Africa
East Africa’s iGaming Industry A Prime Opportunity For Growth And Expansion
East Africa is one of the regions in Africa that is garnering the most attraction when it comes to the betting and gambling industry. We meet Alessandro Pizzolotto, STM Gaming’s CEO and Certified Partner of BtoBet in Africa what he thinks about the subject and how the region could further evolve in the short to medium term.
Is it your opinion that sports betting is more rampant in Eastern Africa? Why?
There is no doubt that the popularity of sports betting in the whole of Africa derives from the huge popularity of sports across the entire continent. The popularity of sports, especially football, has been further highlighted in recent years with the huge success of African players in major European leagues. One could make reference to Napoli’s strong Senegalese centre-back Kalidou Koulibaly, Arsenal’s Gabonese striker Pierre-Emerick Aubameyang, and Liverpool’s Sadio Mane, amongst many others.
Nonetheless with numbers at hand, a report published by Dublin based research firm “Research and Report” clearly indicates that the iGaming industry in the Sub-Saharan region is seeing an increase in the number of millenials who make use of mobile phones to place bets. The report states that the eastern region in Africa, with Kenya and Uganda as the primary examples, is at the forefront of the continent’s gambling market.
How did weak laws and regulations offer the perfect environment for the growth of gambling in Eastern Africa?
I wouldn’t state that East African markets are afflicted by weak regulations. The M-Pesa and SMS payments conundrum that resulted in Kenya last year was in effect a demonstration that local regulations do work, and in blocking these vital payment systems to the country’s largest operators the Kenyan government was effectively cutting the operators from millions of customers.
Whilst one can argue to great length regarding the escalating enforcement measures that were introduced by the government, this does not in itself demonstrate a weak regulatory framework that would benefit black or grey markets.
Does East Africa have more nations that participate in sports betting than any other African region?
To understand why the iGaming industry has registered stronger growth in Eastern Africa than in other regions one has to understand the payment gateways and services available, which are fundamental to the industry. East Africa is undoubtedly at the forefront of the entire continent when it comes to payment gateways, especially mobile money. It is a known fact that from a financial inclusion perspective Africa is still lagging behind more established markets, such as Europe.
Yet when it comes to East Africa, the region – with countries such as Tanzania, Uganda, Kenya and Rwanda – is a global leader in regards to the highest per capita registered and active mobile money accounts, and volume of mobile money. The region has the fastest growth in mobile money accounts and in each country the number of mobile money accounts surpassed the number of bank accounts.
The phenomenon of mobile money has been ongoing in the East African region since 2007. The roots of mobile money lie in Kenya with the launch of M-Pesa by Vodacom . With the lack of financial infrastructure in the region and the cost of mobile phones dropping rapidly in that same period, mobile money spread quickly through the rest of East Africa.
If one were to compare two leading markets in Africa – Kenya from the East African region and Nigeria from its Western counterpart – one would find huge discrepancies from this perspective. Whilst in Kenya 56% of the population aged over 15 years have an account with a financial institution, on the other hand 73% report having a mobile money account. At the same time the situation cannot be more different in Nigeria, with 39% of the population having an account with a financial institution and only 5.6% having a mobile money account. This obviously has a very strong impact on the iGaming industry.
Nonetheless this situation is set to change in the short to medium term, especially with the continuous expansion of companies such as MTN Africa and Airtel Africa across the whole continent. Such an expansion will pave the way for a true pan-African payment gateway facilitating money transfers, deposits and withdrawals when it comes to the regional iGaming industry.
Africa
Next Brazil on the Horizon? SOFTSWISS Unveils South African iGaming Market Overview
South Africa’s iGaming market is on a remarkable growth trajectory, set to reach a total revenue of approximately EUR 64.9 million by 2028. SOFTSWISS, a leading iGaming software provider with 15 years of experience, shares the South African market report at no charge.
In light of the recent acquisition of Turfsport, a leading South African provider of wagering solutions, the SOFTSWISS report offers first-hand practical experience. The piece explores peculiarities distinguishing South Africa, including provincial licensing, sports betting, and gaming preferences.
Provincial Licensing
Online gambling in South Africa is governed by nine provincial regulatory bodies which operate under the National Gambling Board’s framework. Each body is responsible for licensing various gambling activities, including online sports betting, in their provinces. Operators must understand the nuances and explore licensing options within each region’s regulatory framework.
Christian Neuberger, CEO at Turfsport, adds: “While national legislation continues prohibiting interactive gaming nationwide, several provincial gaming boards have taken the initiative in recent years to expand fixed odds betting options. This development has significantly enhanced the appeal of online betting, resulting in a sharp increase in iGaming revenue and the generation of gaming taxes.”
