Online Vs Land based Gambling

Online Vs Land based Gambling In Africa – Determining the Optimal Option for Operators

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If you’re thinking about dipping your toes into the exciting African gambling market, you might be wondering if you should go online or stick to land-based casinos. Don’t worry, we’ve got you covered! In this article, we’ll help you weigh the pros and cons of both options so you can make an informed decision.

The choice between online and land-based gambling in Africa depends on several factors, including:

Target market:

Online gambling: Reaches a wider audience, including players in remote areas and those who prefer the convenience of playing from home.

Land-based gambling: Appeals to players who enjoy the social atmosphere and amenities of a physical casino.

Legal and regulatory environment:

Online gambling: Regulations vary widely across African countries, with some having clear licensing frameworks and others having outdated or unclear laws.

Land-based gambling: Typically more heavily regulated, with established licensing and taxation systems.

Competition:

Online gambling: Faces competition from both local and international operators.

Land-based gambling: Competes primarily with other land-based casinos in the same region.

Investment costs:

Online gambling: Lower initial investment costs compared to land-based gambling, as there is no need for physical infrastructure.

Land-based gambling: Significant investment is required for land acquisition, construction, and equipment.

Profitability:

Online gambling: Can be highly profitable due to lower operating costs and the ability to reach a wider audience.

Land-based gambling: Can also be profitable, but margins may be lower due to higher operating costs and competition.

Based on these factors, here are some considerations for operators:

  • If you are targeting a wide audience and want to minimize investment costs, online gambling may be a better option.
  • If you are targeting a specific region with a favorable regulatory environment and want to offer a premium gaming experience, land-based gambling may be a better choice.
  • If you have the resources to invest in both online and land-based gambling, a hybrid approach can be effective, allowing you to reach a wider audience and offer a variety of gaming options.

Ultimately, the best choice for an operator depends on their specific business goals, target market, and available resources.

By: Nasif K Balinda

“Sports Betting business is booming in Uganda”: Ugandans defy hard times to bet Shs2 trillion in six months

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Ugandans wagered at least Shs2.1 trillion in sports and related bets in the halfway year to 2023, according to the National Gaming and Lotteries Regulatory Board the amount is almost equal to the Shs2.4 trillion that the National Gaming and Lotteries Regulatory Board says was gambled in the 2022/23 financial year, and could double by the end of the current financial year in June.

Speaking in an interview in Kampala at the weekend, Mr Denis Ngabirano, the National Lotteries and Gaming Regulatory Board CEO said that the gaming and betting industry had grown both in turnover and tax contribution due to increased compliance and licensing.

The growth, he said, had also boosted tax revenue, which in the 2022/23 financial year had almost tripled, growing by an average of 25.3% in the last four financial years from the 2019/2020 financial year.

“In terms of the monies staked or turnover, last financial year Ugandans staked Shs2.4 trillion. That was the total amount. In this first half of the current financial year, we have a total of Shs2.1 trillion. We are seeing an increase in turnover, and also a tax increase. This is a result of our dedicated compliance activities with URA,” he said.

However, Mr Ngabirano did not indicate how much betting, gaming, and lotteries companies paid out against successful bets.

Betting and gaming have been growing, boosted by a rise in viewership of different sports activities in the last two decades. The growth, Mr Ngabirano said has also largely been due to an increase in the number of licensed betting and gaming houses, which currently stand at 45 companies.

During the 2022/23 financial year, according to the Uganda Revenue Authority (URA) Annual Data Book published last week, the government is increasingly profiting from betting and gaming, doubling projected revenue for the financial year ending June 2023.

During the period, URA data indicates, the government earned Shs 75b as taxable revenue from betting, which was 46.9% above the Shs35.2b target, and substantially above the Shs19b earned in the 2019/20 financial year. The growth has also been boosted by a shift in betting and gambling technology, with many companies establishing 24-hour online betting and gaming sites.

With all the above facts there is no doubt Uganda is one of the leading markets in Africa and therefore it’s ripe for business, get in touch if you would like to acquire a feasibility market report about Uganda, Kenya, South Africa, Zambia, DRC, Ghana, Nigeria, Cameroun, and Ethiopia or any other African Market. Our reports include;

  • Estimated market size
  • Main Players, their products, and models of operations
  • Regulatory frameworks (Existing, new, and upcoming)
  • Taxation frameworks
  • Repatriation of funds policies
  • Pricing and payments
  • Barriers to entry
  • Inflation etc.

We are also experts in License application and acquisition having acquired 32 licenses so far across different markets so get in touch and we shall have all the answers to your needs.

 

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

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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

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

M-pesa a key mobile money payment provider in Africa acquired licence to operate in Ethiopia.  

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Safaricom Ethiopia through its newly established and wholly owned subsidiary; Safaricom M-PESA Mobile Financial Services PLC (Private Limited Company) received the Payment Instrument Issuer License from the National Bank of Ethiopia that enables it to avail mobile financial services to its customers under the trademark M-PESA.

