The economic dynamism and sports enthusiasm have made Africa a tempting market for iGaming investors. International online sportsbooks and casino operators are pivoting towards the continent. They are all hoping to tap into the large pool of young players with a rising disposable income. However, local companies are not ready to forfeit their home field advantage. Both groups are rapidly mobilizing resources to capture the emerging market.
African sportsbooks are collaborating with European iGaming platform developers that possess the required skills to tackle challenges and get a solid footing in the new unique market.
The sleepy gambling market is awaking as mobile usage rises, and infrastructure improves. With the proper guidance, Africa can fulfill predictions as the most significant expansion of the iGaming market.
A Ripped Gaming Market
The rapid growth of the African gaming market is not surprising, considering the median age on the continent is 19 years, and technology is getting more affordable.The widespread smartphone adoption is fueling online gaming on the continent. According to a recent study, from 2015 to 2021, the number of gamers has doubled in Sub-Saharan Africa, reaching 186 million active players. Expectations are for the growth to accelerate with upcoming digitisation projects.
Although technical circumstances set the stage, people are an equally important factor. George Abebe, Director of AfricaBet, one of Africa’s largest iGaming affiliates says; “Understanding people is a crucial factor in the iGaming industry, and it takes a comprehensive approach. Companies need to balance responsibilities to their users and partners. Building these relationships is a crucial step when entering a new market, and this is an area European operators excels in.”
Countries such as South Africa and Nigeria are already ahead of the curve compared with other pan-African regions that are playing catch up and hoping to emulate the significant revenues the previously mentioned countries generated.
A mission that is possible, according to George Abebe, who says, “There is room for growth in Congo and the wider African continent. Several international companies are now investing and nurturing partnerships with local companies, which we expect to result in great things in the next five years.” One example is Tusk casino, owned by Alt.bet Exchange, a company with significant experience with online casino and betting services, specializing in the African and Arabic region.
The expertise by experienced operators is valuable for local companies that try to navigate the ever-changing technology and regulatory landscapes of the sports betting industry.
Judging by the numbers, the future seems limitless. South Africa is expected to generate gaming revenue of $2.2 billion in 2022. No wonder most international developers want to establish a presence on the continent.
Mobile Betting Is Driving the Growth
African bettors prefer the thrills of wagering on sports events. A few years ago, estimates showed that more than 300 million people follow the English Premier League in sub-Saharan Africa, and most are in the habit of wagering on football games. Until recently, the biggest barrier to the development of sports betting was the obsolete telecommunication network.
Only 11.5% of the African population can access a stable internet connection. The bleak infrastructure is rapidly changing for the better with the rollout of the 5G network and cheap smartphones – two crucial factors for access to a sportsbook.
As connectivity improves and affordable mobile devices penetrate the market, sports betting will increase, especially with the gambling-friendly regulation in most of the fifty-four countries on the continent. Although laws vary between countries, most are willing to implement lenient rules that help emerging sportsbooks consolidate their positions. This isn’t done out of generosity – African governments know that it will ensure a reliable source of tax revenue to fill their country’s budgets.
New Investments on the Horizon
The infrastructure surge across Africa will reinvigorate the economy and provide new entertainment options for the vibrant young population. African bettors are primed for wagering on their favorite sports, and gaming operators are working on implanting appropriate programs to attract and retain players.
“Success in this competitive market is dependent on innovative strategies that assist sportsbooks in improving engagement and user experience by providing local payment methods and customer support.” Working with local businesses is critical to this. Each country on the African continent is distinct in its own right. Local businesses have a wealth of experience that allows operators to understand the nuances of each market. The growth potential in the pan-African iGaming sectors is evident.” according to George Abebe
Our Takeaway
The continued interest in sports betting opportunities will drive the growth of the iGaming industry. Many local and international investors are eager to capitalize on the demand generated by the promising market. And AfricaBet will continue to assist African customers in easily locating reliable and trustworthy operators.