Sports Betting as a Major Driver with High Interest in Esports & Fantasy Sports
Online sports betting remains a major driver of the South African iGaming market. In 2024, this sector’s estimated volume is approximately EUR 24.3 million out of ~EUR 51 million expected for the whole iGaming industry. At the same time, sports betting is experiencing a notable shift in player preferences and market dynamics. For example, the horse racing popularity has decreased slightly, with younger audiences favouring other betting options. However, it remains a valued tradition among older generations and those with discretionary spending power.
Esports betting and fantasy sports are growing segments within the South African market. According to Statista (2021), 51% of South African survey participants are interested in betting on esports, and 39% express interest in playing fantasy sports for money. In this aspect, South Africa outperforms the United Kingdom, the United States, Brazil, India, Argentina, Mexico and Denmark.
Gaming Preferences
Regarding content preferences, the recent explosive rise of ‘сrash’ games such as Aviator underscores that the South African audience prefers simplicity and instant gratification. However, traditional casino experiences also remain in demand. Operators have responded by adapting conventional online casino game mechanics to comply with existing sports betting regulations. These numbers-style draw games resemble classic casino offerings but adhere to the legal framework as ‘betting events’.
With the increasing mobile internet penetration, more affordable data packages, and widespread smartphone usage, more people in South Africa are turning to mobile gaming. This trend is particularly noteworthy because most of the population may not have regular computer access. Operators should prioritise mobile compatibility and user-friendly interfaces to reach the audience effectively.
Vitali Matsukevich, COO at SOFTSWISS, comments: “Sharing the SOFTSWISS market report, we emphasise our focus on the South African iGaming market’s potential. With SOFTSWISS’ expertise in iGaming and Turfsport’s local market knowledge, we are set to effectively address the specific needs and opportunities in South Africa. The insights from this report are instrumental in guiding our strategies and ensuring that our solutions are well-aligned with the evolving landscape of South African iGaming.”
Overall, the SOFTSWISS market report offers a comprehensive overview of iGaming in South Africa, from the historical context of industry development to a detailed player profile and local trends.
About SOFTSWISS
SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Casino Platform, Game Aggregator, the Affilka affiliate tracking platform, Sportsbook Platform, and Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.
Africa
SOFTSWISS Takes Responsible Gaming Award at SiGMA Africa
SOFTSWISS, a tech company with over 15+ years of experience in iGaming, celebrates its success at the SiGMA Africa Awards, triumphing in the Responsible Gaming category.
SOFTSWISS’ ethical philosophy revolves around the “player comes first” principle, meaning the company is committed to responsible gambling practices. This commitment is conveyed through the dedicated departments on two levels, serving the needs of both operators and players.
SOFTSWISS Managed Services stands at the forefront of promoting responsible gaming practices. The department offers a comprehensive range of solutions tailored to act as a reliable bridge between operators and players, guaranteeing a smooth gaming journey. Providing such essential services as First Line Support, Anti-Fraud Support, VIP Player Support, Player Retention and Reactivation, and Content Management, SOFTSWISS Managed Services significantly elevates the growth trajectory of iGaming brands.
During ambiguous situations, dedicated specialists spot technical errors, provide fraud protection for clients, engage with players directly, and find effective resolutions to each unique issue. In 2023, the Anti-Fraud team helped operators save more than 13 million euro. The team effectively handled over 100 thousand different cases and 200 player complaints.
In communication, SOFTSWISS employs a segmented approach, delivering customised content to different player groups and maintaining a personalised send schedule. This strategy minimises unsubscribe rates (around 0.1%) and ensures ethical and friendly communication, fostering a trusting atmosphere with players.
Artyom Rudakov, Head of SOFTSWISS Managed Services, adds: “To make anti-fraud and suspicious activity prevention even more efficient, we are developing a proprietary Risk Scoring Tool, which is set to revolutionise gaming issues identification. The solution does not just analyse but uses machine learning algorithms to intervene proactively, identifying potential problems in real time for a safer gaming environment.”
Constant personnel development and education are a solid basis for ensuring the best industry practices. Over 90% of the Anti-Fraud team hold certificates on responsible gaming from different institutions such as GameCare, Gaming Operations Academy, Sustainable Interaction, and iGaming Academy.
About SOFTSWISS
SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.
Africa
EGT Digital took the “Outstanding Contribution to Responsible Gaming of the Year” prize from SiGMA Africa Awards
EGT Digital has been distinguished for its input to the development of the gaming industry by the SIGMA Africa Awards competition. The Bulgarian iGaming provider received the prize in the “Outstanding Contribution to Responsible Gaming of the Year” category at this year’s edition of the event, which was held on March 11.
The recognition is awarded to companies or individuals that stand out with exceptional creativity, innovation and adaptability, which are of crucial importance for the progress of the gambling sector.
“It’s an honor for us to receive this award”, said Tsvetomira Drumeva, Head of Sales at EGT Digital. “We would like to thank everyone who recognized our dedication and constant desire for development. The accolade reaffirms our commitment to fostering a safe, modern, and enjoyable gaming environment and inspires us to continue to maintain and improve it.”
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