Getting the Deal Through – Gaming Nigeria

Getting the Deal Through

In Nigeria, gambling is conducted according to laid-down legislation on gambling that is referred to as ‘lottery’ in most jurisdictions, which collectively determines the types of gambling permitted in the country.

The legal elements of gambling are determined at two levels: nation- ally and individually among the 36 states that make up the Nigerian Federation. Consequently, gambling is defined to encompass different elements of gaming in each legislation. At the national level, the National Lottery Act defines gambling to include ‘any game, scheme, arrangement, system, plan, promotional competition or device for the distribution of prizes by lot or chance, or as a result of the exercise of skill and chance or based on the outcome of sporting events or any other device which shall be operated according to a licence’.

Read more on the pdf below.

https://lawallianz.com/wp-content/uploads/2020/06/LexGTDT_Gaming_2020_-_Nigeria.pdf

Nigerians in the Square Mile – A Guide to Foreign Investments

Nigerians in the Square Mile – A Guide to Foreign Investments

In the last decade, the Nigerian creative industry has become a strong cultural force dominating sub-Saharan Africa and making inroads globally.

For over a decade key institutions like the World Bank and British Council etc have been advocating the growth and the impact of the industry on the Nigeria economy. It was not until in 2014 after the rebasing of the Nigerian economy that the real picture began to emerge; for example, the film industry alone accounted for 1.4% of our GDP (i.e. $7.2Billion), employing over a million people aside from key sectors like music, advertising, software design, design publishing, fashion design, visual arts (photography, painting), performing arts (live music, dance, theatre, DJ), comedy, Audiovisual (Television and Radio), blogging, gastronomy (culinary arts)and Makeupetc.

Read more on the pdf below.

https://lawallianz.com/wp-content/uploads/2020/04/Legal-Guide-to-the-Nigerian-Creative-Industry.pdf

Maikori: With ICE Africa, gaming will never be the same

With the maiden edition of ICE Africa proving a resolute success, Yahaya Maikori, partner at Law Allianz and founder of Global Gaming Africa (global advisors to Clarion Events), explains how Clarion came to choose Africa as the second market to push its flagship brand in – and how gaming on the content will never be the same again.

It was December 2015. Holed up in the Hilton Paddington I was working feverishly with some colleagues on delivering gaming regulations meant for an African jurisdiction. The lead consultant, Mario Galea (the pioneer regulator for the Malta Gaming Commission) at some point made mention of ICE – describing it as “Europe’s largest gaming event” held annually in London.

I had never heard of it before. But having just successfully co-hosted the first industry event in Lagos, Nigeria – the Sports Betting West Africa Summit – my curiosity was piqued and I logged onto the ICE website. I noticed that, despite the apparent growth of sports betting on the continent, the agenda had nothing on Africa. Spotting an opportunity I sent a mail proposing that I speak about Africa on one of the sessions at the up coming 2016 ICE London event, which was shortly followed with a call in which I was asked to justify to the organizers the viability of such a participation.

So from speaking at ICE to working together to set up a first panel on Africa at WRB Berlin, my company – Global Gaming Africa – entered into an agreement with Clarion to help in its African expansion.

We started with hosting the World Regulatory Briefing (WRB) in Lagos in 2016, then Nairobi in 2017, because we figured that Africa’s biggest challenge was how to regulate the industry. Soon after these two events Clarion Events brought in the host of the Gaming Indaba to further assist with the “Gaming in Africa” event held in Johannesburg last year. Evidently “Gaming in Africa” was used to test the market.

While I can’t speak for Clarion Events or advance reasons on why and at which point they decided to transmute from their previous branded African events, to host- ing their most prestigious event there, one thing is certain: as with any successful commercial venture on this continent, the decision was taken after extensive consultation and market research.

Time has told that Clarion’s Africa move was a perspicacious one. Since our first collaboration, the industry in Africa has grown in leaps and bounds. The growing interests have started to stimulate investments in some of the key African markets – our law firm alone has handled three acquisitions this year.

The quest for knowledge by regulators and the various arms of government is indicative of the changing attitude towards gambling in Africa.

Some of the highlights of the maiden edition of “ICE Africa” included the unveiling of John Kamara (Co–Founder of Global Gaming Africa) as its Ambassador.

Hosting the event in the Sandton Convention Centre (SCC) was good for branding and positioning of the event as SCC is known to host some of the largest and most prestigious events in Africa. The two day exhibition comprised a products and services showcase, co- located ICE VOX-style conference pro- gramme and world class training and staff development modules, solutions from leading gaming brands and extensive networking opportunities.

ICE Africa witnessed over 2,000 participants during the event – not bad for a maiden event, especially when compared to SiGMA or even the 30,000 yearly participants at ICE London, which have taken several years to grow.

There was also a wealth of exhibitors and gaming professionals looking to source products and/or service solutions, covering all sectors: betting; bingo; casino; lottery; mobile; online; payments; social; sports betting, and street and others.

With ICE Africa, gaming in Africa will never be the same. The journey of Clarion Event’s foray into the African gaming market is definitely a good template for European companies trying to enter the African market.

THE NIGERIAN CREATIVE ECONOMY: ITS HISTORY TO DATE AND CURRENT TRENDS

KEYNOTE/POSITION STATEMENT DELIVERED by YAHAYA MAIKORI [Partner LawAllianz ]

AT THE EUROPEAN UNION NATIONAL INSTITUTES OF CULTURE’S CLUSTER REGIONAL MEETING

ON THE 11TH DAY OF OCTOBER, 2012

The honorable Commissioner of Tourism, Lagos State, the EUNIC president and EUNIC Cluster representatives, the Director General, Nigerian Film and Video Censors board, the Country Director of the various foreign cultural organizations, my fellow speakers, ladies and gentlemen. It is a great honour for me to be delivering the Keynote at this very special occasion, in honor of the Nigerian creative industry.

