Africa Plays on Smartphones: How Cheap Internet Revolutionized the Gambling Market

Leap into the Digital Future

Just a decade ago, internet access in many African countries was a luxury good reserved for the few. Today, Africa is leaping into the digital future, jumping straight into the mobile era, almost completely skipping the stage of widespread fixed-line access. This technological leap is fundamentally changing the rules of the economic and social game.

According to GSMA (Global System for Mobile Communications) data, in 2020 there were 303 million smartphone users in Sub-Saharan Africa. It is estimated that by 2025, this number will rise to 500 million. Combination of cheap smartphones and increasingly affordable mobile internet that created the conditions for a digital boom. Online gambling market emerging as one of the main beneficiaries.

Engine of Change: Why is Internet So Accessible Today?

A key factor driving Africa’s digital transformation is the sharp drop in data costs. A report from Cable.co.uk shows that mobile internet prices in Africa are higher than in Europe, the trend is downward. The average cost of 1 MB/s in Kenya is just $1.54, in Nigeria it’s $0.72, and in South Africa it’s $0.50. For comparison, in 2018 these prices were twice as high.

This drastic price drop is the result of several factors. First, increasing competition among mobile operators like MTN, Airtel, and Orange. Second, growing investment in telecommunications infrastructure, including the expansion of 5G networks. Third, in some countries, government initiatives aimed at reducing the cost of internet access for citizens.

The second pillar of the digital revolution is the smartphone. According to the International Telecommunication Union (ITU), in 2022, 66% of Sub-Saharan Africa’s inhabitants used mobile internet. In comparison, less than 20% of the population has fixed internet access at home. Companies like Tecno or Infinix offer cheap smartphones, making them accessible to a wide range of consumers.

Consequences for the Market: The Birth of a “Mobile-First” Economy

The combination of cheap data and affordable smartphones created a new consumer – an “always on” user, always online and always with a mobile device at hand. This behavioral change forced a transformation of business models and created conditions for the development of services designed from the ground up for mobile.

Igaming is a perfect example of this transformation. Thanks to widespread mobile internet access, gambling is no longer a privilege of urban elites with access to exclusive casinos, but has become entertainment available to a taxi driver in Nairobi or a farmer in Nigeria in their spare time.

Online gaming operators have perfectly understood the specifics of the African market. Platforms like SportyBet, BetKing, or BetPawa design their applications to use as little data as possible, functioning smoothly even on weak 3G connections. This “data-light” design has become a key competency in the fight for the African consumer.

The real game-changer, however, has been the integration with mobile payment systems. In Kenya, only about 40% of the population has a traditional bank account, but over 80% use M-Pesa. Similar proportions exist in other countries in the region. Gambling platforms quickly capitalized on this, integrating directly with systems like M-Pesa, MTN Mobile Money, or Airtel Money.

Thanks to these integrations, a player can top up their account or withdraw winnings in seconds, without the need for a credit card or bank account. This simple but revolutionary solution opened up the igaming market to tens of millions of new users who previously had no physical way to participate in online gambling.

The effects are tangible. It is estimated that the online sports betting market in Nigeria, Africa’s most populous country, is growing at over 15% per year and was worth over $2 billion in 2024. In Kenya, the igaming industry generates a significant percentage of telecommunications operators’ revenues from M-Pesa services.

Broader Context and Future Challenges

The mobile revolution, of course, drives not only igaming but the entire digital economy of Africa. Fintech, e-commerce, telemedicine, online education – all these sectors benefit from the increasing internet access. However, igaming is one of the fastest-growing and most visible manifestations of this transformation.

The dynamic market development brings serious challenges. Governments of individual countries are trying to catch up with regulations to protect consumers on one hand and tax this lucrative market on the other. In Nigeria, since 2022, gambling operators have had to pay a 5% tax on turnover, which has brought the budget tens of millions of dollars in revenue.

Another challenge is the issue of social responsibility. The increased accessibility of gambling carries the risk of rising addiction among the young population. In Kenya, where studies show that a staggering 54% of players aged 18-35 show signs of betting addiction, social organizations are calling for tighter regulations and the introduction of educational programs.

Under pressure from regulators, operators are beginning to implement responsible gambling tools, such as voluntary deposit limits, self-exclusion options, or “cool-off” functions. However, in an environment where competition is fierce and profits are high, the implementation of these solutions is sometimes inconsistent.

The Future is in the Phone

The combination of cheap data and affordable smartphones acts like a key that has opened the doors to the global economy for hundreds of millions of Africans. The igaming market, with its direct conversion to money, is a perfect example of how digital inclusion creates completely new, dynamic markets, bypassing traditional barriers.

In the coming years, we can expect further market consolidation, tightening regulations, and increased awareness regarding responsible gambling. At the same time, with the development of 5G technology and a further drop in data prices, the African igaming market will only grow, evolving towards even more advanced forms of entertainment. This includes live betting or games based on VR technology.