Online gambling in Africa: the current situation and future perspectives
Africa has become an appealing market for investors in the iGaming industry in recent years. Starting a gambling business is cheaper in Africa compared to other jurisdictions around the world. The continent's sustained economic growth, the rapid spread of affordable mobile broadband and the willingness of local governments to regulate online gambling to replenish their coffers, all of these make Africa unique.
Home to over 1.3 billion people spread across more than 50 nations, Africa is the second largest land area in the world. According to Statista, the online gambling market in Africa will reach $1.85 billion by the end of 2024, with a projected annual growth rate (CAGR) of 6.28% from 2024 to 2028. These forecasts indicate that the expected market size will reach $2.47 billion by 2029, showing steady growth in the gambling sector.
Increasing levels of interest in sports are driving growth in the betting sector; the online sports betting market is expected to reach a market size of $860 million by the end of 2024.
African online gambling is currently undergoing a significant transformation, presenting new challenges and opportunities for industry stakeholders. This exciting journey is only just beginning, promising a fascinating and transformational adventure. Read the article till the end and find out all the popular trends and developments in online gambling in Africa.
Review of online gambling in Africa
South Africa, Nigeria and Kenya are the three largest gambling markets in Africa. In this article, we take a closer look at these countries, as well as three other key markets – Ghana, Uganda and Tanzania.
South Africa
South Africa's gambling industry is the largest market on the continent. Online gambling GGR in the country is projected to reach $828.50 million by the end of 2024.
According to recent studies, nearly 75% of the population have participated in gambling at least once in their lives. Supposedly half of South African adults bet on sports on a regular basis, and the majority of them bet at least once a month. The same surveys show that more than half of the population consider gaming to be a “fun pastime”. The most popular sports for betting are soccer, cricket, rugby and golf. The online gambling market is expected to reach 4.2 million participants by 2029.
Note that online gambling is illegal across the country, aside from the online branches of land-based betting shops.
The types of commercial activities considered illegal are listed in the 2004 national gambling law under the general category of “interactive games”. This list includes bingo, poker and other African online games, including slots.
The only gaming activities that are considered legal are online sports betting and horse racing. Land-based casinos have also been legal since 1994, although their number is limited, with only four major casinos offering more than 180 card game tables and many slots.
Under current South African law, funds won at online casinos are considered illegal. Banks monitor such financial activities and players can be subjected to serious penalties.
Nigeria
Nigeria's GDP in 2022 was $472 billion, making it the highest in Africa. This impressive figure is due to the size of Nigeria's population of over 200 million, which is almost double that of any other African country.
Nigeria has the second largest gambling sector in Africa. The country’s economic potential makes it highly popular with online casinos and sports betting providers. The lifting of the ban on gambling in 2004 stimulated the growth of the iGaming business.
About 30% of Nigeria's population bets on sports daily, which equates to about 60 million people between the ages of 18 and 40 actively keeping an eye on sporting events.
The first legitimate online casino was opened in 2013, which is a relatively recent milestone in the global development of iGaming. The growth of online sports betting and gambling is also supported by the development of local payment systems.
Kenya
Kenya is home to approximately 55 million people, and the official languages are English and Swahili. It is one of Africa's leading economies, and gambling is fully legal, freely promoted, and highly popular.
Most forms of gambling are legal in Kenya, although online casinos are still developing due to the slow spread of mobile internet access. This is not a negative aspect but rather an opportunity to attract new players. The market is expected to grow at a Compound Annual Growth Rate (2024-2029) of 5.60% to reach $130.90 million by 2029.
The gambling market in Kenya is mostly focused on betting, which is typical for many African countries. The most popular sport for wagering is soccer, especially European league matches.
Tanzania
With a population of over 65 million, Tanzania is actively developing its gambling industry, including online casinos and sports betting, due to the spread of mobile internet. The country’s official languages are English and Swahili.
Ghana
Ghana has a population of 33 million. Its capital and largest city is Accra. The official language of the country is English and the national currency is the Ghanaian cedi (GHS). Ghana shares borders with three countries: Côte d'Ivoire, Burkina Faso, and Togo.