According to the UNCTAD creative report “Usage of the term “creative industries” varies among countries. It is of relatively recent origin, emerging in Australia in 1994 with the launching of the report, Creative Nation. It gained wider exposure in 1997, when policymakers at the United Kingdom’s Department of Culture, Media and Sport set up the Creative Industries Task Force.

The designation has since broadened in scope beyond the arts and has marked a shift in approach to potential commercial activities that were not previously regarded purely or predominantly in non-economic terms.

For the purposes of this address, I will be adopting the formal classification of the Creative Industries, as developed by The United Nations Development Program (UNDP). According to this classification the Creative Industries comprise four key segments as follows:

First is Heritage: which include traditional cultural expressions, arts and crafts festivals and celebrations. Heritage also includes Cultural sites, museums, libraries and exhibitions.

Next is the Arts: these include visual arts, paintings, scultpture, photography and antiques as well as performing arts i.e live music, theatre, dance, opera and circus.

Thirdly we have Functional Creations: including, interior, fashion and graphic design among others. It also includes new media such as video games, soft ware, e books and other digitalized creative content.Fourth under the UN classification of Creative Industries is Media: this covers publishing and print media, books, press and other publications, films, television, radio and other broadcasting media.

I highlight these just to put a context into our discussions of the Creative Industry.

In the past decade, the Creative Industries have moved further towards the center stage in terms of its recognition as a major driver of socio-economic and cultural development of Nations and as well it should be, as creativity can also be defined as the process by which ideas are generated, connected and transformed into things that are valued.

The major drivers responsible for the extraordinary growth in the creative industries worldwide can be found in both technology and economics. The technological transformations in communications brought about by the digital revolution and the economic environment within which this revolution has taken place have combined to create the conditions for this growth. The convergence of multimedia and mobile telecommunication technologies has led to an integration of the means by which creative content is produced, distributed and consumed and has in turn fostered new forms of artistic and creative expression.

Over the period 2000-2005, international trade in creative goods and services experienced an unprecedented average annual growth rate of 8.7 per cent. However, African countries account for only 1% of this global export .

The Nigerian Creative Economy can be traced back before the advent of Colonialism, before the very constitution of Nigeria as it is currently configured. Nok, Terra Cota 500BC – 200AD and Benin Carvings proved to be both culturally and commercially viable both within and outside the shores of Nigeria. This however evolved in silos of creativity, which in themselves were highly fragmented and have largely remained so.

The first time there was an organized gathering with a focus on the creative industries in Nigeria was in 1977, during the Festival of Arts & Culture or FESTAC celebration. Ever since then the industry has more or less evolved in a largely unstructured manner.

The current explosion is ignited by an ongoing renaissance, fueled by the quest for cultural identity, driven by a youthful population who are creatively inquisitive and sustained by the digital, technology and telecoms revolution.

Unemployment is also one of the subtle catalyst of this industry.

FILM

The Nigerian film industry, which is euphemistically known as “Nollywood”, is known to be the most prolific film industry in the world. In 2005 according to World Bank figures officially overtook both Hollywood and Bollywood to become the 3rd largest film industry in terms of the number of films produced on a yearly basis. Following closely to Nollywood is another emerging and relatively unknown film industry called “Kannywood” coming from the Northern part of the country – this industry seems poised to surpass that of Nollywood.

Nollywood is reputed to have started totally be accident with a film called “living in bondage” 1992 by NEK Video Links owned by Kenneth Nnebue in the eastern city of Onitsha. Nnebue had imported a large number of blank video cassettes that he could not sell and came up with the idea of recording something on them to make them more marketable. The huge unexpected success of this film set the scene for others to produce similar films or home videos

Before these film makers we had the likes of Herbert Ogunde ,Eddie Ogboma to name a few.Typically a Nollywood film is shot within 15 – 20, days on location, with an average budget of $30,000 and it is released straight to DVD.

The film industry which has the most potential in terms of financial benefits has unfortunately had the least returns for reasons which I will highlight shortly – it is however pleasing to see a gradual shift in Nollywood’s value chain. Instead of a straight – to – DVD release, a new crop of movie directors have started targeting cinema releases both as an anti-piracy measure and as a means of trapping new revenue streams.

“Ije” is a case in point, shot with a budget of $1,500,000, it premiered in Europe ,USA and made about $100,000 in box office receipts alone . The movie shot on 35mm, has already made headway, winning several awards which include Excellence in Filmmaking (Canada International Film Festival and Hawaii International Film Festival) etc Since this film a host of other films have taken this new route.

MUSIC

Nigeria music has several genres which include highlife, afro beats, apala, juju, fuji etc but the music consumed by Nigerians then were predominantly foreign music i.e. R N B, pop ,reggae which were promoted by such international record companies such as Sony music, EMI ,polygram etc until piracy drove them away ;suffice to say that between the 60 – late 80s Nigeria had a thriving music industry – Our industry was actually acknowledged by no other person than Richard Branson in his biography “Like  a virgin”.

During that period Nigeria produced its biggest indigenous export – Fela Anikulakoputi (know for Afro beats), Sunny Ade during that period garnered 2 grammy nominations until Femi Kuti recent nominations.

For another decade the industry lay fallow with the disappearance of these record companies, until a company called KENNIS music signed a group of artists called The Remedies in 1999. This group basically fused as well as experimented with various indigenous Nigeria, African and popular foreign genres like hip hop while singing and rapping in pigeon English. This along with cheap CD duplicating plants signaled the emergence of Nigeria’s contemporary music.

The music has now come to been known as “Afro beats “ and it is widely available all over Africa and Europe and but unlike Nollywood its is known for its high quality production values and its commercial appeal. It is not unusual to hear Nigeria music being played in Selfridges or any of the FM stations in UK or the streets of Monaco.

As more of Nigerian music finds its way to such global platforms, Lots of Nigerian artists are snacking up international recording deals with companies like the Universal Music Group as well as getting the deserved recognition with such international wards like the BET,MTV Europe, MOBOs etc Touring Africa, Europe and America has become part of the schedule of most successful Nigerian artists.

