Roundtable: Exploring Opportunities in the African Betting and Gaming Market

We’ve begun to see more betting and gaming companies turn their attention towards the African market – for you, where do you see the biggest opportunities being within the region? And why?

Mateja Popovic: Africa offers tremendous growth potential: Estimates we have seen say that despite having 18% of the global population, Africa only accounts for around 1 – 3% of global gross gaming revenue. While the potential opportunity is clear, there are a number of challenges for operators and suppliers to overcome if they are to unlock the potential of the market. This is starting to happen, driven by the wider penetration of smart mobile devices and drastic improvements to infrastructure and internet connectivity – both of which are needed for a thriving online gambling market.

In terms of the markets with the greatest potential – South Africa is the most developed but continues to grow. This is due to a number of reasons, including the launch of betting on the outcome of a slot. At the moment, it is predominantly land-based but the shift to online is accelerating which is creating plenty of opportunities. South Africa will likely be the benchmark for other jurisdictions across the region and should be a catalyst for the wider roll-out of online sports betting and casino.

Giorgi Tsutskiridze: When it comes to Africa, the potential is huge. The biggest opportunities I see are in mobile gaming and the growing middle class. With a high mobile penetration rate and increasing internet connectivity, it’s all about convenience and accessibility. Aviator has taken off like crazy in Africa because it’s fast, simple and works perfectly on mobile devices. Plus, betting is becoming a social activity here, and that aligns perfectly with the social features of our game. Kenya, Nigeria and South Africa stand out as prime markets for expansion due to their strong betting cultures and rapidly expanding tech-savvy populations.

Giorgi Tsutskiridze, CCO of SPRIBE

Danielle Calafato: There are a lot of opportunities for growth within the African market. There are new markets opening up to gambling regulation, and we believe that this region will be on everyone’s radar in the next few years. At Gaming Corps, where we are currently seeing more and more opportunities is in South Africa.

The potential in the South African market is absolutely enormous. With high mobile and internet penetration, plus an audience that is very tech-savvy and well-versed in different gambling products, the market is primed for growth. There are plenty of operators and platforms there that we are talking with that find our type of games interesting.

Chuck Robinson: Momentum has been building across the entire African continent as more regions embrace regulation for online sports betting; those with frameworks already in place are going from strength to strength. There are opportunities to explore in all regions, but South Africa is a big one and so too are regions such as Nigeria and Ghana where our operator partner SportyBet is already establishing itself as a leading brand for players.

Regardless of the region, operators and providers need to take a highly localised approach in each. This often means finding a local access partner and then tailoring their offering to the specific demands of bettors. This covers everything from bonuses, payment options, odds with specialised markets, as well as tailored content such as bots tournaments and virtuals that complement traditional sports offerings. Those who can localise in this way will be in the driving seat to succeed.

The African market, while still popular, has arguably received less attention than other regions such as LatAm and the US. Why do you think this might be? Does the region present any particular challenges / barriers to entry, and if so, how can iGaming companies navigate these hurdles?

Mateja Popovic: When you look at the dollar value of the opportunity presented by the US and LatAm markets, it’s no surprise that operators and suppliers are focusing their efforts there. Due to the size of the potential market, all local and international operators are chasing the same opportunity – leading to fierce competition. In these markets, the power players are demonstrating their might by investing hundreds of millions of dollars into claiming the largest slice of the pie, which makes it incredibly tough for small to medium-sized organisations.

While the scale of the opportunity is significant, the barriers to entry make the US and LatAm tough markets for most. Africa is different. It potentially offers a level playing field with opportunities available to operators and suppliers of all sizes. That’s not to say there aren’t barriers to entry – there are. What’s more, there are 54 countries in Africa, each with its own regulations, player preferences, culture, popular games, preferred payment options, etc. As a result, a localised approach is needed, and operators must understand they won’t enjoy blanket success across the continent.

Giorgi Tsutskiridze: I think Africa hasn’t gotten as much love as LatAm and the US because it’s still seen as a developing market with some unique challenges. Payment processing is a big hurdle since many people are unbanked. But mobile money, like M-Pesa, has been a game-changer in overcoming this barrier. Also, there’s a diverse regulatory landscape, and each country has its own rules. That can be a bit daunting for companies to navigate. The trick is to partner with local operators who know the lay of the land and can help you work through the red tape.

Danielle Calafato: Latin America and the US seem to be the big hype among operators and suppliers at the moment, and it’s no surprise. There are various jurisdictions that have recently legalised gambling, so we’re seeing a lot of people chatting about what opportunities and challenges await.

However, we can’t forget that Africa has been an interesting destination for a number of years now. Previously, there’s been challenges with bandwidth in some markets across Africa; but there are more and more improvements being made to infrastructure which will make it much easier to roll out our products across new markets.

Danielle Calafato, CCO of Gaming Corps

Chuck Robinson: This region, while significant, can’t compete with sheer volumes of bettors in Latin America and the US. These are two of the largest online gambling markets in the world; operators – and indeed suppliers – tend to follow the money. Africa does present some unique challenges too. This includes the high cost of internet and data and the prevalence of feature phones over smartphones.

Some regions have also proved to be a little volatile in terms of changes to regulations and especially tax rates. Also, the fact that the average wager per bettor is significantly less than in more technically mature markets is a minor deterrent, the combination of the smaller perceived opportunity and the additional hurdles to be cleared means Africa has received a lot less attention than it deserves. However, the sheer volume of enthusiastic engaged bettors and advances in technological infrastructure presents tremendous opportunities for those who do get in on the action now.

