While online gambling has been having a field day in first-world countries, it has not fully permeated the unexploited African continent. Unbeknownst to aspiring investors in this niche, the African continent packs lots of potentials. There are countries whose tech adoption, internet penetration, and awareness of online gambling matters would make investors scramble for a piece of the cake. If you feel that you are ready to venture into the African continent’s online gambling industry or plan to expand your business to this country, this piece will shed some light.
Take South Africa, for instance. The country has enjoyed a digital revolution, which has seen the improvement of technology and infrastructure. Thus, the online gambling industry has thrived, and you can get scratch cards to win real money in South Africa. This, among other online gambling options, is slowly taking root and shape in the African continent. Countries like Kenya and Nigeria already have multi-billion gambling agencies, which support both in-person and online gambling. The in-person feature allows a member to visit a betting shop, place a bet and collect their winnings. However, the online one allows a member to place their bets while at the comfort of their homes, deposit their stakes, and withdraw their winnings later.
Africa has a high potential for online gambling, save for war-torn states. Below are factors that make it an ideal destination for investors in the online gambling category.
Less Competition
These are the words every prospective investor wants to hear before they jump right in. Since online gambling and online casinos are not yet synonymous with developing economies in Africa, an investor will enjoy a near-monopoly to advance their brand and amass a large customer pool. This makes investing in online gambling in select African countries a wise buy. However, some countries have relatively low internet penetration and digital awareness, and these factors can deal a blow to your dream.
Internet Penetration
According to Statista, Nigeria, Egypt, Kenya, and South Africa, are the top highest internet consumers in Africa. The number of internet users runs into millions, which presents investors with a rather large market. South Africa, which has approximately 35 million internet users, has failed to tap the digital revolution’s full potential in key sectors like mining and hospitality. Though this denies workers the convenience of working from home, it barely punches the online gambling industry. However, the issue can be remedied through the creation of affordable digital public infrastructure with high-speed broadband. According to the Entrepreneur, South African SMEs Are Slowing Down On Tech Adoption due to connectivity issues, high cost, and low speeds. South Africa will present its population and the gambling fraternity with formidable internet connectivity if these issues are resolved.
Digital Literacy
Digital literacy is on the rise, and online shopping has established its roots in Africa. More people can access and use smartphones and computers to carry out daily activities. Online shopping has seen the birth of Jumia, a Lagos-based online shopping mall, which helps customers order stuff online and has it delivered to their doorsteps. This is the kind of digital literacy that enables gamblers to delve into online gambling. With the same ease, they place their bets, indulge in online casinos, and withdraw their earnings without leaving the comfort of their homes.
For investors, this spells good times ahead and showcases the potential the African continent packs on online gambling matters. It will be easier to advertise and sign up new members if they have access to smartphones or computers and access the internet. New online casinos will have a wealth of clientele to choose from, and targeted online ads will easily reach a target audience empowered with a smartphone, computer, and internet.
Unemployment
This may sound like bad news to online casino investors. However, it is a blessing in disguise. Picture this; it will become economically unfeasible for your business to source technicians, data, and software engineers from abroad, to come and work in Africa. You may bring in a few expatriates, but local and cheaper labor will provide the services needed at a lower cost. One of the biggest challenges plaguing developing countries is unemployment. Not the uneducated kind of unemployment, but educated and certified professionals. These will come in handy in manning your online casino and provide the same services for a lower cost than sourcing for employees from abroad.
Established Gambling Atmosphere
Well, sports betting sites kind of did the groundwork and set the scene for online gambling investors. They introduced gambling, online betting and marketed the venture to the god-level status it enjoys today. The enabling environment necessitates entrance and excellence in online gambling and presents casinos to an audience that has been gambling before.
Final Remarks
The African continent has so much to offer to entrant online gambling investors. You will have to do due diligence, though, and storm into a country with a history in gambling, great internet connectivity, economic and political stability, and a country with friendly gambling tariffs. The good news is, the competition will be less stiff than in other developed countries, the labor will be cheaper, and licenses will not cost you an arm. However, it may take longer to get fully established, marketing may be on the higher side, but the returns will be great. If you do everything right and invest in adept market research and marketing, you will break even in a short time and grow your online gambling status to the highest level.
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