Potential suppliers will be interested to know that gambling legislation in Ghana allows all types of land-based and online gambling. Ghanaians have access to all foreign gambling sites of their choice, which contributes to the growing popularity of online gambling with each passing year. Online gambling market revenue is projected to reach $57.42 million by the end of 2024 and is expected to grow at a CAGR of 5.16% (2024-2029), leading to a market size of $73.83 million by 2029.
Uganda
Uganda, with a population of 47 million, uses English and Swahili as its official languages.
Online gambling in Uganda is considered a legitimate commercial activity, including lotteries, casinos, and sports betting. This is why there are more than 670 online casinos and betting shops in Uganda.
As in South Africa, the most popular form of gambling here is betting on sports, especially soccer. However, basketball, tennis, cricket, volleyball, and rugby are also very common.
The number of Ugandans betting online keeps growing since access to mobile internet connection and payment methods are improving across the country.
So how much does a gambling license in Africa cost? Example of Uganda, specifically Uganda?
The cost of a gambling license in Uganda can vary depending on the type of activity (sportsbook or casino) and the owner of the company (local or foreign). Here are the approximate license costs:
- License for a betting shop owned by a local company: approximately €2,300.
- License for a betting shop owned by a foreign company: approximately €4,600.
- License for a locally owned casino: approximately €4,600.
- License for a casino owned by a foreign company: approximately €11,700.
Once granted a license, operators are also required to make a deposit (as a security guarantee) of €46,000 for a sportsbook and €117,000 for a casino.
These prices can be used as a starting point, but the cost of a license may vary depending on the specific requirements and regulations set out in Ugandan law.
Features of launching iGaming projects in Africa
Many brands have failed in their attempts to enter African continent markets, resulting in companies closing down at a loss. Getting to know some of the unique features of launching an iGaming project in Africa can help avoid wasting your investment. Let's take a look at the specifics of starting a gambling business in Africa.
- Legislation and licensing: Before launching a gambling business, it is necessary to thoroughly research the legislation of each particular country. Some countries may have strict gambling licensing laws and requirements. Obtaining a license can be financially draining and time consuming, especially if you try to do so without help.
- Unique research methods: The African market is extremely different from more established markets in Europe and Asia. Therefore, the study of this market requires the application of diverse methods and rejection of template approaches familiar to other regions.
- Prevalence of older technology: Despite the spread of the internet, stable internet is still lacking in many regions. In addition, users often have outdated devices, which limits the ability to use resource-intensive applications and games.
- Simple promotional campaigns: Locals are not familiar with complex bonus systems, so simple promotional campaigns are more likely to be effective.
- Stable gaming sites and payment systems: due to out-of-date technologies and an unstable economy, there is a high risk of disruptions in the operation of websites and payment systems. Technical failures should be foreseen and backup payment providers should be activated.
- Physical presence in the country: Running an iGaming business in Africa from abroad is almost impossible. A local office with technical support and a helpdesk is a must.
- Classic advertising: In Africa, traditional forms of advertising such as television, radio, street promoters, and outdoor banners have a higher value compared to digital advertising.
- Consumer sensitization: The average age of consumers in Africa is around 20 years old, which also needs to be taken into account when conducting market research. It is important to adapt your strategy to local cultural specificities, preferences and player requirements. This includes choosing appropriate games, currencies, languages, and payment methods.
- Long-term potential: Investing in African markets requires an understanding that return on investment may be delayed compared to more developed markets.
Internet and mobile revolution as a catalyst for growth
In recent decades, the mobile industry has grown rapidly, and smartphones are becoming more and more popular. In particular, smartphones have given many advantages to those who are passionate about gambling entertainment.
Today, in order to play at a casino or bet on a sporting event, you don't have to go to a land-based casino or bookmaker's office, or even start your computer. All it takes is a smartphone or tablet with internet access — the convenience of betting anywhere has become commonplace as players can easily access online casinos wherever they are.
