The African continent rarely got any mention during the phase of brick-and-mortar gambling. Under those circumstances, online gambling seemed to be a far-fetched dream. That narrative is changing with time. The online gambling industry revolution in Africa involves 30% of the continent getting motivated by one or the other form of gambling. It is evident from the popularity of Springbok casino.
The pace of online gambling’s growth in Africa is phenomenal. This article identifies the factors from various industries of the economy influencing the gambling space.
Evolution of IT Landscape
The late arrival of the African continent in the online gambling space was due to the relatively slow growth of the tourism and IT industry. However, the recent development and expansion in the IT industry have made the buildup of various online gambling websites possible.
The affordability of smartphones and the launch of 4G networks across Africa are also key reasons leading to the growth of online gambling. The increased access to the Internet has led to the influx of the masses into the online gambling sector.
An unprecedented expansion in online gambling is due in the days ahead with the amalgamation of these innovations and Africa’s rising digital population. Many players are investing heavily and putting their resources strategically to prepare for the days ahead.
You can observe the changes in countries like Nigeria. The early adopters, betting on a niche, will soon become the big fishes in the shallow pond.
Increase in Financial Literacy
A regular African has accounts in various commercial banks. Most of these transactions happen using mobile-based online banking solutions. Financial institutions are rolling out these unique methods to make the services easier for the medium and low-income groups.
The increased usage of online and mobile-based financing has a widespread impact on Africa’s online gambling sector. These banking methods allow easy accessibility of money, and thus the punters can operate their betting accounts easily.
The above aspect also facilitates players to use real money to play the games on their smartphones from a convenient location. The best way to fund local gambling accounts can happen through commercial banks. The rise of printed corporations that help make payments across the country is helping to overcome the challenges of cross-border transactions.
Africa’s online gambling industry is seeing a positive contribution from the finance industry. It entails the players and investors to look forward to many secure modes of transaction, seamless payment solutions, and the far-reaching impact of the maturing finance industry.
The Boom in Gambling Marketing
The socio-economic peculiarities and the nature of this population supports the thriving online gambling market of Africa. A large population of 250 million Africans have access to smartphones and are less than 35 years of age. Marketers can tap this potential segment easily.
Legal restrictions are still in place for brick and mortar gambling in a few African countries. However, most online gambling marketers are exploiting the freedom that still lies in the online gaming space. Investors are aware of this phenomenon and are betting big on customer awareness programs.
The marketing strategies used by most operators highlight big payouts and bonuses. Higher budgets also allow investments by operators in enhancing the overall online gaming experience of the users.
Influence of the Hospitality Industry
A strong connection between the gambling and hospitality industry is present for decades. It is primarily because of the glamour and glitter which the upscale hospitality establishments help offer to the tourists.
These industries are inseparable in most of the African countries. If you observe closely, you will find a rise in the number of gambling platforms in South Africa. It gets support primarily from the thriving hospitality industry. However, online gambling is a new ball game.
Gambling resorts attract wealthy tourists, unlike online gambling platforms with a relatively varied base of clients. The figures state that gamblers in Africa are from low-income groups and are comfortable with using smartphones.
An attribute that is not currently in the picture is the imminent threat of online gambling for the hospitality industry.
There are various operators currently functioning in the African online gambling industry. The main focus of this article is to identify the impact of the major industries on online gambling and not delve deeper into the process itself.
As an investor or a player, if you want to consider a major takeaway from this phenomenon, you should keep in mind a minor change in any sector can impact the African online gambling market.
Africa is heading towards becoming a global major in the online gambling space with the growth of its IT, finance, and marketing industries. The peculiarities of its socio-economic variables and political trends will not hold back the development in the sector.