Casinos in Lesotho

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Introduction

Lesotho is a small landlocked country in the Maloti Mountains surrounded by South Africa. The economy is based on agriculture, manufacturing, mining, and tourism, but it is also dependent upon South Africa for its infrastructure such as water transfer, a customs union, and the communication system.

Lesotho was called Basutoland when it was a native state under British protection. The Thaba-Bosiu National Monument there is considered the birthplace of the Basotho nation. It is the country's most important historical site.

The casino industry is finitely small today and it was never very large but it does provide at least one place to play classic casino games, slots, and video poker. Other forms of entertainment can usually be found in or near casinos and that is the case here, especially in the capital, Maseru.

History of Gambling

Commercial gambling has only been available there for a few decades beginning in the 1980s when the government realized the gambling industry’s potential to draw tourists and raise revenues. The kingdom invested time and effort in bringing commercial casinos to the country as a way to diversify the economy and reduce its dependency on migrant workers in the diaspora. Many natives left to work in South Africa and send money home to their families. About half of the residents live below the poverty line making Lesotho a lower middle-income country according to the World Bank's income classification. index.

Allowing casinos to operate gave promoters of tourism another arrow in their quiver to attract tourists to the country, mainly those from the surrounding country of South Africa. Lesotho is closeby to cities like Bloemfontein, about 140 kilometers (<90 miles) away from the capital Maseru. Visitors could find a scenic venue to gamble and mix their recreational opportunities.

Popular Casinos and Games

Today, there is only one operational casino in Lesotho that makes information about itself available on the internet. That could change as the economic situation changes and the investment climate improves. Avani Hotels purchased both of the former Sun properties there and has closed the Maseru Sun Casino but the hotel there is still open. That leaves only one casino operating in the entire country, which is the AVANI Lesotho Hotel & Casino. In the past visitors could also find slot machine operations at places like the Senqu Hotel, Golden Hotel, Molimo-Nthuse, and the Crocodile Inn. It’s unclear if slots are being deployed in smaller venues in the 21st century.

We’ll take a look at how many licenses have been issued compared to how many casinos can be found further on in this article. International monitoring agencies can sometimes provide outside information on the edge that isn’t available through other methods, especially when the local authorities do not make specific information available in the public domain. While this is usually the case with Asian governments it can also be true in Africa as well.

Legislation and Jurisdiction

Gambling in Lesotho is regulated by the Casino Order of 1989, which formed the basis of legal gambling in the country. Under this legislation, the Lesotho National Development Corporation (LNDC) is the main entity responsible for issuing gambling licenses and regulating casino operations in the country.

The Casino Order arguably regulates both land-based gambling and online casinos and sportsbooks. However, the online gambling sector licensed in Lesotho is non-existent. The specific wording that would seem to include online casinos in the legal framework is the definition of a slot machine, which reads: “...slot machine” means any mechanical, electrical or other device, contrivance or machine, which, upon insertion of a coin, token or similar object therein or upon payment of any consideration or submission of or in exchange for anything of value, is available to play or operate...” Betwinner Sports also claims that “As of 2024, several bookmakers have been granted the authorization to function within Lesotho’s borders,” however, the company itself actually holds a license in Curacao.

While online gambling may or may not be technically allowed under the Casino Order, we are not able to confirm any online gambling operator claiming the license or privieledges. The last time we saw something similar to an online casino trying to serve players in South Africa with an outside license ended up with the operators of Piggs Peak handing their license back to the government of Swaziland (now known as Eswatini).

Licensing is handled by the LNDC, which is tasked with evaluating applications based on several factors, including the economic benefits the casino might bring to the country and an operator’s ability to follow the regulatory requirements. The law also states that casinos must follow certain guidelines to make sure that all gambling is conducted fairly. Guidelines include money laundering prevention, consumer protection, and responsible gambling measures.

In terms of taxation, Lesotho’s casino industry contributes to the national economy through license fees, corporate taxes, and gaming taxes. These revenues are used to fund public services, such as infrastructure development and social welfare programs.

According to a 2023 review by the Financial Action Task Force (FATF), The casino board is the only government entity that understands the issues of money laundering and other financial crimes. Interestingly, in the September 2023 report titled Anti-money laundering and counter-terrorist financing measures, Lesotho, Mutual Evaluation Report (.PDF) it states that there are 4 casinos, which are subsidiaries of foreign-based casinos. Further on it states that of the four licenses issued, 3 are operational with one yet to start. It also states that although the operations are not fully compliant they are low volume and relatively unimportant to the task force’s mission. However, it’s unclear when the data was developed before the report’s compilation and publication.

Conclusion

Lesotho’s casino industry is very small but it is an important part of the country’s tourism and economy. With its location close to South Africa it can draw players from an underserved region of the much larger country. 

The Casino Order of 1989 is the main legislation that governs the industry, and the Lesotho National Development Corporation oversees the licensing and regulation of casinos.