Open a Gambling Platform in Africa with Proficient Support from 2WinPower

The web gambling sphere has touched all continents in the world and affected different layers of society. While it has developed into a giant industry in Europe, Asia, and America, such regions as Africa are experiencing particular attention from managers in recent years. The possibilities to start a lucrative business in the sector attracts new and accomplished entrepreneurs.

2WinPower wants to introduce a complex guide to help such aspirants find their place in the African web gambling environment. A detailed breakdown of the operational regions as well as the main advantages of casino and sportsbook entertainment will help you opt for the right destination.

Contact our company for an elaborated turnkey casino solution and order a complete business setup from scratch.

The Crucial Points of Potential in the African Sector

Anytime a new business is launched, the clients are the key aspect to keep in mind. The population growth rate of the African region is enormous in comparison to Europe. Additionally, it is more than twice as higher as in Asia and three times more than in Latin America:

• Africa — 2.7%;
• Oceania — 1.3%;
• Asia — 1.2%;
• Latin America — 0.9%;
• North America — 0.77%;
• Europe — 0.06%.

The increasing number of customers is significant for the iGaming business. For a lot of entrepreneurs, it has played a key factor in finding the right audience in the long term. Moreover, this rate is only estimated to be increasing in the few next decades.

The next crucial fact for the online gambling industry is the usage of mobile phones and the Internet. The technology spread in the rural area of Africa is growing.

Targeting potential gamblers becomes easier and more diverse considering the numbers:

Experts predict that by 2025, almost half a billion Africans will have access to global web technologies through their phones. Also, operators should keep in mind that the majority of the locals use low-performance smartphones. Therefore, the technical characteristics of online casinos should comply with the level of devices in the region.

The numbers are also appealing from the GGR perspective. Even though by 2020, the gross gaming revenue value of Africa was only 1% (in comparison to Asia — 34% and North America — 31%), it is steadily growing.

The most contributing states in the region are:

• South Africa — 48%;
• Morocco — 9%;
• Nigeria — 7%;
• Kenya — 4%;
• Egypt — 3%;
• Ghana — 1%.

The GGR of the gambling sphere (web and ground) across all African countries equalled $4 billion at the end of 2020. The value experienced a slight fall in comparison to 2019 due to obvious Coronavirus reasons. However, by 2025, the industry revenue is predicted to reach $6 billion.

2WinPower closely monitors the situation across the region and adjusts its solutions to the constantly changing gambling situation. Order the elaboration of a business plan at our company to ensure the operational environment is analysed thoroughly by the experts.

Most Impactful iGaming Markets in Africa

Some states in the region are more advanced than others in terms of the demand for entertainment. So, operators need to keep in mind the key properties of each destination before building their online casinos here.

The Republic of South Africa

In terms of population, the state has a balanced distribution of men (48.6%) and women (51.4%). Such division is integral when planning the contents of the online casino to match the expectation of both genders. The same situation is with age.

The most critical groups for an operator are:

• 15–24 y. o. — 17.25% of the total population;
• 25–54 y. o. — 42.05% of the total population.

Of course, underage gambling is a huge problem in all countries. So, these numbers indicate the importance of integrating reliable age verification systems.

Online casino managers can not receive a licence in the country yet. So, they target the local audience from abroad. Sportsbook sites can receive provincial licences for legal operation.

The taxation system of each subregion is different, but the charges of the top three popular gaming commissions are:

According to South Africa’s National Gambling Board, the GGR of the region equalled $1.9 billion by 2019.

The distribution of total demand on online entertainment implies the popularity by:

• web casinos — 40%;
• sports betting — 24%;
• lottery — 10%
• bingo — 6%;
• other — 9%.

Players in the RSA prefer different payment opportunities in the gambling websites they visit.

The most popular gateways in the region are:

• credit cards;
• bank transfers (EasyEFT, SD);
• electronic wallets (Skrill, Neteller).

Nigeria

The age distribution also preserves general equality in the country (49.2% women and 50.8% men). With more than half (52%) of the state’s population living in the city, iGaming operators can expect a highly developed audience with sufficient technological support.

The two main age groups are divided as:

• 15–24 y. o. — 20.25% of the total population;
• 25–54 y. o. — 30.05% of the total population.

The key target audience percentage is a third lower than in the RSA while the risk-class is higher. Operators should keep in mind these numbers to assume measures and avoid any possible misunderstandings with the government.

The legal power of online gambling is focused within two authoritative bodies:

1. The National Lottery Regulatory Commission is responsible for web casinos.
2. Lagos State Lottery Board is accountable for public online lottery and bookmakers’ activities.

