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

AdminLeave a commentNews, ,

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.

 

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

AdminLeave a commentNews, ,

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

AdminLeave a commentNews, , ,

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

AdminLeave a commentNews, , ,

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

Uganda Gaming Licence Requirements and Costs

AdminLeave a commentNews, , , , ,

  1. Proof of payment of Application fees as stated under Lotteries and Gaming (fees) regulations 2017 schedule as attached here under.
  2. Duly filled Licence application form
  3. A cover letter
  4. Certified copy of Certificate of Incorporation/or Registration where the applicant is a company
  1. Certified copy of the Memorandum and Articles of Association where the applicant is a company
  1. Certified copies of Company forms 18 and 20 where the applicant is a company
  2. Where the applicant is an individual, police clearances from Interpol, proof of citizenship, work permits if foreigner and resident here.
  3. Tax Identification number for the applicant
  4. Tax clearance Certificate from Uganda Revenue Authority
  5. Proof of capital adequacy as required by Section 39 of the Act and Regulation 3 of the Lotteries and Gaming (Minimum Capital Requirements) Regulations. See the minimum capital requirement below;
ItemType of LicenceAmount of minimum capital required (UGX)
1.Sports Betting250,000,000
2.Slot Machines250,000,000
3.Manufacture, supply or installation of gaming or betting machines250,000,000
4.Casino operating Licence1,000,000,000
5.National Lottery5,000,000,000
6.Public Lottery250,000,000
7.Pool betting250,000,000
8.Bingo250,000,000
9.Betting intermediary operating licence250,000,000

  1. List of Games rules and equipment that the applicant intends to operate.
  2. Details of premises both principal location and operational premises.
  3. Business plan for the year of business with a Corporate Social Responsibility component.
  4. Details of key employees; CVs, police clearances, proof of citizenship and work permits if foreigners and residents here.
  5. Bank account details
  6. Corporate Social Responsibility plan.
  7. Bank Guarantee of 500,000,000/- in favour of the Board.
  8. Proof of payment of Licence fees upon approval of the application

                                                      SCHEDULE FEES

ItemType of Licence, registration or other matters under the ACT or RegulationsFees Payable (UGX)
1.Application fee to conduct a national or public lottery: (a) foreigners

(b) nationals

 

50,000,000

20,000,000

2.Licence fee to conduct a national lottery100,000,000
3.Application fee to conduct a public lottery

(a) foreigners

(b) nationals

 

20,000,000

10,000,000

4.Licence fee to conduct a public lottery10,000,000
5.Application fee to operate a casino or a casino operating licence;

(a) foreigners

(b) nationals

 

 

50,000,000

20,000,000

6.Licence fee to operate a casino or a casino operating licence15,000,000
7.Application fee for a licence to provide facilities for pool betting or a pool betting operating licence;

(a) foreigners

(b) nationals

 

 

 

20,000,000

10,000,000

8.A pool betting or a pool betting operating licence.10,000,000
9.Application fee for a licence to provide facilities for playing bingo, or a bingo operating licence;

(a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

10.Licence to provide facilities for playing bingo, or a bingo operating licence;10,000,000
11.Application fee for a licence to provide facilities for betting or a general betting operating licence;

(a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

12.Licence fee to provide facilities for betting or a general betting operating licence;10,000,000
13.Application for a licence to act as a betting intermediary or a betting intermediary operating licence; (a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

14.Licence to act as a betting intermediary or a betting intermediary operating licence.10,000,000
15.Licence fee to supply gaming machines available for use in a gaming centre or gambling software operating licence. (a) foreigners

(b) nationals

 

 

20,000,000

10,000,000

15.Application for renewal of licence where the previous licence has not expired in accordance with section 47 of the ActNil
16.An application for a special employee licence50,000
17.Registration of gaming or betting machine or device50,000 per machine
18.Transfer of registered ownership of gaming or betting machine or device50,000
19.Approval to lease or transfer possession of a gaming or betting machine50,000
20.Inspection and approval fee for establishing a branch of a casino or any other gaming or betting facility1,000,000

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

AdminLeave a commentNews, , , , ,

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

AdminLeave a commentNews, ,

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

AdminLeave a commentNews, , ,

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.

The Influence of sports betting on the African Economies

AdminLeave a commentNews, , ,

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

Sports Betting East African Summit 2023 is here!

AdminLeave a commentNews, , , ,

While Drums, wines, and cocktails along Brazilian cuisine are still in high gear at Grand Hyatt in Sao Paulo Brazil @ the Brazilian iGaming summit with massive networking accompanied by new business opportunities, making new friends, and romantic mistakes!

We at GGC have started sounding the alarms for the upcoming Sports Betting East Africa Summit (SBEA) by Eventus International taking place at Kabira country club in Kampala, Uganda from July 13-14 next month.

Eventus International is a gaming industry exhibition organizer that has been in the business of connecting gaming industry stakeholders for over a decade. With a proven combination of networking, sponsorship, and exhibiting opportunities across all its events that span the entire continent. These events bring industry insight, business development opportunities, knowledge sharing, and networking tributes bridging the gap between B2B and B2C operators thus bringing the gaming industry closer together and closer to achieving a collective goal.

Using their platforms, they offer bespoke sponsorship and exhibition opportunities that can easily position a brand to a targeted audience of professionals, and deliver a high ROI to companies looking to enter a market and/ or strengthen their brand presence.

Reach out for Sponsoring or Exhibiting opportunities at the upcoming Sports Betting East Africa Summit (SBEA+) 2023 for the opportunity to have one-on-one interactions with key East African gaming industry stakeholders, acquire new business ideas from so many professional speakers that range from Regulatory boards and its C-level executives, Sports betting, casino and lottery operators, consultancy firms, Africa centric media firms, law firms among other delegates that will grace the show.

For more info: https://www.sportsbettingevents.com/sbea