Must haves before launching an online sportsbook in Africa

AdminLeave a commentNews, ,

Products

No doubt sports betting is the key leader across most key markets in Africa however it’s important to keep in mind that online casino games are taking rocket sky growth too. Just like it is in the most advanced markets like the UK and the rest of Europe football is the most popular sport that bettors place bets on even though operators should look out for other sports coverage as these vary per market. E.g., in South Africa Horse racing, Tennis, and Cricket follow football whereas for most of the rest of the markets in Africa Tennis, Basketball and cricket take a secondary lead after football so these will definitely define turnover if coverage of sports offered in balance per market preference.

Virtual sports are very popular in markets that are mainly retail based whereas this is different in highly online faceted markets as online casino games have become secondary favorites after football even though for some markets virtual sports have proved to be a must-have product.

As mentioned earlier Online casino games are becoming very popular even though it’s important to note which providers one must have as their top inclusions on their platforms. The majority of sportsbooks have online casino games but their turnovers are still lagging behind because they haven’t taken into account which providers are favorites per specific markets. As experts in the region we are at your service to assist you make the best offering based on the market one may plan to establish their operations or are based.

Localization

Localization is key to commercial growth therefore is one of the key aspects operators must focus on as copy and paste will definitely cripple chances of succeeding in the region. When it comes to localization this entails product offering, services, operations, and modes of marketing & advertisement. Extensive research which would include all aspects of operations setup is very necessary I.e., from development strategies, marketing & advertisement, CRM systems and other tools that will best serve specific markets and then implement them is the best approach prior to investing heavily in marketing and advertisement that will yield very minimal results. Of course, constant analysis, development, and improvement are an essential part of the game too.

Lastly, localization player experience is also among the top priorities, which would allow the operator to create the most user-friendly journeys for each market.

Staff

The human factor is a very key factor of the equation too, operators should focus most on local professionals – employees/consultants who have experience and understand the best skills, and technical know-how when it comes to the implementation of most aspects of day-to-day operations.

Automation

In order to be fast and agile and to move with the pulse of the business, operators must invest heavily in the automation of processes. Every big idea should be automated immediately, and every human decision documented in a way that makes operating easy even for people who have never run a betting site together with local experience and know-how this combination will definitely be a great factor in driving success.

Payment methods

Mobile money is the most popular payment method across most key markets in Africa so this is a must-have and then other payment methods can be availed to as some advanced markets like South Africa have already advanced to top-level methods like those in the UK and the rest of Europe. While Mobile money is the most popular method of payment these differ based on specific markets e.g. Safaricom (Mpesa), Airtel & MTN are the leaders in most markets followed by other telecom providers like Vodafone, Glo, etc.

Compliance Expertise

Legal issues can greatly jeopardize the growth of the gambling business in some parts of Africa. The continent doesn’t have a long history in online gambling and while local authorities are figuring out the best frameworks to legalize betting, operators should be extremely adaptive as the legal frameworks are vastly different per market.

With very extensive experience across different markets in Africa having carried out marketing & advertisement campaigns for many tier-one African-based sportsbooks we are at your service to assist your operations get the desired market shares.

By Najib Balinda

Popular igaming payment method in Africa – MOBILE MONEY

AdminLeave a commentNews, ,

Overview

Mobile Money is an electronic wallet service that allows you to store, send and receive money using your mobile phone. The key requirement is to have a telecommunication provider Simcard, for Africa main providers are MTN Group, Airtel, Safaricom, and Vodafone.

As Mobile numbers are a key requirement to opening an igaming account for punters to place bets/ play online casinos this paved way for integrations to be made into gaming and betting online platforms where punters can easily deposit money into their accounts with a few clicks from the mobile phones and also be able to withdraw their winnings straight to their mobile wallets.

Our Blog will highlight the role of mobile money services in the practice of gambling in general in Africa and another key must-know about the payment service (Mobile Money).

Mobile money is one of the best things to happen to Africa – For a continent where the habit of banking is growing but not at a pace that catalyzes fast development, mobile money revolutionized the handling of money for paying for products & services and embracing many industries including the gaming & betting industry too across all gaming markets in Africa.

