Africa is emerging as a significant player in the online gambling industry, but it is far from being an uncharted market. Unlike Brazil and certain parts of Latin America, which have only recently opened up to legal gambling, Africa has seen established operators like Super Group's Betway enter the fray since the early 2000s.
As interest in Africa's online gambling sector rises, several longstanding brands that have laid the groundwork in the continent's primary markets are reaping the benefits. These operators are successfully engaging a predominantly young male demographic that has increasingly gained access to mobile internet.
Prominent operators and countries have gained an edge through practical regulatory frameworks and established land-based gaming infrastructures, allowing them to lead in market share and overall growth.
Currently, South Africa stands as the largest online gambling market on the continent. According to H2 Gambling Capital, the gross win for 2025 is projected to exceed $5.2 billion (£3.9 billion), making it nearly five times larger than Nigeria, Africa's second-largest market at $1.6 billion. Online gambling has significantly contributed to this figure, accounting for 63% of South Africa's total gross win at approximately $3.26 billion.
In the global ranking, South Africa is positioned 22nd, trailing Romania, which is projected to reach a gross win of $5.56 billion in 2025. Expectations are high for continued growth in this region, with H2 estimating the online market could approach $5.9 billion by 2030.
Despite the clear opportunities for operators, challenges loom large, as noted by Peter Kesitilwe, CEO of the African iGaming Alliance (AIA). He highlights the difficulties posed by over-regulation by policymakers as a significant risk, noting that such measures can push consumers toward unregulated offshore options.
Founded in 2025, the AIA aims to foster collaboration among regulators and operators across Africa to address pressing issues such as the presence of a growing black market and gambling addiction.
Olabimpe Akingba, a board member of AIA and responsible gaming lead at sportsbook technology firm pawaTech, underscores how rising taxes are fueling black market activity. She emphasizes the impact of withholding taxes on players, suggesting that such measures disproportionately benefit unlicensed operators.
In South Africa, while regulators can curb illegal operators, counterparts in Tanzania lack the same capabilities. Kesitilwe advocates for better cooperation among regulators to adopt effective measures suited to their markets.
In the competitive South African environment, Super Group's Betway Africa and HollywoodBets are vying for dominance in online market share. Betway Africa, which launched in the continent in 2006, has reported significant revenue growth, hitting $267 million in Q1 2023, a 33% uptick from the previous year. The company credits its success to partnerships with Premier League teams like Manchester City and Arsenal.
According to Alinda van Wyk, group CFO of Super Group, the association with football has afforded their brand a competitive advantage, as 94% of revenue linked to Betway comes from football. She states, "We associated football with Betway through all these magnificent sponsorships."
The company has concentrated its efforts in Africa, recently stepping back from underperforming markets in the US and Europe. Awareness amongst elementary brands entering the African market is favored by capitalizing on existing brand recognition from mature markets. Virgin Bet, for example, made its debut in South Africa in March 2023, representing its first venture outside the UK, underpinned by its familiarity with local markets.
Gail Odgers, Virgin Bet's South Africa general manager, explains that establishing trust and recognition was pivotal to their strategy. With local market knowledge and a clear regulatory framework, the company is optimistic about its new opportunity.
Kenya exemplifies advancements in mobile gambling, especially with M-Pesa, which dominates the nation’s mobile money market, facilitating licensed operators’ transactions. Ed Birkin, managing director of H2 Gambling Capital, notes that M-Pesa is utilized for 70% to 90% of Kenya's online betting payments, creating a competitive edge for licensed operators.
However, the Kenyan market has also seen regulatory challenges. Tax alterations and advertising bans have hampered operators, but the industry has recently transitioned to the Gambling Control Act 2025, overseen by the new Gambling Regulatory Authority. John Mutua, CEO of the Association of Gaming Operators Kenya, views the new licensing structure as a significant upgrade for operational standards.
As regulatory stability grows, it has attracted interests from companies like Super Group, which are eyeing Kenya as a potential market for expansion. Van Wyk states that the recent tax reforms are now more favorable for operators, indicating a pathway for future investment.
Ghana has started to emerge among Africa's gambling markets, ranking within Super Group’s top three regions. Kesitilwe identifies Ghana as an appealing investment area, benefitting from political stability and efforts to enhance regulatory maturity. The country’s online gross win is forecasted at $903.5 million for 2025, reflecting its growing market reputation.
Despite ongoing challenges, the combined gross win for South Africa, Nigeria, Kenya, and Ghana positions these markets alongside countries like the Netherlands and Mexico. The shift toward stable regulations and enhanced stakeholder cooperation is further increasing their appeal. Localizing content remains crucial to success in Africa's diverse cultural landscape, as operators must be cautious to avoid a one-size-fits-all strategy.
For those that navigate these complexities effectively, the potential rewards in Africa's expanding digital economies present a promising long-term prospect in the gambling industry.
