Bid Process for South Africa’s 2025 Lotto Licence Begins

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South Africa’s National Lotteries Commission held a briefing session in September for prospective bidders for the National Lottery in anticipation of the license renewal in May 2025. The NLC issued a clarification in relation to the briefing session for the fourth national lottery and sports pools licence on 30 and 31 August 2023: “ Prospective applicants and interested parties who wish to attend the briefing session in relation to the Request for Proposal for the Fourth National Lottery and Sports Pools Licence (“RFP”)on 30 and 31 August 2023 are herewith advised that attendance of the briefing session is not compulsory for prospective applicants who intend to submit an application for the Licence. The briefing session is primarily an information session for prospective applicants and interested parties to obtain critical information relating to the RFP document and the application process. Prospective applicants may therefore be represented by one or more persons who may collectively or individually attend the briefing session on behalf of an entity to be formed in due course.

The NLC will record attendance at the briefing session and issue attendees with certificates of attendance which are to be submitted together with an applicant’s application. Failure to attend the Briefing Session or submit a certificate of attendance will, however, not result in the disqualification of a bid. Prospective applicants and interested parties are advised that after the conclusion of the briefing session, prospective applicants may only communicate with the NLC through the medium of a virtual data room or VDR to which access will only be provided upon the purchase of an RFP document and payment of the required fee. All enquiries and requests for additional information regarding the RFP, technical interpretation of the RFP or other matters requiring clarification by interested parties or applicants registered in terms of the RFP, must be made and submitted online via the VDR after the briefing session. The NLC will only respond via the VDR and no other form of communication will be accepted by the NLC. Engagement with the NLC regarding any matters concerning the RFP or application process after the conclusion of the briefing session will therefore require the purchase of an RFP document from the NLC. Prospective applicants are therefore encouraged to attend the briefing session for the full allocated time on both days.”

While the lucrative, and often controversial, licence renewal is only set for May 2025 the process has already kicked off and bidders can expect to pay R55 000 for access to documents and data around the lottery and access to a set of documents and a “virtual data room” that will tell them, in considerable detail, how money flows through the lottery system, from independent ticket vendors right through to payouts. Prospective bidders will then have five months to turn that information into proposals on how, given the chance, they would run the lottery when current operator Ithuba’s licence expires in May 2025.

In theory, those proposals must be submitted in early February in order for them to be properly evaluated and a winner announced in plenty of time for a smooth transition. But the odds of things going to schedule seem slim.

Ithuba won its licence in 2014 but was still fighting off a challenge from its predecessor Gidani into 2016. In 2007, the lottery was paused for half a year while Gidani’s predecessor and SA’s first operator, Uthingo, challenged being replaced. With every change of operator, the way the lottery runs and the secondary games around it have changed. Ithuba has indicated it hopes to be the first-ever operator to get a second term running the lottery, but Hosken Consolidated Investments (HCI) told shareholders it has already put together “an exciting bid”.

The scale of the opportunity the lottery represents has traditionally attracted a large number of interested parties, at least in the early stages of bidding, before significant investment is required. And that investment is significant. One insider has estimated that putting together a full bid can easily cost at least R15 million, and during the previous adjudication process bidders were required to put up a performance bond of R125 million.

The groups putting up that kind of money reconcile themselves with the possibility of further delays. Ithuba’s licence had been due to run only until May 2023 but was extended because, said the Department of Trade, industry and Competition (dtic), of the exceptional circumstances Covid-19 represented. As of last week, the dtic is committed to a timeline that includes the end-August briefings, a deadline of 31 October to pay for access to the data around the lottery, and the early-February deadline to submit bids. However, all those dates are subject to representations and legal challenges and, having extended the current licence once already, it could be hard to argue against further extensions.

Source: Gaming for Africa

International Gaming Standards Association expands to Africa

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The International Gaming Standards Association (IGSA) has created a new African division to serve the continent’s gambling industry. GSA Africa will run as a local office, promoting standards across land-based, online gaming, sports betting, and lottery in Africa. IGSA says the new division is one of its core strategic initiatives for 2024.