Afro beats contributes about 50 % of the African content on such cable channels as Trace Tv, Channel O,Mtv Base Africa.

FASHION

From time immemorial clothing was solely used for covering up of the body and for protection from heat or cold or other environmental factors.In Africa, apart from the use of clothes for decoration of the body, the body was equally adorned with painting, tattooing or by the wise use of jewelry.

In recent years several fashion houses are emerging with designs and creations done with local fabrics and materials like batik ,tie and dye,adire,Aso Oke with embroidery for western designs, contemporary interpretation of old traditional wear .head gears like gele ,Jewelry like coral beads ,stones ,precious stones Labanella ,Olujimi King , Olujimi King was one of the very early designers who started using African fabrics for contemporary styles.

At a time, when many were still using the ankara and aso-oke for traditional iro and buba, he was already making jackets, waits coats, modified buba – and sokoto to suit international markets.

The industry I broken into pret a porter, fashion institutes, haute couture, though high street fashion is yet to develop. This is the prestigious Arise Fashion show which have been staged in during the New york fashion where Nigerians have exhibited at major fashion shows across the world ,this year a fashion label Jewel by Lisa was selected by Vogue italia to participate in its “who is next” talent hunt – It’s not unusual to see Hollywood stars adorning fashion pieces from Nigeria designers.

While these three sectors do not represent the whole industry they are key drivers of the Nigeria Creative industry ,they do not only symbolize the trends in each of the other sub sectors but they are the pillars on which the rest of the sectors revolve around i.e photographers ,media ,graphics,designs etc .

CHALLENGES

So what are the challenges of the Nigeria Creative industry? Irrespective of the sector it appears that their challenges are similar and only vary by context

1.Piracy /LACK OF APPRECIATION OF INTELLECTUAL PROPERTY RIGHTS

During the 1980s many international record labels such as Polygram and EMI decided to leave Nigeria due to rampant piracy coupled with the availability of new data storage technologies (e.g. Compact Discs, Digital Video Discs contrasted to Audio Cassettes) which provide an easy opportunity for unlicensed individuals, to copy and mass produce songs and movies etc.

Most Intellectual Property right owners do not appreciate the value of their rights and therefore unable to protect or enforce their rights; the enforcement agencies and even pirates and other types of infringers do not understand the philosophy behind Intellectual Property.

Though the last time the Copyright Act was reviewed was about 10 years ago, it is strong enough to provide the protection and enforcement tools required by IP owners.

Also the perceived weakness of the Nigeria Copyrights Commission is changing – in the last one year the commission has secured 27 convictions against pirates, now this is a positive development when juxtaposed with the 3 convictions recorded previously by the commission.

Furthermore, The Nigeria Copyright Commission is about to launch its copyright reforms roadmap next month.

2.ACCESS TO FINANCE

The industry has almost no access to formal financing mechanisms. The independent, self- employed producers generally re-invest the revenues earned from one film for the next one. Due to the unpredictable nature of the profitability of a film, banks and other financial institutions do not have models for assessing the creditworthiness of these projects. This significantly hampers the growth of the industry and discourages producers from innovating and pushing the boundary in terms of quality.

The intangibility of the Intellectual Property rights makes it difficult for financial institutions to collateralize.

Recently, the Federal Government of Nigeria in a show of recognition of the potential benefit of the industry set up the $200,000,000 entertainment intervention fund to help drive the industry, the fund is yet to make any impact as the disbursing banks have insisted on tangible assets as collateral thereby negating the intention of the fund.

3. DISTRIBUTION:

Proper and credible distribution channels are almost nonexistent. This prevents the industry from reaping its full financial benefit. At the moment there are few formal distribution channels accessible to consumers and this applies to all of the above sectors.

For example Nigeria is home to only a few formal cinemas in a few major cities which predominantly cater for international releases, 99 percent of screenings are therefore in informal settings therefore box office receipts remain marginal. According to the NFVCB, there are 6,8412 registered video parlors with a further 200,000 unofficial parlors

The quality of most Nigerian movies do not to qualify for screening in such cinemas.

Note however alternative digital distribution platforms are emerging from indigenous entrepreneurs like Iroking, spinlet and google /youtube has also been at the forefront of providing online platforms

4. QUALITY:

Poor and low quality standards, low budget of an average of 30,000 per film and short production times. The vast majority of Nigerian movies are not produced in studios and the duration of shooting generally ranges from 10 to 20 days. So the entire process of making a film is usually completed within 4 to 5 weeks. Most films are shot on location all over Nigeria with hotels, homes and offices often rented out by their owners and appearing in the movie credits. Using such locations it is very difficult to provide quality sound and lighting. Shooting is often also restricted by the other activities that are going on at the location.

5.MONETIZATION OF CONTENT /PRODUCT

It is reported that Nigerian movies are widely shown all over the African continent on national broadcasting networks without payment of any royalties to the original filmmakers.

What about music? The same applies, while our music is played all over Africa and Europe no royalty has accrued to the artists.

Fortunately, Copyright Society of Nigeria, which was recently licensed, has already started generating revenue for musician and the Copyright Commission is about to license the first audio – visual Collection Management Organization in Nigeria.

Several other revenue streams remain untouched in this industry, Until the industry can capture a greater proportion of the revenue streams it will be consigned to making low-budget, low-quality productions and will not have the ability to scale-up its operations and provide a larger number of well-paid jobs for Nigeria’s youth.

6.LACK OF RELIABLE DATA

Of all the challenges highlighted above, this remains the most critical of all, without reliable data any projections or interventions in the industry make the exercise mere conjecture and guess work.

I am however aware that the British council with the support of some local institutions have commenced the process of mapping our creative industry.

7. $200,000,000 GOVERNMENT INTERVENTION

While this intervention was a good initiative ,the government did not address the multifaceted problems bedeviling the industry and it ended up been a good government gesture.

I have tried as much as possible to highlight (without going into to much details) a brief history, trends and the accompanying challenges in the Nigeria creative industry.

