Africa is home to over 1.4 billion people. With a multitude of emerging economies and a large population of residents, Africa has emerged as a major hub for international and domestic operators.
A recent SBC Webinar saw Adekunle Adenji (Managing Director, Nigerian company betBonanza) and Retief Uys (Chief Yield Officer, Sportingbet South Africa), discuss the dynamic operators need to consider when considering African expansion.
Moderator Peter Murray from Verrif’s Head of Gaming, stated that positive regulation was ‘critical” for any sector of gambling, no matter where it is located. This requires cooperation between suppliers, operators and all other stakeholders.
How does it all play out in Africa? Adenji, Uys and others agreed that the continent was on the right track to regulatory clarity, despite the challenges in some countries.
It is still not the same as the UK, but Africa’s population is increasing. Adjenji said that governments and politicians are still trying to understand what gambling really is.
Every day, efforts are made to improve regulation. Adenji acknowledged that not all decisions are made correctly, but he believes that eventually Africa’s gambling scene will be in a good direction.
He stated that he ‘couldn’t agree more’ with the arguments of his panelists. Sportingbet’s CYO noted that South Africa’s market ‘has open up’ over recent years, and that regulatory perceptions have improved.
He said that although there was still a stigma about online gambling, it has become legalized.
It feels positive that people are trying to change, but the regulators realize there’s revenue.
South African clients are typically younger than their counterparts in the 20s and 30s. While they are still keen on sports betting, Uys said that casino products are increasingly popular.
He said, “In terms sport, the brands that I have been involved with have been footbal dominant in Ghana, particularly in Ghana,” and shared his views on national customer preferences.
Casinos are a big deal in Africa. Operators should keep this in mind, diversify their portfolios, and be casino and sportsbook operators.
Adenji believes that 50% of African customers are low-value, while the rest will fall between medium and high value.
He explained, in Nigeria where he has extensive experience, that online and retail are distinct.
He said that customers can be divided into two groups – those who like to shop in stores and those who prefer shopping online. He also noted that literacy is often the key factor separating the two categories.
The webinar also covered technology and the importance personalisation and localized offerings.
Click HERE to view the entire webinar
This panel is from the SBC Summit Barcelona and will provide you with more information about African market developments.