Market Scenario

Africa gambling market is expected to reach a valuation of US$ 11.27 billion by 2032, with an estimated CAGR 7.06% over the forecast period 2024-2032. In 2023, the market generated a revenue of around US$ 6.10 billion.

The gambling market in Africa is witnessing a remarkable upsurge, driven by rapid urbanization and the proliferation of smartphones. Mobile technology has facilitated easy access to online gambling platforms, contributing significantly to this growth. In 2023, the gambling industry across the continent generated a revenue of $6.10 billion, with 35 million users participating actively. Sports betting is the most prominent form of gambling, favored for its accessibility and alignment with Africa's sports fervor, particularly football. Key contributors to this growth include South Africa, Nigeria, and Kenya, where betting shops are as prevalent as local markets. In South Africa alone, the gambling market is valued at $2.5 billion.

The primary end users of gambling applications span diverse demographics, predominantly young adults aged 18-35, who make up 60% of the user base. This group is drawn by both entertainment and the potential for financial gain. People earning between $300 and $500 a month constitute the lucrative income class, seeking additional income through betting. Offline gambling, though declining, still sees significant activity, with 20 million people frequenting local casinos and betting shops. Online gambling, however, is where the growth lies, with 15 million users addicted to digital platforms, highlighting a need for responsible gambling measures.

Several macro and micro-level factors contribute to the gambling boom in Africa. On a macro level, the liberalization of gambling laws in many countries has opened up new markets. For instance, Uganda's regulatory reforms have doubled the number of registered betting companies from 15 to 30 in the last three years. Micro factors include the cultural acceptance of gambling as a form of entertainment and the integration of mobile payment systems, which has simplified transactions for users. The market's momentum is further fueled by strategic partnerships between local tech firms and international gambling companies, aiming to innovate and enhance the user experience.

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MARKET DYNAMICS

Drivers

Increasing Popularity of Gambling Apps and Social Gambling

It is anticipated that the growth of social gaming and gambling apps will boost the Africa gambling market. Sports betting has grown significantly in Africa over the last ten years. Online betting is becoming increasingly popular throughout Africa, offering investors a profitable prospect for growth. 4 out of 10 Nigerians, or nearly 60 million, are between the ages of 18 and 40, are regular on  sports betting. The greatest sports betting mobile gaming apps in Africa are Bet365, 1xbet, Bet9ja, Betking, Betpawa, and Betfair, among others. 

With over 2,560 smart card slot and 79 premium tables games, GrandWest Casino and Entertainment World in Cape Town is South Africa’s largest casino in Africa gambling market.

Extensive Advertising and Celebrity Endorsements

Betting companies in countries like South Africa, Nigeria, Ghana, and Kenya are using celebrity endorsements to promote their products. Over the years, marketers use creative marketing campaigns to capture audiences worldwide. Celebs that are endorsing betting companies in the major African gambling markets include:

• South Africa: Many celebrities and public figures are endorsing gambling in South Africa as it is the main legal business within the country. South Africa Rugby World cup winner Tendai Mtawarira has endorsed World Sports Betting Company based in South Africa. One more brand diplomat for a similar firm is a South African soccer legend called Phumudzo Manenzhe, from the Orlando Privateers football association.
• Nigeria: Significant sports betting brands like Betway, Bet365, 22bet, and Bet9ja are active despite irregular and not uniform regulations across the nation. One of the successful celebrities in the entertainment industry Don Jazzy is doing endorsements for Betway Nigeria.
• Ghana: Like Nigeria, Ghana includes a youthful populace and huge curiosity in sports like football in the global Africa gambling market. The nation has online sportsbooks and sports betting, as well as versatile club gaming with various other significant brands. Lil Win, the famous actor in 2019, was launched as the brand ambassador of eBet in Ghana.
• Kenya: Famous Brazilian football legend Ronaldinho endorsed betting brands for 22Bet.

Restraints 

Stringent Government Regulations on Gambling

Stringent government regulations on gambling will significantly restrain the Africa gambling market throughout the projection period. The gambling regulations are different in every country as some countries may have different laws because of different government regulations and some require a legal license. Some of the obstacles that new betting operators can face while entering new markets in Africa are:

• Nigeria: Lottery, sports betting, and land-based casinos are legal in Nigeria whereas dice games, and non-skilled card games are illegal. Moreover, slot machines are allowed to operate only by licensed operators.
• South Africa: Since 2010, online betting or gambling through servers outside the nation is restricted, therefore, gambling sites do require a proper legal license from betting boards.
• Kenya: Betting operators in Kenya are uncertain as the government is rethinking whether to keep the tax or scrap it altogether. Moreover, due to the high tax rate, foreign investors are discouraged from entering the Kenya gambling market.

