iGaming Business magazine iGB 112 Sept/Oct 2018 | Page 81

Africa Focus
ENTERING
AFRICA
Sebastian Meitz outlines lessons from emerging markets to inform a move into Africa
Nine miles. That’s all that separates Africa from Europe in the Strait of
Gibraltar. However, it’s not only geographical proximity that Africa and
Europe, especially Central and Eastern Europe, have in common. The
two continents share more than you might initially think.
After emerging from communist rule in 1989, Central and Eastern
Europe was perceived by many Westerners as the land of massive
opportunities, growth and potentially high returns on investments.
They’re characteristics that describe today’s Africa equally well.
The transition economies of Poland, Hungary, the Czech Republic
and the Baltic States attracted foreign investors and looked for the
best and most efficient ways to develop. Also, the gambling industry
came into the spotlight of international players who were ready to
jump on the growth bandwagon.
While closely observing and taking part in the growth of the
gambling industry in Central and Eastern Europe, we identified
several aspects that need to be considered when working in emerging
and transition economies.
Strategic sustainability
Market attractiveness usually connects with a rapid inflow of
capital seeking to gain high returns on their investments. In industries
as vulnerable as gambling, where the general population is one of
the critical stakeholders, finding the right balance between increasing
profits, regulation and consumer protection should be a priority
for management teams.
Adapting an effective sustainability strategy demonstrates not
only compliance in the highly regulated market of gambling, but
also increases a company’s reputation in the eyes of society.
Sebastian Meitz is co-founder and managing
partner of Gaming 5.0. He has extensive
experience in gambling and management
consulting. Gaming 5.0 works hand in hand with
C-level executives and their teams on strategy,
products, and business processes, helping their
companies thrive.
and resulted in a lack of interest and brand deterioration. A wrongly
positioned and placed product can quickly turn into a waste of time
and energy.
Regulatory changes
One characteristic of emerging economies is changing regulation.
Under the influence of political agendas, external stakeholders or
by emulating solutions from other countries, regulators tend to
either under- or overregulate gambling markets. The former leads
to a rapid development of grey or even black markets, negatively
impacting people and the industry. Meanwhile, the latter often
results in introducing legislation that makes it impossible for
companies to grow or even function.
In both instances, regulators find it extremely difficult to take
advantage of a healthy development of the gambling industry.
Finding the right balance between liberalisation and control is
a process in which both the regulator and operators should take
an active part.
Applying best practices
Cultural awareness
One of the most widespread and often made mistakes is ignoring
the culture of the targeted population. The fact that a particular
game works well in some countries doesn’t necessarily mean it will
succeed elsewhere. The way somebody lives and spends their free
time impacts customer behaviour and their preferences.
Merely transplanting a market strategy or product without first
considering the cultural aspect, has often proven to be inefficient
The list of essential elements required to achieve success in
emerging and transition economies goes beyond strategic
sustainability, cultural awareness and regulatory affairs.
Central and Eastern Europe, as well as other emerging and
transition economies in Europe and Asia, can serve as an excellent
source of best practices relevant to today’s Africa.
Adapting and applying them according to your needs will be
more efficient with an experienced and battle-proven partner.
i GamingBusiness | Issue 112 | September/October 2018
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