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Tax revenue generated from gambling will fund sports initiatives in Guinea

Tax revenue generated from gambling will fund sports initiatives in Guinea

Image source: Ousmane Gaoual

Guinea's sports sector is set to receive a significant boost starting in 2025, as the country plans to implement a new funding model that will draw resources from gambling operators, telecommunications companies, and alcohol and tobacco producers.

Bogola Haba, Guinea's Minister of Youth and Sports, announced this initiative on June 29 during events related to Guinea's participation in the upcoming Olympic Games in Paris. The new law, which will come into effect in 2025, introduces special taxes on these industries to finance sports activities across the country. A key component of this new system is the creation of Nimba Sport, a state company that will be responsible for distributing budget allocations among various sports federations.

Minister Haba highlighted the current lack of a comprehensive sports law in Guinea that guarantees consistent financing for sports activities. Consequently, the minister has had to seek funding on an ad hoc basis before major sporting events.

This gap has often led to ad hoc funding requests for major sporting events, creating uncertainty and potential financial instability. While the new law marks a significant shift in sports funding, it's worth noting that Guinea already has some regulatory structures in place for the gambling sector.

The Regulatory Authority for Gaming Companies and Assimilated Practices (ARSJPA) currently oversees the gaming and betting industry in the country. This autonomous public entity operates under the technical supervision of the presidency and the financial oversight of the Ministry of Finance. Under the current system, private bookmakers must obtain a gambling license to operate in Guinea. The state-owned Loterie Nationale de Guinée (LONAGUI) holds a monopoly on horse racing bets. Interestingly, while online gambling is not prohibited in Guinea, it remains unregulated.

Published July 6, 2024 by GamblingTalk