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Africa’s gaming sector is experiencing a massive boom at present, being predicted to generate over $1 billion in 2024 – for the first time. This indicates a buoyant gaming market in Africa, which is a particularly welcome surprise considering the continent’s economic growth. More so, as Africa grapples with high net debt, lingering inflation, and tough financial conditions, the region’s economic growth has been sluggish. Then again, it has always been seen as having untapped potential in the gaming industry worldwide.
It’s not just video gaming that’s growing across Africa: the continent’s online gambling market is projected to reach $163 billion in 2023, with a CAGR of 8.51% between 2023 and 2027. This means that there will be a projected market volume of $2.26 billion by 2027. Furthermore, the number of players in online slots is expected to reach 6.9 million by 2027. Also, there will be a 0.4% user penetration in the online gambling market in Africa before 2023 runs out.
Perhaps the reason for this is that the rules and regulations around gaming and gambling in Africa are relatively light. However, it seems inevitable that this will change as Africa follows other countries and tightens legislation and enforcement around gambling. It is already happening in Kenya, Tanzania, and Uganda, three countries that have passed specific regulations regarding online gambling. Also, the Gaming Regulators Africa Forum is working to build awareness around the risks of gambling and improve gambling regulation coordination.
African nations are taking inspiration from many parts of Europe and Asia, where gambling is more closely controlled. For example, online slots in Singapore are always popular, and are played at the country’s land-based casinos and offshore sites. In the country, online gambling is restricted to such platforms, as local online gambling sites are not permitted. The same goes for the US, where online casinos have been very slow to develop compared to online sports betting. Across Europe, too, online casino laws vary considerably. In the UK, the market is very well-developed and regulated, with players having access to many licenced platforms. However, Poland and Finland, for example, ban online casinos unless they are run by government-owned companies that hold a monopoly on gambling in the respective nations.
But back in Africa, the video game market in the region is likewise thriving, with sales of games having an 8.7% increase annually, according to Newzoo’s data. The market is already huge: Africa’s gaming market size is currently at $1.92 billion, and is expected to get up to $3.3 billion by 2028.
Mobile gaming in particular is seeing growth, with several contributing factors. Rising internet connectivity and better smartphone adoption are just the beginning. There’s also the advent of high-bandwidth network connectivity that has increased the demand for Africa’s gaming market.
The gaming market in Africa is highly fragmented as there is an increase in the demand for online games and penetration of mobile applications. New players will be attracted to the market within a few years, with some of the leading markets being Celestia Games, Kucheza, and others. Indeed, much of the growth of games in Africa was driven by increased smartphone usage, which has led to increased annual gaming revenue. Nigeria leads the way with $249 million, with South Africa following closely behind with $236 million. According to Newzoo, Nigeria and South Africa have the highest revenues, although ten countries had year-over-year sales growth. These include Nigeria, South Africa, Ethiopia, Uganda, Kenya, Ghana, and Tanzania, among others.
Africa’s gaming market is no doubt outpacing other regions, with the continent accounting for over 24% of the world’s mobile subscribers. The gaming market will continue growing, and Africa is ready to take advantage of this growth, working with many more leading gaming brands.
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