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.

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

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

5G network Launch in Senegal and other African countries a great boost for the igaming industry

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Senegal’s telecommunications regulator (L’Autorite de Regulation des Telecommunications et des Postes, or ARTP) issued a call for applications for 5G licenses earlier this month. The call came as the regulator was keeping its promise to launch commercial ultra-broadband in the country in 2023, furthermore, requesting that interested investors must submit their applications by July 14, 2023.

In May 2023, the regulator announced that it would allocate 5G licenses to telecom operators by the end of July.

“Only companies incorporated under local law can apply and they should also have a valid license authorizing them to establish and operate a network open to the public and to provide electronic communications services as of the application submission date,” the regulator said in a statement.

The country’s 5G launch is in line with the country’s drive to strengthen high-speed connectivity and digital use in the country. This is also linked to the Digital Economy Acceleration Project (PAEN), which the World Bank is funding for US$150 million.

Senegal’s telecommunications regulator said interested parties have until July 14, 2023, to apply for a 5G license. That financing agreement was signed by Senegal’s Minister of Finance and Budget, Mamadou Moustapha Ba, and the Keiko Miwa World Bank’s Country Director for Cabo Verde, The Gambia, Guinea-Bissau, Mauritania, and Senegal.

Senegal’s 5G plans

Senegalese telecom operators have been planning for 5G since 2020 with local operator Sonatel testing the service in November 2020 and running a second 5G trial in December 2021.

Free Senegal also launched an experimental phase of the fifth-generation technology in June 2022.

Furthermore, in July 2022, Sonatel, along with its parent company Orange, opened a 5G Lab in the capital, Dakar. However, ARTP instructed Sonatel and Free to halt their network trials and submit a progress report to the regulator in March 2023.

Africa’s 5G progression

The announcement by the Senegalese regulator comes at a time when many other countries have also been announcing their 5G plans.

A few weeks ago, the Uganda Communication Commission (UCC) invited applicants for its planned sale of the 5G spectrum, and the Communications Regulatory Authority of Namibia (CRAN) also announced it will auction the 5G spectrum in October 2023.

Malawi also joined a growing list of 5G-enabled African countries after Telekom Networks Malawi (TNM) became the first mobile operator to make 5G services available in the country, on a pilot basis.

The recent 5G African progression is in line with GSMA’s predictions that many African countries will launch 5G services by 2025.

Source: Connecting Africa

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

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.

Why some sports betting operators are failing to succeed in Africa

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You wouldn’t expect a pilot about to embark on a transatlantic flight to fail to run through his pre-take-off checks and review the weather forecast for the journey. So why would a business fail to engage in market research before setting out on a particular strategy, product launch, or important decision?

Pilots today face an increasingly complex array of factors they need to take into account — increased air traffic movements, gridlocked airports, more extreme weather events, and new technologies, which are supposed to make their lives easier and less stressful. Similarly, the business environment in Africa differs per market as each market has its own culture, beliefs, and traits which are faced by decision-makers today and are constantly changing.

We would like to extend our expert knowledge to all sports betting and online casino operators that have recently opened operations in Africa or plan to, due to tremendously increased mobile phone and internet penetration that came as a result of over 24 months of lockdowns that were brought about by the unprecedented outbreak of covid-19 to make sure you’re well prepared to succeed just like Pilots are always able to because they make sure to make checks prior their flights.

As fast as the iGaming industry in Africa is growing, please be advised not to jump on the train without taking your time to conduct feasibility market research about the market of your interest, to analyze key factors like what’s the ESTIMATED MARKET SIZE, KEY PLAYERS, POSSIBLE MARKET SHARES, BARRIERS TO ENTRY, LICENSING REQUIREMENTS AND COSTS, TAXATION & REGULATORY FRAMEWORKS, REPATRIATION OF FUNDS POLICY, DOUBLE TRADE AGREEMENTS, MARKETING & ADVERTISEMENT STRATEGIES among others. These feasibility market reports will help you make timely decisions while helping you mitigate the investment risk as well. We continue to see sports betting operators close shop after a few years or months of operations e.g., Betway Kenya & Uganda, 10bet Kenya, and Pulsebet Uganda among others as the list is long. While the factors are many that may have been the exact reason for their closure for example Poor marketing and advertisement strategies, product localization failure, wrong choice of market entry into Africa, gaming taxes etc. There’s no doubt most are avoidable if one takes time to prepare themselves and then launch when most boxes are ticked.

Allow us to assist you overcome all the obstacles that are hindering your revenues to take off if you’re starting to worry, for new operators let us assist you straight from feasibility market studies, license application & acquisition, marketing & advertisement, Operations setup, recruiting the right talent that will carry our experience & skills flagship for your long-term success.