FK Fayad, CEO of SamPro Group, a holding in the Middle East and Africa, will be the managing director of GSA Africa. Fayad has worked across trade, technology, ICT business, regulation, and government consultancy in Africa, Asia, Gulf Region, and the Middle East.

Fayad also holds a number of other roles with various organizations. These include serving on a panel of advisory and strategic partners to the Nigerian Arab Gulf Chamber of Commerce and as a volunteer member of the United Nations High Commission for Refugees.

“The creation of GSA Africa is another leap forward for IGSA and for the gaming industry,” IGSA president Peter DeRaedt said. “Gaming is expanding rapidly across the continent and, appropriately, each jurisdiction has its own nuanced regulations.

“GSA Africa will function as a guiding voice, bringing the myriad benefits of standards to operators, suppliers, and regulators across the continent.

“We are thrilled FK Fayad will lead GSA Africa. His deep insights and extensive relationships will be crucial to GSA Africa’s success.”

Fayad adds: “It is an honor to lead the newly created GSA Africa. Africa is an exciting part of the global gaming industry, where growth is rapid and poised to continue at a strong pace.

“Bringing IGSA standards to the continent at this phase of its growth is essential; I’m thrilled to lead this charge.”

 IGSA launches cyber and responsible gambling committees

Establishing the new African division is the latest step in IGSA’s ongoing efforts to serve the wider industry.

Last month, IGSA also formed a new Cyber Resiliency Committee (CRC) to create cyber standards for gambling businesses. The committee is focusing on standards for cyber risk management, cybersecurity governance, and framework control standards for casino operators, IGSA members Aristocrat Technologies, Light & Wonder, and AXES.ai have all declared their support for the new committee.

Meanwhile, in June, IGSA’s board also approved the creation of a Responsible Gaming Committee. IGSA said the committee will offer support for regulators and operators with a “multi-tiered framework” called the Responsible Gaming Maturity Model (RGMM).

This approach, it says, will offer the industry a path from discovery to a “highly quantifiable and predictable” responsible gaming model. IGSA adds that the RGMM will help both regulators and operators grow from implanting a basic RG policy to managing a more precise dashboard of KPIs generated from quantifiable data.

 

Source: iGB

 

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Ban on Nigerian Gambling Operators Sparked Licensing Confusion and Called for Clarity

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In a surprising turn of events, more than 30 gambling operators were banned from conducting business. The public was cautioned against engaging with these brands as they were declared illegal by the Constitution of the Federal Republic of Nigeria 1999 and were found to contravene the provisions of the Lagos State Lotteries and Gaming Authority Law 2021 in its amended form.

The ban affected various sectors and forms of gambling in Nigeria, where strict regulations apply to both online betting sites in Nigeria and land-based gambling. The Lagos State Lotteries and Gaming Authority (LSLGA) accused these brands of failing to obtain the necessary licenses from LSLGA. As a result, that has put them in violation of Section 33(3) of the law.

This section explicitly states that “a person without a subsisting license or authorization from the Authority shall not conduct or operate any gaming activity in the State.”

List of banned Operators.

The list included the following;  Zebet, Betika, Gobet, MSport, 22Bet, Afribet, Bestbet360, Bangbet, Betwazobia, Netbet, Nairamillion, Western Lotto, Elliest Lotto, Riderlotto, Peelslotto, Setlotto, Hamabet, Koretbet, Paripesa, Megabet, Livescorebet, Blackbet/Bettybingo, Cloudbet, Sportbet.IO, Hallabet, Oddspedia, N1bet, Ngawin, Millionairepowerplay, Lottomania, Firstbet, Betxperience, Giveraffle, Konfambet, Wakabet, Betfarm, Scrath2win, Chopbarh, Naijabet, Plentymillions, Nairapowerbet, Gamespay and Xtragoalsfantasy.

Controversy that sparked after the Ban

The ban on over 30 gambling operators in Nigeria sent shockwaves through the industry, leaving both the public and operators puzzled and demanding answers. One of the major sources of confusion stemmed from the fact that several of the banned operators held licenses issued by the National Lottery Regulatory Commission (NLRC). This federal body oversees gambling activities in Nigeria.