Betting Control and Licensing Board (BCLB) regulates both digital form and land-based forms of gambling, including gaming, betting and Lottery, among others. 2010 under the Fourth Schedule, the Constitution of Kenya allotted the batting, casinos, and other forms with their proper functions of gambling to the National and Country Governments.

Opportunity

Growing Popularity of Online Gambling and Casino-Based Games

The rising popularity of online gambling and casino games presents investors with a profitable possibility for expansion in the Africa gambling market. Online gambling sites are becoming more popular in Africa due to a number of factors, including the availability of a wide selection of games, alluring bonuses, convenience, safe play, and accessibility.

As citizens of nations like Kenya, Malawi, Nigeria, and South Africa are known for their passion for placing bets, sports betting, casino gambling, and online gambling have grown incredibly popular.

Additionally, since COVID-19, online casinos in the Africa gambling market have been extremely popular. Instant casino games have gained the most traction among gamblers. For instance, many gamblers in Nigeria are embracing instant gaming.

Trend

Growing Usage of Smartphones and Internet Penetration for Online Gambling

The current trend in the Africa gambling market is the rising use of smartphones for online gambling. In South Africa, the penetration of mobile devices is anticipated to reach 67% by 2026. E-Gambling has experienced substantial growth over the past five years as a result of ground-breaking technology like artificial intelligence and 5G. Around 26 million cell phones had arrived in the African continent by the third quarter of the year 2021. 

The gaming sector has been boosted by rising smartphone usage and internet adoption as more people are entering the realm of gambling in the Africa gambling market. Technology advancements have made it possible for thousands of gamblers to play HD or 4K games online. Many gambling websites can feature live casino games thanks to high-speed internet, and this has inspired many players to start playing online. 

Advancement in technology, such as Augmented and Virtual Reality provides excellent graphical real-life representations which grabbed online gamers attention. Moreover, due to advanced technologies, the emergence of live casino is the new trend in the gambling market. Also, the readily available payment solutions to customers and online players have increased the acceptance of smartphones for gambling. 

Furthermore, mobile gamers in South Africa spend approximately more than 4 hours per day on their smartphones and 71% of the adults play mobile casino games.

Segmental Analysis 

By Type 

Casinos have firmly established their dominance in Africa's gambling market, with revenues surpassing 34.21% as of 2023, making them the largest contributors to the continent's gambling sector. This success can be attributed to their multifaceted appeal, combining gaming with luxury amenities such as fine dining, live performances, and upscale accommodations, attracting both local patrons and international tourists. The industry employs over 50,000 people across Africa, significantly contributing to local economies and the tourism sector, with casinos accounting for approximately 40% of entertainment spending by tourists in key destinations like South Africa and Morocco. The continent hosts over 150 operational casinos, with South Africa leading the way, boasting more than 60 licensed establishments, highlighting the country’s strong presence. Notable casinos include Sun City Resort and Emperor's Palace in South Africa, Casino Semiramis in Egypt, and Marrakech Casino in Morocco, each attracting millions of visitor annually.

The primary consumers of African casinos are predominantly adults aged 25 to 55, who possess higher disposable incomes, allowing for leisure spending. This demographic includes middle to upper-class individuals, professionals, and business owners. Tourists also play a significant role, contributing over 30% of casino revenues in certain countries, with a growing trend of female participation now accounting for approximately 35% of patrons. The appeal of casinos to a wide range of age groups and income levels, combined with their integration into the broader entertainment and tourism sectors, solidifies their leading position in Africa's gambling market. Regulatory support has also been crucial, with 15 African countries updating their gambling regulations to support casino operations, recognizing the industry's economic benefits and further cementing casinos’ dominant role in the market.

By Channel

Offline gambling maintains a strong dominance in Africa's gambling market as of 2023 due to the continent's socio-economic landscape. In 2023, the offline segment accounted for over 57.61% share of the market. A significant factor behind this dominance is the limited internet penetration across many African countries. With internet access estimated to reach around 40% of the population in 2023, a substantial portion of the populace relies on traditional offline gambling methods. For instance, Nigeria, one of Africa's largest gambling markets, hosts thousands of physical betting shops that cater to millions of punters daily. These establishments are widespread and easily accessible, even in remote areas where digital connectivity is sparse or unreliable.

