Emerging technologies driving growth of gaming in Africa (2)
NI G E R I A BOASTS OF THE SECOND largest online gaming market in Africa behind South Africa with gross gaming revenue of $58 million in 2018, according to PwC. PwC also projects that the gross gaming revenue will rise by 16 percent over a five- year period. The rise in sports betting has been aided by improved technology with many Nigerians now having access to mobile phones and affordable internet. Nigeria has a population of 203 million people out of which 169.2 million access mobile subscriptions, translating to 83 Percent, which means it has the highest mobile penetration rates in sub-Saharan continent.
The popularity of sports betting amongst the population is also evident from the top Google search queries. Nigeria’s most popular sport betting site Bet9ja was the third most searched query and live score website rounding up the top five most searched sites. The mobile and internet penetration has grown significantly when compared to the previous 12 months. Mobile phone connections registered a 7.7 percent increase (+12 months connections) from January 2019 to January 2020 and internet users increased by a further 2.6 percent (+2.2 million users) throughout the same period.
The smartphone is by far the most popular device with 83 percent of internet users aged 16 to 64 owning it. Significantly, 95 percent of all internet users’ access the internet via smartphones, while only 2.3 percent access the internet via feature phone; and the average daily time spent using the internet on mobile devices stands at 4 hours and 50 minutes. In Nigeria, gaming licenses are issued by National Lottery Regulatory Commission and the State Gaming Regulatory Commission. There have been disputes between the two over who has the power to issue license especially online license. The Nigerian constitution however, is silent on license issuance. Nevertheless, a local partner with a good understanding of the gambling industry in Nigeria will help sort this out and advice appropriately.
In East Africa, sport betting reigns supreme. Outside South Africa, the region ranks second in igaming and this is fundamentally propelled by two factors; fintech and other emerging technologies. The digital and mobile payment space has witnessed rapid growth in the recent past, attracting more players. M-Pesa, a mobile phone money transfer platform has contributed to meaningful financial inclusion in Kenya. Online sports betting companies such as sportpesa have grown rapidly in Kenya and East Africa with revenue of 204 billion shillings ($2 billion) last year.
A market report released by Shikana Law Group in Tanzania revealed that sport betting, retail casinos and SMS lottery had the largest market shares in terms of gaming gross revenue for 2018/2019. Improvement in payment methods also played a big role in the growth of igaming in Tanzania, love for sports, high mobile and internet penetration rates and a favourable business environment and overall macroeconomic conditions are massive factors too. The youth population in Tanzania is projected to reach 89 million by 2035 with 63 percent under the age of 25 which will propel sport betting in the jurisdiction. Tanzania is one of the few countries to start the regulation of igaming in Africa and with a strong gaming board led by James Mbalwe, the
East Africa nation is in pole position to attract foreign investors looking in the way of Africa.
It’s no secret that Ugandans love to gamble with a significant proportion of the population engaged in the activity on regular basis, despite the ban on sport betting. Kampala, host the newly opened Empire Casino, a monument that can rival casinos in Las Vegas. Though land-based, the casino is utilizing technology to attract gamers with stateof-theart video poker and touchscreen slot reels as well as superfast WiFi throughout the building.
Of note is how technology has enabled new forms of gambling for Ugandans. Internet connectivity is increasing rapidly with the number of people with constant internet access rising almost tenfold within the past decade. People are able to access the internet with smart phones; this allows leading gaming platforms across the world take advantage of the situation. People with regular internet access in Uganda are close to 19 million. With majority of the traffic, international, foreignbased gaming platforms are making major strides into the Ugandan market.
By 2050 Africa’s youth population will increase by 50 per cent, making Africa the only region in the world where youth population is increasing. African youths are critical to the continent’s future when it comes to mobile penetration and gaming. During the lockdown, the entertainment streaming and gaming industries were thriving. In Africa, the largest gaming markets by revenue are Egypt, South Africa, Nigeria and Algeria. Each country has generated more than $100 million in video sales a year since 2017. The increase in video game players in Africa from 23 million in 2014 to 500 million in 2019 is bringing jobs to African nations.