Depending on who you believe, the current booming African sports betting market is either a huge boost for the continental economy or a terrible plight exploiting the poor and vulnerable. Either way, going as far as to claim that it is an opium of the masses is taking it to a ridiculous extreme.
Sports betting is not a religion (as the quote was originally describing) – [ads1]and in most cases no more addictive than trashy TV or fast food. Sure, the more puritanical sections on society may frown in disapproval but people simply enjoy their occasional vices. Now the moral discussion is largely out of the way, let’s take a look at the arguments both for and against the current explosion of interest in African online sports betting.
The Argument For A Growing Betting Market.
Let’s start with money. Gambling licenses bring in a little extra income to governments, but the taxes levied upon the earnings made by gambling companies are many times more. A recent estimate by PriceWaterhouseCoopers suggested that by 2020 the African sports betting market could be worth a combined $40bn. From a governmental perspective, their share of this is simply what was previously an untapped revenue stream – hence why so many have been quick to invite European companies to set up shop.
The overwhelming majority of sports fans who enjoy a wager while watching the game do not develop problem gambling habits. Sports betting apps are aimed primarily at trying to appeal to many people placing small wagers – which is one of the reasons why they process their transactions near instantaneously. With plenty of options built into betting apps to place wagering limits, the likes of Betin Kenya are a far safer and legit way of placing a wager than what existed beforehand.
With these betting companies comes investment. A lot of investment. Not just in boosting the growing IT scene in Kenya, South Africa, and Nigeria but also at a local level. Sponsorship of clubs, stadia, and even players is starting to occur in order to raise the profile of the domestic leagues. Without allowing betting companies to operate, this simply would not happen anywhere close to this standard – and all indications are that the money is only going to keep growing.
Perhaps most importantly though is that African sports fans are among the most enthusiastic in the world. Betting has always gone on at a very local – unregulated and usually untaxed – level, but now thanks to growing smartphone use fans can enjoy a fair and legal bet whenever they wish. This may be during a match, it might be well in advance. It makes no difference – African sports fans can now enjoy the same experience as that enjoyed by Europeans for many years.
An Argument Against Online Sports Betting
As with any ‘vice’ (and it’s sensible to use that term carefully) betting always runs the risk of overexposure. Sports betting is an adult only pursuit and therefore expects users to enjoy their service responsibly. While that may sound easy enough, the fact is that they are unquestionably marketed towards young, aspirational people who are willing to perhaps risk more than they should.
In some African countries which have recently opened up to online sports betting, young person unemployment (18-25) runs as high as 40%. Betting is a tempting way to try and convert what little these people have into a greater sum – but obviously, at the risk that they could lose what they shouldn’t have wagered in the first place. It is easy to claim to be a ‘professional gambler’ but much more difficult to be a successful one.
Considering that the African population is continuing to grow and faces numerous other long-established social pressures, some claim that risking a gambling ‘epidemic’ is simply too dangerous.
Who Is Right?
Nobody can argue that the presence of online betting companies in African nations generates a decent amount of tax which is potentially going to continue growing well into the future. There is also the fact that now people have so enthusiastically started enjoying betting on their matches, anyone trying to take that away is going to face an enormous backlash.
Most likely the correct answer lies somewhere in the middle, but only time will tell in exactly which direction changes may need to be taken.
