Conor O’Donovan, Africa Partner at Tekkorp Capital LLC, shared insights on the state of crypto betting in Africa during the recent iGaming AFRIKA webinar, “Crypto in Gaming: The Future of Cryptocurrency Betting in the African Gaming Landscape.“ He explored how crypto payments are reshaping the gaming experience by offering faster transactions, lower fees, and greater privacy compared to traditional payment methods.
In Africa’s gaming industry, payments are often weighed down by cost and friction. The typical fiat payment system involves multiple layers of intermediaries, each adding complexity and expense. In banking, this can mean several layers of processing fees and delays, and in mobile money, the chain involves telcos, aggregators, and wallets. As Conor put it, mobile money alone “has the telco, the aggregator and the wallet. Multiple layers again. So there is a lot of friction in fiat payments. And friction means cost.” That friction ultimately drives up expenses for both operators and customers, making everyday transactions pricier than they need to be.
By contrast, cryptocurrency transactions often come with far lower fees and a smoother user experience that’s similar to mobile money but at a fraction of the cost. Deposits and withdrawals can happen almost instantly, benefiting both operators and players alike. Conor noted that once users are familiar with the process, “it’s a much better experience.”
But while the crypto payment model holds great promise, mass adoption in Africa is still limited by infrastructure and education gaps. “It’s just a case of getting customers used to that flow. When they do, the payment fees are a lot lower,” he said. Currently, moving money into crypto, also known as “on-ramping” still incurs significant costs due to foreign exchange spreads, agent fees, and limited access points. This makes it impractical for casual players who just want to place small bets or make low-value transactions. For the average punter betting a couple of dollars once or twice a week, setting up a crypto wallet might not make economic sense.
Moreover, trust remains a major barrier. Many African players often feel secure using local mobile money systems they understand. But sending funds to an unfamiliar offshore crypto betting site may feel risky to them. “Unless those offshore gaming companies have good brand awareness and a reputation and trust, then it’s a risky endeavor to put money onto a crypto betting site that you’re not aware of,” Conor explained.
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The crypto gaming space remains largely unregulated in many African markets, meaning customers must rely heavily on the reputation of the platforms they use. Without proper oversight, there’s a risk of losing funds, making it a gamble for players unfamiliar with crypto, an uncertainty that discourages many. According to Conor, regulation could play a decisive role in changing this dynamic. A regulated framework would allow crypto operators to advertise locally, building brand familiarity and trust. “If you do bring in regulation around crypto gaming, it does allow operators to advertise locally and so on, and which will then give them the opportunity to build trust with customers.”
Several major stablecoin projects and crypto companies are already eyeing Africa as a significant growth market. With its youthful, tech-savvy population and increasing internet access, the continent is well-positioned for widespread crypto adoption. Conor predicts that over the next five to ten years, infrastructure, liquidity, and education around crypto will improve dramatically. “I think more and more payments will happen through crypto,” he said. “The liquidity and the volume in African accounts is going to grow massively over the next number of years.”
