What Are the Factors Driving Africa's iGaming Growth
The global iGaming industry has been on the rise in recent years, and that trend hasn't skipped Africa. It is a lucrative region for further development of this industry, including eSports, gambling, and video gaming.
International companies have also recognized the African iGaming sector's potential and entered the stage. Several factors contribute to the African gambling market growth, and we are going to analyze them in this article.
The Rise of Online Casinos in Kenya
Although gambling has always been popular in Africa, we can witness a skyrocketing growth of online casinos and sportsbooks in Kenya and several other countries.
Many big names in the gambling industry spotted vast opportunities in the Kenyan market and started accepting players from Kenya. The Kenyan online casino market is one of the biggest in Africa, and it has been regulated by the authorities.
Players can enjoy different casino games at the best casino sites in Kenya and in a safe environment. If you want to visit the best online casinos in Kenya, check what makes them stand out.
They can provide you with a top-notch gaming experience and high-quality games from the most reputable software developers. Of course, that wouldn't be possible without several factors that impacted the growth of the gambling sector.
Major Factors of Africa's iGaming Market Growth and Development
The African iGaming industry enjoys more popularity than ever due to several factors that catalyzed its growth. Africa has become a very attractive region for iGaming activities, and an increased number of international companies entering the market has witnessed that trend. Some of the main reasons why the African iGaming scene has developed rapidly are:
- Technological advancements
- Regulatory actions
- Demographic factors
- The region's economic growth
When these factors are combined, they create a perfect climate for iGaming penetration. This trend is likely to be continued, and the African iGaming market should enjoy steady growth over the next years. Let's take a deeper dive into each of the factors that contribute to the African iGaming sector flourishing.
The Impact of Technology on the Market Transformation
Tech improvements propelled several industries, and iGaming is one of them. A digital revolution massively changed the market, and the African region is one of the most impacted by these changes.
New technologies have become more affordable and accessible, while the region has also experienced increased investment in emerging technology.
The penetration of smartphones influenced the growth of the iGaming sector since players can enjoy their favorite games on their mobile devices. The number of smartphone users in Africa is rapidly growing, and mobile games and casino sites are more accessible than ever.
Yearly increase of smartphone users in Africa will be measured in millions in the upcoming period. Therefore, the number of players will also significantly increase thanks to better accessibility.
However, this growth wouldn't be possible without improvements in the network infrastructure. Nowadays, most African countries are on 4G, while some of them, like South Africa, have already rolled out the Fifth Generation.
Internet connection is now much faster and more stable, which contributes to a better gaming experience. The iGaming industry has vastly benefited from these improvements, and it can only continue growing thanks to these developments.
Besides tech advancements, the steep growth of the African iGaming market couldn't be possible without the regulatory framework. Depending on the gambling legislation status, African countries can be divided into three major categories:
- Countries with a regulated market
- States without regulated market
- Countries where all gambling activities are illegal
States from the first category have regulated markets and have enjoyed significant investments in the iGaming industry. Consequently, tax revenue has increased, and those funds can be used for other sectors that need investments.
South Africa was the first country that legalized gambling, and its positive experiences inspired others to allow gambling within their borders. Therefore, iGaming bloomed in Nigeria, Kenya, Ghana, Tanzania, and Uganda.
These countries have prevented offshore companies from taking all the benefits from online casino activities and have increased the revenue thanks to gambling taxes.
The Demographic Characteristics
Africa is a rare region in the world where the youth population has increased. That is a very positive factor for many industries, including iGaming. According to many expectations, the African youth population will increase by 50% in the next two decades. That trend sets a platform for the continuous growth of the iGaming industry.
The youth population is the primary audience of the iGaming sector since this generation embraces new technologies very quickly. Besides that, young people are always in pursuit of fun and interactive content, and the gambling industry can provide it.
Besides the growing audience, many casino software developers started operating their businesses in Africa. The expansion of the African iGaming market saw them switching to full-time roles.
Moreover, thanks to an increased number of companies on the market, this industry has secured many jobs for people.
Current Status in the Gaming Industry in Africa?
Three countries dominate the African iGaming scene – South Africa, Kenya, and Nigeria. The gambling and eSports markets are steadily growing, and mobile gaming has been booming over the past few years.
We have already mentioned that high-speed connectivity, better coverage, and increased accessibility of smartphones contributed to that trend. Players can enjoy many casino sites since they accept African players.
Africans are huge fans of sports and casino games. Therefore, they generate big revenue from gambling activities through taxes. Some countries that still haven't legalized gambling activities started preparing conditions for a regulated playground.
They have realized the benefits that the iGaming industry can bring to the country's economy.
What Can We Expect in The Future?
Many estimates say that the future of the African iGaming market is bright. It should attract more online casinos and game developers, while the network infrastructure and other tech improvements will additionally accelerate its growth.
Several countries have set the rules at the iGaming playground, and that structure attracts many big names from the industry.
On the other hand, those states that still haven't regulated the industry started considering legalizing gambling activities. That will help to expand the market even more.
Eventually, the demographic trends will bring benefits to the iGaming sector. Young generations will be more involved in gaming activities, and the industry will have more consumers.
The growth of the African iGaming industry is an irreversible process. Several factors have contributed to those developments, and they will bring many benefits to all the participants.
Players can enjoy a safe and regulated playing environment, companies will have more commercial opportunities, and economies will collect more revenue from taxes.
Therefore, Africa will remain one of the world's most prosperous regions for the casino industry development.