Sitting inland in Southern Africa, the small country of Lesotho has an interesting iGaming landscape. The legal regulations of gambling activities have existed in the country for a long time, including casinos and betting; however, gaming regulations for online gambling are not robust. The government regulates land-based gambling activities, specifically the Lotteries and Betting Act of 1984 and the Casino Order of 1989. Recent developments in Lesotho suggest an increase in engagement towards developing the sector in order or growth that is responsible and compliant. A Memorandum of Understanding was signed in 2025 for cooperation between the Gambling Authority and the Lesotho Casino Board. The iGaming industry in Lesotho faces some challenges but also has some opportunities if the engagement with the country’s modest internet dissemination and mobile penetration can be continued and improved.
Market Overview
Market Size and Growth
The gambling market in Lesotho is limited in size but trending upward. The most recent figures from Lesotho’s Revenue Services show a substantial increase in gaming levy collections, approximating M16.40 million (Lesotho loti) for the 2024/25 fiscal year. While we cannot find exact totals or figures regarding market revenue, estimates show that the gaming equipment sector alone is expected to generate revenue of around US$807,000 in 2025, which feels small but also a signal of positive economic activity given the size and market status of Lesotho. Patterns of the broader African gambling market show projected annual growth rates of around 2-3%, providing a bit of positive optimism for development in Lesotho’s local market with the continued evolution of both regulation and infrastructure.
Table 1: Lesotho iGaming Market Overview
Indicator
Value / Details
Estimated Market Revenue (2024/25)
M16.40 million (gaming levy collections)
Gaming Equipment Revenue (2025)
US$807,000
Estimated Players
Tens of thousands (legal age 18+)
Internet Penetration (2025)
29.8%
Mobile Phone Ownership
78.7%
Casino Games Offered
Poker, blackjack, roulette, slots
Sports Betting Focus
Football, horse racing
Number of Licensed Casinos
1 (AVANI Lesotho Hotel & Casino)
Popular Game Types
- Casino Gaming: Located in Maseru, Lesotho’s AVANI Hotel and Casino is the epicenter for land-based casino gaming, featuring table games such as poker, blackjack, and roulette, as well as slot machines and video poker.
- Sports Betting: Sports betting is a popular option for gambling, especially on football, which is widely culturally popular; however, horse racing is another significant social and betting activity.
- Lotteries: Regulated lotteries operate under the regulated framework currently there but take a smaller share of the market than casino operators and sports betting.
- Online Gambling: International online gambling operates unregulated but has local consumers with an option for gambling, primarily for casino games and sports betting, and mobile devices are the most popular access point.
Demographics of Players
- Age: The legal age requirement for gambling in the country is 18+, and it is assumed that the majority of active players will be adults aged 25 to 44 years old.
- Gender: Specific demographic gender data is not available to the public, but based on anecdotal evidence and regional analysis, it appears there is a male-dominant demographic in sports betting (in terms of active players), as well as a more gender-balanced player demographic for casino games.
- Preferences: Overall, players generally prefer sports betting, as the sport is culturally rooted in football and horse racing. For those who play casino games, players again gravitate toward classic or traditional style table games and slot games, which, even when engaging online, are often linked to the land-based casino as the only physical casino is offered in a land-based venue.
- Technology Usage: Mobile phone penetration in the general market is at approximately 78%+. While within the broader population, the reported internet penetration is around 29%, interest in mobile-based gambling is increasing, and mobile device penetration continues to be strong overall among consumers.
Regulatory Landscape
Overview of Existing Gambling Regulations
Gambling in Lesotho is regulated by two main laws: the Lotteries and Betting Act 1984 and the Casino Order 1989. These laws provide the framework for regulated gambling, including casinos, sports betting, and lotteries. They create a regulated, safe, and controlled environment for players and operators, reducing illegal gambling, ensuring fair play, and allowing the public to feel safe while gambling. Land-based gambling is predominantly located in Maseru. The only licensed casino is in Maseru, with over 14 table games and 71 slot and video poker machines.
Online gambling is not regulated, and no legislation deals with online gambling, allowing for a huge gap in regulatory law. There are no licensing or taxation obligations on online gambling operators, which leaves the online gambling market to be mostly served by international brands.
Table 2: Regulatory Framework
Category
Details
Key Laws
Lotteries & Betting Act (1984), Casino Order (1989)
Regulatory Authority
Gambling and Betting Control Board
Licensing Period
1–5 years
Licensing Requirements
Financial stability, local registration, and responsible gambling compliance
Taxation
Casinos: % of GGR, Sports Betting: turnover/GGR, Lottery: ticket sales turnover
Online Gambling
Unregulated
Recent Developments
MoU (2025) with Botswana Gambling Authority
Future Regulation
Expected for online gambling and responsible gaming
Licensing Requirements and Regulatory Authorities
In Lesotho, the Gambling and Betting Control Board is the primary agency responsible for regulating all licensed gambling activities. All operators providing casinos, sports betting, or lottery services must be licensed. The principal requirements for licensing include:
- Submission of an application with a detailed business plan.