Zebet, a prominent betting operator on the banned list, was quick to respond, emphasizing their federal license granted by the NLRC. They invited the public to review their official federal license on the NLRC website, further confirming that their authorization covers the entirety of Nigeria, not just Lagos.

This revelation ignited a crucial debate about the regulatory framework in Nigeria. Some users have raised valid questions regarding whether these operators, despite having federal licenses, need additional licenses at the state level to operate within Lagos. The ambiguity lies in whether these companies require physical offices within Lagos to necessitate a state license.

For example, 22Bet, one of the banned operators, does not maintain physical offices in Lagos. This led to speculation that they might not need a Lagos State Lotteries and Gaming Authority (LSLGA) license. Such complexities in licensing procedures highlighted the need for greater clarity and transparency within the regulatory landscape of Nigeria.

The ban didn’t only create confusion but also brought to the forefront the importance of streamlining licensing procedures and ensuring that operators fully understand their compliance requirements at both federal and state levels. As the industry navigates these challenges, it is clear that regulatory authorities and operators must work together to establish more precise guidelines and promote a more cohesive and transparent regulatory environment for Nigeria’s gambling sector.

Clarification by the National Lotteries and Regulatory Commission (NLRC) on the whole situation

Following the witnessed frenzy by the Nigeria betting industry following the ban that was imposed by The Lagos State Lotteries and Gaming Authority (LSLGA) on more than 30 betting operators. The public was warned against engaging with these brands, declared illegal under the Federal Republic of Nigeria 1999 Constitution, allegedly contravening provisions in the Lagos State Lotteries and Gaming Authority Law 2021.

The ban left operators and the public perplexed, as many of the banned operators held licenses issued by the National Lottery Regulatory Commission (NLRC). This confusion led several operators to provide evidence of their licenses obtained through the NLRC to operate nationwide in Nigeria, not just within Lagos.

In response to the controversy, the NLRC has issued a statement aimed at providing clarity on the situation. The NLRC expressed regret for any misunderstanding caused by the ban announcement, stating, “NLRC deeply regrets any misconceptions the unfortunate publication may have caused national gaming licensees operating within the ambit of the law in Nigeria.”

According to the NLRC statement, the following gaming operators, previously listed as “unlicensed and illegal” by the Lagos State Lotteries and Gaming Authority (LSLGA), are indeed licensed to conduct lottery and sports betting business throughout Nigeria: ZEBET, BETIKA, GOBET, MSPORT, AFRIBET, BANGBET, BETWAZOBIA, KORETBET, 22BET, PARIPESA, LIVESCOREBET, BLAVKBET/BETTY BINGO, CLOUDBET, HALLABET, N1BET, KONFAMBET, SCRATCH2WIN, NAIJABET, LOTTOMANIA, AND MILLIONAIRE POWERPLAY.

 

Source: Betting Companies Africa

From the East African Coast to Nigeria: Champions of Africa in Gambling

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Kenya leads in African gambling with 83.90% participation, Nigeria closely follows with 78%, and South Africa boasts 74% participation. Football dominates as the preferred sport for betting in most African countries. In the vibrant tapestry of Africa, gambling has emerged as a cultural phenomenon, especially among the youth.

GeoPoll’s surveys conducted in May 2017 and December 2021 have unveiled intriguing insights into the gambling habits of African nations.

Kenya takes center stage in African gambling, with a remarkable 83.90% of Kenyans admitting to trying their luck with gambling or betting. Surprisingly, this percentage has continued to grow despite regulatory measures.

Nigeria closely follows, with 78% of Nigerians confirming their participation in gambling. Notably, Nigerians also have the highest average monthly spending on bets.

South Africa, known for its diverse betting options, boasts 74% of respondents who indulge in gambling. Intriguingly, lotteries slightly edged out football (29.3% vs. 53%) as the most popular choice for betting.

For the East African coast, Tanzania, where 63% of respondents engage in betting, with football remaining the top choice. Uganda, too, has seen a surge in its betting culture, with 59% participating.

