Africa’s Growing Casino & Betting Industry

hoaict - Sep 20, 2022


Africa’s Growing Casino & Betting Industry

For many years, gaming establishments and cyber cafes have shaped the African gaming experience. In 2022, smartphones are quickly becoming the dominant communications tool and also a prefered gaming platform. A sizable proportion of African gamers prefer the flexibility and convenience of playing in online casinos. In the last five years, the number of gamers in Africa has more than doubled, and more are jumping on board.

Congo and Ghana are two of the more recent countries to enter the online gaming market. Contrary to expectations, both countries are rapidly growing and are expected to be among the largest betting markets in Africa within the next five years.

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The Unmistakable Growth Signs

Various indicators reveal that Africa's iGaming industry is on the rise. The frequency with which new brands are being launched is a key indicator of Congo's thriving market. Several operators are scrambling to adapt their gaming platforms to the unique Congo market. They are primarily engaged in research and development to create localized platforms for each market. The eventual goal is to build seamless platforms to facilitate local preferences in games, payment methods, and connectivity.

In addition to local players, reputable foreign companies are investing in the market. This investment demonstrates the market's potential for growth. The Congo's legal frameworks allow foreign firms to enter the market by investing in a local operator. This relative ease of entry into the market has already seen growth of local operator Paridirect.com.

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The investor Veli.Services brings a wealth of experience, in addition to capital investment. Veli.Services’ partnership with PariDirect has seen impressive growth of the sportsbook platform in Congo. The deal made Veli.Services the majority shareholder in the local sportsbook and casino platform in exchange for their experience managing iGaming platforms.

A global investor committing a significant portion of its resources to an African gambling platform demonstrates the host country's growth potential. This growth indicator is quickly becoming common in the majority of other African countries.

Growth of Ghana’s iGaming Industry

Ghana's iGaming market is very similar to that of Congo. Ghana, like Congo, is not considered to be among the mature gaming markets of the world. Its growth trends indicate a possible impending period of intense growth. Ghana's gambling market was worth only US$18 million in 2018, but it is expected to grow to US$33 million by 2025. Ghana anticipates annual revenues from console gaming of US$9.3 million by 2023.

Ghana is following Congo's lead in the iGaming market. The growing popularity of online gambling has attracted a number of investors whose primary goal is to profit from the expanding market. Leti Arts, one of the continent's most active video game studios, is based in Ghana. The Accra-based games developer has a well-deserved reputation for excellence in its field. It was named one of the top ten most exciting gaming startups in Africa to watch in 2017. Its vision and leadership are attracting international attention. It is one of many gaming companies that are contributing to the growth of Ghana's iGaming industry.

The legality of gaming operations has drawn a number of other companies to Ghana's gambling market. Ghana's legal system is liberal and relatively unregulated. Its leniency has assisted in the establishment and success of over 20 sportsbooks. In Ghana, the number of virtual sports and live betting companies is growing. International gaming operators, much like in Congo, are flocking to the country to capitalize on the potential market.

The increased gambling interest is also one of the factors driving the growth of Ghana's casino and betting industry. An estimated 45 percent of the adult population in the country has gambled at least once in their lives. Ghana's net gaming revenue is estimated to be around US$3.5 million. Ghana's NGR, like that of most other African countries, is expected to rise in the near future.

The Internet Factor

Internet connectivity continues to be the driving force behind Africa's iGaming industry's protracted lag. Until recently, most African countries had poor high speed internet access. However, the introduction of faster internet, particularly 5G networks, has improved nearly every aspect of Africa's iGaming industry. More players are getting faster and cheaper access to a plethora of betting sites. Because the continent's fast internet has not reached saturation, the gambling market still has a lot of room for growth.

Casual mobile gaming is becoming more popular in Ghana as internet access improves. HTML5 technology has been particularly useful in revolutionizing the online experience. Players in the country appreciate its amenities, particularly the instant pick-and-play appeal. Ghana, like its neighbor Congo, has strong indicators of growth in the gambling sector. The growth's ripple effect is spreading across Africa. The casino and betting industry’s future on the continent is extremely promising.

Final Thoughts

Ghana and Congo are only two examples of the growth potential for iGaming in Africa. The whole continent is ripe for growth in iGaming and many other high tech sectors. The decreasing cost of high speed internet coupled with a young population means big potential for growth. iGaming is the bleeding edge of this potential but will only be the beginning.

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