Africa Focus
Africa Focus
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Online betting is growing fast in Africa, helped by a passionate sports following on large swathes of the continent. Martin Wachter explores the amazing opportunities on offer
Africa represents one of the world’ s most exciting opportunities for sports betting and virtual sports betting operators. Figures show that countries such as Nigeria, Kenya and Tanzania are experiencing a huge expansion in sports betting and other types of gambling, fuelled in part by customers now having easier access to online sports betting services. Even in remote areas, having a punt has never been easier.
As an example of market development we can look at Nigeria, where the country’ s gambling industry has been experiencing rapid growth. Studies predict it to be one of the fastest-growing African countries in the sports betting field over the next five years. Two cities have legal gambling facilities, Abuja and Lagos, and even though physical casinos in the country are quite scarce, the industry has been in rude health since 2013 – the year in which the first online casino was licensed.
However, research confirms that the African gambling market is developing its own singularities, both in regulation and market participants. Overall, many countries have already regulated numerous forms of land-based gambling, although a lot of these regulations are outdated and need revision. Following the lead of Tanzania and Kenya, which already have specific rules for online betting, many African countries are also considering setting up regulations to control remote gambling.
Africa’ s strong and often fanatical interest in sports makes it a highly desirable market for the sports betting business. European football, in particular the English, Spanish, French and Italian leagues, has millions of fans on the continent. Betting on major leagues as well as on national and local teams has become a multi-million dollar industry.
There is also considerable betting activity on sports that offer identical betting rules to the established ones, such as tennis, basketball, boxing and motorcycle racing. Horse racing, which is very popular in South Africa, should also be mentioned.
Africans are especially enthusiastic about placing bets on match outcomes, number of goals scored and so on. The most popular markets in Africa are combined bets, which account for about half of all wagers, with players generally combining two, three or four bets. Other important markets are the match result and correct score, which is also very popular in Europe of course. As far as racing
Martin Wachter is CEO and founder of Golden Race. For more than 15 years, Wachter has spread innovative, tailored solutions and virtual sports worldwide. He is specialised in all areas of the company, taking special delight in being part of marketing strategy, product management and development.
( especially greyhound racing) is concerned, the preferred betting markets are the winner and the Trifecta.
The African sports betting industry is one of the most profitable in the world, mainly thanks to its widespread popularity on the continent. However, not all the continent shares the same interests. Every country is unique. Apart from the mixture of economic and social differences throughout Africa, there’ s the religious aspect to consider. For example, some Muslim-majority countries have banned all types of betting for ethical reasons.
Moreover, there are local challenges in various countries. Some operators still experience usage problems due to internet issues and connectivity, which is why African operators require particular attention. Suppliers need to work closely with them to offer all the customer service and technical support they need.
An increasing number of Africans now enjoy sports betting via their smartphones and tablets, as well as on their desktops. More than half the population in South Africa now subscribes to a mobile broadband service, for instance. This trend, in addition to the licensing of more online betting services, will continue to boost sports betting.
As the market grows and the sporting events offer increases, it is important to note that content must be tailored and targeted to the continent’ s evolving interests and language.
Overall, Africa is a promising market for sports betting and virtual sports betting. In regulatory and economic terms, African governments are interested in the sports betting market because it offers consumer protection and generates tax revenues, which helps to contribute to economic growth. Let’ s see what the future holds for this amazing continent.
iGamingBusiness | Issue 112 | September / October 2018 53