Online gambling is booming in Africa. What started out in Europe and North America back in the late nineties is becoming a major source of entertainment and, in turn, revenue in parts of Africa. However, it’s not quite at the same level as it is in other continents. For example, in the UK, online gambling is worth upwards of £5 billion ($6.7 billion). Similarly, in the US, online gambling is a multi-billion-dollar industry.
In contrast, Nigeria, which has the second-largest online gambling market in Africa, according to PricewaterhouseCoopers, saw revenue top $58 million in 2018. Nigeria may never match the UK or the US in terms of revenue simply because gambling is rooted much deeper within these cultures. What’s more, the UK specifically has been home to the world’s leading casino and betting sites since the early 2000s.
African Countries Are Embracing Online Gambling
However, we can’t ignore the fact that Nigeria has plenty of potential. Data from Research and Markets tells us that approximately 60 million Nigerians gamble. This translates to ₦50 billion ($121 million) in annual revenue from all sources. Given what we’ve seen in the UK and other countries where online gambling is well-established, digital revenue often overtakes revenue from other mediums over time. Therefore, if Nigeria follows the same trend, we could see that $58 million increase significantly in the coming years. In fact, recent data from South Africa supports this.
PricewaterhouseCoopers’ Gambling Outlook for South Africa: 2017-2021 report estimates that online gambling is growing at a compound annual rate of 5.1%. As per the report, gross gambling revenue in South Africa is set to hit R35 billion ($2 billion) in 2021. Increased internet usage has certainly contributed to this growth. Data from World Bank shows that internet penetration increased from 10% in 2009 to almost 70% in 2021. This has helped a variety of industries grow. Entertainment, for example, has benefited from the surge of internet activity. Today, shows such as Young, Famous and African are making a splash on Netflix.
Increased Internet Access Sparks Wave of Innovation
Online gambling is going the same way. South Africans now have more choice than ever. From Spin247 to Europa, the best online casinos in South Africa provide locals with access to thousands of games, secure payment processors, and promos offering free spins and more. The point here is that increased internet access has spawned a new generation of casino and betting sites. This, in turn, has caused revenue to spike and the industry to flourish.
By those measures, South Africa is leading the charge but countries such as Nigeria are coming up fast. That’s good news for the continent as a whole. Europe will remain the dominant force in online gambling for the foreseeable future, and North America will always be strong. However, Africa is showing a lot of promise. As long as reputable operators continue to offer safe software and fair games, online gambling has a bright future in Africa.