Africa Focus
Africa Focus
THE
RISE OF AFRICAN GAMING
Emily Taylor explains how the rise of technology and appetite for a local gaming industry is fuelling the boom in igaming start-ups on the continent
African markets have shown a huge ability to adapt – and they ’ ve had to . Only recently have mobile punters in sub-Saharan Africa transitioned to 3G connections , which is predicted to account for 60 % of users by 2025 . Despite this slow uptake , technology is hugely advanced in markets across the continent , spurred on by a general distrust of state institutions and an increasing number of start-ups looking to capitalise on promising African markets .
Perhaps one of the first sectors to fully embrace this is telecommunications . Storming onto the scene in Kenya , where M-Pesa changed the game for mobile payment solutions by providing a platform that bypassed the need for internet connection through an SMS money transfer platform .
According to Bob Collymore , CEO of M-Pesa operator Safaricom , mobile sports betting has “ absolutely taken over everyone else ” in terms of volume .
After integrating the technology into their sportsbook in 2017 , Betika immediately saw a rise in repeat users on their platform .
“ The new M-Pesa payment solution allows users on our mobile , USSD and online platform to withdraw and deposit into their betting accounts without leaving the platform , a first in the betting category ,” says Betika ’ s brand manager Patricia Wachira .
“ This has led to repeat customers who have experienced a seamless user experience from deposit , searching and selecting matches and placing bets .”
Nigeria is experiencing a similar boom in mobile betting as the number of digital payment start-ups increases .
“ We added Paystack as one of our payment options without any fanfare , without announcing to our customers , and within a month it shot up to the number one most used payment option on the website ,” says Akin Alabi , founder of NairaBET .
Paystack solving the problem of fragmented payments in the Nigerian market is just one example of how African start-up culture has helped cultivate the growth of the gaming industry .
With many entrepreneurs taking inspiration from the European market , the affiliate sector has witnessed a sudden burst of new entrants onto the market .
“ The possibility for affiliate marketing is huge , but the opportunity has not yet been realised ,” says Martin Sack , group manager of online business development at Sun International .
According to Dev Karia , founding partner at Kenyan affiliate marketing site CheckiOdds , says the biggest challenge to affiliate marketing is educating African operators on the benefits . “ This
Emily Taylor joined Clarion Gaming from Aristocrat brand Product Madness and is now a conference producer specialising in both Africa and North America . She researches new business opportunities , market climate and is currently constructing the ICE Africa conference agenda .
model is tried , tested and successful in Europe ,” he says . “ The benefit of affiliate marketing is that you can prove your return on investment and engage a new generation of social media users . The opportunity [ for operators ] is huge .”
Karia says using an African start-up is beneficial to several areas of the economy , not just gambling . “ We understand the Kenyan mindset better than , say , a European competitor moving into the market .”
The surge in African SMEs , demonstrated by telecommunications and affiliate start-ups in particular , is cultivating African gaming economies specifically for African punters .
Though many suppliers are Europe-based and have deals with local sportsbooks , several operators are frustrated by the lack of customisation and adaptation of their product to the African market .
“ Technology providers think they ’ re equipped but they ’ re not ,” says one operator . “ There are tons of customisation requirements that need to be taken into consideration when applying these products into the African market that simply aren ’ t .”
There are no signs of the African start-up boom slowing down . In Uganda , 28.1 % of the population are entrepreneurs and Google has introduced its Launchpad Accelerator in a number of African markets including Ghana , Kenya , Nigeria , South Africa and Uganda – jurisdictions where the gambling market has shown huge growth and potential .
Attention from international investors , distrust of traditionally state-run industries such as banking , and a desire to source suppliers locally rather than import , all contribute to the infectious African entrepreneurial spirit .
The general market mood begs a number of questions around its potential : to what extent will blockchain take hold in the gaming sector ?
Are backend technology platforms next ? What other sectors could impact African gambling markets ? Regardless of the answers , one thing is for sure : the African start-up space is particularly interesting to watch .
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