Sports betting in Africa has gained tremendous growth over the past decade, but this growth has come with its fair share of challenges and economic development. In a nutshell, the progression has been aided by robust infrastructural development adopted over the last decade, and the economic downtime caused by Covid 19 has been pivotal to the popularity of gambling in different African countries in the last decade.
The African gambling industry is worth billions of dollars, and the fair share of taxes has contributed immensely to the GDP of countries where sports betting is regulated. According to Statista, it is projected that by 2029, the revenue for the gaming industry in Sub-Saharan Africa will rise to $1.21 trillion.
Interestingly, with the number of new entrants of gaming companies, it is understandable that gaming is here to stay, the presence has had both positive and negative effects thanks to its young population.
Sports Betting Cons
Addiction in Sports Betting
Just like drug and alcohol that stimulates one’s reward system with the satisfaction gotten from it, the same applies to gambling especially when a bettor gets his first win. There is also compulsive gambling which is an uncontrollable urge to keep on staking despite the numerous losses.
A gambling addiction is a progressive addiction that can have many negative psychological, physical effects, including debt. It is pivotal that operators continually promote responsible gambling aggressively and provide professional help for bettors with gambling disorders.
Financial Impact of Sports Betting
Africa is considered the poorest continent in the world, with over half of its population living below the poverty line. With 23 of the world’s 28 poorest countries which have extreme poverty rates above 30 percent, Africa has the highest extreme poverty rate.
Many Africans are on low per capita income levels, meaning they barely have disposable finances to bet with. Though the attraction of staking small and expecting huge returns makes many bettors stake irresponsibly and in turn lose huge chunk of money. This makes many go into huge debt and even bankrupt.
In addition, bettors in Africa see sports betting as a means of livelihood whereas expert believe it is primarily meant for fun and entertainment. Cumulative losses and debt is driving young population to have suicidal thoughts which can be dangerous if the person doesn’t get help early enough.
Pros of Betting
Job Opportunity
The Gaming industry has been pivotal to economic growth in Africa and has helped create thousands of jobs across the continent. It has helped create employment likes customer service representatives, IT specialist, data analysts, marketing professionals; brand influencers just to mention a few.
Endorsement Deal
Many Africans have benefited from endorsement deals by operators notably celebrities namely Adebayor, Amokachi, Micheal Essien just to cite a few. Football clubs are also not left out as some brands has signed deals with top teams across major leagues. Betway recently signed a deal with PSL in South Africa.
Revenue Generation
One of the major benefits of sports betting in Africa is the enormous revenue countries are generating.
Even though, Nigeria is one of those countries generating massive revenue from the gaming industry and it has one of the largest betting markets in the continent with over 55 million bettors with estimated market of over 1.5 billion dollar.
In addition, it was recorded by National Gambling Board that South Africa’s Gross Gambling Revenue hit a record ZAR59.3bn ($3.37bn). This was recorded for the 2023-2024 financial year; the revenue was 25.7% higher than the 2022-2023 financial year which had ZAR47.12b.
Conclusively, despite the negative aspects of sports betting, it can also be a catalyst for economic development, providing employments and boosting the countries revenue.
