Representatives of the iGaming industry see Africa as the biggest future growth market for their business. This shouldn’t be a surprise considering the increasingly fast digitalization on the continent. In recent years, an ever-growing number of locals have purchased smartphones and connected to the internet, ensuring the constant growth of online services, including iGaming.
Two markets stand out of the crowd: Nigeria and South Africa. Let us take a look at some of the fundamental differences between the two biggest iGaming markets in Africa.
Population, standard of living, disposable income
With a population that exceeds 223 million, Nigeria is the most highly populated country in Africa and the sixth-largest in the world. Comparatively, South Africa is sixth in Africa with its 60+ million residents, and 24th in the world.
When, in turn, we look at the average income of individuals, South Africa is second only to Morocco. Nigeria, in turn, is 7th, with less than half its average salary compared to South Africa. This, in turn, means that, in general, South Africans have more disposable income than their Nigerian counterparts.
For a large number of Nigerians, sports betting represents a means of generating some extra income. This is perhaps the reason why a larger number of Nigerians participate in gambling (78% of the population, compared to South Africa’s 74%).
Regulations
The gambling regulations in Nigeria and South Africa are comparable, with a few notable differences.
Remote gambling firms need to obtain a permit to promote and operate their services in Nigeria. The regulation covers casino games, bingo, poker, betting, and slot machines. The Nigerian regulator – the National Lottery Regulatory Commission – also maintains a blacklist that has been a source of some controversy a few years ago.
South Africa’s remote gambling regulation lacks provisions for online casinos, a situation the operators hope will be rectified by a proposed new law. As per onlinegamblingsa.co.za, online gambling is now more popular in the country than lottery. Some betting operators have sections containing casino games but there are no dedicated online casinos available to local players. Well, at least not legally – they operate in a legal grey zone at best.
Gambling habits
The gambling habits of South Africans and Nigerians are surprisingly similar. According to the results of a recent survey cited by Business Insider Africa, more than 70% of the population both in Nigeria and South Africa gamble at least occasionally, prefer sports betting, and bet on soccer. South Africans prefer casino games and lotteries, while Nigerians dedicate almost their entire gambling time (and funds) to betting on sports. Although the average income is lower here, Nigerians usually spend more on gambling than their South African counterparts – and have more high-rollers as well, spending more than $1,000 a month on this habit.
Although the two countries are different in many aspects, South Africa and Nigeria have surprisingly similar gambling markets. While the tastes of the players are different in some aspects, they like pretty much the same things – betting on sports, especially football.
South Africa’s gambling laws are waiting for a long-overdue update, pulling online casinos out of the legal grey zone.
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