With a combined gambling industry worth US$38 billion according to Venture Africa as at 2018, the continent is could become the next frontier in iGaming.
Despite the fact that gaming industry in Africa is often considered as an up and coming industry, many countries in Africa were not seeing gaming as a form of entertainment and, as a result, could not see the potential it has to generate opportunities as well as revenues.
As soon as it became apparent that people will gamble regardless of whether it is regulated or not, some African governments decided to start regulating it, hence, making it official. In fact, ‘more than a quarter of gamblers in South Africa engage in unlicensed gambling’, PwC reports.
Governments soon began to realise that offshore betting companies are making hefty revenue from this and decided to implement regulatory policies to safeguard the market.
Amongst all the African countries, South Africa is the most matured and developed within the gaming industry, closely followed by Nigeria and Kenya. In South Africa alone, the total gross gambling revenues (GGR) for 2019 amounted to around R30,975 (millions) which equates to $1,874.02 (million), PwC reports.
The industry in the continent has continued growing especially in the last five years and has attracted foreign investors.
Investment opportunities in Africa surrounding sports betting have increased following growing demand from the youth population. This increase in demand can be attested to the increase the use of smartphones and access to the internet.
In effect, the gaming industry in Africa has been one of the greatest beneficiaries of technology advancement. These emerging technologies focussed on mobile gaming invigorated by 5G networks are propelling the growth of gaming in Africa. For instance, KPMG noted that mobile gaming is present in 35 countries in Africa, amounting to $18 billion dollars every year, and makes up approximately half of the gaming revenue for Africa.
With that in mind, could mobile be the catalyst for iGaming in Africa?
About SiGMA Europe Virtual Expo
SiGMA Group is excited to announce the launch of their November event, SiGMA Europe Virtual Expo. The online event, which runs from the 24th to 25th, will focus on the European gaming and tech marketplace.