 Before Mobile money, it was simply the physical betting outlets and online banking cards that didn’t really sit well with the majority of the clientele base that betting in Africa targeted. After its introduction, the industry couldn’t be rivaled by the amount of money that was moving through its systems on a daily basis. What spurred the phenomenon, even more, was the rapid growth of both mobile and internet penetration across many countries. The spread of Chinese-made cheap smartphones also ensured that everything was accomplished with simply a few clicks which paved largely the growth of online sports betting & gaming.

General Highlights

  • Sub-Saharan Africa is home to more mobile money users than any other region in the world, with over 200 million active mobile money users by the end of 2021. This represents around half of the global total active accounts.
  • Value of Mobile money transactions in Sub-Saharan Africa – 697.7bn USD
  • Registered Mobile money accounts in East Africa as of 2021 – 296M
  • Value of mobile money transactions in East Africa – 403.bn USD
  • Leading service providers: MTN mobile money subscribers as of Sept 2021- 51.1M  and Mpesa (Safaricom) subscribers as of 2022 – 52M

Mobile money is undergoing rapid growth in Africa, driven by improved access to technology, difficulties accessing traditional financial services, and an increase in contactless payments related to the coronavirus (COVID-19) pandemic.

For those with no access to banking services, mobile money provides financial inclusion, a way to participate in the economy without a bank account. This has led to a boom in the use of mobile money in Africa, one of the most underbanked regions in the world. In 2019, 200 million users made 24.46 billion mobile money transactions in Sub-Saharan Africa and the Middle East, and Northern Africa, accounting for 64.15 of all transactions made worldwide. Of the 690.1 billion U.S. dollars in mobile money transactions made in 2019, 456.3 billion U.S. dollars were exchanged in Sub-Saharan Africa.

Mobile money has become a big business for telecommunication providers in Africa. Approximately 144 mobile money providers operate in Sub-Saharan Africa, with two companies such as M-Pesa, MTN, and Orange Money accounting for a significant share of the market.

M-Pesa, managed by Vodafone and Safaricom and operating in seven countries, has seen significant growth in recent years. The service attracted an additional 12 million users from 2017 to 2020, reaching 41.5 million users by 2020. M-Pesa users made 12.2 billion transactions in 2020, generating 784.36 million U.S. dollars in revenue for parent company Safaricom. MoMo – MTN Group’s mobile money offering – has enjoyed similar growth – reaching 35.1 million active customers in March 2020.

The effect of under banking on the use of mobile money can be seen in Southern Africa, where banking services are easier to access. Mobile money has gained less of a foothold in that region, suggesting that unless another solution to financial exclusion in parts of Africa is discovered, the use of mobile money in Africa is set to grow even better in the future.

Mobile money accounts in Africa by region 2021 (in millions)

CharacteristicRegistered accountsActive accounts
East Africa296102
West Africa23758
Central Africa6019
Southern Africa134
North Africa151

Conclusion:  Mobile Money is a must-have payment gateway for any gaming or sports betting operator wishing to expand its operations into Africa

By Najib Balinda attributed to Statista.

Ghana a rising star igaming market in Africa

AdminLeave a commentNews, ,

Ghana is a country in West Africa, it abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and Togo in the East. With spanning diverse biomes that range from coastal savannas to tropical rainforests, Ghana is the second-most populous country in West Africa, after Nigeria with a population of over 32 million.

While it may not be the biggest nation in Africa, the country is definitely flexing its muscles in the online gambling world. Not only is Ghana considered amongst the top gambling markets on the continent, but the West African nation has also been getting plenty of love from international observers. The top order of online betting in sub-Saharan Africa is pretty much set, with South Africa, Nigeria, and Kenya leading the way, but Ghana has arguably become the best of the rest and is knocking furiously at the doors of the bigger boys.

By comparison, South African and Kenyan population figures are hovering around the 60 million mark, while Nigeria towers above everyone else with its 200 million plus people.

