The rapid growth of Online casino games in Africa

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Although Africa does not have a uniform set of gaming laws that govern the entire continent, online gambling is experiencing an incredible rise, and at the moment, the focus is on mobile. More and more gamblers are using their smartphones for wagering, and thanks to that, the online casino industry is expected to surpass traditional land-based gambling in revenue. 

The Growth of Online Gambling In Africa

The growth of online gambling in Africa is mostly backed by the increased availability of smartphones on the continent and the increase in internet penetration which blew out during over 24 months of lockdown across most African countries that came as a result of covid-19 outbreak. By the end of 2020, there were close to 495 million smartphone owners, which is almost half of the population. Moreover, the rise continued during the pandemic, as the third quarter of 2021 faced the arrival of 26 million smartphones to the African continent.

The increased smartphone ownership boosted the growth of online casino gaming, especially in countries like South Africa where the mobile device penetration is expected to reach 67% by 2026, the region is also experiencing more stable internet connections than ever, especially in countries like Nigeria, Kenya, Uganda, Tanzania, Morocco, Ethiopia, and Egypt where the coverage is booming. For example, in 2020, there were 154 million internet users in Nigeria only, and the number continues to rise.

What’s making online casino games so Popular?

Online casino games are getting more attention from African players than ever, mainly because the majority were forced to bet online for over 24 months as all retail operations in most markets were shut down to reduce the spread of COVID-19 paving the way for online casino games and also tremendously increased both internet and mobile phone penetration.

In addition to the above, there was a period of time when all sports games were halted to prevent the further spread of COVID-19 which left most sportsbooks without sports data to provide for sports betting thus leaving players to resort to virtual sports and online casino games which paved the way for the majority to play online casino games.

Most African iGaming players realized the convenience of Using a mobile app for online gambling as it allowed them to enjoy their favorite time on the go, any time they wanted, which was totally different from retail/land-based gaming where they would have to dedicate time to go and visit a physical venue. Moreover, going to a land-based establishment sometimes also means waiting in lines to get a seat at a particular table or a slot machine, which is not the case with gaming on mobile phones. Digital gambling has no limits when it comes to the number of seats and the availability of games. As long as players have a proper mobile device and a stable internet connection, they can have fun whenever they wish. Also, internet gambling adds more privacy and a greater feeling of security to the whole experience, since players don’t have to be surrounded by fellow punters as they play, The Majority of Africans discovered all this during covid-19 pandemic which somehow heavily contributed to the rapid growth we see across most key markets.

Attractive Bonuses

Mobile gamers enjoy the incredible offerings of bonus rewards and promotions. From the moment a punter opens up an account, they continuously receive different prizes, and some of them do not even require real money deposits. All the top casino sites continue racing to attract new users and keep the existing ones with promotions like deposit bonuses, free spins, cash rewards, and many others. Some platforms also developed VIP programs where the members are treated with premium rewards that cannot be claimed by regular users. However, each operator has its own set of rules that control the use of bonuses, and before punters claim any of the rewards, they must follow all key terms and conditions.

Variety of Games

The large list of online casino games from various providers – from classics like pokers, roulettes, slots, and blackjack, to more advanced options like video poker and live dealer sessions, everything at fingertips continues to influence this growth.

Mobile and Internet Penetration as of 2022 and 2023 in key African iGaming Markets

CountryMobile phone connections as of 2022 (Millions)Internet Users as of 2023 (Millions)
Nigeria199.6122
South Africa108.643
Kenya64.917
Ethiopia58.520
Tanzania53.821
Ghana44.923
Uganda27.611

Reach out to us at info@geniusgamingconsult.com for feasibility market studies for any of the above-mentioned markets and the rest of Africa with in-depth infographics about the stature of each of the key markets in terms of online casinos, main players, their estimated market shares, current providers/games, Bonuses and promotions, Modes of payments, etc. we also conduct business development for and on behalf of B2B providers planning to expand into Africa.

Kenya has introduced a Gambling Bill in an effort to establish a new Gambling Regulatory Authority.

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The bill is now before the Parliament with its future yet to be decided, Kenya is on the path to significant gambling reforms. Under a new bill, the East African country is set to establish a new regulatory body and overhaul its gambling rules.

The measure, dubbed Gambling Control Bill 2023, would replace the Betting, Control and Licensing Board (BCLB) with a new regulator. In addition, the bill is set to introduce regulations on betting, casino gaming, and other forms of gambling and legalize prize competitions, public lotteries, and media promotions.