The Influence of sports betting on the African Economies

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Betting on sports is currently the most popular form of gambling in Africa. Adults and young locals are particularly fond of wagering on European football, e.g., the English Premier League, Bundesliga, Serie A, and events like the World Cup. Other international sports also get a loyal following here, with many watching and supporting cricket, rugby, horse racing, and basketball. Sports, particularly the passion for soccer, is the bind for most regardless of their culture, language, religion, status, or political persuasion.

For example, roughly 60 million residents aged 18 to 40 actively bet on sports in Nigeria. According to the same survey, Nigerians bet an average of 3,000 Naira or $15 daily.

According to a South African government survey in 2017, sports betting grew 14% yearly from 2008 to 2016. Today, online sports betting makes up 45% of the country’s gambling market, a completely different picture from ten years ago when casinos had an 80% market share. And it’s the same trend in Southern, Central, East, and West Africa. So, it’s unsurprising that the African gambling industry was worth US$ 3,048.05 million in 2021 and will grow by 6.99% until 2030.

Betting on a $3bn gambling market and a dynamic African economy

While gambling and betting laws are contested issues in most parts of Africa, many benefit from its operations. Stories and anecdotes from the region reveal that many see the growing betting industry as a source of income. As betting grows, the economy benefits.

One segment that directly benefits from the industry is the group of small betting shops that often run promotions, including ‘betting points’ for every sports wager. With this regular promo, and during events like the World Cup, their sales go up.

Regional economies also benefit through a boost in employment opportunities. The sudden surge in betting companies has provided locals with employment options, with thousands of Africans working for local and foreign companies. Aside from direct employment, betting companies create jobs by allowing locals to become agents and run their betting outlets. There are partnerships and sponsorships also that benefit other stakeholders. For example, a few European bookmakers have partnered with the Nigeria Football Federation, while Bet9ja was a title sponsor for the Nigerian National League. The same bookmaker has a million-dollar partnership with Big Brother Naija, a popular reality TV show.

African sports betting is unique in that it grows not in isolation but in step with other industries, particularly IT, advertising, and banking. As a result, there’s a symbiotic relationship between the sectors as stakeholders, each benefitting from the other. And some even argue that sports betting has given more in return.

 South Africa

The South African betting market contributes to the region’s economy, which can exceed $2.3 billion by the end of 2023. It’s a significant number since South Africa’s GNP is the third highest in the region. Moreover, with a bigger share per capita, local bettors have more regional purchasing power, allowing them to bet more significant amounts in online sportsbooks and betting shops.

Nigeria

It’s the same story with Nigeria, Africa’s second-biggest gambling market. According to auditing firm PwC, the Gross Gaming Revenue in the country was $58 million in 2018, and at that time, the team projected that it would rise by 16% over five years. But in 2020, it moved past the  $443 million mark. The massive growth of gambling in Nigeria started in 2004 when the ban was lifted.

Kenya

Kenya is another African country with a regulated betting industry. However, its growth slowed down with the introduction of restrictive tax laws. The Kenyan government introduced a 20% tax on bets and a 15% tax on the GGR. While it may benefit tax collections, it eventually backfired, with many operators leaving the Kenyan market.

In other African countries, sports betting’s contribution to their economies is not substantial or clear-cut due to strict laws and regulations. As mentioned, online gambling is illegal in 38 countries, and they still rely on colonial legislation.

 What’s ahead for sports betting and the African economy?

With these mindboggling data on bettors’ activities and revenues, it’s unsurprising that many African countries are looking to tighten tax laws and regulations and generate more revenues from the industry. As betting grows, so will its effect on the regional economy. So, the challenge for the governments and operators is finding a mutually beneficial arrangement for taxation.

And there are the social costs of sports betting, too. As one Uganda-based analyst suggests, the growth of sports betting “threatens to push young men and women into its fatal depths.” The government must consider the growing importance of betting to the African economy.

Source: African Business Communities

Massive blow out of online casino games in Africa

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While all football fans across the globe gear up for the crush of the Titans – Manchester City Vs Inter Milan on Saturday 10th for the UEFA Champions League finals in Istanbul’s Ataturk Olympic Stadium, we at GGC are taking you on a virtual tour into the rapid growth of online casino games in Africa.

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.

Convenience Using a mobile app for online gambling allows the players to enjoy their favorite time on the go, any time they want, which is totally different from retail/land-based gaming where a player 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.

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

Players who stick to land-based establishments are always limited to the selection of games available on the floor, which may not be an issue for gamblers who can access a 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.

The future of mobile gaming in Africa definitely looks bright, and the continent is likely to continue pursuing its passion for gambling through smartphones and other devices. As technological advancements continue to boost mobile penetration on the continent, even more Africans will be able to enjoy the convenience and all the amazing benefits of internet gambling.

Conclusion: Africa is the future hub of online casinos