly attributed to the "significant increase in online games," which has drawn players away from traditional establishments. This economic pressure, coupled with the need for a more comprehensive and modern regulatory approach, has driven the government to introduce a dedicated legal framework for online gambling.

The newly approved "Regulamento de Exploração e Prática de Jogos de Fortuna ou Azar através de suportes eletrónicos ou informáticos" addresses a critical gap in Mozambique's gambling legislation. Prior to this, while online gambling was not prohibited, its operation lacked a specific, dedicated regulatory regime, often falling under the broader provisions intended for land-based casinos. The new regulation explicitly establishes a distinct legal framework for online games of chance, recognizing them as an autonomous modality with its own set of requirements, separate from those applicable to physical casino concessions. This differentiation is crucial for tailoring regulatory oversight to the unique technological and operational aspects of digital platforms.

One of the primary objectives of this regulation is to stem the decline in tax revenues from the gambling sector. The Mozambican government has openly acknowledged that the proliferation of online gaming has directly impacted the profitability and tax contributions of physical casinos. By formalizing online gambling, the state aims to create a clear pathway for licensing and taxation, thereby capturing revenue from a sector that has been growing rapidly but was previously less effectively regulated for fiscal purposes. This approach aligns with a global trend where jurisdictions adapt their legal frameworks to encompass the digital transformation of industries.

The regulation is expected to clarify the concession regime applicable to online gambling, outlining specific criteria for operators seeking to offer digital games of chance. This will likely involve stringent requirements for technical infrastructure, player protection mechanisms, responsible gaming protocols, and anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. Previous amendments to the general gambling law in 2022 already aimed to align with international recommendations on AML/CFT, indicating a broader commitment to financial integrity within the gaming sector. The new online regulation will undoubtedly build upon these principles, ensuring that digital platforms are not exploited for illicit activities.

From a comparative law perspective, Mozambique's move mirrors actions taken by other African nations and global jurisdictions that initially allowed online gambling to operate in a grey area before establishing comprehensive regulatory frameworks. This proactive step positions Mozambique to better manage the growth of its digital gaming market, offering a more predictable and secure environment for both operators and consumers. The explicit recognition of online gambling as a distinct activity, rather than an appendage to land-based operations, is a progressive step that acknowledges the unique challenges and opportunities presented by the digital realm.

While the full details of the regulation are yet to be publicly disseminated, its approval signifies a commitment to a more structured and revenue-generating online gambling market. The differentiation from physical casinos suggests that licensing processes, operational requirements, and perhaps even tax structures for online operators will be distinct, reflecting the lower overheads and wider reach of digital platforms compared to their brick-and-mortar counterparts. This could attract new investment into the Mozambican online gaming space, provided the regulatory burden is balanced with commercial viability.

The approval of Mozambique's new regulation for online games of chance marks a pivotal moment for the country's gambling industry. By creating a specific legal framework for digital platforms, the government is not only responding to the fiscal challenges posed by declining casino revenues but also embracing a modern, comprehensive approach to regulating a rapidly expanding sector. This move is expected to bring greater clarity, enhance consumer protection, and establish a more robust system for licensing and taxation, ultimately contributing to state coffers and fostering a more responsible gaming environment.

For legal practitioners, this development necessitates a thorough understanding of the new "Regulamento de Exploração e Prática de Jogos de Fortuna ou Azar através de suportes eletrónicos ou informáticos." Attorneys advising clients in the gaming sector, whether existing land-based operators looking to expand online or new entrants to the Mozambican market, must familiarize themselves with the distinct requirements for online concessions, compliance obligations, and the interplay with existing gambling legislation. Practitioners should closely monitor the gazetting of the full regulation and any subsequent interpretative guidelines from the General Gaming Inspection to ensure their clients remain compliant and strategically positioned within this evolving landscape. The emphasis on differentiating online from physical gambling suggests a nuanced approach to licensing and operational standards, which will require careful navigation.