Sponsored by National Assembly Majority leader Kimani Ichung’wah, the bill would change Kenyan gambling for good.

The bill is now before the Parliament with its future yet to be decided.

Under the proposed laws, gambling would expand but so would regulation. The bill envisions creating a regulator that has the powers necessary to deal with unruly gambling companies. To prevent regulatory breaches, the measure will introduce fines for violations of the country’s gambling law, preventing operators from simply ignoring the rules.

To make sure that operators do not violate the regulations, the bill would require them to post a bank guarantee or insurance security bond that would cover potential violations. Promoting an unlicensed lottery, for example, would carry a KES 1 million fine (approximately $6,500) or a year in prison.

The new bill will also prohibit bets under KES 20. Firms that violate this rule risk a fine of KES 50 million ($328,000).

In addition, the new regulator would be responsible for ensuring that minors do not engage in gambling. To that end, the measure would ban companies from advertising their products between 6 am and 10 pm.

Under the Gambling Control Bill, a 15% tax on gross revenue would be introduced, as well as a monthly levy. Lotteries, on the other hand, would be required to donate 30% of their proceeds to charity organizations.

 

Source: Gambling News

Bigwinboard battles UK Gambling Commission over affiliate legal rights

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Bigwinboard is embroiled in a legal tug-of-war with the UK Gambling Commission (UKGC), claiming the regulator threatened to block access to its comparison site for UK visitors.

In a blog post, the affiliate site said it “recently faced unexpected legal pressure from the UKGC” and explained the core issue revolved around the site’s listing of “unlicensed casinos”.

However, Bigwinboard said the accusations remain “vague” and “puzzling”, considering that Bigwinboard neither caters to the UK market nor operates within it.

The casino comparison site further stressed that it is not an operator and therefore does “not have any direct obligations towards the regulator”.

Affiliate or operator?

Bigwinboard was founded by Daniel Hansson Sokcic in 2017 as an iGaming news site and casino comparison service.

In response to the UKGC’s message, Bigwinboard has questioned whether the regulator fully understands the website primarily serves as a review site and global web community for gamblers.

“We find the UKGC’s request to be an overreach, infringing on our right to operate freely in an international context.

“We intend to stand firm against this pressure, championing the principles of free speech and open access to information,” Bigwinboard said.

When NEXT.io contacted the UKGC for comment, a spokesperson stated that the regulator does not discuss individual cases.

The regulator did however mention its duty to investigate and take action against operators advertising unlicensed websites, without addressing the fact that Bigwinboard is an affiliate and not an operator.

Unhealthy relationship

Meanwhile, Bigwinboard founder Sokcic shared on LinkedIn: “Thanks for all the private messages and support. I know not everyone is comfortable criticizing the UKGC publicly due to fear of repercussions or just getting on their radar, and some have even deleted their own comments here, but it’s obvious that the relationship between the UKGC and the industry is anything but healthy.”

The site also suggested that the situation with the UKGC goes beyond a legal dispute and may serve as a litmus test for “integrity and resilience” in the face of regulatory overreach.

The affiliate also stressed that it would continue to operate within its legal rights and described the situation as a “noteworthy case study in the balance between regulation and freedom on the digital frontier, with implications far beyond the gambling industry”.

In a conversation with NEXT.io, Sokcic added that he feels “that Bigwinboard is being deliberately targeted” because he recently questioned their policies in a separate blog post.

“I believe this is a ‘punishment’. Out of all the big platforms and streamers, only we seem to have been singled out,” he said.

Sokcic said the UKGC informed him that not only do operators who target British customers without a license commit an offense under the Gambling Act, but so do those who advertise illegal gambling, as they are in violation of section 330 of the regulation.

Widening the scope

The relationship between affiliates and unlicensed operators has become a significant point of discussion across the industry in recent years.

Historically, UK enforcement efforts have focused on the operators directly, with licensed operators also held directly accountable for the actions of the external affiliate partners.

But in recent months, the UKGC has widened its scope to combat the threat of offshore gambling by partnering up with ISPs, payment providers, and software licensees.

These efforts have resulted in a 46% reduction in traffic to the market’s largest illegal sites, according to UKGC CEO Andrew Rhodes.

Elsewhere this year, German regulator GGL imposed a substantial administrative fine on a licensed operator for promoting their services on affiliate websites that also advertise unregulated offers.

Source: Next.io News