Currently, the global gambling industry is valued at over $500 billion and is growing due to technological advancements. Online operations have significantly boosted the revenue of physical gambling operators, with the United States and the United Kingdom leading the way.
The online gambling market is particularly favorable in the United States, as many states still prohibit casino gambling markets. Savvy consumers have discovered the options for online casinos in the US by 2024, allowing them to enjoy their favorite gambling markets overseas.
But how does this compare to the situation across Africa?
With the proliferation of mobile devices, the African gambling industry has become one of the fastest-growing online gambling industries, with experts predicting a compound annual growth rate of 5.81% by 2029.
The use of mobile devices and continuously improving connectivity are crucial for Africa's online gambling industry, allowing many consumers to access international gambling sites.
Some African countries are experiencing faster growth than others, prompting some of the world's leading gambling operators to explore avenues that could provide them with substantial revenue sources.
1. South Africa
South Africa currently has the largest gambling market in Africa, accounting for more than half of the continent's total revenue. The country's 39 physical casinos offer South African gamblers a wealth of live betting opportunities.
About 90% of people over the age of 18 (the legal gambling age in the country) participate in some form of gambling. The country's gambling market is governed by the National Gambling Act of 2004, which prohibits online casino gambling but allows licensed online sports and horse racing.
Offshore gambling operators provide South African consumers with ways to enjoy casino gambling sites, while some foreign operators can also apply for licenses, bringing additional income to the country.
South Africa's sports betting market is the most popular in the country, with consumers supporting their favorite football, rugby, and cricket stars.
The country also has several racetracks, with races broadcast around the world. Greyville, Turffontein, and Kenilworth are just a few of the top tracks that welcome the world's top racehorses.
2. Nigeria
Nigeria has the second-largest gambling industry in Africa. The National Lottery Regulatory Commission is responsible for regulating the country's gambling activities, and the nation's love for sports has made sports betting increasingly popular.
Given its large population, it is not surprising that Nigeria is the second largest gambling nation in Africa. With over 230 million people, Nigeria is the most populous country in Africa, far ahead of the second-ranked Ethiopia by about 100 million and nearly 170 million more than South Africa.
Despite regulations, the country still finds many citizens using illegal means. However, consumers are unable to obtain legal assistance when problems arise.
Due to the high penetration rate of mobile devices and strong connectivity, the country's online gambling business remains popular. This allows consumers to access various gambling operators that comply with the same regulations as physical gambling operators.
3. Kenya
Although Kenya is the seventh most populous country in Africa with over 56 million people, it is the third largest gambling nation on the continent.
Online gambling is the main driver of this performance, with online sports betting once again popular. Over 7 million Kenyans have sports betting accounts, with football being the most popular gambling sport.
Although new tax laws have raised the amount of winnings consumers must pay from 7.5% to 12.5%, the industry is still in good condition. Additional taxes on advertisements produced by social media influencers could also impact future figures.
Some companies have decided to close their businesses and move to other regions with lower taxes, but experts still believe in the great potential of Kenya's gambling industry, especially with the technological development of online gambling sites and mobile devices.
4. Ghana
Like Kenya, Ghana, although less populous compared to other countries, remains one of the largest gambling markets in Africa. With a population of nearly 34.5 million, Ghana is the 14th most populous country on the African continent, but its well-structured gambling industry has been key to its growth.
Ghana enjoys the reputation of having the strictest gambling regulations in Africa because it has implemented gambling laws since the 1960s.
Ghanaian gamblers enjoy a variety of different gambling markets, with the national lottery and slot machines being the most popular. The sports betting market is also very popular, especially European football, with many of the country's top players playing here.
Ghana's horse racing industry is also thriving, with 7 land-based casinos. The capital, Accra, has 5 casinos, with the other two located in Kumasi and Tema.
The Future of the African Gambling Industry
Africa is considered one of the regions with the most potential in the gambling industry. Many countries still have imperfect regulatory frameworks, and many gambling markets are still in their infancy compared to mature European, Asian, and American gambling markets. Many companies are setting up shop in Africa, trying to capitalize on this industry that is growing faster than the global average.
Online gaming plays a significant role in this growth, and ongoing development, connectivity, and the proliferation of mobile devices will continue to drive numbers up. The introduction of cryptocurrency-based online casino operations also makes it easier for African consumers to enjoy international gambling opportunities without paying additional currency exchange fees.
Africa has long been overlooked by the global gambling industry, but it seems to finally be having its moment to shine.