See key highlights below from all key gaming Markets in the continent

CountryPercentage of GamblersPreferred Betting Choice
Kenya83.90%Football
Nigeria78%Football
South Africa74%Football
Ghana70%Football
Tanzania63%Football
Uganda59%Football

 

Source: Business Insider Africa

Uganda Gaming Board in collaboration with Uganda Revenue Authority (URA) says integration to the central monitoring system by all iGaming operators is must or their 2024 licences won’t be renewed

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Yesterday the Uganda Lotteries and Gaming Regulatory Board of Uganda (LGRB) held an engagement at the Uganda Revenue Authority (URA) Head Quarters in Kampala a meeting that was headlined by the CEO of Gaming Board Uganda Mr. Denis Mudene, Commissioner General URA Mr. John Musinguzi Rujoki along their senior managers in their respective capacities and of course, our team was also invited.

The engagement kicked off at 8:30 and saw the majority of the Gaming Operators attend, see highlights that were in this engagement;

From the Operators

A major raised issue was that the URA and the Gaming Board should collaborate with lawmakers and amend the Withholding Tax (WHT) from being accrued on all customer winnings as it includes stake but rather be implicated onto the only won amount exclusive of the stake.

In addition, other Operators suggested that the WHT should be scrapped and a small percentage should be added onto the Betting Tax as it was implemented on the Gaming Tax while others believe scrapping it is the best but again without any added percentage on the betting Tax. See below the current status of Taxes for the gaming industry in Uganda FYI

Tax TypeRate
Betting Tax20%
Gaming Tax30%
Withholding Tax- Betting15%
Withholding Tax – Gaming0
Withholding Tax – Local supplies6%
Withholding Tax- International Payments15%
VAT – on imported services18%
PAYEPer schedule

The Operators also requested that the Gaming Board collaborate with the Bank of Uganda along with the Financial Intelligence Authority (FIA) of Uganda on the Anti Money Laundering (AML) Act which they claim has caused their banishment from most tier 1 and tier 2 Banks which they believe is rather over-exaggerated in some cases causing disruptions in operations where Bank accounts are frozen, then unfrozen or banished. 

From the Gaming and Lotteries Regulatory Board (LGRB)

The CEO emphasized the iGaming Operators coming forward with the right API integration documents to allow for integrations into the central monitoring system which will ease tax collections as taxes will be collected in real-time and warned that all that won’t be integrated by the end of this year won’t get their licences renewed for next year.

Mr. Denis Mudene (CEO of LGRB) also informed the operators that some amendments that included most of the raised issues by the operators were underway and promised to invite them and give their contributions before they are tabled into parliament.

“The most interesting one was that these amendments include a request for the license’s timeline to be increased from 1 year to 5 years so that operators only file for their taxes and compliance requirements per year.”

He also requested the operators to join hands with the board on responsible gaming initiatives which he says are key to shifting the society’s and lawmakers’ negative perspective towards the industry which will be good for most of the requested changes to have a good listening ear from the lawmakers.

Finally, the compliance Manager of LGRB also explained the issue of the banishment of gambling companies’ Bank accounts from some Banks in line with the AML Act and Uganda’s position on the world level still being on the grey list being one of the key factors that cause all these frustrations but promised to have an engagement with the Financial Intelligence Authority (FIA) to see how some Tier 1 and 2 Banks could accept offering their banking services to the industry.

From the Uganda Revenue Authority (URA)

The Commissioner General (CG) opened his remarks by thanking the operators for their great contributions through taxes which contribute a good portion towards the development of the country.

He asked all iGaming Operators to ensure that they are all integrated with the central monitoring system (CMS) which will ease tax collections allowing Operators a lot of time from auditing’s letting them focus on their other Operations developments.

The CG also emphasized the operators to use the waiver on penalties for under-declaration of taxes/Tax evasion through “voluntary filing of taxes” a new waiver that automatically protects the operators from any penalties that may be accrued on taxes defaulted for under-declaration or Tax evasion if investigations are carried out and they are discovered.

Ag. Manager Special Operations Gaming department for URA, Mr. Grace also presented a demo that included key infographics of taxes that were collected after investigations last year plus penalties those respective companies got, the current status of gaming tax rates, e-licensing, and explanations on the categories of revenues the Operators must always declare following their discovery that most operators weren’t declaring all revenues from all their products.

