Uncovering the untapped potential of the African iGaming market

The African gambling sector has been experiencing a remarkable surge in recent years. Multiple experts predict it will continue to grow at a rapid pace.

By the end of 2022, the market is expected to reach a value of $2.2 billion, and the growth rate is projected to be over 12 percent annually until the end of the decade.

Although the African gambling market has seen remarkable growth, it remains largely untapped. This indicates substantial room for expansion, which presents opportunities for both startups and established brands.

The legality of online gambling

The legal status of online gambling in Africa varies from one country to another. While some nations have stringent regulations and impose severe penalties, others have embraced the iGaming industry more liberally.

For instance, Kenya and Nigeria have flourishing online gambling markets. With its comprehensive online gambling laws, South Africa boasts a thriving industry, expected to reach $2.3 billion by the end of 2023.

Similarly, Nigeria’s massive population and high GDP contribute to its leading 7 percent share of the regional iGaming sector. However, Nigeria’s online gambling realm is not currently regulated at the federal level.

Some countries, like Tanzania and Ghana, have adopted favorable legislation, providing licenses for online casinos and sportsbooks.

These countries have created stable and reliable environments for gambling businesses to thrive. Others, like Uganda, may not explicitly legislate for online gambling, but they allow operators to obtain licenses, demonstrating their willingness to welcome gambling enterprises.

Despite the potential for local licensing, experts recommend caution due to the volatility of regulations and legal uncertainties that could lead to rapid changes. However, entrepreneurs and investors can still capitalize on the vast untapped potential of the African iGaming market from other locations.

A market full of potential

In light of this promising trend, iGaming industry consultant Ron Mendelson has delved into this emerging market to shed light on its potential. Several factors contribute to the growth of iGaming in Africa.

The region has witnessed increased financial independence and a burgeoning middle class, which has led to higher disposable income and a higher propensity for leisure activities.

Moreover, advancements in technology have played a pivotal role. The widespread availability of fast internet and the accessibility of smartphones and other devices have opened up new possibilities for the iGaming industry to cater to a broader audience.

Around 700 million people in Africa have access to smartphones, accounting for approximately 65 percent of the population.

Additionally, the rollout of 5G technology in various nations further enhances the potential for growth in the iGaming sector.

Sports betting currently reigns supreme in Africa’s online and offline gambling segments. The continent’s strong cultural ties to sports such as football, cricket, and athletics have contributed to the popularity of sports betting.

Particularly, the younger generation exhibits a keen interest in gambling on European football, horse racing, rugby, and global sporting events like the Olympics.

While sports betting is expected to maintain popularity, there is also an anticipation of diversifying into other mobile-friendly areas.

This includes various video slots, regular table and casino games, and potentially eSports and fantasy sports. Among many available genres, the Aviator game may offer players a different type of enjoyment.

The mechanic of the Aviator game is quite simple. At the start of the game, players will find themselves in an aircraft that is already soaring through the air.

The higher the aircraft goes up, the more players’ multiplier increases. Players are given two choices: to play it safe and collect early or to hold on as the plane soars even higher to reap more rewards.

Popular games like Aviator, paired with investment in infrastructure, technological advancements, and regulatory support, are definitely going to make ways to further growth in the African iGaming market in the near future.