The charges for receiving the local operational permits are divided into two major groups:

1. Betting. The cost of application and processing expenses make up a total of $4,870. A registering brand has to bear a minimum share capital of $73,000 and a bank guarantee of $61,000.
2. Mobile gaming. The cost of application and processing expenses add up to the same $4,870. The actual licence fee is $12,200.

The official National Lottery Regulatory Commission resource indicates that for mobile gaming, the monthly tax is 5% of gross revenue. Online bookmakers’ have to pay 3% of the total income. Also, every bet is subjected to an additional 5% VAT tax regardless of the business type.

Nigeria is one of the biggest consumers of online sportsbook services:

• web casinos — 14%;
• sports betting — 55%;
• lottery — 28%;
• other — 3%.

The diversity of Nigerian deposit/withdrawal solutions is big. So, the locals tend to resort to these services:

• credit cards;
• mobile payments (MTN, OPay, Glo);
• ATMs;
• bank transfers;
• through agents.

Kenya

The distribution of the local population in the country is merely equal (men — 49.3%, women — 50.7%).

The two age group have similar rates as in Nigeria:

• 15–24 y. o. — 20.45% of the total population;
• 25–54 y. o. — 33.75%.

The legal regulation in the country is conducted by the Betting Control and Licensing Board. It does not consider the possibility to receive a local casino permit. So, operators target Kenya from offshore jurisdictions. Meanwhile, betting possibilities are also not regulated online: only ground wagering facilities can be registered on the premises of the country.

Regulation and licensing of the sphere are conducted on the national level. The commission Control Board is accountable for introducing new policies, overviewing the market situation, and issuing working permits.

As for 2020, the gross gaming revenue of Kenya equalled $40 million. It is also a popular gambling destination with the youngest age of players in Africa.

The demand for entertainment is distributed as follows:

• internet casinos — 20%;
• sports betting — 70%;
• lottery — 8%;
• other — 2%.

The most widely used method of payment is the M-Pesa system. Punters all over the country utilise this mobile-based transaction service to replenish their accounts with new deposits.

Other Popular African iGaming Destinations

The RSA, Nigeria, and Kenya may be the three states with the biggest demand for online entertainment. However, others also have certain peculiarities that might be of great interest to some operators. 2WinPower experts want to introduce these properties to you.

First of all, the classification of potential players:

Ghana

Population distribution

49.3%

50.7%

Age structure
(15–24/25–54)

18.64% / 34.27%

Urban residents

56.7%

Tanzania

Population distribution

50%

50%

Age structure
(15–24/25–54)

20.39% / 30.31%

Urban residents

35.2%

Uganda

Population distribution

50.5%

49.5%

Age structure
(15–24/25–54)

20.25% / 26.24%

Urban residents

25%

The regulation characteristics of other popular African gambling destinations:

Ghana

Authoritative body Ghana Gaming Commission

Web casino licensing Local

Sports betting licensing Local

Tanzania

Authoritative body Gaming Board of Tanzania

Web casino licensing Local

Sports betting licensing Local

Uganda

Authoritative body National Gaming Board

Web casino licensing Offshore

Sports betting licensing Local

The cost of licensing services is also integral information for beginning iGaming managers:

Ghana

Casino

Application price $ 50,000

Licensing grant $ 2.5M

Annual renewal $ 25,000

Betting

Application price $ 40,000

Licensing grant $ 2M

Annual renewal $ 20,000

Tanzania

Local

Application price —

Licensing grant $ 300,000

Annual renewal —

Foreign

Application price —

Licensing grant $ 500,000

Annual renewal —

Uganda

Casino

Application price $ 13,770

Licensing grant $ 137,700

Annual renewal $ 4,200

Betting

Application price $ 5,500

Licensing grant $ 137,700

Annual renewal $ 2,750

Taxation peculiarities are similar among the countries, yet it is essential to be aware of the distinctions:

• Ghana: 17.5% for web casinos and sportsbooks;
• Tanzania: 25% (10% in prospect);
• Uganda: 20%.

Additional taxes are laid on bettors’ winnings in Tanzania (20%) and Uganda (15%).

The demand for popular iGaming entertainment is distributed in these countries as follows:

Ghana

Online casino — 74% Other — 12.6% Sports betting — 12% Lottery — 1.4%

Tanzania

Online casino and betting sites share the market.

Uganda

Sports betting — 45% Other — 30% Online casino — 23% Lottery — 2%

Finally, the payment opportunities in countries are common to the African business market. The residents tend to utilise these transaction services:

• Ghana: Airtel, SpeedPay, Ecobank;
• Tanzania: Airtel;
• Uganda: Airtel, Neteller, Skrill, bank cards.

