There has been a distinct shortage of good news in the finance pages across the globe over the past year. The continuing growth of the iGaming market is therefore a rare beacon of light in otherwise dark times, and Nigeria is one of the key growth markets. In 2021, global revenue from iGaming was in excess of $55 billion, a figure that is consistently growing at a CAGR of more than 11 percent. Developing markets like Nigeria are core to that growth.
Increasing regulation
Nigerian regulators have been proactive in promoting responsible controlled growth in iGaming. It’s an approach from which other markets could learn valuable lessons – on which, more in a moment. Regulation is on a state-by-state basis, a little like the situation in the US. The Lagos State Lotteries Board (LSLB) is one of Nigeria’s key regulators and has led the way. Since 2017, it has issued more than 40 licenses to gambling operators, including some of the biggest global brands.
Other Nigerian states have been quick to see the benefits of regulation. It helps promote consumer safety, while also generating valuable income for the public good. Licensing bodies in states like Edo are therefore following the Lagos model.
Better infrastructure and reach
As long ago as April 2016, PwC identified Nigeria’s potential as a massive iGaming market just waiting to happen. Back then, smartphone penetration stood at about 17 percent of the adult population. This year, it is up around 37 percent, and by 2028, it is expected to hit 50 percent.
The arrival of cheaper handsets and, in particular, the 5G rollout make it easier for more of Nigeria to be online. Critically, that includes the core iGaming market of Nigeria’s new young and affluent middle class. iGaming critics often express concern that online betting attracts those who cannot afford it and plunges them into debt. Yes, such people exist, and regulators are right to be concerned about protecting them. But they only represent a small minority of gamblers in Nigeria.
Other emerging markets
It’s not just Nigeria that is seeing a sharp rise in iGaming. The Australian love for a wager is the stuff of legends. It’s more than just a movie cliche – Australians spend more per capita than any other nation on gambling. The amount wagered online increased by almost 50% in 2021. Crypto-focused platforms like PlayAmo Australia are most popular due to Australian regulators’ unwelcoming stance against the iGaming market.
Canada is another good example of a nation that is seeing massive growth in iGaming. Until a few months ago, Canada took the same approach as Australia and had a flat ban on online casinos. That all began to change earlier this year when the province of Ontario discovered just how much its residents were gambling offshore. In April 2022, it opened up a regulated market in which it has now issued more than 40 licenses to two dozen betting companies. Ontarians wagered about $10 billion with them in the first six months of operation.
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