The Online Gambling Market in Africa: Current State and Promising Future
January 18, 2024 | Informative Article
Africa is emerging as a key player in the global online gambling market, driven by the expansion of internet connectivity and mobile penetration across the region. According to Statista projections, the online gambling market in Africa is expected to reach a revenue milestone of $1.85 billion in 2024, with a projected annual growth rate of 6.28% until 2028, reaching a market volume of $2.36 billion by that year.
Current Landscape of Online Gambling in Africa
The current landscape of online gambling in Africa is undergoing a significant transformation, fueled by increased internet accessibility, mobile penetration, and changing perceptions towards gambling as a viable source of income. The online sports betting market is expected to contribute significantly, reaching a volume of $0.86 billion in 2024, reflecting the growing enthusiasm for sports-related gambling activities across the continent.
The average revenue per user (ARPU) is projected to be $309.30 in 2024, with an estimated 7.1 million users anticipated by 2028, providing a substantial user base for potential revenue generation.
Catalysts for Growth: Internet and Mobile Revolution
The exponential growth of mobile usage in Africa, particularly in Sub-Saharan Africa and North Africa, is a key driver for the online gambling business. The region is witnessing a substantial rise in mobile users, with projections indicating a surge from 272 million in 2019 to an estimated 475 million by 2025. The high usage of 5G networks is expected to further propel the market forward, according to Research and Markets.
Africa’s growing share of global internet users, increasing from 9.1% in 2017 to 13% in the past year, underscores the expanding reach of the internet in Africa. With an internet penetration rate of about 40%, the continent’s digital landscape provides a fertile ground for the continued growth of the online gambling market.
Online Gambling Regulatory Environment in Africa
A comprehensive study covering 41 African countries reveals that 61% have established dedicated regulators for gambling activities, while the remaining 39% see regulation conducted either by government departments or through collaborations between semi-independent boards and government entities. In some African countries, legal restrictions on gambling exist due to religious prohibitions, particularly in regions with a dominant Islamic presence.
While countries like South Africa have a well-established and regulated market generating significant revenue, others, such as Somalia and Egypt, maintain strict prohibitions on both online and in-person gambling. Nigeria, a significant player in the African iGaming scene, is currently considered semi-regulated.
Challenges and Opportunities in Launching iGaming Projects in Africa
Launching iGaming projects in Africa presents unique challenges that demand special attention. The market research needs to adapt to local nuances, and companies must anticipate internet instability and the prevalence of outdated devices among the population.
Traditional advertising remains crucial in Africa, where the population is not accustomed to complex bonus systems. The stability of websites and payment systems is essential, and a local presence with offices and technical teams becomes indispensable.
The Future of Online Gambling in Africa: A Promising Outlook
Africa’s younger generation, growing up in an era of unprecedented technological exposure, is a driving force behind the future of online gambling. As online infrastructure continues to improve, end-user technology is developing to make online gambling more accessible than ever.
With South Africa leading the way, the African online gambling market is on the cusp of a significant evolution, offering both challenges and opportunities for stakeholders in this dynamic industry. As the dice roll, Africa’s online gambling story is just beginning, and the journey ahead promises to be both thrilling and transformative.
In conclusion, EvenBet Gaming, with expertise in the online gambling industry, offers 38+ card games tailored to specific markets, including poker in Africa. To discuss projects in the online gambling sphere, especially poker in Africa.
Source: https://evenbetgaming.com/blog/articles/online-gambling-in-africa-current-situation-and-future/