The African iGaming market is a fast-developing environment with different approaches to gambling regulations. The average operating cost is not high. In combination with increased population density, the region turns out to be lucrative for casino and betting managers.

Moreover, since you can obtain a licence in this destination at such professional guide companies as 2WinPower, the organisational process becomes easy. Order our finest registration solutions and become a reputable brand amidst the local environment.

Possible Challenges for Beginning Managers

Several undeniable advantages cover the obstacles while running a web casino or a sportsbook site in Africa.

It is beneficial to enter the market due to:

• an expanding number of middle-class inhabitants and constantly growing population in general;
• foreign contributions to local telecommunication sphere aimed at increasing internet coverage;
• healthy and weak competition because of the young emergence of the market.

However, an operator should be aware of the main challenges that can prevent him from receiving maximum benefit from the business.

Top three obstacles in managing an iGaming project in Africa:

1. Players’ trust. The locals have recently received easy access to high technologies. Therefore, some of them need time to adapt to modern trends. A wise operator should consider an unobtrusive call for action when working with such audiences.
2. Inconsistency of the legislation. Another possible issue that may catch managers by surprise is shifting regulation. The local authorities try to find the golden medium to satisfy gambling owners and receive treasury replenishments. So, an operator must keep an eye on the local legislation and be ready for changes.
3. Internet availability. There are no problems with access to the global Web in big cities. But rural areas still suffer from a slow internet connection and regular disruptions. Operators can hardly influence this problem, so it should be just taken for granted.

Selecting the Type of the Business — Casino or Sportsbook

The iGaming sphere in the African region develops in two major directions. While lotteries are also popular in certain countries, online casino and sportsbook sites are the most demanding on the entire continent.

2WinPower wants to sum up the main advantages of the two areas for you to make a choice according to the business preferences.

Online Casino

The main advantages of starting a gaming website in the African region are:

• no need to rely on the consistency of any real-life events;
• weaker competition and more opportunities of becoming a recognisable brand;
• the constant growth of population and potential audience.

At the same time, there are still a few drawbacks to consider:

• not all countries support gaming regulation;
• casino content requires regular update and additional expenses;
• modern slots may need better technological capabilities unable to be achieved in the region.

Sports Betting

Core advantages of running a bookmaker’s site in African countries:

• understandable legislation;
• availability of almost all destinations in the region;
• no need to have advanced gadgets to participate in events.

Operators should still be aware of these disadvantages while dealing with the industry:

• more competitors operate on the African market;
• such unpredictable events as Coronavirus can limit the number of real events;
• world-popular sports may be of less popularity in certain states.

The Main Things about Setting Up an iGaming Portal in Africa

The consideration of all pros and cons as well as properties of the local gambling business simplify the organisational process. The data about the population, legislation, weak and strong sides of each country facilitates the advantageous setup of the project.

2WinPower specialists monitor the iGaming market of the African region 24/7 and keep its clients alert about the slightest changes in the industry.

Beginning operators are especially recommended to remember these notions:

• It is a large and fast-growing web gambling sector with constantly increasing digitalisation rates among the population.
• The biggest iGaming areas in the region are South Africa (48% of GGR), Morocco (9%), Nigeria (7%).
• The market of the RSA is mainly focused on online casino entertainment (40%) but sportsbook wagering is still significantly developed (24%).
• Nigerian iGaming sector is on the contrary more focused on bookmakers’ sites (55%) rather than online casinos (14%).
• Other popular web gambling destinations include Kenya, Ghana, Tanzania, and Uganda.
• Players’ trust, inconsistent legislation, and problematic internet access are the major obstacles that managers have to deal with while working in the African region.
• The selection of the type of web gambling entrepreneurship depends on the main advantages and disadvantages of online casino and sportsbook directions.

The ability to speed up the organisation of the web gaming business is possible thanks to professional aggregator companies. 2WinPower has already helped dozens of managers found lucrative gambling environments in RSA, Nigeria, etc.

Our selection of software products considers the peculiarities of each country, and the leasing opportunities (White Label or franchising) allow operators with low budgets to start small. Moreover, there is also a possibility to request a Bitcoin platform development. In combination with our reliable protective systems, such a portal becomes completely impenetrable for hackers and scammers.

Order our finest gambling solutions and set up a profitable online casino or a sportsbook site on the territory of Africa.

Reach us out for additional details via:

• Skype: twowinpower
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• e-mail: [email protected]
• the feedback form.