Africa is the world’s second-largest continent by population and area. So judging its gaming business isn’t simple. The continent has 54 sovereign countries.
Each has evolved specific features that pertain to how they regard and allow this activity.
According to a ReportLinker analysis, the worldwide market is approximately $443 billion. New estimates put the figure at $647 billion by 2027, expanding at a 5.6% annual pace. The report is silent on Africa. Indeed, it can’t compete with the well established North American and European markets, much alone the nascent Asian-Pacific and But it doesn’t imply its industry isn’t important or about to explode.
Gambling in Africa
For the uninitiated, we should state that Islamic law severely outlaws all types of gambling, including betting on athletic events. So many countries now provide land-based gambling in tourist areas to improve local income. However, given to the good economic advantages of gambling, some make it accessible in major cities.
Most African countries’ gambling attitudes are a mix of European and native practices, influenced by centuries of colonial domination. Depending on the nation, gambling regulations might be tight or lax. Those near the continent’s center are the most stringent, followed by those in the north. West and South Africa are more advanced.
Data on the continent’s land-based business is difficult to come by due to a lack of regulatory agencies and market fragmentation Given that the European industry is roughly $27 billion, Africa’s should be less than 20% of Europe’s. While the worldwide market only expanded by 2%, the African gambling gross win grew at an annual compound rate of 8% from 2013 to 2019, four times faster than the global market.
The digital world is significantly less congested. According to BtoBet, the African gambling business is growing. Its top 10 markets accounted for $1 billion in worldwide sales. Low internet penetration has previously slowed iGaming growth. However, as cellphones and mobile internet coverage expanded throughout Africa, so did the number of prospective participants. Experts like H2 Gambling Capital anticipate the African iGaming sector to explode. According to H2, the sector has grown consistently since 2012 and will likely double in size by 2024, reaching over $2 billion. Sports betting tends to be the most popular, followed by online casino games and lotteries.
Top Markets
Africa has three large marketplaces and a few smaller ones spread over its 30 million square kilometers. The three leaders are South Africa, Kenya, and Nigeria, with the Rainbow Nation unchallenged ruler.
With 39 casinos, South Africa has the continent’s biggest gambling business. Casino gambling dominates the South African market. Before the democratic government of 1993, many estimated there were over 2,000 illegal gambling outlets throughout the nation. The Gambling Act of 1996 established licensing and taxation processes, formally regulating the industry and protecting clients. The National Gaming Board reports that about 97 percent of inhabitants play the national lottery, and over 27 percent play slots. Despite this, betting businesses may seek for municipal licenses. The GrandWest Casino & Entertainment World complex has almost 2,500 slot machines.
Kenya comes in second, considerably behind South Africa, with three cities having gambling facilities, out of 30 in the nation. These establishments include horse racing, sports betting, and standard casino games. Nairobi has 21 casinos, including the biggest in the country, Casino Flamingo, with 160 slots and 15 card tables. Kenya’s gambling regulations are fairly lenient.
Thus, the great majority of its inhabitants have access to mobile betting.
Nigeria has one of Africa’s best economies. With just nine legal gambling locations, Nigeria has able to outperform Kenya in terms of revenue, proving the industry’s sustainability. It is governed by the National Lottery Regulatory Commission. It launched a roulette-only platform in 2013, however that endeavor was short-lived. Lagos approved laws legalizing internet betting in December 2019, and local sportsbooks like Bet9ja enable Nigerians to gamble on sporting events. Due to Nigerians’ freedom to play at offshore sites that welcome players from their location, international operators like Betway, 1xBet, and 888 Sports dominate the industry. The Federal Palace Hotel & Casino in Lagos has the most slots and table games.
Revenues
As said, South Africa reigns supreme in the area. The National Gambling Board reported in April 2019 that total gaming income since April 1, 2018 was $2 billion. The figure is up 7% over the previous 365-day period. Surprisingly, interest in bingo games climbed by 26% in Africa’s most active gambling industry, followed by sports betting by 17.8%. Limpopo had the fastest increase.
Nigeria comes in second in terms of revenue, with a huge market for sports betting providers.
In 2014, almost 30% of the country’s population was estimated to bet on sports everyday. The daily sports bets of $5.5 million increase the yearly Nigerian total to almost $2 billion. No specific quantity can be given since many of these operations occur elsewhere. Local operators like Bet9ja and NairaBet make roughly $10 million and $5 million monthly. Most Nigerian bettors favor offshore sites, and the most popular sport is football, with most bets on EPL games.
In 2018, PricewaterhouseCoopers estimated that the market size for gaming in Kenya was about $25 million.
It may not seem like much, but it was up $5 million from 2014, and current estimates place the market at over $50 million. Experts anticipate that a pick-up in economic development and tourist expansion will continue this trend. Many worry that terrorism will halt the market’s expansion. A 2017 Geopoll found that 7 million Kenyans had accounts on gambling sites.
Morocco, Ghana, Uganda, and Tanzania also profit from gaming. The latter’s gaming board forecasted $42 million in betting income in 2019, a $8 million increase over 2018. The countries mentioned have some type of sports betting regulation.