Gambling and online casinos in Lesotho

Lesotho is a small mountain kingdom in South Africa, completely surrounded by the territory of South Africa.

Despite its modest size, the country has a legally regulated gambling system that includes casinos, betting shops and lotteries.

And in recent years, the government has been actively developing the digital online gambling sector, focusing on the experience of neighboring South Africa.

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Historical context

Gambling in Lesotho began in the 1980s with the opening of the first Lesotho Sun Casino in the capital, Maseru.

The sector was originally created to attract tourists and players from South Africa, where gambling was then strictly limited.

In 1998, the Casino Order Act was adopted, and in 2011 the Lesotho Gambling Board (LGB) was created -

a state regulator that oversees all forms of gambling, including online activities.

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Legislation and regulation

Main legal acts:

• Casino Order Act 1998 - casino licensing and regulation;
• Lotteries Act 2001 - national and private lotteries;
• Gambling Regulation Act 2011 - control of online gambling and taxes.

Regulator: Lesotho Gambling Board (LGB)

under the Ministry of Trade and Industry.

Main provisions:

• the license is mandatory for all operators;
• license validity period - 5 years;
• Gross Revenue Tax (GGR) - 15% for casinos, 20% for online platforms;
• the minimum age of a player is 18 years;
• online gambling is allowed through the eGaming license (under implementation).

LGB is actively modernizing the licensing system, focusing on international standards and transparent reporting.

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Legal forms of gambling

Lesotho allows:

• casinos and gaming halls;
• bookmakers (including online);
• the Lesotho Lotto national lottery;
• virtual and mobile games;
• bingo and sweepstakes.

Major operators:

• Lesotho Sun Casino (Maseru) is the main entertainment centre;
• Avani Lesotho Hotel & Casino is a popular resort with VIP lounges;
• Hollywoodbets Lesotho is a local branch of the international brand;
• BetWay Lesotho and Premier Bet are the leading bookmakers.

Casinos and bookmakers in the country cater to both locals and tourists arriving from South Africa, making the industry sustainable and profitable.

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Online gambling

Online gambling in Lesotho is officially partially allowed.

The government and LGB are developing a comprehensive eGaming Regulation Act, which should come into force by 2026.

There are now several licensed online bookmakers operating in the country, as well as international platforms hosting players from Lesotho.

Main directions:

• sports and esports betting;
• online slots and live games;
• virtual leagues and lotteries;
• mobile casinos and applications.

Payment systems:

• EcoCash Lesotho, Vodacom M-Pesa, FNB eWallet;
• bank transfers (Nedbank Lesotho, Standard Lesotho Bank);
• cryptocurrencies - not yet regulated, but used on international sites.

According to the Southern Africa iGaming Report 2024, there are about 60,000 active online players in Lesotho, and the annual market turnover is estimated at $12-15 million.

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Economic role

Gambling occupies a prominent place in the economy of Lesotho, generating revenues in the budget and developing the service sector.

Key indicators (2024):

• contribution to GDP - 0.7%;
• tax revenues - about $3 million;
• employment - more than 800 people in the field of casinos and online platforms;
• about 40% of gambling revenue comes from tourists from South Africa.

The government sees gambling as a source of economic diversification and a way to keep foreign exchange earnings within the country.

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Social and cultural context

Lesotho is a Christian country with a moderate attitude towards gambling.

Gambling is perceived as entertainment and part of the tourism industry, and the state strictly monitors compliance with age and ethical restrictions.

The regulator requires operators to:

• availability of self-monitoring tools;
• warnings about dependency risks;
• a ban on minors.

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Prospects

Lesotho is slowly emerging as a new South African jurisdiction for eGaming, attracting foreign investors and developing digital infrastructure.

Until 2030, it is planned:

• implementation of the national portal eGaming Lesotho;
• development of tourist casino areas in Maseru and Mohales Hook;
• integration of fintech payments and blockchain technologies;
• participation in regional online gambling regulatory programs.

Forecast: by 2030, the Lesotho gambling market will grow to $40 million, of which 70% will be in the online segment.

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Lesotho is a small but ambitious kingdom where gambling is becoming part of a digital and tourism growth strategy.

With transparent regulation, sustainable casinos and a rapidly growing online sector, the country is confidently moving towards the status of a regional center for legal gambling.