The host of online gaming companies based in Malta for tax breaks and sunny climes brings with it highly-remunerated employment, a gross domestic product boost and tax revenue from around one-tenth of the global multi-billion-euro industry that has made the islands its home.
But every silver lining has its cloud and the devastation Malta’s remote gaming companies are said to be wreaking on millions of poverty-stricken East African youths is being brought into sharp focus.
“Online gambling orchestrated by companies in Malta is actively targeting Africa and creating the conditions that will lock millions into a lifetime of poverty,” according to the Young Africans Fighting Online Gambling organisation.
“We passionately believe that our children are not ‘prospects’ for the online gambling industry to profit from.”
This is the first of a series of articles exploring the ramifications of the exportation of remote gambling from Malta to East and sub-Saharan Africa in which The Shift will be exposing the insidious trade.
That trade is earning betting companies millions of euros while millions of African youths are, as a consequence, seeing their futures consigned to lifetimes of poverty and vice.
Charities speaking with The Shift say African youths are being mercilessly targeted and groomed by Maltese gaming companies through advertising, infiltration into schools and charities and even through the donations of computers that can be used to feed the vice.
Likening the scourge to “a massive humanitarian crisis impacting millions,” Graham House of the Hope With Africa NGO explained to The Shift how certain charities are being run by “exactly the same people who actively target and groom the very same kids into online gambling.
“Those they say they want to help are in actual fact those they will eventually kill. The death and destruction here because of this industry is in the millions.”
According to the Young Africans Fighting Online Gambling organisation, millions of youths in Ethiopia, Kenya, Uganda, Tanzania, Nigeria, Cameroon, Ghana, Angola – and indeed the whole of Africa – are being actively and unscrupulously targeted by Malta’s online gambling industry.
Almost all of this, however, is happening under the regular Maltese citizen’s radar.
“Perhaps the good people of Malta are unaware of the harm that is being done in their name?” YAFOG asks. “This is evil on your part that has a high impact here in Africa.”
The organisation says its research has shown how young people are being targeted and groomed into addiction: “Your [Malta’s] online gambling industry is a predatory industry, and you prey on, and profit from, our most vulnerable people in the most vulnerable countries for commercial gain.
“You do this because nearly 70% of the profit in your industry is gained from those who are addicted to the online gambling that you market so heavily and have infiltrated our schools with.
“Poverty for us seems to be the intention of the people in Malta who profit from our loss, which is why we are targeted.”
Meanwhile, Malta’s public coffers make millions of euros in tax revenue from the roughly €2 billion in annual turnover the local industry sees yearly.
Malta hosts over 10% of the world’s online gaming companies, which, in turn, provide the country with around 10% of its gross domestic product, significant tax revenues and over 10,000 well-paid jobs.
That success, however, comes at a price that is now being exported to Africa and to millions of its poverty-stricken, underprivileged youths who are falling into the vicious circle of gambling, debt, poverty, crime and a host of other related societal problems.
That boom is being fed by faster internet and cheaper phones, but there is a real fear that children are being increasingly sucked into the cycle.
One government minister called the phenomenon “a curse on youth” in Kenya.
Young Africans Fighting Online Gambling has produced a short clip showing the problems the online gaming sector is creating in Kenya alone. Examples from other African countries can be seen on its website, Facebook, and Instagram pages.
Mounting evidence from studies suggests that youth in sub-Saharan Africa are increasingly drawn to online gambling-related activities, leading to dire consequences for millions of youths.
“I became aware of the threat to our economic and security wellbeing while we are being targeted by the online gambling industry operating in your country, seemingly with the support of the people of Malta,” according to 31-year-old Joseph from YAFOG in an open letter to the people of Malta.
“I have seen the rapid expansion of the online gambling industry spread like wildfire and infiltrate the youth of my country and across Africa as a whole.
“The impact of being targeted by the online gambling industry operating offshore from Malta is destroying Africa.”
Graham House from Hope with Africa says it has written to Maltese Foreign Minister Ian Borg to highlight the growing phenomenon, but there has been no answer so far.
“What our NGO wants,” says House, “is for meaningful conversations with the people of Malta and about 50 million young Africans, using our NGO as a mediator.”
YAFOG echoes the sentiment: “We urgently seek meaningful conversation with your people to help you understand the evil being done, in your good name, by a few in Malta who are killing millions of our young Africans.”
