Nigeria's casino market: a future outlook
The African continent, with a growing population and a rapidly evolving technological landscape, is witnessing an unprecedented surge in the gambling industry. Particularly in Nigeria, this growth is propelled by factors such as the widespread adoption of mobile technology, an expanding middle class, and increased internet access.
With a 1.3 billion-strong, tech-savvy population, Africa and Nigeria within it stands on the brink of becoming a leading force in the global gambling market. Nigeria’s online casino sector, already valued at over $2 billion, captures the essence of this vibrant rise, engaging an estimated 60 million Nigerians in sports betting activities.
Nigeria casinos: second biggest in Africa
Nigeria’s casino market is the second-largest in Africa, trailing only behind South Africa in terms of revenue. With an annual market worth exceeding $2 billion, primarily through online sports betting, Nigeria represents a significant portion of the continent’s gambling revenue.
This comparison highlights not only the size and potential of Nigeria’s market but also the diversity and vibrancy of gambling activities across Africa. From South Africa’s market worth around ZAR 30 billion ($2.1 billion) annually to Kenya’s significant gambling industry valued at approximately KES 200 billion ($1.8 billion) annually, the African gambling landscape is both diverse and dynamic, with Nigeria playing a crucial role.
TGM Survey results: 33% bet a few times a week in Nigeria
A recent TGM survey sheds light on the betting habits of Nigerians, offering insightful data on how often individuals engage in sports betting. The survey results reveal a wide spectrum of betting frequencies among Nigerians: 9% bet every day, 33% a few times a week, 11% once a week, and a notable 20% a few times a month. This variety in betting frequency underscores the embedded nature of gambling in the daily lives of many Nigerians, reflecting the broader trends of gambling’s integration into the social and economic fabric of the country.
To put this into perspective, KTO, a casino in Brazil has reported similar numbers, highlighting that brazilians play casually and responsibility. 61% of players enjoy gambling occasionally or approximately once a month. Only 22% play two or more times a week and 8% do it daily.
Nigeria’s future: what to look out for
As we peer into the horizon of Nigeria’s casino market, the future appears both promising and dynamic. With the projected revenue in the Online Casinos market set to reach an impressive ₦US$254.50 million in 2024, Nigeria is on the cusp of a significant transformation within its digital gambling environment. This anticipated growth, with a robust annual growth rate (CAGR) of 6.34% from 2024 to 2028, positions the country to achieve a projected market volume of ₦US$325.40 million by the end of 2028. Such an upward trajectory not only highlights the market’s potential but also signifies the increasing acceptance and integration of online casinos within the Nigerian gambling ecosystem.
The anticipated increase in the number of users, expected to reach 1.7 million by 2028, alongside a user penetration that is predicted to rise from 0.5% in 2024 to 0.7% by 2028, reflects a growing demographic of digital gamblers. This expansion is indicative of a broader trend towards digital platforms, fueled by advancements in technology, increased internet penetration, and the proliferation of mobile devices. The projected average revenue per user (ARPU) of ₦US$206.00 further underscores the economic potential of the online casino sector within the country.