A few years ago, investors and analysts spoke of African countries as the next big growth market for iGaming. Since then, there have been changes in the regulatory landscape, and several major brands explored the possibilities. Plus, the market was nudged by a major event that forced many people to stay inside for months. So, let’s look at whether, after the regulatory shifts in recent years and the global pandemic, Africa is still the iGaming market it was a few years ago.

The revenues are growing

According to current estimates, the African iGaming market will have revenues of $1.63 billion this year, up close to 15% on last year’s total. Most of this revenue comes from online sports betting and casino gaming.

 

This year, the per-player sports betting revenues have exceeded those from online lotteries for the first time since 2017, averaging $239 in 2023. Lotteries fell slightly behind with $235.3. Sports betting revenues are expected to grow in the short term, while lottery revenues will slightly decrease in the next few years.

 

Online casino revenues are also growing across the continent. Due to the uneven regulatory landscape, regulated casino revenues are still below those from sports betting but they continue to grow. 

The biggest African iGaming markets

Nigeria and South Africa are the two biggest online gambling markets.

 

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The iGaming Industry growth in SA is limited by an outdated regulation passed in 2004. The National Gambling Amendment Act of 2008, which was meant to regulate the market, collapsed. The legislation is inadequate for the current iGaming landscape. A new regulatory framework is needed. Unfortunately, there seems to be little to no will on the part of the lawmakers for an update. The updated bill introduced in 2022 doesn’t seem to progress at all.

 

Although it doesn’t have the same regulatory hurdles and a much larger population, Nigeria is only the second-biggest iGaming market in Africa. It has a much smaller user penetration than South Africa and smaller total revenues. 

The most popular forms of gambling in Africa

Out of the three main forms of online gambling, Africans seem to prefer casino gaming, with an estimated number of 4.0 million players. Sports betting comes close with 3.4 million players, followed by online lotteries with 1.1 million. This is without accounting for the overlaps. The total number of users is expected to continue to grow in the coming years, reaching 7 million by 2027.

 

By comparison, Europe has more than 60 million online gamblers, with the number continuously growing.

 

The African (and global) iGaming market saw an unexpected boost during the pandemic, and while its growth slowed, it continues to thrive as we speak. As new markets become available, Africa will remain the biggest iGaming powerhouse.