- Ability to demonstrate financial stability and fit and proper.
- Registered local company and physical presence for land-based business.
- Compliance with responsible gambling and anti-money laundering obligations in line with the laws of Lesotho.
Most licenses are granted for a period of 1 to 5 years and are annually renewed as compliance requirements. Furthermore, the Board applies continuous monitoring of compliance audits at all licensed premises.
Taxation and Compliance Details
Gambling taxation in Lesotho varies based on the type of gambling:
- Casinos are taxed based on a percentage of Gross Gaming Revenue (GGR).
- Sports betting facilities are subject to tax based on turnover or GGR.
- Lottery activities are taxed based on ticket sales turnover.
- Online gambling is not currently regulated in Lesotho and therefore is also not taxed, although it is identified as an area for future development (both the tax and regulation).
- All operators must comply with anti-money laundering policies, and all operators are encouraged to have initiatives for responsible gambling activities (e.g., self-exclusion policies and public education initiatives).
Upcoming Changes in Legislation
Recent trends indicate an increase in regulatory cooperation across Lesotho and neighboring jurisdictions. For example, in 2025, the Gambling Authority of Botswana and the Lesotho Casino Board entered into a Memorandum of Understanding to cooperate in relation to licensing, compliance, anti-money laundering, and responsible gambling. This may lead to some level of regional cooperation, which is ultimately aimed at achieving harmonization of regulatory standards.
While specific online gambling legislation has yet to be passed, the increasing visitation of the internet and the increasing use of smart hand-held devices suggest that the government may soon be developing laws to govern online gambling, with possible provisions for licensing online gaming practitioners, consumer protection, and taxation. Regulatory authorities are also making updates to the responsible gambling framework and are enhancing enforcement capacity in relation to illegal gambling to be comparable on an international level.
Competitive Landscape
Key Market Players
Lesotho’s gambling industry is primarily led by a licensed land-based gambling monopoly, the AVANI Lesotho Hotel & Casino in Maseru. This casino is representative of the state of gambling as it hosts more than 14 table games and 71 slot and video poker machines, offering games including poker, blackjack, roulette, and slots. There are currently no licensed land-based casinos that can operate in Lesotho.
In the online gambling space, there are no local operators currently licensed to serve the regulated market because it doesn’t have a specific regulation. Thus, the market is dominated entirely by international and offshore online casino and sports betting brands that have a strong foothold in the Southern African region. Some regional online operators that are commonly used across neighboring countries, like Sunbet and Betway (licensed in Botswana and South Africa, respectively), are used by Lesotho players due to their mobile and internet compatibility across borders.
Market Share Distribution
Due to Lesotho having just one regulated casino operator, the land-based market share is virtually completely owned by AVANI Lesotho Casino, nearly 100% of the market share. The online market’s gray area creates an unregulated, fragmented market share, which gives offshore international operators the informal majority exposure to Lesotho players.
Culturally, the top gambling category is sports betting, which commands a strong and substantial element of the overall gambling market, aided by a traditional affinity of the local culture toward football and horse racing. Although it is logically a substantial core of the overall gambling market share, most sports betting in Lesotho is provided through betting shops and informal operations. That being said, there has been a recent increase in the presence and use of mobile apps from regional brands related to sports betting.
Partnerships and Strategic Alliances
Strategic partnerships are increasingly becoming a feature in the regulatory and operator landscape. For example, in 2025, the Lesotho Casino Board entered into an MoU with the Gambling Authority of Botswana to support mutual licensing, compliance, anti-money laundering, and responsible gaming efforts. This MoU reflects a strategic commitment to raising regulatory standards at the regional level and collaboration across borders.
Additionally, Lesotho’s regulator has engaged in discussions and cooperation with the Gauteng Gambling Board of South Africa, emphasizing the sharing of knowledge and the alignment of regulatory standards across Southern Africa’s gambling markets.
Further, operators regularly collaborate with payment providers or digital platforms in neighboring markets to better serve Lesotho’s emerging player base for mobile and online gambling – harnessing technological infrastructure, or regulatory experience, in more developed markets.
Table 3: Competitive Landscape
Operator Type
Names/Details
Market Share Estimate
Land-based Casino
AVANI Lesotho Hotel & Casino
~100%
Online Operators
Offshore international brands (e.g., Betway, Sunbet, etc.)