There is no doubt that the Nigerian Creative Industry has come a long way, and I applaud the efforts of cultural organizations such as the British Council, Goethe Institute & Alliance Francais.

While the journey ahead of us may be long and tedious, we shall console our selves with the Chinese proverb which says that “the journey of a thousand miles starts with one step” .

Without pre-empting the direction of this discourse I will need to quickly add the following for your information:

–       Nigeria is estimated to have a population of 167,000,000

–       70% of the population are under the ages of 30 (demographic asset )

–       Youth unemployment accounts for about 25% – 40% of the working population depending on the states

–       Nollywood alone employs about 1,000,000 direct and indirectly (next only to agriculture)

–       The creative industry accounts for 5%GDP out of the 11% of non oil exports

–       Because of the poor structure it is estimated the the creative industry is loosing about $200,000,000 in North America and Europe each

–       There are a 100,000,000 active mobile subscribers,7 million Facebook users and ranks 31 Facebook statistics (according to country usage (social bakers),

 

In closing, I will like to wish us all a very productive time out; I have seen the lineup of speakers, I am very expectant and am sure we are in for a very insightful session today. It is my hope that we will move this beyond just highlighting the action points to actually taking action within our various spheres of influence.

Thank you once again for having me.

God bless.

AFRICA REGULATORY ROUND-UP – IS THERE A CASE FOR A PAN-AFRICAN GAMING REGULATION?

As the African market continues to attract the attention of international operators, there is a growing demand for pan-African regulation, writes Yahaya Maikori. Whether that is justified, or indeed possible, remains unclear.

The sentiment in this article’s headline is borne directly from the European experience. If such a proposition is not remotely possible in North America, or even Asia, why is it being called for in Africa? Why should an entire continent be subject to a single regulatory framework?It’s borne out of ignorance, when everyday conversations can include phases such as “I am going to Africa” or “I have never been to Africa”. The continent is not a single entity.

The term “Africa” conceals much of the continent’s diversity and paradoxes. For example, there is different jurisprudence governing the various legal systems of the 54 African nations. North Africa, comprising seven countries, is primarily based on Islamic law, which is morally against gambling.

In Egypt, for instance, gambling is banned outright, though for tourism purposes they have made exceptions to allow foreigners to patronise casinos, while sports betting thrives illegally. Morocco, though a Muslim country, surprisingly allows almost all forms of gambling. Perhaps the country’s mixture of Islamic, European and African influences, coupled with a thriving tourism industry, accounts for this tolerance.

Though both Egypt and Morocco share a common jurisprudence, its application in each country is very different. As liberal as Morocco may seem to be, I doubt that it will ever legislate for the gambling industry. In West Africa, only five members of the 17 Economic Community of West African States (ECOWAS) speak English as their official language. The rest are predominantly French, sprinkled with a few Portuguese and Dutchspeaking countries. Though intended to create a regional market, poor transportation connections, substandard implementation of the various protocols and inadequate communication arising from language barriers has substantially hampered intraregional commerce between the member countries.

Ordinarily, language shouldn’t be a barrier for trade in contemporary times, but in Africa languages have deeper cultural, social, moral and traditional significance compared to Europe, which can derail such initiatives.

A cursory look at the various markets also indicates that legislative activity seems to grow along the same direction as their most active sub-sectors to the exclusion of the less vibrant ones.

For clarity, South Africa probably has the most mature gambling market on the continent. Yet despite the surge in payment providers and online gaming it has refused to address remote gambling in its current draft law.

In Nigeria, online sports betting is recognised though it is yet to be regulated, but since sports betting has grown exponentially other sub-sectors, such as casino and slots (which were a big thing barely 30 years ago), have been neglected.

In any case, since the gambling sector’s significance is only just becoming apparent in most economies, it is yet to be recognised as an industry that warrants most African governments’ attention.

Having considered these challenges are there any viable vehicles for the advancement of this proposition?

Perhaps African Union’s new initiative, the Africa Continental Free Trade Agreement (AFCTA), which seeks to organise Africa into one market, has the capacity to provide a vehicle for such an effort.

The African Union has shifted its focus from addressing Africa’s political challenges to addressing its economy, which is projected to be worth $5tn when properly harnessed.

Intra-African commerce is currently estimated to comprise 15% of the continent’s trade, compared to Europe’s 71%. Not even the growth of ecommerce has improved intracontinental trade – a result of the fragmented nature of the continent’s economy and its infrastructural deficits, especially in information and communications technology.

The African Union’s initiative provides some hope but there are already fears on how to harmonise Africa’s heterogeneous economies, especially those with the largest income disparities.

While opportunities for ecommerce are at the forefront of the ongoing negotiations, the reality is that the journey has just begun and gambling will not be a priority in those talks.

With this situation we are left with probably one likely vehicle: the Gaming Regulators Africa Forum (GRAF) – a platform for African regulators. Hopefully, it may be able to provide a possible solution by ensuring uniformity of regulation among all its members.

Uniform regulation across most of Africa, though far from the ideal proposition, provides at least some clarity as to what to expect in most African markets in terms of licensing and taxation, as well as legal certainty for operators.

Perhaps this is the first step towards establishing some form of pan- African regulation.

African Regulatory Round-up: Pan-African Regulation

As the African market continues to attract the attention of international operators, there is a growing demand for pan-African regulation, writes Yahaya Maikori. Whether that is justified, or indeed possible, remains unclear.

This sentiment is borne directly from the European experience. If such a proposition is not remotely possible in North America, or even Asia, why is it being called for in Africa? Why should an entire continent be subject to a single regulatory framework?

It’s borne out of ignorance, when everyday conversations can include phases such as “I am going to Africa” or “I have never been to Africa”. The continent is not a single entity.
The term “Africa” conceals much of the continent’s diversity paradoxes. For example, there is different jurisprudence governing the various legal systems of the 54 African nations. North Africa, comprising seven countries, is primarily based on Islamic law, which is morally against gambling.

