The widespread sports betting in Africa has been a force to reckon with globally over the last couple of years. The betting and gambling sector is now a billion-dollar industry today. As opposed to a few years back, in which the sector merely underground activities, in a nutshell, people involved are tagged with prejudice; it is against religious beliefs for many in Africa.
Notwithstanding, the industry has evolved into a mainstream industry. The advancement in technology, particularly the adoption of mobile technology, the unstable African economies farfetched in many countries, the young population with love for sports with limited financial freedom, the influx of mobile money adoption in East Africa and Fintech companies that is quite popular in the West and North Africa.
Consequently, some of the mentioned factors have aided the growth of sports betting in Africa. However, the sectors still encounter some challenges that need to be addressed before reaching their full potentials. However, we will elaborate more on these factors aiding the growth of sports betting in Africa.
Technology Advancement
They have been technological advancements in Africa over the years. Thanks to the digital infrastructural development in Africa through Public-Private Partnership (PPP) projects. In contrast, the government is prioritizing this kind of project for its people to experience innovations in the technology world and to support for internet access to reach the vast majority and digital skills education.
NOTE: for the African people has been essential to the massive adoption of mobile internet-based usage that has aided the growth of sports betting over the last decade.
However, the ongoing submarine cable project to connect Africa will provide affordable internet service that will allow more Africans to connect to the internet, creating a milestone landscape for the industry with massive adoption for mobile betting and gaming.
The ongoing submarine cable project supported by multinational tech companies such as Google, Facebook, Orange, Huwai, and ZTE, captures those in rural and remote areas and creates affordable internet access for African people. The potentials of this project are expected to connect over 300 million people in Africa over the next five years, coupled with improved quantity and speed of internet service. This inevitable project will be a groundbreaking achievement for the gaming industry and other sectors.
Mobile-First Strategy
The penetration of mobile phone technology in Africa has been pivotal to the widespread mobile online betting and gaming in Africa. The affordability of smartphones and some timely innovations and strategy adopted by betting operators. They quickly adapt to the market dynamics by recalibrating their platforms to mobile-first sites and making them compactable for all kinds of mobile browsers, Opera-mini mode and extreme.
Consequently, mobile phone influx has an aid role in quality customers’ service experience in the industry. Therefore, betting operators have focused more on the advancement of service delivery. They developed mobile-first sites and ensured that features on desktop mode versions were accessible on mobile phones. For instance, mobile virtual sports, online slots, and casino games are available using your mobile device.
The mobile-first strategy adopted by operators has been strategic. Mobile phones in Africa are the new norm for the young population to carry out daily activities, which is the norm for bettors to place bets. For example, odds comparison, live-stream sports events, and follow events as it unfolds with checking the scores of football matches, accessing their mobile financial services, e.g. (mobile money). In essence, bookmakers have strategically focused their service delivery targeting mobile compatibility of their service delivery.
Mobile Money, FinTech Penetration
The runaway success of mobile money in Africa has been evident. The penetration rate has been pivotal to the continent’s economy.
As countries in the region embrace digitalization, the economies evolve, and the proliferation of mobile devices has become the payment vehicle of first resort for many. The mobile money appeal and quick technology adoption have been pivotal to many sectors.
The betting industry has experienced tremendous growth thanks to the innovation of mobile money to capture the underserved and unserved population. Even without an internet connection, they will have access to financial services, which the traditional financial sector could not meet their needs. The success of the technology in Africa was due to its flexibility, cheap and easy-to-use service without needing a bank account has aided the betting and gambling sector.
NOTE: The statistics from GSMA in 2021 indicate sub-Saharan Africa has been at the forefront of mobile money in the last decade. The continent continued to account for most of the growth in 2020, with 43% of all new accounts; registered mobile money account in Africa grew 12% to 562 million in 2020, while monthly active accounts were 161 million, an 18% increase, the report found. The total transaction hit 27.5 billion up to 15%, valued at $495 million, equivalent to 23%. It has 171 active mobile money services in sub-Saharan Africa, excluding Arab-speaking countries. In North Africa, registered accounts reached 548 million, a 12% increase with 159 million active monthly users equivalent to 18%.
The financial technology service providers (FinTech) and Telecommunication space innovations are other tools that have aided the industry. The interchangeability of this service has significantly impacted the sector’s growth. It is a straightforward tool for players to deposit/withdraw and bets on their favorite bookmakers right at the comfort of their homes or office; even on the go so far, you can access the internet and your financial institution.
Economic Situation
The financial situation is a crucial driver of Africa’s betting and gaming growth. The continent is the second most populous globally. It has the youngest population globally, and this population growth has strained African economies.
The emergence of Covid-19 with the uncertainty surrounding the virus spread has weakened several economies. In contrast, it has been projected that one in three people on the planet will come from Africa by 2100, even though the demographic is a blessing in disguise, which is also a challenge that will see the demand for everything from this young demographic. The wealth each nation poses, as been marveled% by corruption.
As a result, the need for everything from this young population, with limited job opportunities. Even those with robust income still struggle to make ends meal, with the inflation rate and unstable economy affecting the local currency has been a barrier for the average African’s. That relies on one paycheck to another—this lures many to seek an alternative source of making money outside the formal economy. At the same time, many put aside their beliefs or affiliation to consider betting and gambling options.
Passion for the Beautiful Game
Like every other part of the globe, the appetite for sports is gaining colossal traction daily; particularly football in Africa becomes a daily activity for young people. The passion for the beautiful football game is evident—sports entertainment, predominantly European football matches.
The emergence of betting on said sports as a source of entertainment spike the influence of sports betting participation in Africa.
While the exodus departure of African football players leaving their local leagues’ to join top European football clubs has been essential to the sector growth in Africa. These have influenced and provided grounds for the people to follow these leagues in Europe. Moreover, this has affected the youth in the continent to develop more interest in sports betting and gambling while bookmakers target players with attractive football marketing ads.
Conclusion
The continent betting and gambling industry will continue to expand as long as these significant aspects mentioned in the article remain in existence and the industry keeps evolving to the market dynamics. But still, the greatest challenge to this industry is regulation, which still needs to be addressed by regulators. The question is, are regulators doing enough? Are operators doing enough to curb addiction or promote responsible gambling? We have to leave for another time as these questions still need answers in the Africa betting and gaming industry in years to come.