Africa – Future Center of iGaming industry
There are several reasons why the iGaming industry has set its sights on conquering Africa.
A population that has well reached into the 1 billion mark, but that is mainly considered as young with the vast majority of the African population under the 35 years mark. This gives the iGaming sector an immediate step up to compete and help young gamers take notice.
With a scenario that presents 35 of its 54 countries already entering mobile sportsbook, and with mobile payments being the most common used payment method in the continent, one can easily assume that this is a market full of potential.
Mobile penetration and iGaming
Smartphone penetration also seems to be occurring far quicker than the adoption of internet connectivity, which could also help the industry reach out and offer its diverse range of mobile games to an increasingly younger audience. For an example mobile penetration in Kenya recently reached 88.1%.
Of course, one must remember that smartphone technology adoption in Africa is somewhat behind devices used in the EU world. Tailoring state-of-the-art mobile games to devices in Africa will almost certainly be a major challenge for software developers.
The continents achieved 26.2% year-on-year growth and demand for gaming titles is increasing by the day.
Brave regulators and growing economy
Another key reason why iGaming brands are turning their attention to Africa is that its nations are growing in economic power and regulators are brave enough to keep a leash on the industry.
While much of Europe’s iGaming industry remains fragmented and the United States is only now beginning to approve of iGaming on a state-by-state basis, Africa is well-placed to welcome international iGaming brands and foster the growth of local organisations too. In fact, on the regulatory side, Africa might just have a stronger awareness of tackling issues such as money laundering and other severe links between gambling and crime than most other continents.
Forced limited access to advanced technologies
By far, the most significant obstacle for African iGaming operators concerns the financial aspect. This is mainly due to the high fees related to high-end iGaming services which are mainly associated with the European market. A scenario that not only forbids the African operators’ access to this advanced technology, but also limits their growth on the long term due to the technological limitations presented to their players.
To sum up, Africa certainly holds promise for the iGaming industry generally and affiliates specifically, but it requires a very different approach then more established iGaming markets and presents challenges that many affiliates may not have encountered before.
However, if the market takes off in the way some believe it may, those that start putting in the hard graft now may find themselves handsomely rewarded in future.