In Egypt, for example, gambling is banned outright, though for tourism purposes they have made exceptions to allow foreigners to patronise casinos, while sports betting thrives illegally. Morocco, though a Muslim country, surprisingly allows almost all forms of gambling – perhaps the mixture of Islamic, European  and African influences, coupled with a thriving tourism industry, accounts for this tolerance.

Though both countries share a common jurisprudence, its application in each country is very different. As liberal as the Morocco may seem to be, I doubt that it will ever legislate for gambling industry.

In West Africa, only five members of the 17 Economic Community of West African States (ECOWAS) speak English as their official language. The rest are predominantly French, sprinkled with a few Portuguese and Dutch-speaking countries. Though intended to create a regional market, poor transportation connections, poor implementation of the various protocols and poor communication arising from language barrier has substantially hampered intraregional commerce between the member countries.

Ordinarily language shouldn’t be a barrier for trade in contemporary times, but in Africa languages have deeper cultural, social, moral and traditional significance compared to Europe which can derail such initiatives.

A cursory look at the various markets also indicates that legislative activity seems to grow along the same direction as their most active sub-sectors to the exclusion of the less vibrant ones.

For clarity, South Africa’s probably has the most mature gambling market on the continent. Yet despite the surge in payment providers and remote gaming it has refused to address remote gambling in its current draft law.

In Nigeria, online sports betting is recognised though it is yet to be regulated, but since sports betting has grown exponentially other sub-sectors such casino and slots – which were a big thing barely 30 years ago – have been neglected.

In any case, since the gambling sector’s significance is only just becoming apparent in most economies, it is yet to be recognised as an industry that warrants most African governments’ attention.

Having considered these challenges are there any viable vehicles for the advancement of this proposition? Perhaps African Union’s (formerly known as the Organization of African Unity), new initiative, known as the Africa continental free trade agreement (AFCTA) which seeks to organise Africa into one market, has the capacity to provide a vehicle for such an effort.

African Union (AU) has shifted its focus from addressing Africa’s political challenges to addressing its economy, which is projected to be worth $5tb when properly harnessed.

Intra-African commerce is currently estimated to comprise 15% of the continent’s trade, compared to Europe’s 71%. Not even the growth of ecommerce has improved intra-continental trade – a result of the fragmented nature of the continent’s economy and its infrastructural deficits, especially in information and communications technology.

AU’s initiative provides some hope but there are already fears on how to harmonise Africa’s heterogeneous economies, especially those with the largest income disparities. While opportunities for ecommerce are at the forefront of the ongoing negotiations, the reality is that the journey has just began and gambling will not be a priority in those negotiations.

With the above situation we are left with probably one likely vehicle, the Gaming Regulators Africa Forum (GRAF) – a platform for Africa regulators. It may hopefully be able to provide a possible solution by ensuring uniformity of regulation amongst all its members. Uniform regulation across most of Africa, though far from the ideal proposition, provides at least some certainty as to what to expect in most African markets in terms licensing and taxation, as well as legal certainty for operators.

Perhaps this is the first step towards establishing some form of pan African regulation.

Yahaya Maikori is the senior partner of Law Allianz, a leading African gaming and entertainment law firm. He also co- founded Global Gaming Group, a business that has advised regulators, companies, and startups across key markets in Africa’s growing gaming industry.

Maikori: A guide on how to secure an African partner

It is universally accepted, writes Yahaya Maikori, gaming lawyer at Lagos-based Law Allianz, that for any business to thrive in a foreign environment it will need the support of the locals. The problem for most operators, he says, is how to find a partner.

In spite of recent developments in America, the African gaming market still generates a lot of interest amongst European operators looking to expand beyond their shores. But in the mist of that palpable excitement is always the nagging question: “How do I go about finding my way around this populous continent?”
The reality is that most foreign operators have never had any kind of contact with Africa or Africans. Besides Africa is a continent of 52 countries, which is a large number of countries to choose from. The diversity of its inhabitants, race, religions, cultures, business ethics, communication and jurisprudence give subtle nuances to how even international best practices are implemented in the respective markets. Getting these right will determine the success or other- wise of such companies in their chosen markets.
During the early days of sports betting in Nigeria most of the South African companies that ventured into the market failed to make these adjustments and this led to their failure or early demise. Typically in South Africa, the sports betting model revolves around large stand alone retail halls. An attempt to replicate that exact model in Nigeria met with limited success; those who eventually became market leaders succeeded because they noted the peculiarities of the local market .So instead of setting up these large shops they built mid-sized shops and implemented a franchise /affiliate retail model which saw the affiliates set up smaller mini contact shops at their own cost – reducing the principal’s capital expenses and allowing the operator to focus its resources on providing software and support, advertisement and payouts. This model led to their quick expansion to all the nooks and crannies of the country.
It is universally accepted in the business world that for any business to thrive in a foreign environment it will need the support or the assistance of locals. The problem with most operators then is how to find a partner in their chosen market given the multitude of issues they must sieve through to arrive at a credible and reliable partner – and the multitude of variables and considerations it has to synthesize to arrive at a winning formula.
As a first step I always advise clients to secure the services of an industry professional to conduct thorough market research, which should take into cognizance peculiarities of the local market as ear- lier highlighted. Such a report if properly conducted will throw up several of the local issues the operator will have to contend with in the course of entering the intended market. The operator needs to juxtapose results of the research with its strength, weaknesses and objectives to reach some form of understanding of what kind of partnership is needed to drive its business.
By way of an example if the market research shows that the market is a grey market; an opera- tor which has decided to enter a given market may need to consider adding to its shopping list “a knowledgeable and respected industry practitioner” or alternatively “an influential person with strong government contacts” provided it also procures the services of a gaming lawyer or industry expert to handhold it as it navigates the unclear regulatory landscape.
In another scenario a client decided to partner with the owner of a media outfit in order to tap into the partner’s strong media entertainment industry contacts. In arriving at this decision, the operator noted that it was a very strong global brand, had adequate funding and could mobilize its global contacts to intervene in any local political issues. but prioritized that it needed to leverage on the entertainment industry to fur- ther localize and entrench its brand.
In a third situation, a foreign company which had strong online presence in Europe needed to tap into the retail market in order to access 93% percent of the local bet- ting market. It simply acquired a majority stake in a burgeoning local operation there by acquiring both a substantial size of the retail market as well as the team’s expertise and skills of the local market, then it went on to reconstitute the board to reflect its diversity and add other competences.
From the above examples it is important to note that no two operators are the same. Operators’ needs do not only differ from that of others but may need to be adapted or deployed to different markets which will bring about different results. Securing a local partner is never a science; at best it is a delicate art, which has its share of risks but taking these considerations can surely minimize the margin of error.
By way of caution no matter how pleasant and sophisticated a potential partner may appear to be, the operator needs to conduct thorough due diligence on the company, its directors and management to understand their business philosophy, ethical standards, accountability and their temperament from col- leagues, business associates, employees and suppliers.
Finally the roles, tasks, remuneration, targets of the prospective partner must be negotiated to the letter and documented; it will also help if further training in terms of international best practices, service delivery and dispute resolution is provided – this will bring about more clarity and reduce areas of potential conflict.

