In Africa, the iGaming market presents great potential and unique challenges.
There are several regulatory and technological constraints, though sports betting has become a popular pastime for many Africans. Last year, the African sports betting market recorded over $40 billion in revenue, with Kenya, Nigeria, and South Africa taking the biggest shares. Here’s a closer look at the three markets together with Uganda.
South Africa
With millions of sports fans, South Africa is the biggest betting market on the continent. Market experts suggest that the country’s GGR will be at $2.5 billion by 2021. According to a report issued by the country’s national gambling board, South Africa’s 2018 GGR was standing at $1.9 billion.
In 2018, betting accounted for 21.3% of South Africa’s gambling revenue, bringing in about $405 million. Over the last three years, sports betting has reported the biggest growth compared to other forms of gambling, with bookies like Betway is being among the leading bookies. As a result, close to 50% of South African adults wager on sports regularly.
Nigeria
Currently, Nigeria is experiencing a boom in the sports betting market fueled by improvements in technology and the widespread passion for sports. In 2014, market insiders estimated that about 30% of Nigeria’s population bet on sports daily.
Similar to their neighbors, Ghana, the Nigerian government currently prohibits games of chance. However, sports bettors are allowed to place their wager through the Betway Ghana mobile casino app or similar platforms, as this activity is seen as a game of skill. That’s because punters require both experience and knowledge to remain successful in sports betting.
In Nigeria, a big part of their sports betting boom is all thanks to the market’s online expansion. As a result, Nigerian sports lovers are attracted to sports betting by the convenience presented by online bookies, especially through mobile. Additionally, locally developed payment systems are also fueling the explosion in the online sports betting industry.
Kenya
According to PwC, Kenya recorded a $20 million GGR in 2014, and the number shot close to $30 million in 2019. Market experts also predict that Kenya’s gambling turnover will hit $50 million in 2020, with the most popular sport that punters bet on being football.
As revealed by a 2017 survey, 79% of Kenyan between 18 and 35 years wager on football regularly, with top European leagues being their favorite. The growth in the betting market is all thanks to several factors like internet and mobile penetration. However, the increasing government intrusion has made sports betting operators grapple over the last few years.
Uganda
Every year, Ugandans spend over $40 million on gambling. Gambling operators in this jurisdiction pay a 15% withholding tax on the player’s winnings and a 20% on gambling revenue. Nonetheless, that hasn’t stopped punters in the country from betting on football, the country’s most famed sport. Besides football, sports bettors in the country love wagering on cricket, tennis, rugby, volleyball, and basketball.
In Uganda, technological development has contributed to the massive growth in the betting industry. Today, there’s an ever-increasing number of Ugandans who place their bets online through their mobile phones. As a result, the Ugandan government collected roughly $13 million in gambling tax last year.