Note: As always reach out to us if you would like to establish Operations in Uganda, Kenya, Ghana, Zambia, Cameroun, DRC, Nigeria, South Africa, Ethiopia, or Tanzania, we do company incorporation, Gaming Licence applications, and acquisition, Tax filing, and Audits, Responsible Gaming, Marketing and Advertisement, Operations setup and management, Feasibility market studies, Business development and more.

SBC SUMMIT Finds New Home in Lisbon starting September 2024

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Day one at SBC Summit Barcelona kicks off with big news of its move to Lisbon for its next edition in 2024, SBC’s flagship global event SBC Summit has a new home in Lisbon starting in 2024, in order to meet the demands of the industry’s fastest-growing gathering.

Previously known as SBC Summit Barcelona, the upcoming event will be named SBC Summit 2024, as the branding has evolved to better reflect the worldwide nature of the event.

Taking place over three days, the event is poised to occupy more than , square meters of exhibition and conference space, which is more than twice the size of the 2023 venue measuring , square meters. This capacity enables SBC to welcome 600 exhibitors, nearly doubling the number hosted at the 2023 edition.

With the expanded venue capacity, the SBC Summit will now accommodate , attendees at FIL. This diverse audience will include operators, affiliates, sportsbook and casino suppliers, regulators, payment providers, marketing agencies, associations, legal advisors, start-ups, and more.

SBC SUMMIT 2024 IN NUMBERS

 100,000 sqm Event Space

25,000 Delegates

600 Exhibitors

50 Meeting Rooms

8 Conference Stages

30 Food Trucks and Catering Stations

6 Coffee Bars

20 Networking & Business Lounges

20+ Hotels Next to Venue

Kenya marks Sh20 least betting amount in fight against gambling

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The Betting Control and Licensing Board (BCLB) has proposed the minimum stake for online gaming and those using gambling machines.
Currently, gamblers stake less than Sh5, which has made betting cheap and fuelled rapid growth among the young and vulnerable persons hoping to win millions in prize money.

The Betting Control and Licensing Board (BCLB) has proposed the minimum stake for online gaming and those using gambling machines.
Currently, gamblers stake less than Sh5, which has made betting cheap and fuelled rapid growth among the young and vulnerable persons hoping to win millions in prize money.

“A player in an online gambling activity shall not bet an amount of less than twenty shillings in a competition,” BCLB says in the draft

Gambling Control Bill, 2023.

“The minimum amount set above shall be inclusive of such a saving component for the player as shall be determined by the Authority in consultation with the Cabinet Secretary.”
Betting firms and gambling machine operators who flout this requirement will be fined Sh5 million or imprisonment for a term not exceeding six years.
A few firms, including Betika and Milestone Gaming (trading as SportPesa), have fixed the minimum betting amount at Sh50 to make gambling relatively expensive for the unemployed and youth.
Gambling has grown over the years from a pastime to an activity for Kenyans seeking cash to pay daily bills.
A Central Bank of Kenya survey conducted in 2021 showed that 13.9 percent of respondents were actively betting, with those who perceive the activity as a source of income at 11.2 percent.
The survey also found that the average amount used for betting per week was Sh939 even as the government warned that more Kenyans apply for mobile loans to finance their gaming addiction.

Another research conducted across Africa in 2021 revealed that Kenyan youth topped their counterparts on the continent in betting, with over 80 percent of respondents saying they were taking part in the activity.
Experts reckon that the spike in betting addiction is being fuelled by the high rate of unemployment as youth turn to gambling in the hope of making quick cash.
Gambling in Kenya generally takes place online, allowing punters to stake and withdraw winnings on their phones without needing a bank account.
The craze has also led to the establishment of betting shops where scores of Kenyans go to bet on live sports events, mostly during the weekends.

BCLB’s push for minimum betting stakes is the latest weapon that the State has turned to as the betting craze grows unabated, defying heavy taxation on punters and gaming firms.
The State increased the excise tax on betting stakes to 12.5 percent from July 1 this year, adding to the 20 percent withholding tax that punters forfeit to the Kenya Revenue Authority (KRA) for every winning stake.

