Poll results: Operators should hold fire on Africa investment

Operators should put on hold any immediate plans to enter Africa’s online betting and gaming markets, according to the majority of respondents to this week’s eGaming Review poll.

According to 65% voters, the continent, which includes the small but growing online markets of Nigeria, Kenya, Tanzania and Ghana, needs more time to develop its technological infrastructure to a level conducive to online gambling.

At present, many African countries lack online payment systems while only a small albeit growing percentage of the population own smartphones, which makes mobile gaming impossible for many.

Even in nations where the technology is in place, such as Nigeria, there remains a cultural preference among residents to pay for items in cash, with the vast majority of online orders in other industries paid for on delivery.

However, while few European operators have made an African play, a raft of suppliers have already entered the market, convinced there is a business case for the market in its current shape.

While smartphones are in the minority, feature phones are common and can be used to place sports bets online, opening up a potentially lucrative market.

There is also a consideration that many of these countries have large populations – Nigeria leads the way on approximately 180 million while Kenya and Tanzania are fast approaching 50 million – many of whom place bets in retail environments.

And with this in mind, 35% of respondents to the poll said Africa boasts a number of promising markets which operators should consider investing in immediately.