Additionally, the preference for cash transactions over digital payments reinforces the prevalence of offline gambling. Africa has a large unbanked population, with over 350 million adults lacking access to formal banking services as of 2023. This financial landscape makes it challenging for many individuals to engage with online gambling platforms that require electronic payment methods. Physical gambling venues, such as casinos and betting shops, accept cash and provide immediate payouts, appealing to those without bank accounts or digital wallets. Moreover, these venues offer social interaction and a communal atmosphere, which are culturally significant aspects of gambling in many African societies. The offline gambling sector also contributes significantly to employment, supporting tens of thousands of jobs across the continent.

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By End User

By end user, Africa gambling market is segmented into gambling enthusiasts, dabblers, and others. Based on this, market category, the avid gambler holds a strong position in the Africa gambling market as compared to dabblers and other end users.

Country Analysis 

South Africa stands at the forefront of Africa's gambling market due to a combination of regulatory frameworks, economic development, and technological advancements. The country held over 26.23% of the market share. The country's well-established legal gambling environment, underpinned by the National Gambling Act, has fostered a robust industry that generated over 30 billion ZAR in gross gambling revenue in 2022. Major cities like Johannesburg, Cape Town, and Durban are the largest contributors to this market. Johannesburg, being the economic hub, hosts prominent casinos such as Montecasino and Gold Reef City, attracting millions of visitors annually. Cape Town's tourism appeal and Durban's thriving entertainment sectors further amplify their contributions, with each city boasting gambling revenues exceeding 5 billion ZAR in 2022.

The strong growth momentum in South Africa's gambling sector is driven by rising disposable incomes and an increasing inclination towards entertainment activities. Moreover, the burgeoning online community has significantly impacted demand. With over 40 million internet users in 2023, online gambling platforms have seen a surge in registrations, with more than 5 million active online gamblers reported. The proliferation of smartphones, counting over 25 million users, has made mobile sports betting the most lucrative and attractive emerging gambling method in the market. This accessibility allows individuals to engage in betting activities conveniently, fueling the industry's expansion. Local players such as Sun International and Tsogo Sun have capitalized on this trend by developing sophisticated online platforms and mobile applications, alongside their physical casino establishments. Additionally, the National Lottery remains a popular form of gambling, with ticket sales surpassing 2 billion units in 2022, indicating substantial growth potential across various gambling types in the country.

Nigeria emerges as the second-largest gambling market in Africa, with its industry valued at over 730 billion Naira in 2023. The country's youthful population, coupled with a passion for sports, particularly football, has propelled the growth of sports betting. Lagos, as a major city, contributes significantly to the market, hosting numerous betting shops and online platforms. With an internet penetration of over 100 million users, Nigeria's online gambling segment is rapidly expanding, mirroring the trends observed in South Africa and indicating a competitive landscape in the continent's gambling industry.

List of Key Companies Profiled

• 1xbet
• Bet365
• Bet9ja
• Betika
• BetKing
• Betpawa
• Betway
• Dafabet
• Kings Sports Bettin
• Melbet
• Parimatch
• Powerbets
• Premierbet
• Sky Betting & Gaming
• Sportybet
• Tipico
• Surebet247
• The Cyprus Casinos
• Other Prominent Players

Market Segmentation Overview

By Type:

• Sports
  • Fixed Odds Sports Betting
  • Pari-Mutuel Betting (Horse and Dog racing)
  • In-Play/Live Betting
  • Exchange Betting
  • Spread Betting
  • Others
• Casino
  • Lackjack
  • Baccarat
  • Teen Patti
  • Three Card Poker
  • Four card poker
  • Red Dog
  • Others
• Lottery Games
  • Scratch-offs
  • Bingo
  • Keno
• Electronic Gaming Machines
• Others

 By Channel Type 

• Offline
  • Casinos
  • Betting shops/halls
  • Arcades
  • Bookmakers
• Online
• Virtual Game

By End User

• Gambling Enthusiast
• Dabblers
• Others

By Region

• Africa
  • Mozambique
  • Malawi
  • Ghana
  • Kenya
  • Gabon
  • GuineaEquitorial
  • Angola
  • Madagascar
  • Mali
  • Cote dIvoire
  • South Africa
  • Niger
  • Rwanda
  • Burundi
  • Burkina Faso
  • Senegal
  • Rest of Africa