This archive report was first published on 24 August 2020.
Published on August 24, 2020, the iGaming industry has been booming globally, with online casinos recreating the real-life experience of visiting land-based casinos and providing it to a wider audience.
Thanks to technological advancements, almost anyone with internet access can spin the reels on popular slots or engage in live dealer blackjack. This easy access has contributed significantly to the popularization of online gaming.
As a result, new markets are emerging, followed by new online gambling regulations and legislations. Africa has presented itself as the next iGaming destination, with East Africa being the most attractive region, particularly Kenya.
Why Africa is the Next Big iGaming Market? ¶
With a population of 1.26 billion people, Africa is the second most populous continent, where 35 of its 54 countries already allow mobile sports betting, and more are legalizing other forms of iGaming. Mobile payments are the most commonly used payment methods on the continent, making it a market full of potential.
East Africa has propelled itself as one of the most appealing regions, thanks to a legal landscape in many countries that offers stability for operators and suppliers.
Kenya as a Rising Star ¶
Kenya is the rising star of the continent, mainly due to the popularity of sports betting among the younger population. Statistics show that around 79% of all sports bets placed in Kenya are on football matches, with Kenyans betting at least once a week, spending an average of $50 on gambling every month.
The latest report from the Communications Authority of Kenya showed that internet penetration in Kenya reached its highest point in 2018, enabling the booming of iGaming activities, especially sports betting. The number of mobile users has significantly increased, alongside a decrease in mobile data costs, making it more accessible.
See Also ¶
Latest Trends and Technologies in Online Casinos
Mobile Payment Methods ¶
Hand in hand with the increase in internet and mobile availability is the usage of mobile payment methods, which are the preferred payment option in Kenya. The number of active Kenyan mobile money users has passed the 45 million mark, with youngsters enjoying betting on sports and especially via their mobile devices.
These key factors combined are opening doors for operators and software providers eager to make a footprint in the African market, making Kenya one of the fastest-growing online gambling markets in the continent.
What Do the Operators Need to Succeed in This Region? ¶
Success or failure for operators in this emerging market is dictated by many variables. It is essential for brands not to underestimate aspects such as local insight, experience, and understanding local legislation and obeying it.
A good example of a company that understands the importance of these aspects is Pragmatic Play, which has recently expanded its operations to Africa and appointed Solomon Godwin as its content manager.
Operators also need to adapt their offering for the targeted markets. For example, an online casino targeting Kenyan players and not providing opportunities for sports betting will hardly make its mark.
iGaming Operators Seeing Potential of East Africa and Kenya ¶
Many new platforms are emerging, some of which can stand shoulder to shoulder with industry veterans. The expansion and reaching new online markets is the next logical step for operators, and the African region is becoming more attractive.
While placed under the spotlight later than other markets, the continent now presents a major attraction for online casinos. Breakthroughs in internet and mobile availability and stability have opened the region, showing that its residents are interested in online gambling.
