GAMING IN AFRICA
An operator’s guide to online gaming in Africa
John Mutua, Betkwiff Kenya operations manager, provides an insight into everything operators need to know about entering the growing market.
MAJOR GROWTH POTENTIAL The growth of online gambling in Africa is down to several fundamental factors. Africa’s dynamic young population plays a major role in this growth. They are a growing demographic, technologically adept, and see the appeal of online gambling. A secondary component is the launch of a range of products specifically for the African market. These correlate with preferences of local players to generate impressive engagement metrics. Understanding local market factors and effectively implementing strategies for customer acquisition and retention is crucial for success in the diverse African market. Africa is home to a youthful and tech-smart betting demographic that represents major growth potential. To successfully enter the continent requires a thorough understanding of mobile money services and how to provide a seamless customer journey, as mobile money is integral to financial transactions. Operators looking to enter Africa should also be ready for a constantly shifting regulatory landscape as governments explore ways to raise revenue and create safe gambling environments. Accessibility of mobile money services has played a significant role in pushing the industry forward too. Even in regions with inadequate banking infrastructures, people can still deposit and withdraw funds simply using mobile money platforms, making online gambling more inclusive.
Smartphones have also greatly expanded the potential user base. As more Africans own smartphones, it makes online gaming platforms more accessible and user-friendly. Finally, a good number of operators are diversifying from traditional brick-and-mortar casinos to online platforms. A decision that had been made after identifying the vast potential and convenience of the digital space.
APPROACHING THE MARKET Gambling regulation in Africa varies a great deal across jurisdictions. Some regions are moving towards more comprehensive regulation, but the majority still oversee relatively light regulatory frameworks. Many African countries are catching up with the evolving landscape of gambling regulation. Currently the focus is on encouraging business and investment in the sector while simultaneously working towards standardising licensing processes. A few jurisdictions have regulators that also operate within the industry,
10 NOVEMBER 2023 GIO
while others, like Kenya, have recognised the importance of fostering the growth of this sizeable industry, especially in light of advancing technology. This has led to efforts in creating a regulatory environment that supports and facilitates the development of the gambling sector. East Africa is an obvious starting point owing to its political stability, mature markets, and well-established licensing requirements. This stability lays the foundation for businesses, including the gambling industry, to flourish. The existence of these mature markets represents a potentially lucrative customer base with an affinity for gambling. Clearly communicated licensing requirements offer regulatory assurance, which is advantageous for operators seeking to enter the market. West Africa presents another compelling opportunity. Historically, francophone countries in Africa have an affinity for horseracing and lotteries. Southern Africa also stands out as an integral market in the continent. However, it’s essential to recognise that South Africa differs from its surrounding countries in terms of licensing. This is because in South Africa, licences are issued by provincial boards, creating a unique regulatory structure within the region.
LOCALISED CONTENT
Players in Africa are looking for localised content that resonates with their cultural context. They want to play games that they can relate to and own in the perception sense. This means that online casinos should curate offerings to reflect the cultural nuances of the African audience. Delivering content that showcases local themes, languages, and traditions nurtures a strong connection with players.
Additionally, African bettors value quick and easy-to-play games that are highly engaging. The fast-paced nature of these games aligns with their preferences for efficient and enjoyable gaming experiences.
UNDERSTANDING THE CHALLENGES
Generally, the potential of online gambling in Africa is overlooked by iGaming companies. This narrative arises from a lack of understanding of how to effectively access the African customer base and enact payments through mobile money systems. Mobile money plays a considerable part in Africa’s bettors’ everyday lives, but many iGaming businesses have not had experience with these systems in their original markets. Much of Africa still relies on feature phones that are incompatible with some online gambling offerings. Even among smartphone users, data access challenges persist, preventing a frictionless online gaming experience. A final note is that the restricted use of card payments in Africa makes payment processes more complex for iGaming companies. With alternative payment methods being more available, these companies may struggle to redevelop their payment systems for the African market. The future of online gambling in Africa has great potential as the evolving landscape provides opportunities for both operators and players. Products on offer have been expanding rapidly but one needs to understand that you can only focus on online gambling with an eye on data consumption. With the proliferation of smartphones and mobile connectivity improvement, data consumption plays a pivotal role in the accessibility and sustainability of online gambling platforms. Operators and stakeholders must find innovative solutions to optimise data usage, ensuring that online gaming is affordable and accessible to the African population. Getting the challenge of data consumption right can be seen as the ‘El Dorado’ of online gambling in Africa. Operators who build out and then deliver strategies that offer data-efficient gaming will be best placed for long-term success.
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