You would do well to mention which companies in Malta. I work in igaming and my company doesn’t operate in Africa.
All in due course.
Weather they operate in Africa or not is not the issue. So European or Asians people are ok? It is a known fact the gambling industry worldwide can lead to addiction etc but so can alcohol, sugar etc etc etc
Thank you Elton. You’re right – we’re talking about overt exploitation of children by toxic industry. Roberta has a view on this, expressed here
https://www.youngafricansfightingonlinegambling.com/
Thank you for taking an interest in this issue Rachel, and sincere thanks to David for his courage in reporting it, and to the team for raising it. The UK Parliament has just recognised this to be a public health crisis on a scale never seen before, in advance of its Government White Paper aimed to save lives. It’s actually a global security threat to economic stability, fuelling terrorism because the industry has created addiction, by design, with every kid now having a casino in their pocket. Roberta Metsola makes the case for a shift, and so do we. Let’s work together and a find a way to save lives, not take lives on this Easter? Thank you for your care G
How would you know? Do you have oversight of all operations in all the locations? Especially through ‘partners’.
Your comment is ridiculous and super naive.
sorry, I’m just the muppet here, and I’m trekking on a coastal path so I’m obviously wrong. Sorry you’ve taken offence with the evidence available to you. The undisputed fact, however, is that the online gaming and online gambling industry has created a global public health crisis. We just join the dots with those who have the evidence and present that evidence to those in power. Perhaps reach out to the lovely Liz Richie who would welcome a chat with you – https://youtu.be/asj6PfQprFg if you can find a moment? Thank you for your care
The gaming companies are not only targeting Africans but also the Maltese, especially the youth. Like cigarettes, the advertising by gaming companies on television should be prohibited.
Thank you Saviour – you’re (sadly) right there. The only difference to online gambling harm, be you a child in Malta, or the UK, compared to Africa is scale. We risk losing the integrity of The Commonwealth unless we work together toward saving our future needs. Thank you for your care G
Integrity of the Commonwealth?
Sadly, yes, the integrity of the Commonwealth family is at stake here. Certain Maltese individuals, seemingly supported by the people of Malta, with the tacit endorsement of the Malta government (Malta being a Commonwealth State) are actively targeting young people in Kenya, Nigeria, Cameroon, Uganda, Tanzania (also Commonwealth States) that leads to their death, in millions. What sort of family does that to each other? What might the soon to be crowned Head of the family do about it?
The Commonwealth is only there to protect the interests of the UK Monarchy and Government. If you really want to help African youth you should lobby the UK Government to return the stolen African artefacts that today are on exhibit at many British museums and from which the UK Government / Commonwealth profits. The return of such, will possibly help kick-start much needed heritage tourism in Africa and create jobs for African youths. Whilst at it you should also lobby the UK government to return the billions, if not trillions, of USD Dollars that British energy companies stole from Africa, restore the environment integrity of the contaminated sites and return the lands to their rightful owners. Maybe you can ask the many British gaming companies, based in Malta, to fund your lobbying campaigns with the UK government. You should also consider lobbying with the Premier League to stop teams from promoting gaming companies on their shirts, a sport with global following including all of Africa. Africans will clearly see through this smoke screen…in fact they refer to it as Western hypocrisy.
Malta will not waive its 10% GDP from betting, no matter what, as there is no solid substitute. Malta’s wealth substantially derives from financial and betting industries. Furthermore, betting in some instances was proven to be tied to Italian organised crime.
It may be argued that many Maltese care ONLY about the money and nothing else, it’s apparently a culture. Hence, betting business will continue uninterrupted untill doomsday. Or untill Malta is kicked out of the European Union (highly unlikely).
Roberta Metsola suggests Malta absolutely does have an alernative… https://www.youngafricansfightingonlinegambling.com/
Let’s start off with a simple statement: GAMING/GAMBLING is an absolute act of IRRESPONSIBILITY whether carried out by youngsters or elders.
The first step for Governments is to stop advertising by any means.
It is a fact that this activity contributes 10% of our GDP, but so does, to a lesser percentage, prostitution, and so does legal trading in cannabis.
Why don’t we instead speak about the percentage impact on the resultant poverty, and the withering of mental health resulting in the maiming of our human resources who can otherwise contribute healthily towards our productive economic sectors, and not producing dirty profits for the stakeholders of the gaming companies who, in many cases, are criminals or groups of criminals operating in the underworld or through cover up agents like charities and foundations.