African Regulatory Round-up: Building a Picture of the Legal Landscape

In the second part of his deep dive into key regulatory reforms being made in a number of African jurisdictions, Law Allianz founder Yahaya Maikori examines developments in a number of smaller markets.

Swaziland
Located right in the middle of South Africa, landlocked Swaziland has a population of barely 1.45 million people. The country’s industry is regulated by both the Casino Act of 1963 and the Lotteries Act of 1963.

There is just one sport betting licence available, which is renewed annually and covers the entire country for both online and retail betting. However, the betting industry in southern Africa is very retail-heavy, meaning that more investment will be required to expand the sector in Swaziland.

In 1998, Piggs Peak, one of the country’s land-based casinos, was granted a licence to offer
its products online. This roll-out was targeted at South African players, as Swaziland alone is too small to sustain an online market. Given the status of online casino in South Africa, the authorities there didn’t take kindly to this move. They successfully fought it in court, which ultimately stopped the operator from accepting South African players. Players from other countries still remain welcome, however.

In 2005, Swaziland shut down its national lottery, Swazi Lotto. However, in 2013, it awarded a 15-year licence to V Slots Swaziland, a subsidiary of a South African conglomerate, to offer lottery games in the country.

There are also two slot licences available, one of which was recently cancelled, effectively giving the remaining operator a monopoly. This licence holder currently operates around 300 machines across its gaming halls, though research has suggested there is scope for this number to be increased significantly.

Further changes may be forthcoming. In 2018 the Ministry of Tourism issued a request for proposals for consultancies to conduct a review of Swaziland’s gambling laws, though not much has been heard of the process since.

Cameroon
In 2015, the Senate president presented a draft bill seeking to restructure the gambling sector, with a view to imposing new controls on the industry.

This was in response to increased concerns about underage gambling, the industry’s potentially devastating effects on household income, family stability, mental health and loss of revenue by the government.

The public hearing included representations from various committees and bodies. However, the process appears to have ground to a halt, with the bill lost in day-to-day politics. All the while, the vices and illegal activity the government had sought to tackle continue unabated.

In the absence of any tangible action, but in furtherance of its mandate, the Ministry of Territory has resorted to a series of consultations with key stakeholders on how to regulate the industry, with a particular focus on an appropriate model of taxation.
Casinos and gaming halls are littered all over Cameroon, and the unchecked activities of illegal operators and lack of enforcement present a host of socio-economic challenges.

Although there are no popular local Cameroonian brands, illegal online websites are easily accessible.

Sierra Leone
In 1969 a lottery bill was passed into law, which saw the Sierra Leone State Lottery Company (SLSL) licensed and empowered to operate all games of chance on behalf of the state.

The company has existed since 1969 and originally operated as a monopoly. In 2006 a second lottery operator, Mercury International, was granted a licence by the president at the time, Ahmad Tejan Kabbah. This was renewed in 2018 for another three years.

The argument in certain quarters is that the president approved the second operator because of SLSL’s failure to deliver on its mandate. Sierra Leone is only just beginning to recover from its years of civil war and is struggling with a weak economy. This has affected internet connectivity, affordability and penetration, which has, in turn, hampered the growth of online gaming and particularly sports betting which is reliant on good connectivity.

Payments have also been a problem. However, as part of its financial inclusion strategy, the central bank has recently licensed the first mobile money operator in the country, which will most likely nudge the growth of the industry along.

For now, the lottery and pool are the most popular types of gambling and are played predominantly via retail channels. While attempts have been made to also move lottery to mobile platforms, the success – or otherwise – of this initiative remains to be seen.

Ghana
Until 2006, the principal legislation that governed gambling activity in Ghana was the 1960 Lotteries and Betting Act. This was replaced by the 2006 Gaming Act, which saw the establishment of the Gaming Commission of Ghana (GCG), the body that oversees most of the gambling activity in the country. Lottery, meanwhile, remains under the control of the National Lottery Authority.

In Ghana, sports betting is the most popular form of gambling, while the Ghanaian National Lottery contributes valuable funds for good causes in the country through its weekly draws.

The land-based casino world is underserved at the moment, with just four mid-sized casino establishments operating in the whole country, two in the capital Accra, and one each in Tema and Kumasi.

The GCG issues online gambling licences even though we know that there is no specific remote gaming regulation, and there is currently an embargo on new licences.

Early in the year, the GCG announced a rebranding as a way of repositioning its role amid efforts to crack down on illegal gambling and tackle issues such as money laundering. However,
it has been widely opined in some quarters that the rebranding should have come after reviewing the Gaming Act to give the GCG wider powers for enforcement – especially with respect to remote gaming.

