SiGMA Africa summit panel delves into the nuances of African iGaming market penetration

Shirley Pulis Xerxen March 12, 2024

SiGMA news

SiGMA Africa summit panel delves into the nuances of African iGaming market penetration

The recent SiGMA Africa Summit hosted a panel that provided deep insights into the complexities of the African iGaming market. Moderated by Oliver De Bono, CEO at Quantum Gaming, the panel featured Petra Zackrisson, SVP of Growth at Better Collective, Daniel Lyons, Senior Business Development Manager at Genius Sports, and Oyindamola Michaels, the country manager for Nigeria at Kaizen Gaming. The discussion centered on the strategies for market penetration, the state of market saturation, and the unique aspects of customer acquisition in different African countries.

Petra Zackrisson emphasised the importance of understanding micro-segments within individual countries rather than approaching Africa as a monolithic entity. She pointed out that each segment demands a presence on the right social media channels to engage the younger generation effectively. Zackrisson identified South Africa and Nigeria as leading geos in the region.

Market saturation

Addressing market saturation, Daniel Lyons shared that the South African market, once thought to be mature, has experienced a surge of new European operators, injecting competition and innovation into the space. This influx has energised the market, although it has also made it more challenging for operators to differentiate and succeed.

When asked about localisation, Oyindamola Michaels highlighted Nigeria’s favourable tax incentives and the absence of double taxation issues, making it an attractive market for investors. She noted the country’s love for football as a significant driver for customer acquisition, aided by influential figures and a synergy with the Central Bank regarding payment channels.

Market stability a key factor

Petra Zackrisson also pointed out that the stability of the regulatory environment is crucial for market success. This stability is one of the reasons operators are drawn to the Nigerian market, which allows them to invest confidently in localising products and marketing strategies.

Discussing acquisition channels, Daniel Lyons outlined the advantages of having a significant budget to test different marketing approaches. He stressed the importance of treating customers as individuals to retain them in a volatile market.

On the topic of language differences, Petra Zackrisson noted that sports preferences vary by region and that while newcomers might not afford to communicate in all languages, larger operators can offer clients a choice. Oyindamola Michaels added that localising content goes beyond language, citing Nigeria’s vast linguistic diversity. She suggested that FAQs, customer support, and leveraging influencers could be more effective strategies for operators than attempting to cater to every language.

Daniel Lyons mentioned that while mature markets come with higher entry costs, regions like Mozambique and Zambia present cost-effective opportunities, with trends like crash games and women betting in casinos becoming increasingly popular in these areas.

Petra Zackrisson concluded by cautioning against an overemphasis on acquisition, urging operators to consider that African markets typically comprise low-value customers. Oyindamola Michaels wrapped up the discussion by emphasising the African player’s expectations of operator generosity as a key to retention, underscoring the importance of understanding and catering to local consumer behaviour.

The panel at the SiGMA Africa Summit revealed a nuanced view of the African iGaming market, highlighting the need for tailored approaches, market stability, and the recognition of unique consumer trends to successfully penetrate and thrive within this diverse and dynamic region.