In a recent talk organized by the Oyo State Lottery and Gaming Board, industry experts discussed the future of retail betting and the potential transition to online gaming in Oyo State’s lottery and sports betting sector.
As the industry in Oyo State continues to evolve, operators are considering prioritizing online gaming to meet the demands of future tech-driven generations.
Currently, iGaming accounts for 37% of all sports betting transactions nationally, a figure expected to rise with the increasing penetration of internet infrastructure, currently standing at 55.4%.
The remaining 63% of the sector’s revenue comes from retail betting, posing unique challenges such as higher commissions for agents, miscellaneous costs, and multiple taxations.
At the Oyo State Gaming and Lottery Board’s Annual Stakeholders’ Interactive Forum, a panel discussed the future of retail gaming and the potential shift to iGaming.
Head of Gaming at Crystal Gaming (Betano), Ahmed Jokotoye, noted the industry’s growth potential, but representatives from Bet9Ja highlighted challenges in the retail sector, including the high rate of businesses failing to break even or turn a profit.
Betano’s Country Manager, David Segunmaru, pointed out that investors often fail due to incorrect data and lack of understanding of Nigeria’s regulatory landscape.
He emphasized the need for proper research and strategic planning for retail agency development.
Director of IT at Golden Chance, Odushola Gideon, expressed skepticism about an immediate shift to iGaming, comparing it to the decline of brick-and-mortar movie rentals.
He suggested that the industry is not yet structured for a seamless transition.
Despite concerns about potential job losses, experts project a gradual shift towards iGaming, with online platforms likely to dominate revenue generation.
However, Head of Human Resources at Premier Lotto, Ken Nwankwo, cautioned against a hasty transition, emphasizing the importance of nurturing local growth to avoid the issuance of offshore gaming licenses to international operators.
As the Oyo State gaming industry stands at a crossroads, the delicate balance between retail and iGaming will shape the future trajectory of this evolving sector.