Prior to issuing the license, The National Bank of Ethiopia amended the National Payment Systems Proclamation to provide the necessary regulatory framework for foreign-owned telecom operators to provide Mobile Financial Services (MFS) in Ethiopia, done in consultation with the industry players in the country.

“We are delighted to receive the license to establish M-Pesa and start providing Mobile Financial Services to our customers. M-Pesa comes with a tested and proven track record of enabling financial inclusion in Africa, provides services to more than 51 million customers across seven countries in Africa with a safe, secure, and affordable way to send and receive money, top-up airtime, make bill payments, get short-term loans and much more. We would like to extend our gratitude to the Government of Ethiopia, the Ministry of Finance, and the National Bank of Ethiopia for the support and guidance which will allow us to contribute our share to the efforts of the Government of Ethiopia fast tracking Digital Inclusion and promote innovation outlined in the Digital payments Strategy 2025.” says Anwar Soussa, CEO of Safaricom Ethiopia.

M-Pesa is Africa’s most successful mobile money service and the region’s largest fintech platform both for the banked and unbanked due to its safety and convenience.  It also provides financial services to millions of people who have mobile phones, but do not have bank accounts, or only have limited access to banking services.

In compliance with the applicable legislation in Ethiopia, the subsidiary of Safaricom Telecommunications Ethiopia was set up with a 50 million Birr initial capital and will offer mobile financial services under the brand M-PESA by the second half of 2023.

This is great for the Ethiopian igaming industry accessing the most known mobile money provider across sub-Saharan Africa to its sports betting facet.

Source: Safaricom Ethiopia

The Evolution and Future of Africa’s gambling industry

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Africa has always been an epicenter for innovation and resilience, and one industry exemplifying its dynamism in recent years is gambling. Amid rapid economic development and technological expansion, Africans have enthusiastically taken up this form of entertainment as it thrives amid their regulatory environment—something the US market may offer guidance on.

The African gambling market is soaring with growth potential.

Gambling’s presence in Africa is far from new, yet recent years have witnessed an exponential surge in its popularity. Traditional forms like bingo and slot gaming remain popular, but what has truly revolutionized gambling on this continent has been sports betting.

Football, the beloved game of Africans, lies at the core of this expansion. Replicating the excitement of Premier League or African Cup of Nations games, high-profile individuals like Emmanuel Makandiwa of Zimbabwe and Oluwaseun “Shizzle” Ajayi from Nigeria serve as inspiring examples proving gambling can bring positive changes within communities.

Regulatory Landscape in Continental Settings

African nations’ rich cultural, political, and economic fabric has led to a varied regulatory environment for gambling industries. While some nations offer open gambling environments with established legal frameworks in place, others hold more conservative viewpoints with more stringent views and restrictions in place.

South Africa, known for its progressive nature, has regulated gambling since 1996 with the National Gambling Act. This comprehensive legislation offers a well-structured system for licensing, monitoring, and ensuring responsible gambling practices.

Kenya, known as one of Africa’s thriving betting markets, has experienced an ongoing tussle between government officials and betting operators over taxation and regulation issues. However, Kenya’s Betting, Lotteries, and Gaming Act provides the basis for sector operations, with efforts underway to amend legislation accordingly.

Nigeria’s National Lottery Regulatory Commission oversees its gambling industry under the National Lottery Act 2005 and is moving toward adopting more liberal approaches to regulation that take advantage of its potential.

Uganda presents a more conservative landscape, wherein its government issued an overall ban on sports gambling in 2019, citing negative social impacts as justification. 

Understanding the American Model for Success

An examination of the US gambling industry provides Africa with valuable lessons. This developed market boasts advanced regulations, strong consumer protections, and advanced technological infrastructure.

One lesson Africa could glean from this experience is the value of clear and comprehensive legislation. Every state has comprehensive regulations for online casinos and online and in-person betting. Similar approaches could help Africa balance economic growth, consumer protection, and social responsibility more efficiently.

Markets like the US also make the most of the integration of technology and digital infrastructure. where, cutting-edge technologies like blockchain and AI are used to provide secure, user-friendly platforms. As Africa continues its digital revolution, adopting these advanced technologies could propel its industry even further forward.

Mobile Revolution

Thanks to rising smartphone penetration and better internet access, mobile betting is poised to take off across Africa, mirroring trends seen in the US, where mobile sports betting and casino gaming have seen significant growth. African operators can capitalize on this trend by developing comprehensive mobile platforms with seamless user experiences that meet customers’ expectations.

The Future of Gambling in Africa

Drawing inspiration from its US counterpart, Africa’s gambling industry shows signs of great promise. As digital developments expand and mature markets mature, many trends and developments will likely shape this sector over the coming years.

Source: Business Insider Africa

Key must haves before starting a sports betting operation in Africa

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Products

Sports, 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 not to mention the tremendous boost they acquired during over 24 months of lockdown that came about as a result of the unprecedented outbreak of covid-19.

Crash Games have also made their stand especially Aviator and Rocketman among others, there is a need to develop a full retail version that we believe will hypersonically blow the retail facet of the industry in Africa.

Online casino games are becoming very popular as mentioned earlier 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.