The barriers to entry are the same in Africa as they are in other new and emerging markets. Regulatory compliance is always difficult to achieve, especially when requirements vary from country to country. Understanding and meeting player preferences can be easier said than done, especially when it comes to providing engaging and proven content. This is why BETER has pulled out all the stops to bring its fast-paced sports and esports betting products, such as eFootball and bots tournaments, to operators right across the continent. This is a good example of why it’s important for operators to identify strong local partners in the African markets that they intend to launch in – by doing this ahead of going live, they can deepen their understanding of the region, its cultural quirks and bettor preferences, and ensure that they are delivering the experiences players are seeking from day one.

Considering the diverse cultural and socioeconomic landscapes across Africa, how can betting companies effectively tailor their strategies to engage with local audiences?

Mateja Popovic: Operators need to think globally but act locally. By bringing global experience and expertise and blending that with localisation that will help drive player engagement. To do this, they will need a team on the ground or certainly local partners who are immersed in the market and fully understand the environment they are operating in, the customers they are serving and how to get things done. In some markets such as South Africa, it’s actually mandated under the regulations that a percentage of the business is owned by a local operation but whether that is stipulated in the regulations or not, I’d always recommend having a local team or partner.

Being adaptable is also a must – especially if you are working on a multi-country strategy. Africa is not a one size fits all market so operators need to use technology and software platforms that are flexible and can adapt to meet the requirements of each market. Local payment integrations, different KYC processes, specific sports, and betting markets, and stocking the right slot and casino games are all things operators need to consider and be able to deliver via the technology they use to run their sportsbooks and casinos. You don’t need to reinvent the wheel for each market, but you do need to be able to adapt and for it to be easy to do so.

Giorgi Tsutskiridze: Africa’s not a one-size-fits-all kind of market. Each country has its own vibe, so you’ve got to be adaptable. For instance, Swahili marketing campaigns might work great in Kenya, but in South Africa, you need to consider local languages like Zulu or Afrikaans. We also found that offering bonuses and free bets tied to local holidays or sports events is a great way to engage with bettors across different markets. And let’s not forget, many African bettors love football, so partnering with local teams or influencers can really give your brand a boost. It’s all about tapping into what excites the local audience and meeting their unique preferences.

Danielle Calafato: There are a lot of considerations that you need to make before entering the African market, you can’t just enter this region and hope that the strategy you have used across European or US markets will work. The audience is entirely different and requires its own unique approach.

With that in mind, you firstly need to make sure that you have close communication with local actors in the market. By working with companies that have boots-on-the-ground knowledge of the local market, you can gauge a better understanding of what does and doesn’t work for the players.

You also need to make sure that you remain flexible to changing market dynamics, for both now and in the future. If you don’t have this flexibility, you’re going to struggle to adapt to any future regulatory developments or changes in player dynamics.

Creativity and an open mind are also important; this can help you bring something new to players and, ultimately, help you stand out from the crowd.

Chuck Robinson: They need to spend time researching each market thoroughly. This includes the regulatory landscape and the frameworks in place, player preferences (what sports do players like to bet on, what are the biggest teams, etc), the availability of the internet and the cost of data and whether feature phones or smartphones dominate. They should also leverage the knowledge of local partners and fully localise their product and offering before go-live. In many ways, Africa is no different to the US in that it is made up of lots of individual regions, each requiring a slightly different bettor proposition. Most international operators are experienced in localisation, so in that regard, the approach taken in Africa won’t be much different to the other regions they target.

Chuck Robinson, CRO of BETER

What are your predictions for the region in the next two-three years?

Mateja Popovic: I think a lot of operators and suppliers are going to invest significant amounts of money at the US and LatAm only to potentially end up empty-handed. You just need to look at the number of operators that have already pulled out of the US as tough to achieve any level of scale. At the same time, emerging markets such as Africa will keep going from strength to strength because they provide a level playing field for operators and suppliers to go for the plentiful opportunities they present. Of course, the key to success here is to think globally but act locally.

Giorgi Tsutskiridze: In the next two to three years, I see Africa becoming a major player in the iGaming world. More people are getting smartphones and internet access, which means mobile gaming is going to become even more accessible; mobile betting will explode even further. Plus, I think we’ll see a lot more local operators springing up across the continent, especially in East and West Africa. Regulators will, most likely, tighten up their frameworks, but that’s going to make the market even more attractive for big international players who are looking for stability and fairness. And of course, Aviator will continue to soar because it’s perfectly suited for the fast-paced, mobile-first gaming culture that’s taking off across the continent.

Danielle Calafato: If we had a crystal ball, we would try to make a prediction! But it is always so hard to make any predictions for a market as vast as this.

If the African market continues on this positive trajectory that we’ve seen in these last few years, then I believe that we will see some huge opportunities emerge, similar to those that we have seen in South America.

However, developments in the market will all depend on regulation; if regulations are too stringent, then this is going to curb the opportunities for growth. There needs to be a balance in regulations. But I do see great potential for the African market – we can’t see what the future holds!

Chuck Robinson: I think it will continue to grow at a slow and steady pace. Momentum is building, but it’s not scaling at the same speed as, say, Latin America, especially now that Brazil is opening its doors to online sports betting and casino. But this isn’t a bad thing. As we have seen in the US, the rapid roll-out of legal online gambling can cause problems for operators, especially those looking to spend big in order to grab the largest share of the market early on.

As a result, the prevailing sentiment is for the region to grow organically. However, we are in a unique position to provide fast-paced content that is complementary to traditional events, allowing us to help operators transition traditional sports bettors to more contemporary events that are rapidly taking hold in more mature markets.

This is exactly what SportyBet has done by integrating our Setka Cup table tennis tournaments and EsportsBattle series into its offering. This means it can provide 45,000+ monthly events leading to an unrivalled betting experience that combines 24/7 streaming, real-time data and in-house traded odds that deliver the best value to its players.