Punters placed a record Sh88.5 billion through online bets in the full year to June 2023, handing the KRA Sh6.64 billion in excise taxes in the period from the Sh5.1 billion raised a year earlier, highlighting the betting craze that has defied higher taxation.
Betting firms have also been on the increase, with 10 new firms joining the market from July this year, bringing the number of licensed operators to 71 despite the heavy taxes imposed on the firms.

The firms are currently taxed on the gross gaming revenue turnover minus winnings paid out – at a rate of 15 percent.

They also pay corporate tax on profits at a rate of 30 percent and income tax at the standard rate of 16 percent.
BCLB has also proposed a gambling tax to be charged at the rate of 15 percent of a betting firm’s gross gaming revenue and a further one percent monthly levy on the same revenue.

Source: Nation Africa (John Mutua)

A crowd at the SBC summit Barcelona 2021

SBC SUMMIT BARCELONA – The Global Betting and iGaming Show

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The SBC Summit Barcelona conference and exhibition is where global leaders in sports betting and iGaming assemble to discuss the future of the industry, exchange knowledge, and build powerful connections. The event already established itself as a must-attend event in the calendar of sports betting and iGaming industry professionals by offering delegates the unique opportunity to reach and network with thousands of attendees from all across the globe and covering all industry verticals.
In 2023, from the 19th to the 21st of September, SBC Summit Barcelona returns to Fira de Barcelona Montjuïc for its third edition in what promises to be the biggest-ever SBC event. Join the industry in Barcelona to explore the most-anticipated product releases across a 38,000 m² exhibition floor that features 350+ world-class operators, suppliers, affiliates, media, and start-ups.

KEY SPEAKERS

With 15,000 industry professionals expected to attend, 4500 of which are operators, 1500 Affiliates, over 350 exhibitors with 450 top-level speakers that include key C-level professionals in the global gambling industry e.g. Mathew Ball – Pioneering Tech Authority, Venture capitalist & Best-selling Author of the Metaverse, Daniel Taylor – CEO Flutter international, Jesper Svensson – CEO Operations Betsson Group, Karsen Fogh – CEO Danske Spil, Gustaf Hagman – CEO & Founder LeoVegas Group, Paris Smith – Advisor Pinnacle Sports, James Curwen – CEO Online OPAP, Fabio Schiavolin – CEO SNAITech, Fredrik Wastenson – CEO Svenska Spel Sports & Casino, Maarja Part – CEO YOLO Group,  Alexander Martin – CEO SKS365, Sam Sadi – CEO Livescore Group among others as the list is long and HOT!

ARRANGEMENT

The floor space has been split into 5 separate zones to make it easier for the delegates to navigate the exhibition and identify the companies that are relevant to their business. The Sports Betting, Casino & iGaming, Payments and Compliance, Affiliate, Marketing and Media and Emerging Tech, Blockchain, and Metaverse will each have their own conference stage, exhibition floor, and networking areas.

The busy conference schedule will boast an unrivaled speaker line-up of 450 industry professionals delivering 80 hours of content across the 8 conference rooms, covering sports betting, casino, iGaming, payments, emerging technologies, innovation, digital marketing, and safer gambling. Additionally, our Full Event Passes give you unrivaled networking opportunities at the hottest spots in Barcelona, where you can connect with influential decision-makers from some of the biggest names in the industry.

SPORTS BETTING ZONE

The Sports Betting Zone at SBC Summit Barcelona is the place to discover everything that is happening in the global sports betting industry. It represents the year’s best opportunity for you to meet influential senior executives and specialists from major international operators, exchange ideas about the latest industry developments, and view the next generation of sportsbook products from innovative suppliers.

Dive into key issues such as the evolving relationship between operators and media companies, the future of esports betting, sports integrity, exclusivity in data rights, and sportsbook product innovation during a series of panels on the Sports Betting Stage.

You can also visit the Sports Betting Zone’s exhibition, which is the place to learn about the new products and services that could give your business a competitive advantage.

The representatives from the hundreds of operators participating in the Sports Betting Zone include C-Level executives and other key decision-makers, such as Sportsbook Directors, Product Directors, and Trading Directors.

