The online gambling industry is turning its eyes to Africa and with good reason.
According to Statista, the African online gambling market should grow at a 5.81% CAGR over the next five years and be worth $2.52 billion by 2029. It is currently worth $1.9 billion.
What is driving this growth? How are African governments and regulatory bodies responding to it? What are the consumer needs and habits of African players?
Below, we take a deep dive into the state of online gaming and casinos in Africa.
The History of Gambling in Africa
It’s hard to pinpoint a shared history of gambling in Africa because the continent is so diverse. However, many records exist of African communities playing games of chance before colonization. Ancient Egyptians were known to play dice, and horserace betting was common in South Africa.
After colonization and before the pandemic, much of online gaming and betting on the continent happened in dedicated betting shops and kiosks. There were even computerized self-help kiosks in bars and restaurants where players could try their luck at different games and wagers.
Many of these kiosks have been shut down post-pandemic, lending the stage to Online Casino operators like Betway, Betin, Betika, SportyBet, and Easybet, which offer an easier, more accessible way to play casino games and wager on sports.
Sports Betting on the Continent
This accessibility is much welcome on the continent, maintaining a solid connection to sports and sports betting. Football (or soccer as some call it) is top-rated in many African countries, with tournaments like the African Cup of Nations (AFCON) drawing spectators in their millions.
According to 2021 statistics, 30% of Nigerians bet on sports, and 50% of South Africans place sports wagers regularly. This explains why the igaming industry’s current $1.9 billion market value, sports betting, accounts for about 0.95 billion.
Mobile Device and Internet Proliferation
However, online gambling in Africa is not restricted to sports betting.
African players are increasingly interested in online casino games, especially the nascent sector of crash games and recent favorites like Aviator. More and more players are playing online poker, baccarat, and roulette, if for no other reason than they are fun and accessible.
Much of this growth is driven by increased mobile and internet proliferation on the continent. Statista reports that, as of September 2021, Africans constituted 11% of the global internet user profile. This technological interest is expected to grow as the continent’s youth bulge grows.
Online Gaming Demographics
South Africa, Nigeria, and Kenya are currently the biggest online gaming markets on the continent, worth $290 million, $185 million, and $38 million, respectively.
The largest portion of this market is young people who, combining the convenience of 4G and 5G internet with the extensive mobile money ecosystems in these countries, find they can play online games anywhere, anytime. This represents a growing opportunity for investors, as the number of under-24-year-olds in Africa is expected to grow by 50% by 2050.
Government Regulation
But exciting as these numbers are, they are also a cause for concern.
Like other markets, the African online gaming industry is already grappling with fraud, cybercrime, problem gambling, and other drawbacks of online casinos.
The following countries have so far established frameworks to regulate online casino providers:
1. Kenya (Gaming Bill of 2019)
2. Nigeria (Lagos State Lotteries and Gaming Authority (LSLB))
3. South Africa
4. Tanzania
But many of these frameworks are in their infancy, with some focusing more on foreign taxation than industry regulation, like Kenya’s. Efforts are needed to help authorities catch up with the growing industry.
Wrapping Up
As technology continues to evolve, the African online gaming and casino market is expected to grow. It will be exciting to see what the future holds for the continent and how authorities will regulate providers to protect African players.