In recent years, major gambling operators and other investors have taken interest in the developing iGaming markets of Africa. Online games of chance have risen to prominence with the growth of the Internet and tech on the continent.
Although, currently, the region accounts for only 1.1% of the global online gambling industry, in many African countries, the share of iGaming is growing at extensive rates. A highly engaged young audience is also a relevant growth factor. While some African nations strictly prohibit all games of chance due to religious or cultural reasons, in other states, the gambling sector remains largely unregulated, and some countries allow casinos and betting companies to operate legally.
Sports betting dominates the iGaming industry in most counties of Africa. And with the Africa Cup of Nations underway, the wagering scene on the continent is more promising than ever. The data from H2 Gambling Capital indicates that by 2025 African sports betting revenue will reach $2.15 billion, with $512.2 million coming from online sportsbooks.
In this article, you can find a brief overview of the top five African gambling markets with the most development potential and highest gambling profits.
Nigeria
Nigeria has the highest population on the whole African continent and is the seventh most populous country in the world. And, according to the 2014 survey, around 30% (61.8 million people) of Nigerians bet on sports daily. Most bettors wager on football games, and the average daily bet size is $15. So, it’s not a surprise that online sports wagering platforms, such as Bet 9ja, drive the growth of the local gambling industry. The other important factors are high interest in betting among the young middle-class audiences, higher internet penetration in the country, foreign investments, and gambling partnerships.
In 2020, the country accounted for 7% of the total gambling profits in Africa. Apart from sports wagering, the National Lottery Regulatory Commission allows land-based casino gaming (including slots) and lottery. Roulette, dice games, and non-skilled games are illegal at the same time.
South Africa
The Republic of South Africa (RSA) is the largest gambling market on the continent. Almost a half (48%) of Africa’s gross gaming revenue (GGR) comes from RSA. The country has the third-highest GDP per capita on the continent, so the purchasing power is also much higher there than in many neighboring countries. This all led to the steady growth of the South African gambling sector over the last ten years. According to PwC market research, the GGR is expected to reach ZAR34.86 billion ($2.24 billion) by the end of 2021.
South Africa regulates land-based casino gaming, slot halls, bingo games, online and offline betting. The National Lottery governs lottery-related games. There is, however, a flip side to the gambling regulations in RSA. As of 2004, the local law bans online casino games. So, only the sports betting niche could be considered for investments. In 2021, sportsbooks are forecasted to account for 21.5% of total GGR (the second largest category after brick-and-mortar casinos), with a compound growth rate of 8.1%. Low licensing costs (around $800 annually) and spiked interest in sports have attracted many major betting ops to the legal market of RSA.
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Morocco
Although the majority of Moroccan citizens are Muslim, the country has the second-biggest gambling market in Africa. In 2020, 9% of the continent’s GGR came from the Kingdom of Morocco. Popular among tourists from all around the globe, Morocco is known for its luxurious casino establishments. Casino gambling, however, is allowed only for foreign players.
The lottery is the only iGaming activity that is legal online. All other forms of online gambling remain unregulated. So, Moroccans often gamble on the betting and casino sites of foreign operators. Local players prefer online wagering on football and rugby.
Kenya
Kenya is one of the few African countries that permits online casinos by law. In 2019, the country legalized the following online gambling activities:
- sports betting;
- online poker;
- online casino games.
Like most African nations, Kenyans enjoy betting on sports, especially soccer, the most. Currently, there are 30 legal bookmaking ops in the country with combined revenue of $2 billion.
The land-based casino sector is also highly developed and also includes 30 venues in the major cities of Nairobi and Mombasa. The most played games include slots, blackjack, and roulette.
In 2020, the Kenyan gambling market generated $40 million in GGR, accounting for 4% of the total African GGR. The high internet penetration (43%) with the vast majority of mobile users led to such high gambling profits in the country.
At the same, extremely high gambling tax rates have driven many large sportsbook ops from the Kenyan market and resulted in a surge in revenues. Most recently, the president of Kenya has officially decreased the betting tax from 20% to 7.5%. Hopefully, this will attract more foreign investors to the country.
Ghana
Ghana was one of the first African countries to legislate gambling activities, including lotteries and casinos, back in the 1960s. In 2006, the Ghanian Gambling Commission regulated all forms of gambling, such as casinos, sports betting, and slot machines. There are 18 casinos, 33 sportsbooks, and 10 route machines in Ghana.
Although the Ghanian market isn’t the biggest on the continent but has the most stable regulations on games of chance. The local Gambling Commission is friendly towards online gambling, which led to Ghana generating 1% of total African GGR in 2020.
For many gambling operators, Africa remains an unknown land. But in recent years, it has become one of the most attractive regions for iGaming investors. Growing Internet penetration, increase in GDP in many countries, high interest in betting among the young population, and emerging middle class are the main reasons that guarantee the bright future for African online gambling.
Source: https://beton.ng/
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