More forecasts suggest the number could reach up to 7.26 billion users by 2022 and further rise to 7.49 billion by 2025. The constant increase in smartphone use has been a major reason why online casino operators now build their sites with HTML5 technology to ensure they are well-optimized for mobile gaming. To make their offerings much more innovative, more operators are creating mobile gambling and casino apps.
Africa has had its fair share of this technological revolution as the rate of smartphone use has skyrocketed within the last decade. In Sub-Saharan Africa, as at 2020, there were up to 495 million subscribers to mobile services, and this number is forecast to reach 615 million by 2025, amounting to up to 50% of the population, with majority of them being young consumers.
The increased use of smartphones in Africa also means a corresponding patronage of Network Providers. Using a number of countries in sub-Saharan Africa as a case study, Nigeria, Ghana, and South Africa; we have come up with the tables below displaying the total number of subscribers of the popular network providers in these countries as at 2021.
NIGERIA
Network Provider | Estimated Subscribers |
MTN | 67.5 million |
AIRTEL | 50.03 million |
GLO | 51.1 million |
GHAN
Network Provider | Estimated Subscribers |
MTN Ghana | 25 million |
AirtelTigo | 7.98 million |
Vodafone Ghana | 8.9 million |
SOUTH AFRICA
Network Provider | Estimated Subscribers |
MTN | 33.5 million |
Vodacom | 44.3 million |
Telkom | 16.3 million |
The fact is, within this really high rate of subscribers to network providers, there are so many potential customers for online gambling operators. However, the question that arises for operators is how they can target these subscribers and provide an easy means of operation. The answer is through Unstructured Supplementary Service Data, commonly referred to with its acronym, USSD.
USSD refers to communication protocols used by phone users to interact with computers of mobile network operators. It refers to quick codes dialed on mobile phones, which make mobile operations very swift and easy. They are popularly used in accessing self-service options of mobile network operators and more recently, used by banks in mobile-money services. This is explained in more detail below.
Existing examples of effectiveness of USSD in Africa
Taking a look at the Banking and Financial services industry in Africa, there are many finance startups and companies which have partnered with Network Providers in coming up with unique codes their customers can dial. This makes operation of their services very accessible. For instance, in Nigeria, virtually every mainstream bank has enabled mobile banking with mobile network providers with each having its own quick codes. Hence mobile transactions have been made very easy. Firstbank’s quick code is *894#, Standard Chartered makes use of *977#, GTBank has *737#, and so on. These are just a few amongst so many other companies who have keyed into the use of USSD.
The inclusion of USSD in the banking and finance industry has been instrumental in the increased patronage of banks in the country. The effect has been of benefit to both customers and the organisations that rely on them. For the customers, it has become easier for many of them to open and operate accounts with banks of their choice. For the organisations, they have been able to acquire more customers in a shorter period than they could in previous years.
How Operators can Partner with African Network Providers
Online gambling operators can take a cue from this in expanding and publicizing their services to their potential customers. In actuality, this method is already being explored. However, given the vast prospects of the industry, the operator-network provider model has not been fully tapped into.
In Nigeria, some of the current operators using it include:
- Bet9ja
- Naira Bet
In Ghana, they include:
- 1xBet
- Melbet
- Betyetu
In South Africa, they include:
- SportPesa
- Betway
- SportyBet
Online Sportsbooks
Online sportsbooks have a lot to benefit from offering the option to bet via USSD. The proposed effects of operators partnering with African Network Providers include:
- Easy Creation of accounts
It simplifies the creation of accounts with gambling operators. Since most network providers already have the necessary data of users, there will be no need to request for more personal details. This is because there will simply be sharing of user data between the network providers and the operators. Hence, dialing the unique code of the operator simply creates an account for the registered user of the mobile number.
- Swift crediting of accounts
Crediting accounts will also be smooth and seamless. This is especially made easy since mobile banking is already actively used by the majority of mobile phone users.
- Reduced need for internet connection
Mobile data in sub-saharan African countries is the most expensive in the world and USSD operations are the perfect solution away from this. Hence, the ability to bet without necessarily buying mobile data will serve as an incentive for potential customers.
- Reduced need to download apps
Apps are phone selective and require constant updates but USSD operations can be used by every phone owner; whether it’s a phone without an internet facility or a smartphone. USSD operations can be used by all.
- Attracting more customers
The resultant outcome of the benefits above will be the attraction of more customers to operators.
We have already witnessed some of these effects with the online sportsbooks mentioned in the lists above. These effects apply majorly to online sports betting operators as sports betting is not as dependent on graphics as online casinos are.
Online Casinos
It is true that it is quite impossible to play slots, or play table games and live games by simply dialing these quick codes. However, online casino operators can still benefit from setting up USSD gambling. Some of the proposed effects of using USSD by online casino operators include:
- Ease of registration of customers
USSD registrations by online casinos will work as a form of “foot in the door” technique. Hence, customers will easily be able to create accounts and earn bonus codes upon doing so. Such bonus codes can therefore be applied in acquiring bonuses upon logging onto the casino sites.
- Ease of funding accounts
As already discussed under the existing examples section, many bank customers have already linked their accounts with network providers; hence such customers who have accounts with online casinos can easily fund their casino accounts with the use of quick codes.
Final Thoughts
Operators are urged to take advantage of this opportunity as soon as possible. The iGaming industry in Africa is vast with opportunities, as the industry in Africa is not as saturated as it is in other continents. Therefore, operators who latch onto this opportunity of working with African Network Providers to publicize their services will reap profitable returns on investments in a short period of time.
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