More and more gambling companies are opening businesses in Africa. There are millions of sports betting and casino fans on this continent. There is no doubt that the gambling industry in the African region will only grow in the near future, and experts predict that it will almost double by 2030.
Read this article in Ukrainian too.
Segmentation of the African gambling market
The African gambling business is segmented by gambling products, type of service delivery channels, and regions.
The market is divided into the following segments by gambling products:
- sports betting with fixed odds;
- bets on dog racing and horse racing;
- live bets;
- exchange rates;
- spread bets;
2. Casino games:
- slot machines;
- four-card poker;
- three-card poker;
In terms of service delivery channels, the African market is segmented into:
By region, the African market is segmented into the following key geos:
- South Africa;
- the rest of Africa.
The market growth prospects until 2030
According to Astute Analytica, the African gambling market was worth $3,048.05 million in 2021. It is expected to grow to $5,637.37 million by 2030, driven by a compound annual growth rate (CAGR) of 6.99% during the entire analyzed period.
Prognosis based on the market segments
In 2021, offline gambling still occupied the highest share of the gambling market. This segment attributes for 90% of the market. The online segment is expected to grow at the highest rate over the next eight years, with an average annual increase of at least 8.59%. Considering the popularity of gambling apps in Africa and the steadily growing spread of smart devices and online gambling, the market will get many prospects for transformation.
Casinos have the highest market share in terms of product type. The volume of the casino games segment is estimated at $1972.23 million in 2021, and it is projected to grow to $3431.58 million by 2030.
The most promising region in the African market is South Africa. It is the gambling paradise of the African continent, which owns 79.4% of the market. In 202, the gambling industry of the country was valued at $2,420.08 million, and it is expected to grow to $4,504.82 million by 2030.
African gambling market development factors
Africa has the largest number of young people. People under 25 make up almost 60% of the continent’s total population. Moreover, African youth shows a huge interest in gambling and betting. According to the 2019 GeoPoll, about 54% of Sub-Saharan Africans aged 17-35 are sports bettors. Kenya has the largest proportion of young people who are fond of sports betting – 74%.
The smartphone use is also steadily growing in the region. Africa is expected to experience high player interest in online casinos and gambling during the projected period.
The expected growth in the popularity of casinos is due to the fact that various African countries are increasingly allowing commercial gambling at the legislative level. The lifting of the gambling ban is dictated by the fact that the industry is considered an important tool for economic development, solving problems with employment, etc.
If we talk about the rapid development of the South African region, the main growth factor here was that the population participated in gambling entertainment at a high level. On top of that, South Africa and Kenya are the first states in the region to launch 5G Internet services, which will open up even more opportunities for online gambling in the coming years.
The impact of COVID-19 on the state and prospects of the industry
The COVID-19 outbreak has taken its toll on the offline gambling business. The restrictions imposed by the government forced operators to close the doors of the casinos to guests, as well as suspend the operation of lottery and betting shops.
Due to the forced closure, many gambling companies were left without income. Even after the gradual reopening, establishments had to adhere to restrictions regarding the number of guests, which did not allow the operation to run at full capacity.
It is also interesting that the pandemic has pushed players to spend more time on online entertainment. This made it possible to expand the online segment of the gambling business. Playing from home has become the new normal for gamers not only in Africa but around the globe.
The market competition
The competition in the African gambling market is quite high. Several large companies are already working on it. They set the trend for the development of the entire industry and, in fact, divide the entire industry among themselves.
Let's take a closer look at some of the key companies in the African market.
Area of activity in Africa
Sun International ltd.
Engaged in the entertainment and recreation sector. The firm specializes in gambling, hospitality, and entertainment, it owns almost 42.5% of the casino business in South Africa.
Phumelela Gaming and Leisure Limited
Maintains a strong position in seven of the nine provinces of South Africa. Controls horse racing and sweepstakes throughout the Western Cape.
The Northern Cape Gambling Board (NCGB)
Engaged in legal gambling in Africa, mainly throughout the Northern Cape.
Peermont Global Pty. ltd.
It is engaged in the hotel and resort business and offers users casinos, conference centers, bars, retail outlets, restaurants, and other sports and entertainment facilities. The firm has gained significant popularity in the tourism and leisure industry, maintaining a strong geographic approach with its 12 properties opened in Botswana and South Africa.
A well-known group of hotels, games, and entertainment centers based in South Africa. Tsogo Sun Gaming supports the National Responsible Gaming Program to allow people aged 18 and over to play. Moreover, all Tsogo Sun casinos have a reliable license.
Africa is the only region in the world where the percentage of young people is growing every year. And these young people are interested in modern technologies, gambling, and non-standard entertainment. Thanks to this, the gambling industry, in particular its online segment, is developing at a rapid pace in this region. The only thing that complicates the development of iGaming in Africa is the regional bureaucracy. However, companies will adapt to the legislative peculiarities of the region quicker every year, increasing the potential of Africa as one of the most promising markets for the development of the gambling and betting industry in the world.
Source: Read Full Article