How iGaming drives economies across continents—and key insights for Africa

Online gambling products have become the preferred choice of entertainment for millions of people worldwide. The time when individuals would physically go to casinos and betting shops is a thing of the past. You can now use your mobile device and internet connection to play slot games, bet on sports, or participate in the lottery.

According to Statista, the global online gambling market reached $85 billion in 2023. It is also creating jobs, driving technological progress, and generating tax revenue for governments. Let's now examine how various continents are taking advantage of the iGaming trend and the potential impact on Africa's economy.

Global iGaming market across key regions

Online gaming is the modern-day gold rush, transforming economies and entertainment options.

Asia and Australia/Oceania

Around a quarter of worldwide revenue comes from the area, yet its growth has been somewhat limited due to stringent regulations and differing levels of acceptance. Nevertheless, the Philippines and Macau stand out as exceptions, thanks to their booming casino sectors.

The sizable population of Asia and the rising rate of internet usage make it a crucial area for the expansion of iGaming in the future.

Australians, Kiwis and surrounding islands love their betting. Australia has one of the highest gambling expenditures per person globally, at $1,555. Online slots are the most favored product, punters play online pokies in Australia for real money on various platforms. Betting on sports is also widely preferred, especially with large sums of money being wagered on rugby, cricket, and horse racing.

Europe

Europe controls the majority of the iGaming industry, accounting for over 45 percent of the global revenue amounting to $46.6 billion. The continent has a high population of individuals who are knowledgeable in technology and a significant level of smartphone usage.

Additionally, they have an iGaming-friendly regulatory environment. For example, in the UK, there is a reputable online gambling system that provides licensed operators with a regulated yet adaptable market. Important characteristics of the European market consist of strict licensing demands, a wide variety of products, and the incorporation of innovative technologies.

North America

The continent has a significant market representing 15 percent of the global sector. In 2023, North America generated over $13.08 billion. The growth is driven by legalisation by individual states, collaborations between online and brick-and-mortar casinos, and a high interest in sports. However, the market in the US is still divided due to varying regulations in each state, but this situation is changing.

The economic impact of iGaming

The iGaming industry significantly contributes to government coffers through various forms of taxation. These include licensing fees, corporate taxes, and taxes on gross gaming revenue (GGR). In the UK alone, the online gambling industry contributed £3.4 billion in tax revenue to the government in 2023/2024.

Furthermore, the sector is a major employer, creating jobs in various sectors, including software development, customer support, marketing, and regulatory compliance. In the US, 31,981 people hold various jobs in this industry. In Malta, the sector employs about four percent of the population.

The industry can also make a significant impact on a nation's GDP and revenue from exports. Malta, Gibraltar, and the Isle of Man have established themselves as centers for iGaming, drawing in global corporations and overseas funding.

The sector is not simply utilising technology; it is propelling its advancement. The demand for secure, speedy, and interactive platforms has sparked innovations that also assist other industries. This emphasis on technology has ripple effects on other sectors, promoting wider use and creativity in technology.

As the sector expands, its economic influence is expected to increase, solidifying its importance for countries seeking success in the digital era.

iGaming in Africa

Kenya, Nigeria, and South Africa lead the growth of the $2.2 billion African iGaming sector. As mobile usage increases, African countries are adopting digital payment solutions, simplifying access to online betting sites for users.

However, despite the potential, Africa's industry faces several hurdles. One of them includes regulatory uncertainty. This creates worry for operators looking to enter the market. Additionally, issues like internet connectivity and access to reliable financial services limit the potential reach of iGaming platforms.

For Africa to fully benefit from iGaming, several factors need to be addressed. Governments need to create transparent regulatory structures that support gambling and foster industry expansion. In this way, they can draw in foreign operators and earn tax income that can be put back into local economies.

Just like in other industries, this sector has the potential to create jobs for people with different levels of expertise. Also, regulated iGaming could attract international operators leading to more tax revenue that can be reinvested into local economies.

Additionally, improving internet access and mobile payment systems, will add convenience and drive broader financial services adoption.

The economic possibilities of iGaming and Africa's future direction

iGaming has demonstrated its effectiveness as a strong economic catalyst in Europe, North America, Asia, and Australia/Oceania. Tax revenues from the industry can fund vital public services. Moreover, jobs created by the sector span tech, marketing, and customer service. Furthermore, the technological advancements propelled by iGaming have extensive implications in various other sectors.

African countries have the opportunity to access a lucrative global market, generate employment, entice investments, and foster technological creativity. Nevertheless, they need to have appropriate infrastructure, regulations, and technology. The continent can utilise iGaming to boost economic growth and establish itself as a major participant on the global stage. If you want to put your money into the future of iGaming, Africa might be the next big opportunity.