Betting on Africa: The success of gambling business on the continent
Betting has developed into a multi-billion dollar industry on a global scale since it has been practiced for centuries. Africa, the second-largest continent on the globe, has not lagged behind in the gambling frenzy. The number of betting businesses and the amount of money spent on wagering in Africa have both increased recently. gambling business Africa
We take a look at the expansion of the gambling market in Africa and the potential it presents to investors and gamblers.
Betting Growth in Africa
More and more individuals are becoming interested in betting, which is expanding in several African nations at an astounding rate. Price Waterhouse Coopers (PwC) predicted that by 2020, sports betting in Nigeria, the continent’s largest economy, would bring in $2 billion. Kenya, Uganda, Tanzania, Ghana, and South Africa are additional African nations where the gambling sector is expanding significantly.
Factors Contributing to the Growth
1. Mobile Money
Since most Africans own smartphones, it is now simpler for them to access betting websites and mobile applications. The leading telecom providers in the market, including Safaricom, Vodacom, Airtel, MTN, and GLO, permit betting operators to deposit and withdraw funds to their online wallets for gaming reasons. With Safaricom beginning operations in Ethiopia in October 2022, the tactic is growing in popularity throughout Africa. To fulfill the 25% population coverage requirement under its license, the business intended to roll out services in a total of 25 cities by April 2023.
2. Young Population
Africa has the youngest population in the world with a median age of 19.7 years. It is anticipated that they will make up 42% of the world’s youth by 2030. Furthermore, there are more than 60% of people under the age of 25, and like the thrills and excitement of gambling. One of the main causes of the gambling industry’s expansion in Africa is the presence of such a large population of young people. The main reason for this is that young people on the continent make up one of the largest gambling populations.
According to a study conducted in December 2021, Kenya has the highest rate of youth gambling among the African nations that were chosen. More than 80% of participants admitted they had already gambled or bet. Following closely behind were Nigeria and South Africa, where 78 percent and 74 percent of respondents, respectively, mentioned they had engaged in gaming or betting.
3. Unemployment
Many Africans have turned to betting as a means of making a living due to the lack of employment opportunities. One in three young Africans is unemployed, and the youth population is expected to double by 2050. In South Africa for instance, 43 percent of young males and 51 percent of young women are unemployed. Since none of these people have anything to do, they will almost certainly end up gambling, which doesn’t require a lot of money to get started. The average minimum bet for most bookmakers in Africa is between 0.5 and 1 dollar. Additionally, more businesses allow players to wager as little as $0.01 to $0.10 per bet.
Read Also: Surviving Through Gambling In Africa, A Norm for Many
Opportunities in the Industry
Over the past few years, the betting market in Africa has grown quickly, creating a wide range of business and investment opportunities. In fact, a KPMG analysis projects that by 2022, the African gambling market would be worth $37 billion, with most of that growth coming from sports betting. This presents a significant opportunity for investors eyeing the industry.
The expansion of mobile phones and internet access across the continent is a major element boosting the gambling market in Africa. Online sports betting has increased as a result, making it simpler for people to bet from the comfort of their homes. Countries like Nigeria and Kenya, which are among the top markets for online sports betting in Africa, are notably displaying this tendency.
The popularity of football on the continent is another factor promoting the expansion of the African betting market. Football is the most popular sport in the continent with The English Premier League, The African Cup of Nations, the UEFA Leagues and The World Cup being the biggest football competitions on the continent. As a result, football betting is a key factor in the industry’s expansion, and numerous African sports betting businesses currently provide a variety of football betting options.
Opportunities exist in many different areas of the African gambling sector besides sports betting. For instance, the popularity of casino games is increasing in places like South Africa, and virtual sports betting is also becoming more popular. gambling business Africa
Despite the opportunities present in the African betting sector, it is crucial to note that there are also difficulties to be aware of. Additionally, there are worries about problem gambling and the potential for betting to attract criminal activities. Regulatory frameworks can be complicated and vary from country to country.
Conclusion
Because of the continent’s developing middle class, rising internet usage, and love of sports, the future of the betting industry in Africa seems bright. Betting companies and the relevant authorities must create responsible gaming policies in order to protect the vulnerable population.
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Sports betting in Kenya specifically is a big market with Business Daily reporting Kenyans spend an average of Ksh 470Million to bet per day and KRA estimating the betting industry to be valued at about Ksh50Billion.And the numbers keep growing. Kenya alone has over 40 betting companies operating and more joining the market.