SBC Barcelona: Becoming a success in Africa's ever-changing gambling market
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Casino Guru News had the opportunity to attend the Thursday panel at SBC Summit Barcelona dedicated to Africa and what the regulatory specifics of this burgeoning market are. The panel touched on the distinct nature of the market consisting of 54 countries and the specifics of land-based and online casino and sports betting regulation for the region, along with some more exotic topics, such as cryptocurrencies and esports.
The "Approaching Africa - the pathway to building a successful market entry strategy" panel was moderated by LiveScore Group Managing Director – Nigeria Simon Burrell and it involved several high-profile specialists who have been focusing on the region for a while. Among them were Bonmoja Ltd CEO Sab Jhooti, Moja Group Inc, Co-Founder, Director & Board Member Marc Saba, Yolo Group Head of Africa Albert Climent, and Sportingbet South Africa Chief Yield Officer Retief Uys.
The panel began with a quick assessment of the current status quo and what a successful strategy for early birds can be. One of the markets that is of particular interest right now is Nigeria, which has been showing strong signs of development and a lot of untapped potential. This comes with a lot of competition nevertheless, which still makes a move into this market worthwhile.
The panelists discussed how companies should approach markets such as Nigeria and advised anyone seeking to break ground there to first ask themselves what local partners they needed and what the local tax code was like. Of course, Nigeria is not the only place to aim for. Other markets tend to be much easier, for example, Uganda, noted the panelists.
The country offers more than 50 licenses, making it simpler to enter. Then again, the target language is also important. While Africa is a multi-lingual community, home to thousands of languages, English and French seem to be two good target languages to push for.
However, having the right connections can also be important along with strong local partners as obtaining a license can be a lengthy process. In Kenya, this process may take up to eight months if a company is figuring out everything from scratch itself.
Africa is also moving towards rapid digitalization, and this is reflected in the way the gambling industry is regulated, the panelists noted. A while back, all entrants would need a land-based partner, but this is no longer the case as they can simply launch online directly. The fact that mobile payments have become so popular in general is boosting their use in the gambling sector online as well.
There are more things worth noting, as well. For example, cryptocurrencies are already unfolding in the region. Africans have a particularly high level of adoption of cryptocurrencies, and it gives them a sort of safety net, argued the panelists. Understanding this can be important to businesses in order to succeed. They also advise companies who are entering the markets to definitely find local partners who understand those specifics.
When looking to target markets, there are some clear leaders. Nigeria, Ghana, and South Africa are the most advanced and developed in terms of gambling culture and strong gambling interests. However, there are other options where innovative technologies, such as cryptocurrencies, are being adopted. Ethiopia, Morocco, Sierra Leon, Mauritania, and Ghana are all making a notable shift towards digital and with it, new forms of entertainment and gambling.
The panelists also advised attendees to make sure that if they are the ones launching the businesses, they focus on technologies that are being adopted and require low upkeep and smaller-scale networks. In a nutshell, the speakers advised businesses to stay away from live casino games for the time being.
