Africa has a budding online gambling industry. The second-biggest continent is home to many gamblers who choose to wager online or at live shops.
According to a report on the gambling industry in Africa, PricewaterhouseCoopers (PWC), a professional services network, estimated the sports betting industries in the three largest growing markets in the continent, South Africa, Nigeria and Kenya, to be worth around $37 billion!
This does not take into consideration other states’ revenue like Ghana and Uganda, the web-based casino market and other income-generating aspects of the gambling industry.
Although the African market accounts for about 1.1% of the world online gambling revenue, the PWC report and others like it shows its increasing growth and huge potential. African countries have a varying rate of iGaming market growth due to each state’s gambling rules, regulations and attitude.
Here is an overview of the features and statistics of Africa’s major online gambling markets.
South Africa
South Africa is home to the largest gambling market on the continent. The southern region state controls over 90 percent of the market share of gambling in sub-Saharan Africa.
According to the most recent report published by the South African Gambling Board, the country's gross gambling Revenue was $1.9 billion in 2018 and is expected to go over $2.5 billion before 2023.
There are currently 38 casinos operating in the country with three companies, Tsogo Sun Group, Sun International, and Peermong Global, accounting for 35 of them.
The last three belong to Caesars Entertainment, Desert Palace Casino and Leithlo Resort. Between them, the casinos recorded a GGR of about $1.131 billion in 2016.
Although South Africa’s National Gambling Act frowns at online casinos, it allows online wagering. The online betting market in the jurisdiction is boosted by horse racing, sports betting and staking on the outcome of lotteries.
Bingo is the third most liked gambling activity in South Africa, adding about $80 million to the total GGR in 2016. It was also the fastest-growing category with 36.6%.
Lastly, another money-generating feature of the South African market is the limited payment machines you will find in many clubs, bars and restaurants in the country.
According to the National Gambling Act, 7 of 2004, a “limited pay-out machine” refers to a gambling machine with a restricted bet and prize. They accounted for 10% of the gross gambling revenues in 2016.
Nigeria
The most populous country in Africa has the second-largest online gambling market in the region.
Due to its powerful economic presence in Africa, its large and youthful population and increasing access to internet-enabled devices, Nigeria has continued to experience an expanding online gaming market.
Since the government lifted the gambling ban in 2004, the industry has started attracting local and foreign gambling investors while the people’s reaction to gambling has been positively overwhelming.
Sports betting is the most lucrative betting category in Nigeria. This is due to the people’s love for the game. Several teams in the English Premier League and Spanish La Liga have millions of fans in Nigeria, accounting for the high number of bets on European football.
According to research, 3 out of 10 Nigerian adults bet on sports every day. Using this maths, researchers estimated that Nigerians stake over 2 billion dollars on sports betting platforms every year.
Casino gambling is not as popular in Nigeria. There are only three government-licensed casinos in the country, with several international off-shore internet sites offering services to Nigerians.
However, the casino gambling industry has the fastest growth rate in Africa and is expected to bring in $60 million in revenue by 2018.
Uganda
Uganda is also another African country with an active online gambling population. Online casinos and Sportsbook operators pitch their tents in this jurisdiction because of the country’s once relaxed gambling laws that support internet casinos, sports betting and lotteries.
Uganda has over 600 registered casino operators offering real money entertainment to its residents. They pay 20% tax on the gross gaming revenue to the government and keep 15% of all player’s winnings.
With this arrangement, the government generates over $10 million annually from the $40 million Ugandans wager every year.
In 2019, Uganda’s President Yoweri Museveni ordered no new permits issued to established sports betting, gaming, and gambling companies. Furthermore, licences issued to existing firms will not be renewed when they expire. This has drastically impacted the burgeoning industry.
Kenya
Kenya gambling industry is one of the largest in Africa. However, the government’s continuous attempt to control the industry and policies, including new taxation laws, high license applications and others, have reduced the worth of the industry.
Between 2018 and 2020, most foreign gambling operators in Kenya decided to leave the state due to the aforementioned policies. The exit led to a reduction in Kenya's total GGR from $300 million to $175 million within the provided years.
Before 2017, there were 13 licensed casinos in Kenya, most associated with hotel resorts. There were stand-alone casinos located near airports. The country launched its first online gambling site, BetKenya.com, in 2013. However, a quick check shows that the domain is currently for sale.
The Kenyan gambling industry is dominated by sports betting. Researchers estimate that approximately seven million Kenyans wager on sports annually, most of them being football bets.
Ghana
Ghana is home to many land-based casinos that offer slots, poker and table games. The biggest casino in the country, Victoria Casino, is located in Accra and houses more than 13.000 slot games.
Like Kenya and Nigeria, most of these casinos are provided by hotel resorts. Although the Ghanaian online gaming market is not as big as the countries mentioned above, it is very stable and expanding.
Online gambling in this African nation is almost entirely offered by foreign operators. Getting a sportsbook licence in Ghana costs around $40,000, while investors will pay a licensing fee of $50,000 for casinos.
Conclusion
The African gaming industry holds a lot of potential. As several governments legalise gambling and create new markets, the existing industries are expanding in size and revenue. With the rise of GDP, more internet access, and entry of foreign investors, Africa’s casino and sport betting markets are expected to grow in leaps and bounds.