Your comments made me laugh and then cry given the gravity of this situation in Malta (prostitution=contributor to GDP=classic example of the wider hypocrisy we see here). As regards how does this industry, in Malta, kill kids, here is Dr Matt to explain it https://youtu.be/AL1_oPU5lHA. There are ‘corporate social strategies’ for business, sure, but then there is the illusion of one, designed to cover up a truly evil business that kills kids.
I used to work for one such igaming company, (one of the biggest in the island). They operate in Kenya, but also in other developing countries in South America such as Peru and Chile. These markets are what’s driving there growth now as the European market is saturated.
Let’s be clear then – by ‘these markets’ we actually mean children, who are the market! It is the industry that is killing children because the industry knowingly targets ‘these markets’ – a market place full of children. The online gaming and online gambling products create ‘Addiction by Design’, deployed 24/7 to chase the $ whilst knowingly destroying the well-being of children, of a community, of a Continent and of the Commonwealth (Malta being in the club). It just shows the deception that drives the online gaming and online gambling industry when they talk of ‘gamble responsibly’. These are children…young, vulnerable children, and about 824 million of them. Why can’t Malta leave the kids alone, true to live and let live? Or is it justifiable now for the Malta GDP to live and let die? Roberta shows Malta the way at this recent lecture https://www.youngafricansfightingonlinegambling.com/.
If you notice I used the past tense. I no longer work there, one of the reasons being that I wasn’t very comfortable working with a company like that. They gave the impression that they put safeguards in place to protect minors. But yeah overall I don’t think this kind of business is beneficial to people in those countries. Though keep in mind if it’s not this company there will be others, maybe with even fewer safeguards.
Thank you Andrew Bezzina – this is impressive to see someone vote on a point of morality and ethics. May you rise to President of the Free World! We need more like you please
Surely it’s up to sovereign states to impose legislation. Be it food safety, taxation and gambling. Gaming companies will work within the framework set by the country they trade in. This is not just evil gaming companies. This is lackadaisical government policy. Online gaming has been around for over 20 years. Where have they been?
Africa has its own problems, not helped by exploitation by Europe. Ethiopia but one example of dreadful Civil War leaving millions of people dead whilst Europe is focussed on Ukraine – https://youtu.be/GdZiv7V4hLs
This leaves millions of children in Africa being targeted by an industry in Malta that looks for high population growth, weak government, failed institutions and no effective regulation to prevent online gambling industries causing harm and making huge profit. The mass migration from Africa now leads us back to…Malta hence the 400+ bobbing about on a boat in the SAR coverage of Malta who need to escape exploitation . All a modern day tragedy which is why we were set up to go upstream and identify cause. Thank you for your care
Here is The Pope in response Adrian
https://youtu.be/k4caQtmSK54
Hands Off Africa is his message. We ask the people of Malta to respect that please
The church does NOT oppose gambling, it opposes cheating and unfair gameplay.
Please do your homework before you judge over a whole industry.
It is a collective responsibility – most of Africa is riddled with corruption and war (Sudan, Ethiopia, DRC as immediate examples). There is then no regulation nor legislation which makes millions of kids ripe for exploitation. This is not a market for profit – these are children. We are asking the industry to stop targeting them and give them a chance to live for a life worth living (please). We ask people to take responsibility rather than look the other way, or blame someone else. Does that make sense? We just want the industry and people in Malta to stop targeting the kids
This is illegal practice and goes against the Commercial Communications Regulations of Malta. No advertisem ents or sponsorships can be made in public settings where those below the age of 18 (or labelled as minors in that country) frequent. This includes schools, nurseries, youth-dedicated sports events, etc.
Would love to know the Company names.
Malta is what you call a ‘remote gambling jurisdiction’, thus operators and providers have to answer to foreign regulations and limitations only. What you try to describe above is purely related to Maltese National regulations. Is hearsay all that people have to add to this discussion?
Please mind that iGaming is vital to the Maltese GDP, so why attack and condemn it in such ways?
If you want to stay constructive, then search on the CSR side of things, which iGaming in Malta should revisit, as one time donations and a constant Responsible Gaming mantra is disrespectful towards Malta and any halfway intelligent soul.