Already now a significant part of their audience is attracted by mobile gambling. And it is obvious that this percentage will be constantly growing.
This is where the idea of Telegram Casino, a major breakthrough in the mobile gaming industry, was born. Slotegrator's Telegram Casino offers an alternative to conventional casino sites with the help of a chatbot seamlessly integrated into the messenger platform.
The main advantage of interacting with a chatbot is its convenience. The bot is an alternative interface for the casino site, greatly simplifying the process of registration, game selection, and deposit. Telegram Casino guarantees a pleasant, easy, and safe gaming process for all participants.
A significant advantage of this product is Telegram’s worldwide popularity, which means a constantly growing user base from which you can bring in new players to your casino. Given the dynamic development and diversification of mobile gaming in various markets, integrating Telegram Casino opens up promising opportunities for business expansion in the future.
Regulatory framework for online gambling in Africa
The local characteristics of Africa have significantly influenced the development of the online gambling market.
In some African countries, traditional gambling is heavily regulated or even banned, which has led to a demand for online gambling as an alternative. Online gambling platforms provide people with the opportunity to participate in games without the restrictions imposed by regulators.
Moreover, the absence of land-based casinos in many African countries has also contributed to the growth of the online gambling market, as it is a convenient and affordable option – especially for players starved of options.
In many regions, gambling laws are unclear, outdated or simply ignored. Unlike other parts of the world, the vast majority of countries in Africa have a favorable attitude toward gambling.
The exception is in countries where Islam is predominant, where gambling faces legal restrictions due to religious prohibitions — seven countries on the continent prohibit gambling due to religious beliefs.
Apart from legal restrictions, fraud is a common problem in the industry due to the lack of strict regulations. However, countries such as Kenya, Tanzania, and Uganda are actively fighting fraud and striving to clean up the gambling industry.
Africa has huge potential for online casino and betting platforms despite the challenges that exist.
The Future of Online Gambling in Africa
We are absolutely certain that the gambling industry in Africa will grow rapidly. Here's why:
- As a larger middle class emerges, incomes rise.
- The spread of internet access and the low price of computers and smartphones allow more people to go online.
- There is an increased interest in Western ideals, which extends to online gambling.
- Overall, there is improvement in gambling taxation conditions and legislation.
With all this in mind, as well as a general acceptance for all forms of gambling, we think it's fair to say that the continent holds tremendous potential for iGaming businesses. The market is actively expanding and there are many new betting sites in Kenya and many other countries.
Conclusion
The African gambling market is on the verge of a seismic shift, similar to what has recently occurred in Brazil. Potential regulation of the industry in various African countries could open up a new era of growth and prosperity similar to the achievements we have seen in Brazil. With Africa's population of 1.3 billion, a growing middle class, and increasing intrusion of internet and mobile technology, the continent is ready to become a key player in the global gambling market.
As one of the iGaming industry’s leading software developers, we are always ready to share our industry knowledge and advise operators on the most relevant issues. Our solutions for developing and launching online casino projects, as well as services for obtaining a gambling license can help save you time and resources. Fill out the form below and our managers will definitely contact you.
Which country gambles the most in Africa?
To date, it is not possible to unequivocally point to a particular country in Africa where gambling is most prevalent, as data on gambling activity can vary depending on various factors such as the availability of legal gambling opportunities, economic conditions, internet access, and other socio-cultural factors.
However, taking into account the available data and market surveys, we can identify several countries where the gambling industry shows significant development and popularity — the countries in Africa with the most gambling are South Africa, Nigeria, Kenya, Tanzania and Ghana.
What is the gambling capital of Africa?
There is no one clearly defined “gambling capital” in Africa, as different countries on the continent have their own gambling markets and centers of activity. However, there are a few countries that play an important role in Africa's gambling industry: South Africa, Nigeria, Kenya, Ghana and Tanzania.
Is gambling banned/legal in Africa?
Whether gambling is legal in Africa depends on the country. In many African countries, gambling is either completely legal or it is regulated by certain laws and licenses. However, there are exceptions where gambling is prohibited.