The above observations notwithstanding, Ghana is noted for its stable gambling environment – the country has little of the volatility that has hurt the industry in many other African jurisdictions.

As far back as four years ago, the GCG toyed with the idea of implementing a central monitoring system and even went as far as inviting bids, but a change of leadership at the organisation may have stalled the process. The CEO has, however, assured stakeholders that the Act will be reviewed comprehensively in future.

Mauritius
In early 2018, the Gambling Regulatory Authority of Mauritius advertised for consultants to help review its 2007 Gambling Act.

From the terms of reference, it was evident that Mauritius was aiming to position itself as the Malta or Alderney of Africa. The strategy isn’t that far- fetched when you consider that its 1.3 million population does not provide enough of a market on which to build a viable industry.

The country is seen as a tax haven with over 44 tax treaties signed with other territories. This could make it a no- brainer for global operators looking to leverage the tax advantages to expand into African markets.

Though the consultancy contract was awarded on schedule, it somehow got scuttled during its implementation and the law has remained essentially the same since it was passed in 2007, albeit with minor improvements.

Yahaya Maikori is the senior partner of Law Allianz, a leading African gaming and entertainment law firm. He also co-founded Global Gaming Group, a business that has advised regulators, companies, and startups across key markets in Africa’s growing gaming industry.

OVERVIEW OF COMPARATIVE STANDARDS FOR PROTECTION OF TRADEMARKS

1.            Introduction

Any international discussion of trademarks protection regime today must stem from the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). TRIPS is administered under the platform of the World Trade Organisation (WTO) and is a detailed and comprehensive agreement establishing minimum standards for protection and enforcement of Intellectual Property. Nigeria is a member of the WTO., but there are still substantial differences and some similarities between the Trademarks Act and TRIPS; some of which this paper shall highlight.

2.            Definition of Trademarks

Article 15 of TRIPS defines a trademark as any sign or combination of signs, capable of distinguishing the goods and services of one undertaking from those of other undertakings. Section 67(1) of the Trademarks Act cap T13 Laws of the Federation of Nigeria 2004 on the other hand, defines a trademark as a mark used or proposed to be used in relation to goods for the purpose of indicating, or so as to indicate, a connection in the course of trade between the goods and some person having the right either as proprietor or as registered user to use the mark, whether with or without any indication of the identity of that person. In 2007, the then Minister of Commerce and Industry, acting under his powers in the Act, extended the classification of marks in the fourth schedule to the Trademark Act from classes 35 to 45, providing for varying services to be registered as trademarks.

3.      Regime for Registration of Trademarks

The Trademarks Act provides for registration in Parts A and B of the Trademarks Register. For registration in Part A, a trademark must have the quality of distinctiveness, i.e. contain at least the name of the applicant (represented in a special manner), or signature of the applicant, or an invented word (s), or a word (s) having no direct reference to the character, quality or geographical name of the goods or any other distinctive mark. While registration under Part B of the Register may only be obtained in the case where the mark is capable of distinguishing goods with which the proprietor is connected in the course of trade from goods in which no such connection exists. Marks that are names of single chemical element or compound, deceptive and/or scandalous cannot be registered under the Trademarks Act. While TRIPS makes no provision for separate registers or regimes, it obliges criteria of distinguishability and leaves other criterion to the discretion of its members.

4.      Third Party Rights in Registered Trademarks

In Article 16 of TRIPS, it is provided that a proprietor of a registered trademark shall have the exclusive right to prevent third party usage of an identical or similar mark in the course of trade in goods and services identical to his, where such use is likely to cause confusion. Under Nigerian law the right is similar, but the difference is that the proprietor has a right to exclusive use of the mark subject to vested rights of earlier users. See Sections 5, 6, 7 and 8 of the Trademarks Act.

5.      Protection of Well-known or Famous Marks

Under the said Article 16 of TRIPS, ‘well known’ or ‘famous’ marks are protectable, without or without registration. The Trademarks Act, however, does not provide for protection of well-known or famous marks and as such, even though Nigeria is obliged to enforce TRIPS provisions and Paris Convention for the Protection of Industrial Property (which also provides for protection of well-known marks), it may be difficult to enforce as these treaties have not yet been domesticated under Nigerian law and so it would appear that the only option for protecting such marks is by the common law action for passing off. See the case of Exxon v. Exxon Nominees [1989] Federal High Court Reports 1. In Section 7 of the Trade Marks Act, however, such well known/famous marks can be protected against their registered counterparts as the Trade Marks Act recognizes the rights of owner or user of unregistered trademarks, which are identical with or nearly resembling a registered trademark. This is provided that the unregistered owner or user can show that he or his predecessor in title has continuously used that trademark from a date previous to the use or registration by the registered user.

6.      Protection of Geographical Indications

Geographical indications identify goods as originating from a particular territory or region in a country, and indicative of quality, reputation or other characteristics attributable to that territory or region. These indications are protected under TRIPS and members could either refuse granting registration or even nullify same where there is a false or misleading indication. While the Trademarks Act does not specifically provide for Geographical Indications, they can be subsumed under Section 43 (1) of the Trademarks Act. the regime of certification marks, i.e. marks that certified as to origin, quality or other characteristic.

7.      Conclusion

The TRIPS Agreement is broad based and applicable to several countries around the world. It represents the uniform standards, predictability and consensus in the use and protection of intellectual property rights as key factors for trade among nations and the entities operating within their respective territories.

While Nigeria has substantially complied the provisions of TRIPS, she is still in default of several key provisions, the most important of which are the provisions for the protection of well-known or famous marks. It is hoped that upon the enactment or amendment of the existing legislation these issue shall be resolved.

THE NIGERIAN CREATIVE INDUSTRY AND INTELLECTUAL PROPERTY RIGHTS IN A DIGITAL ENVIRONMENT

1.          BASIC FACTS AND FIGURES

One thing is crystal clear: there is an abundance of talent in Nigeria and from Nigeria. For example, the Nigerian Film Industry is estimated to account for almost 1.4% of our Gross Domestic Product (GDP) i.e. over USD 7 Billion, providing employment for over 1 million people and releases over 2500 films a year, according to an International Monetary Fund (IMF) Report released in 2016.

