Online Betting in Africa is expanding
Africa has a long history with sports betting. In the last decade, it has proven to be a lucrative market for many online iGaming businesses that are looking for new opportunities to grow.
Online Gambling in Africa quick overview
Though football is by far the most common sport on the continent, it is not the only one. Horse racing, cricket, and rugby for example attract many fans and viewers who are eager to place bets on them.
The African sports betting market is totaling in billions. Almost half of the adults place bets on their favorite sports and teams regularly. This trend is to be seen not only in the well-established economies on the continent but also in countries like Nigeria. There, the industry is flourishing, despite the relatively small average bet amount placed by a person per day. So it’s safe to conclude that not considering Africa as a destination for gambling business investment is a missed opportunity for the iGaming provider and operator of the present and the future.
According to statistics,
Africa takes 1st place by the number of young people, between 15 and 24, which greatly enables the expansion of online sports betting. Coupled with the increased use of smartphones and the rapid expansion of mobile internet connectivity, the development of the iGaming market in Africa is set to see exponential growth. Although retail outlets have long dominated the African gambling industry, the number of mobile users is consistently rising generating value which is predicted to reach more than $2 billion by 2024.
*For other gambling business destinations, read more about our overview of the Betting Market in India.
Betting Regulation in Africa
There’s one major concern for betting operators and it is the gambling regulations that are either ambiguous, obsolete, or simply unenforced. So similar to the Latin American market, regulation is indeed needed.
The gaming industry in most African countries is overseen by a centralized authority or regulatory agency. A prime example being South Africa, which has nine provinces each with its own gambling board that makes decisions on the legality of gambling. The solid regulatory foundation would create a safer environment for sportsbook solutions providers, operators, stakeholders, and players alike.
Finance & Payment
The surge of online sports betting in Africa (iGaming in general, including activities in different online casino platforms) has been driven by the development of local payment systems. A large percent of the population still does not have access to financial services which has raised the necessity of the development of alternative payment methods, the most popular of which is the mobile one. Payments are charged directly to the user’s mobile phone bill, so if a user wants to make a deposit he only needs to have an account with a participating mobile provider. Other popular payment options include credit cards and eWallets, bank transfers, and prepaid cards.
Even though the business regarding online betting in Africa has its own set of market challenges due to political instability and a lack of legal enforcement, the African player base remains a highly attractive target for companies searching for new markets and expansion. The e-gambling business has a big future ahead, as droves of operators will soon look to establish a major market share in the early peak that is yet to come.