The Big 3 may hold the bragging rights for now, in terms of positions, but Ghana is constantly chipping away. Ghana sent a strong message of intent in November 2022, when it managed to lure global giant, bet365 into the country. Bet365 is the biggest betting site in the world. They are present in many nations and continents, across Europe and the Americas, but their entry into Ghana was their first official foray into Africa.

“It was our preferred location for our first launch into Africa, as one of the most highly regulated, and highly regarded betting markets on the continent”, a bet365 official said in a glowing endorsement of Ghana’s gambling industry.

The Gaming Commission of Ghana an Agency under the Ministry of the Interior that’s in charge of regulating and controlling the industry has endured plenty of criticism during its nearly two decades of existence, but this is surely a major feather in its cap.

Bet365 follows in the footsteps of many top betting players to launch in Ghana, with Betway, 1xBet, 22Bet, Bet-king, Betika, Mozzartbet, Odibets, and more all registered and licensed in the country. As pointed out in the bet365 statement, Ghana’s regulated gambling space has been a major attraction for these big betting players, but that is not the only thing that has been pulling them into the country. Ghana has a strong sporting tradition. It is one of the top football nations in Africa, with multiple AFCON successes and appearances at the World Cup. This sets a natural foundation for sports betting.

Over the last few years, that foundation has been built upon to become the big structure it is today. The rate of sports betting has been boosted by several factors. Technology has played a major role, with mobile penetration and internet accessibility constantly on the rise.

Perhaps, the most important catalyst has been the advent of mobile money, which has significantly improved financial inclusion in Ghana, making it super easy for Ghanaians in all spheres of life to pay for goods and services over their mobile phones. Ghana is a mobile money force not only in Africa but also in the world. All of these have combined to make Ghana a truly attractive prospect for the biggest bookmakers in the world.

Let us know if you are interested in a full market report about Ghana, Our reports will give you highlights about;

  • Market Overview – Estimated market size, main players, their estimated market shares, models of operations, and products
  • Regulatory frameworks
  • License requirements and costs
  • Barriers to entry
  • Double trade agreements (DTAs)
  • Taxation framework
  • Repatriation of funds policy
  • Advertisement and Marketing regulations etc.

Additionally, let us know in the comment section which country in Africa you would love to learn about next.

 

Ugandan government plans to increase gaming tax by 10%

AdminLeave a commentNews, , ,

The Ministry of Finance proposed a 10 percent increase in gaming and lotteries tax. The proposals are contained in the Lotteries and Gaming (Amendment) Bill, 2023 which seeks to amend a number of provisions under the Lotteries and Gaming Act, 2016.

The amendments, signed by Finance Minister Matia Kasaija seek to increase the tax rate on gaming activities from 20 percent to 30 percent.

Key reasons that were given;

  • Ugandan bettors lose millions to illegal gaming sites
  • Gaming operators under-declare revenue by half-audit

The Bill if passed, will have a significant impact on the gaming industry but is expected to generate more revenue. It is expected to take effect on July 1.

The gaming industry in Uganda has expanded rapidly in recent years, owing in part to the growing popularity of sports betting and online gambling.

According to the Uganda Revenue Authority (URA) annual revenue performance report for the 2021/22 financial year, there was a surplus in tax collected from casinos, which resulted in a significant increase in revenue attributed to gaming tax arrears recovery amounting to Shs35.65b.

This growth resulted in a surplus of Shs22.67b and was caused by compliance enforcement actions that made taxpayers file and make payments, as opposed to prior periods when some taxpayers would only make estimated payments.

URA also indicated that Shs53.68b was collected, increasing by 303.41 percent, the highest percentage increase in tax heads in the last financial year, followed by rental income tax, which increased by 33.15 percent from Shs156.1b.  However, some critics argue that the gaming industry has negative social and economic consequences, particularly for vulnerable populations.

Proponents of an increase in game tax argue that the increase will help to mitigate some of the negative effects by providing additional funds for social programs and initiatives. However, some stakeholders argue the increment will harm the gaming industry and is likely to discourage investors.

The lotteries and gaming industry is expected to expand further in the coming years, owing to increased access to mobile technology and rising disposable income levels among the country’s population.