And we shall be wrapping it all up in style at “The Magnificent SBC Awards” which will be held at Caves Codorniu, Barcelona, Spain. See key highlights below and click on this link to get more info: https://sbcevents.com/sbc-awards/

Venue address:

Caves Codorniu

Avda. Jaume Codorniu, s/n, 08770, Barcelona, Spain

ON THE EVENING

The SBC Awards 2023 begins at 19:00 when coaches depart from the Fira towards Caves Codorniu, scheduled to arrive at 19:40.As well as the awards ceremony the evening also includes unlimited complimentary beer, wine, and spirits all night, as well as entertainment and DJ.

This year the awards are set to be an evening to remember for the Sports Betting Community so miss at your own risk, Be in Barcelona or be nowhere  “Salud”

Click this link to Register and attend: https://sbcevents.com/sbc-summit-barcelona/

The Betting Industry in Africa: Navigating Economic Recessions and Staying Profitable

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Africa stands out as a key market in betting and gambling for the future, with its online and offline sectors expected to reach $2 bn by 2023.

The betting sector in Africa has consistently held a prominent role within the country’s financial landscape. Faced with worldwide economic changes and contemporary business hurdles, bookmakers have been compelled to evolve and introduce novel strategies to sustain their profitability. One of them, digitalization, found itself in the widespread use of mobile betting software from trusted companies, such as the Betway app. This article delves into how the betting industry in Africa has managed to navigate economic recessions and what strategies they’ve employed to stay profitable in the current state of business.

STATE OF THE BETTING INDUSTRY IN AFRICA IN 2023

THE CURRENT LANDSCAPE

The online gambling sector has seen substantial growth globally, and Africa is no exception. In 2023, Africa’s online sports betting sector is anticipated to hit a valuation of US$350.50m, according to Statista. Meanwhile, by the end of 2022, the online portion of the broader African gambling market had an estimated value of approximately $2.2bn. Projections indicate a notable increase in this value as we approach the end of 2023.

KEY DRIVERS OF GROWTH

Several factors are driving the growth of the betting industry in Africa:

  • Rising Middle Class: Poverty levels are gradually declining, leading to an increase in the middle class with disposable income for betting and gambling.
  • Digital Transition: The surge in smartphone usage and internet access has made online gambling more accessible. By 2022, about 64% of the African population owns smartphones, and this figure is predicted to climb to 70% by 2025, according to the Global System for Mobile Communications (GSMA). Additionally, nearly half of these smartphone users consistently access the internet.
  • Online Payment Solutions: The development of online payment solutions that bypass traditional banking systems has facilitated quick and low-cost online payments, further boosting the industry.

MAJOR PLAYERS IN THE AFRICAN MARKET

Africa stands out as a key market in betting and gambling for the future, with its online and offline sectors expected to reach $2 bn by 2023. This is attributed to its high GDP, which enhances people’s purchasing power. Remarkably, South Africa contributes 50% of the entire gambling revenue in Africa, with a significant portion coming from the sports betting industry, making up approximately 24%. Research shows that nearly half of South Africans engage in sports betting, a figure that is anticipated to grow twofold within the coming five years.

NAVIGATING ECONOMIC RECESSIONS

DIVERSIFICATION IN THE BETTING INDUSTRY

Diversification is a strategy that broadens the array of offerings to mitigate risks and capture a diverse audience. For bookmakers, this means venturing beyond conventional betting methods to ensure stability and growth.

BENEFITS OF DIVERSIFICATION

  • Risk Reduction: By not relying on a single revenue stream, bookmakers can cushion themselves against unforeseen market downturns in any particular segment.
  • Access to New Markets: Diversifying offerings can open doors to new customer segments that were previously untapped.
  • Increased Revenue: Multiple betting avenues mean multiple revenue streams, leading to overall business growth.

EXAMPLES OF DIVERSIFICATION IN BETTING

  • On-the-Go Betting Platforms: Dedicated apps offer the convenience of placing bets, tracking results, and managing accounts anytime, anywhere.
  • Immersive Experiences with AR and VR: These technologies offer a lifelike betting ambiance, enriching user experience.
  • Online Casinos: Incorporating casino games like slots, poker, and roulette provides an alternative entertainment source for bettors.

