For decades, the African continent has been considered a “new Klondike” for leading gambling operators. Of course, with the prefix “in the future”. At the moment, invest considerable sums in the development of the gambling industry decide only the most venerable companies with good money. Chinese investors have long shown serious interest in Ghana and Uganda. European companies prefer to work more with South Africa as one of the most developed countries on the continent. That is, in the near future, all players will not only have the opportunity to check out the best online slots in Canada but also be happy with the gambling service from the African continent.
Significant help for the development of online gambling has been the availability of Internet technology almost all over the continent. In 2015, the gambling market was represented only by land-based casinos in South Africa, Kenya, and Nigeria, and the share of online gambling was close to the statistical error of 0.4-0.5%. As of 2018, it was already 1.2%.
Even rosier is the report from the National Gaming Council in South Africa. Analysts have calculated that the total revenue of online gambling three years ago was about $28-29 billion, and by 2019, they predict an increase in revenues to $40 billion. Thus, it can be expected that by 2020-2022, Africa’s share of the global gambling industry will pull up to 2%.
Popular Types of Online Gambling in Africa
The absolute leader of gambling entertainment on the African continent is casinos. The operators offer a pretty standard assortment – roulette, several types of card games, slots. Moreover, in some developed countries, such as South Africa, online casinos are banned.
Next in the ranking are sports betting. Soccer events and horse racing are the most popular ones. Big tennis, hockey, basketball, and other kinds of native European betting are of little interest to Africans. The peculiarity of the mentality of African gamblers is tied to the social situation of the population in the South African region – about 45% live below the poverty line. But… most unemployed youth and people with low income are always willing to save on food in order to have money for the next bet. According to statistics, more than 50% of adults in African countries regularly bet on sports, and the average amount of one does not exceed $20, quite often you can find paltry bets of $2-4 on high odds. The culture of betting in the country is still in its infancy.
National lotteries, Bingo, and slots are about as popular as betting. Starting in 2018, a well-known slot machine manufacturer iSoftBet will start operating in Africa, which is likely to increase the popularity of slots and table games in the region.
Features of the African Gambling Industry
The main nuance of the development of the online gambling entertainment market in almost all countries of the world is legislative regulation. Africa is no exception. Let us consider how these issues are resolved in the leading countries of the region.
South Africa
Internet gambling is prohibited. All gambling entertainment, which falls under the definition of “interactive games”, is considered illegal. This includes poker, casinos, slots, and bingo. Only bookmakers licensed by the South African government are allowed to operate online. Land-based gambling has been legal since 1994 and brings considerable revenue to the state treasury.
However, the most popular type of gambling is the national lottery. About 85% of the country’s active players buy tickets.
Nigeria
In 2013, the country lifted the ban on online casinos, which contributed to the rapid growth of the online gambling industry. This allowed Nigeria to become the second most profitable gambling market after South Africa. Sports betting and lottery are also in demand.
Kenya
In 2014, the country has been legalized 15 online casinos, which contribute to the treasury to 25 million dollars a year. The laws in Kenya are very liberal: all types of online gambling are allowed.
Uganda
This country – a real paradise for online operators. At the moment in Uganda, there are more than 210 online casinos and betting shops. The profitability from this sphere is about $10 million a year. Since 2017, the country’s government has been concerned about the problem of gambling addiction among the population. It was decided to limit admission to establishments to persons under 18 years old, as well as to require operators to have three licenses to operate in the country.
Ghana
All kinds of land and online gambling are allowed. The country has several large casinos, betting shops. Lotteries and sports betting are popular.
Taxation in African countries is 29-30% corporate tax. But the tax on winnings varies from 12 to 20%.
In general, experts say that the online gambling and gaming industry is likely to develop very rapidly. Therefore, in the next few years, the African gambling market will catch up with Latin America and the Caribbean.