All across the different sectors, there are substantial revenues generated from the industry, a fact which was placed in sharp focus in 2013 when the Federal Government of Nigeria rebased our GDP by including components like music, film, telecommunications, online sales and information technology, which ultimately led to an increase of GDP from an estimated USD 285.5 Billion to an estimated USD 510 Billion.

The Nigerian Creative Industry comprises several players across diverse sectors like film, theatre, music, dance, literature, fashion, television, radio, arts, sports, information technology, media, advertising and gaming. The common tie that binds the entire industry is Intellectual Property (IP), as it is the primary product of all activities across the different sectors. The standard industry model for creating commercial value used to be good content, effective exhibition platforms/distribution channels and adequate IP Protection. Clearly this is no more the case as technology, with its fluid and constantly evolving ecosystems, has revolutionized everything about the industry, especially the way the public engages it.

We are therefore confronted by a double edged sword, i.e. the challenges created by new technology in the creative industry and the opportunities that these technologies have introduced for us to grow the industry and create something truly remarkable in Nigeria.

This paper shall traverse these and many other issues with a view to discover what portends for the industry in a digital environment.

2.          INTELLECTUAL PROPERTY PROTECTION UNDER NIGERIAN LAW

Intellectual Property refers to creations of the mind over which the creator has certain exclusive proprietary rights. Intellectual Property is protected in the first instance by a body of laws which cover different categories of Intellectual Property. In Nigeria, these laws are national, i.e. laws enacted by the National Assembly of Nigeria like the Copyright Act cap C28, LFN, 2004 and international, i.e. treaties entered into which adopt certain standards and protocols applicable to its member states like the Berne Convention for the Protection of Literary and Artistic Rights 1886.

In terms of the areas they cover, these laws can be classified as follows:

(i)           Industrial Property Laws: These laws protect trademarks, industrial designs and patents.

(ii)         Copyright Laws: These laws protect the copying and use of artistic works, sound recordings, films, music, broadcasts, literature, computer programming and so on.

(iii)       Other Laws: These Laws protect other areas of intellectual property like trade secrets, domain names, trade dress, utility models, image rights and so on.

The players in the Nigerian Creative Industry obtain the highest level of intellectual property protection through the Copyright Right Act as this is the law sets out the general regime for protection of creative activity, i.e. definitions, components, requirements for protection, types of infringement and mode of enforcement for infringement. The Act also sets out the powers and functions of the Nigerian Copyright Commission, which is the main industry regulator. For example, in 2007, the Nigerian Copyright Commission (NCC) pursuant to these powers made a Regulation called the Regulatory Framework for Registering and Monitoring Optical Discs Replicating Plants which mandated that all optical discs have a Source Identification Code to track optical discs to the plants where they are produced. The industry players also require protection through other laws like the Trademarks Act, cap T13, LFN, 2004the Patent and Designs Act cap P2, LFN, 2004; the Cybercrimes (Prohibition, Prevention, etc) Act 2015; the National Information Technology Development Agency Act (2007) and the General Registration Policy of the Nigerian Internet Registration Association.

Copyright under Nigerian law is achieved by the expression of original works of art, literature, music, cinema, sound and broadcast, in a fixed medium through which it can be communicated directly or indirectly. Copyright in Nigeria is not by registration but other criteria which the author must meet, i.e. qualification as a citizen, person domiciled in Nigeria or body incorporated in Nigeria; or qualification as a government, state authority or approved international body; or qualification as a citizen, person domiciled or body corporate incorporated in a country which is joint signatory with Nigeria in an international treaty.

3.     DIGITAL DISPLAY/DISTRIBUTION OF CREATIVE WORKS

The internet has opened up the digital space and created faster, more accessible, more interactive and more intuitive ways of communicating. This in turn has transformed the way intellectual property is created and deployed to end users. Creative activity in the digital space is through activities like uploading, downloading, streaming, live streaming and file sharing on platforms like Facebook; Whatsapp; Instagram; Twitter; Google play; Yahoo music; Youtube; Tidal; iTunes; Spotify; Soundcloud; online download platforms; file sharing platforms; vlogs and blogs.

These disruptive technologies have completely transformed previous models for the creative industry, i.e. the standard model was for established brands to purchase the bundle of intellectual property rights from their creators, use their well dispersed distribution networks and sophisticated marketing systems to drive the commercial success of the works and in exchange the creators would receive a fixed percentage of the profits known as royalties. In contrast creators now keep the bulk of commercial benefit from their intellectual property as the internet provides them with the widest possible distribution network possible; they can market their works directly to the end users in far more sophisticated ways through social media; the digital platforms that display and distribute their works most times do not own the bundle of rights but simply operate as a hosting platform and share fees collected from end users and at the same time the user engagement/experience with the work has been greatly enhanced.

The challenge with these new platforms is not with their potential to ensure creators receive appropriate commercial value for their works but with how these platforms can be effectively positioned in the Nigerian market to deliver on their potential. This is because there is a total absence of regulation in the digital space and this means that more than previous industry models, piracy can devastate the digital space if not addressed by the NCC.

4.     CONCLUSION

There is no doubt that the future of the creative industry and exploitation of intellectual property is now. There are ample opportunities to reposition the Nigerian arm of the industry as the foremost hub in Africa and among the preeminent nations globally. What is most necessary is infrastructure that better applies to the digital age and for this there is a need for very significant investment in the sector. That investment for now will have to flow from governmental, institutional and multilateral sources, but this will only happen when the industry organizes itself and shows its readiness to move into the digital age.

In particular, the industry must seek stronger protection or enforcement under the provisions of existing or new laws, participate in and strengthen the activities of their trade associations for consensus building, carry out public enlightenment and advocacy, adopt comparative best practices from their regional and international colleagues and leverage on new technologies.