EMBRACING TECHNOLOGY IN THE BETTING INDUSTRY

THE DIGITAL TRANSFORMATION

The integration of technology in betting is not just a trend but a necessity. Modern bettors demand seamless experiences, instant results, and interactive betting options.

BENEFITS OF EMBRACING TECHNOLOGY

  • Enhanced User Experience: Technology allows for live streaming, instant updates, and interactive betting, enhancing the overall user experience.
  • Operational Efficiency: Automated systems reduce operational costs and human errors.
  • Data Analytics: Technology provides valuable insights into user behavior, preferences, and betting patterns, enabling bookmakers to tailor their offerings.

EXAMPLES OF TECHNOLOGICAL INTEGRATION

  •  Mobile Betting Apps: These apps allow users to place bets, check results, and withdraw winnings on the go.
  • Augmented and Virtual Reality: AR and VR can provide immersive betting experiences, making users feel like they’re in a real casino or sports event.
  • Blockchain and Cryptocurrencies: These technologies ensure secure, transparent, and fast transactions.

REGULATORY COMPLIANCE IN THE BETTING INDUSTRY

IMPORTANCE OF REGULATORY COMPLIANCE

Regulatory frameworks are designed to ensure ethical practices, safeguard consumers, and uphold the betting industry’s reputation. Adherence is crucial for credibility and trust.

BENEFITS OF REGULATORY COMPLIANCE

  • Trust Building: Customers are more likely to bet with bookmakers they perceive as trustworthy and compliant with local laws.
  • Avoidance of Legal Repercussions: Non-compliance can lead to hefty fines, license revocations, and legal actions.
  • Sustainable Business Growth: A compliant business is a sustainable one, ensuring long-term growth and profitability.

KEY ASPECTS OF REGULATORY COMPLIANCE

  • Licensing: Obtaining and renewing licenses from relevant authorities is fundamental.
  • Fair Play and Transparency: Ensuring games and betting options are not rigged and providing transparent terms and conditions.
  • Responsible Gambling: Implementing measures to prevent underage gambling, setting betting limits, and promoting safe gambling practices.

STAYING PROFITABLE IN THE MODERN LEGAL BUSINESS ENVIRONMENT

CUSTOMER-CENTRIC APPROACHES

Modern bookmakers prioritize customer experience by offering personalized betting options, loyalty programs, and efficient customer service.

RESPONSIBLE GAMBLING INITIATIVES

Promoting responsible gambling not only builds trust but also ensures long-term customer engagement. Bookmakers have set betting limits, self-exclusion options, and awareness campaigns to promote safe gambling practices.

MARKET RESEARCH AND ANALYSIS

Understanding market trends, customer preferences, and emerging technologies is crucial. Bookmakers invest in research and analysis to stay ahead of the curve and offer relevant betting options.

CONCLUSION

The betting industry in Africa, like many sectors, faces its share of challenges. However, by adapting to the changing economic landscape, embracing technology, and prioritizing customer experience, bookmakers have managed to navigate economic recessions and remain profitable. As the industry continues to evolve, those who stay agile and responsive to market needs will undoubtedly thrive.

Source: The SouthAfrican.com

iTHUBA Awarded Uganda National Lottery

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The Ugandan government has issued a 10-year licence to Ithuba Uganda, a subsidiary of South African firm Ithuba, to run a national lottery in what Finance Minister Matia Kasaija said was a move to raise public funds and support social causes. Kasaija said the signing of the partnership was a sign of ‘Ubuntu’ and would go a long way in strengthening relations between Uganda and South Africa. The duration of the National Lottery agreed is for a period of 10 years.

The National Lottery’s mission is to boost government revenue through a portion of gross sales, including gaming tax (approx. Shs 87 billion), and non-tax revenue (approx. Shs 60 billion) for good causes annually.

The generated revenue holds a noble purpose—it will empower initiatives in vital sectors: public infrastructure, education, health, and sports development. Together, we’re making a positive impact.

The National Lottery is also an agent of change. There is an anticipated creation of 1700 direct jobs for Ugandan Nationals, with the ripple effect extending to numerous indirect employment opportunities.

The National Lotteries and Gaming Regulatory Board is mandated and will be responsible for the supervision of the activities and operations of the National Lottery and its operator.