For iGaming investors around the world, Africa represents opportunity. There are short-term and long-term prospects for iGaming developers, and the good news is that the market is still developing, with market saturation a distant prospect. One of the iGaming industry's prominent software developers, and content aggregators, Slotegrator conducted an extensive analysis of multiple iGaming markets across Africa.
Slotegrator highlighted key elements of the African iGaming industry that new and existing investors need to consider. The future of iGaming in Africa is also available through Slotegrator's YouTube channel in a video format. This educational undertaking was designed to provide online gaming operators with the necessary information to succeed. As an emerging market, Africa presents many development opportunities.
The Premier iGaming Leading Countries in Africa
The three largest gambling markets on the African continent include Kenya, Nigeria, and South Africa.
Gambling in Kenya
Most forms of gambling in Kenya are permitted. Over the past few years, hundreds of online casinos have opened up in Kenya. This African country is a market leader when it comes to interactive games. Millions of Kenyans regularly visit gambling websites.
The gambling market in Kenya is very similar to Nigeria's. However, the country has a smaller population of 47 million people, so it is not growing as fast. In addition, not all parts of the country have high-quality internet access.
Kenyans are very fond of sports betting, especially football. However, recent changes in regulations have caused some international brands to withdraw from the market, leaving an open gap that could be a good fit for the right investment teams.
Gambling in Nigeria
Nigeria's Gross Domestic Product (GDP) was $441 billion in 2021. This is the highest GDP figure in all of Africa. Nigeria also boasts the largest African population, nearly twice that of Ethiopia.
In Nigeria, the government legalized gambling in 2004. Nigeria opened its first online casino in 2013. The National Lottery Regulatory Commission licenses both online and brick-and-mortar gambling activity.
Sports betting is huge in Nigeria. This is especially true for European football betting on mobile devices.
The percentage of legal-age Nigerians who gamble daily is around 30% (ages 18 through 40). However, certain games like dice games, roulette, and card games are prohibited in Nigeria.
Gambling in South Africa
South Africa, with a Gross Domestic Product (GDP) of $420 million, ranked second in Africa for 2021. South Africa's vast size and economic stability make it highly attractive for investors to set up shop there, and iGaming ranks among the fastest growing industries.
Online gambling is not allowed in South Africa. However, online lotteries and live dealer games are very popular in the largest gambling market on the African continent. In addition, online casino gaming is often offered by overseas sites unavailable in the Rainbow Nation of South Africa.
Licensed brick-and-mortar bookmakers can open online outlets. Nearly half of South Africa's adult population places sports bets. Most bettors place a wager at least once per month.
The South African market could be a good target for investors seeking to launch online sportsbooks. This is because many popular sports betting selections abound in South Africa, notably betting on the UK Premier League, Cricket, Rugby, Athletics, Basketball, and other international sports.
The Runaway Success of Mobile Slots Gaming in Africa
Increasing access to mobile internet is a key driver to the phenomenal growth of iGaming in Africa. Over 75% of people in Africa have a smartphone, while 66% have access to high-speed internet via cellular phones. More than 70% of Africa's population is using smartphones.
Ayvar Gabidullin is the business development manager at Slotegrator, and he believes that mobile adoption will continue to expand. As a result, investors in online gambling should pay particular attention to platform optimization.
According to Gabidullin:
When working in Africa, your players might not be able to access your site. The infrastructure is there, but the data is costly. Sometimes, players may find that the site takes too long to load after they have entered their details. They have to wait for the page to load and may need to pay extra for data. This can cost them valuable time and money that they could be spending on gaming. By contrast, Slotegrator is a reliable, fast-implementable solution. By optimizing the platform to work with mobile devices, the new platform allows you to minimize connectivity risks.
Africa's Most Popular Payment Processing Solution
Mobile payments are the most popular method of payment in Africa. Numerous players don't have access to a bank account or the ability to transfer funds from their financial institution for gambling purposes. Mobile connectivity is the solution, just like internet connectivity.
Vodafone's M-Pesa allows account holders to pay using their mobile phone contract. This has allowed Kenyans to enjoy economic freedom without needing bank accounts. This payment solution is ubiquitous in East African countries such as Uganda and Tanzania et al. Airtel Tigo, MTN, and Vodafone are the most popular payment processing solutions across West Africa.
Operators can use Slotegrator's Monegrator solution to integrate payment methods popular in Africa and other target markets. This solution allows operators to add more than 250 payment processing solutions to their gambling sites at the click of a button. Moneygrator cuts the bureaucracy and eliminates the need for intermediaries. iGaming operators don't have to search for payment solution providers or be privy to separate contracts. This enhances the efficiency of payments and saves money for the operator.
Investment Opportunities for iGaming in Africa
The continent's growing youth population plays a crucial role in online gaming and improving the mobile user experience. Africa is the only continent where the population of younger people per year is higher than the rest of the world. Consequently, the average age of African iGaming fans is between 18 and 35. Uncoordinated bureaucracy in Africa makes it difficult to develop the iGaming sector. However, it's an acceptable price to pay, considering the positive changes in legislation, the market size, and cultural acceptance of betting and gambling.
The spread of internet access, and the love for betting among Africa's youth, indicate that Africa has plenty of potential for iGaming developers, both now and in the future.