TG Talk: Which African market is the most promising for the online industry?

TG Talk: Which African market is the most promising for the online industry?

Wednesday, October 4, 2017 Posted by Luke Massey
No alternative text provided
There will be a session exploring opportunities in Africa at EiG 2017

Africa represents a fantastic opportunity for growth in the sports betting industry, particularly with increased legislation and mobile betting advancements across the continent. However, for those companies targeting it as a growth region, which African market is the most promising for the online industry? We caught up with some of the industry’s leading voices to find out…

BtoBet Chairman Alessandro Fried said: “I have been to Africa many times within the past two years, visiting many of the main markets across the continent. I have seen how the domestic betting markets have changed in a very dramatic way and how the evolution of the mobile payment system is influencing the growth of the sports betting in the African regions.

“Kenya, different from other African countries, represents the place where mobile betting has seen the most expansion to the detriment of the retail. Kenya is also an example of market maturity, with a very advanced mobile payment method and a consequent large use of mobile transactions that take place every day in the region, for any kind of payment. Not only for betting.

“Additionally, I firmly believe that the wide spread of payment charged directly to the user’s mobile phone bill and technology - configurated for the local systems - are changing the landscape of retail business in Kenya and in other Eastern African countries such as Tanzania and Uganda. At the moment, Western African regions are not enjoying the same technology payment and mobile evolution as the East side, but are going to be getting in gear fast.”

InBet Games Business Development Director Pavel Korolev added: “From our point of view, it is obviously Nigeria. It has the largest market in Africa with a population of more than 180 million people. It is also a very young country, with nearly two thirds of its population under the age of 25, and on track to be the world’s third most populous by the middle of the century.

“The online growth in Nigeria is so strong, together with the constantly increasing improvement of mobile functionality and mobile payment expansion.

“Despite a lot of betting activity still happening in the shops and on the street or through agents in many areas of Nigeria, the growth in online betting is only going to grow in the coming years. Africans already have a proven appetite for ecommerce.

“The Nigerian online gaming market is an exciting one, full of potential. The industry buzz around Africa in general at the moment is certainly warranted, but as with any emerging industry trend it will only reach its full potential if operators seize the opportunities Africa offers.”

Spiffx Founder Lennart Gillberg said: “I don’t think it’s fair to accurately state one market in particular on the African Continent is more promising than the other. Naturally, population size and CPU resources provide for useful demographics to gauge these things along with historic trade and spend in the gaming market. 

“Mobile has opened the market up further by welcoming an entrance to the playing field through for companies focusing on game innovation and innovating existing technology to enable them to add and deploy new concepts and desirable products. 

“I personally think we should ask what product or products will be popular? And, what products are most promising to enable operators to tap Africa’s vast gaming demographic. Innovation, mobile and the correct distribution will enable you to be a part of this evolution rather than a spectator.

“Take the South African, Nigerian markets and also the historic East coast and the new growing West coast markets. We see that players are partial to new and exciting products across the continent. 

“The Soccer Shops in all these locations powered by our most recent client Supabets is proof of that. Spiffx has focused on the entire continent and continues to do so by testing and developing strong relationships and the ultimate deployment of our Hybrid Soccer APPs that are a real game changer and hopefully very promising on the African landscape."

Tayo Atoloye, Africa Sales Director for Betgames.tv, commented: “With the current developments in Nigeria in the last few years, particularly in the ICT and telecommunications sectors, Nigeria is the place to be with all the indications pointing to massive potential for online penetration and expansion. In addition, there has been a massive growth of savvy punters and omni channel operators in the market and regulation is taking shape gradually.

“Looking at the figures, internet users in Nigeria, according to the Nigerian Communications Commission, are about 90 million. Internet penetration is at 53% of the population, compared to 18% across Africa, while about 100 million Nigerians have mobile subscription in an environment of about 180 million people. There is also a steady growth of smartphones adoption.

“The advent of the smartphone has materially changed the platform usage profile of online betting such that it is now contributing immensely to the percentage of total bets and channel contribution is increasing by the day. This is the best time to have a piece of the online gaming pie in Nigeria.”

Delegates at EiG 2017 (30 October – 1 November) are being encouraged to attend 'Focus Hub: Opportunities in Africa' on the first day of the event, to find out more about a surge in the African market, and opportunities that exist in countries such as Nigeria, Ghana and Kenya.

Latest
No alternative text provided

The Stars Group raises key funds as Czech expansion is unveiled

No alternative text provided

Ambitious 2020 target for M&A hungry Catena Media

SportPesa and Microgame combine for Italian expansion

No alternative text provided

Gambling.com eyes aggressive growth with Fredrik Burvall appointment

Gaming Products & Services Directory

The essential directory for the gaming industry