Fragmented, unregulated
Sports Betting Shops
Licensed, some informal shops
Significant share
Strategic Partnerships
MoU with Botswana Gambling Authority, Gauteng Gambling Board
Growing regional cooperation
Consumer Trends
Player Behavior and Preferences
Lesotho players have a clear enthusiasm for sports betting, particularly betting on football and horse racing, which is part of the culture. Casino games, like poker, blackjack, and slots, entice players mainly because of the one land-based casino available in the country, which resides in Maseru. There is a strong customer base of online gamblers from a small segment of tech-savvy players who are using international offshore platforms, due to the absence of online regulation applicable to players in Lesotho. Although there isn’t any regulation protecting online players, their habits and interest in digital gambling are growing, primarily thanks to the value and convenience of offshore operators, where the most popular accessibility is mobile.
Payment Methods and Technological Trends
Land-based gambling payment methods are still primarily cash-based, which is also consistent with general financial norms in Lesotho, where cash transactions are common. However, mobile money such as Vodacom’s M-Pesa is increasingly used for depositing and withdrawing, particularly in sportsbooks. Online casinos used by local players offer various secure payment methods such as VISA, MasterCard, Skrill, Neteller, and PaySafeCard. Cryptocurrency is gaining popularity among younger players and those looking for anonymity and lower transaction costs, but overall, the uptake of cryptocurrency is still limited.
Internet penetration in Lesotho is approximately 29.8%, while mobile phone ownership is relatively high at 78.7%, setting mobile gaming as the most likely channel for growth, with operators customizing platforms for their clients in Lesotho to ensure mobile accessibility, seamless donation and withdrawal methods, and user-friendly interfaces.
Social and Cultural Influences on iGaming
Gambling has a social aspect in Lesotho, as horse racing activities and sports betting are occasions for community gathering and cultural engagement. The concept of responsible gambling is still evolving, and there is minimal formal education available to help people understand the risks. However, there are ongoing developments designed to increase player protection and support safer gambling practices.
Table 4: Consumer Trends
Aspect
Details
Preferred Gambling Types
Sports betting (football, horse racing), casino games
Payment Methods
Cash, mobile money (M-Pesa), cards, e-wallets, crypto (emerging)
Technology Adoption
Mobile-focused, rising mobile and internet penetration
Responsible Gambling
Limited awareness, but increasing regulatory focus
Cultural Influence
Football and horse racing as key social drivers
Opportunities & Challenges
Opportunities
There is potential for growth in Lesotho’s iGaming market, especially in the mobile and online markets as regulatory frameworks develop. The increased internet penetration and use of mobile devices present a chance to expand digital gambling to underserved demographics.
Investors can focus on the lack of regulation, use it to their advantage, and play a significant role in the development of responsible and consistent online gambling regulations through collaboration with local regulators. They can create differentiating factors in the market by investing in responsible gambling and safety tools and developing local content.
Challenges
Challenges include the overall small market size based on the population size and low internet coverage, the lack of current regulations on online gambling, and the many unregulated offshore operators competing for Lesotho players.
Regulatory risk and compliance risk will also keep some investors away. Innovations in mobile gaming apps, live dealer platforms, esports betting, promotions, and other forms of localized content will support market growth while continuing to address the important aspects of social responsibility and compliance.
Conclusion & Recommendations
Lesotho’s iGaming market is a nascent market built on solid land-based gambling foundations, but with considerable unexploited sophistication potential in online gambling. Every stakeholder in this evolving landscape should carefully assess the regulatory developments closely on the horizon, as the incoming regulatory frameworks for online gambling could significantly change the landscape of the new market. (Remember, these frameworks are still being formed and could change further.)
Operators who have ambitions to launch here need to focus on mobile-first products, local partnerships, and ensuring responsible gaming measures are in place. Investors need to compare the relatively small current market size to what could be developed from a growing digital marketplace and a potential online gambling audience from South Africa.
Future Outlook for the iGaming Sector in Lesotho
Regulatory bodies in Lesotho need to take charge of developing clear and transparent online gambling laws that will protect consumers and bring reputable online gambling operators to the market, and engage in other thoughtful decision-making processes that continue to encourage innovation and compliance.
There is momentum for Lesotho becoming a growth market for iGaming operators, especially with all the changes taking place in the gaming landscape with technology, as well as future regulatory changes for operators, investors, and players alike.
Data and Sources:
- Soloazar: Overview and insight on Lesotho’s gambling outlook, covering market trends and player behavior
- Legal Pilot: Guide to gambling legality and regulations in Lesotho, including licensing and compliance requirements.
- iGaming Afrika: Coverage on strategic partnerships and regulatory agreements in the Southern African gambling markets.
- Statista: Market forecasts and consumer electronics data relevant to gaming equipment and market size in Lesotho.
- CasinoLandia: Best online casinos and player preferences data for Lesotho.
- XD Africa: Information on emerging trends such as cryptocurrency usage in Lesotho’s iGaming sector.
- IGaming Expert: News on regulatory developments and cross-border cooperation in Lesotho and Botswana.
- E-Play Africa: Legislative overview, including licensing and compliance for gambling in Lesotho.
