In Africa, sports betting is at the peak of popularity, and the development of betting is taking place not only in traditional sports but also in virtual games, which offer almost unlimited betting opportunities. Experts from our platform share trends in the development of virtual sports in the African region.
With the development of technology and the growing number of sports fans, the betting business is booming on the African continent. In addition to traditional sports betting, African gamblers are increasingly choosing virtual sports events to place bets on.
GEO analysis by country
The majority of people on the African continent live in extremely modest conditions, which leads to a limited growth of interest in the gambling business in this region. However, some African countries have a significant solvent population, including South Africa, Egypt, Tunisia, Morocco, Nigeria, and Kenya. The continent’s population of more than one and a half billion people is growing by 250-300 thousand people annually. This indicates a potentially huge audience that may be interested in online gambling and betting.
The most significant sector of the market is usually in South Africa, where most of the gambling revenue comes from. Currently, there are 39 offline casinos in the region, and the online market is growing rapidly, with an accelerated growth of international brands. In addition, countries that are rapidly adopting technologies such as 5G and have a large young population are becoming increasingly attractive for gambling businesses. Among them are Nigeria, Kenya, Ghana, Uganda, Cameroon, and Zambia.
In Kenya, the reduction of the betting tax to 7.5% is aimed at attracting operators back to the country after significant taxation discrepancies.
In Nigeria, almost 60% of the population participates in betting, and the total population exceeds 200 million people.
South Africa plays a key role in the continent’s gambling industry, generating almost half of the gambling revenue.
In Ghana, the gambling commission allowed licensees to provide online betting services during the pandemic.
In Tanzania, virtual sports were officially legalized in 2021.
Working with virtual sports
Virtual sports is a simulation of sports events generated by special software. It is available around the clock, providing thousands of games every day, and has no seasonality or shortage of competitions to bet on.
Virtual sports events are fast-paced and usually last only a few minutes. Thanks to modern graphics that are almost as realistic as in video games, the recreation of virtual sports events is impressive in its detail. The best virtual products are characterized by incredibly realistic visualization, and their developers use CGI technology to create even the smallest details.
Virtual sports are based on RNG, just like slot machines. However, the difference is that RNG generates a full list of possible outcomes of an event, and players can choose from realistic odds before placing a bet. Virtual sports outcomes, as well as graphics, are as realistic as possible. For example, the Virtual Grand National, launched in 2017 to accompany the real races in the UK, generates the same finalists that eventually win in real competitions. In 2018, the simulation even managed to predict the real winner, Tiger Roll.
There are several important differences between traditional, virtual, and esports. In traditional sports, matches take place according to a clear schedule, but virtual sports have a shorter match duration and events take place almost continuously. The terms “e-sports” and “virtual sports” are often used synonymously, although they are different. Virtual sports simulate sporting events, while esports are competitions of real gamers, such as Dota 2 or CS 2.
Prospects for the development of betting in Africa
According to GeoPoll, 75% of African bettors place bets on mobile devices as mobile Internet coverage has expanded significantly. Virtual sports attract tech-savvy football fans who like to place small bets but in large numbers. For many young people, virtual sports is the first experience in the world of betting, and for experienced players, it provides additional opportunities in the world of betting.
Given that betting is just beginning to develop in most African countries and Internet access is not universal, high stakes are not always appropriate in this region. Nevertheless, the right approach can ensure significant deposit volumes, as many advertisers are only considering entering the African market. It is also worth noting that the principles of determining KPIs for webmasters in this region are different, and the values of players may be different from those in other regions.
As for the practice of working under the CPL and PPL models, it remains at the advertisers’ choice, but there is currently no urgent need to use these models in African geographic markets, as their coverage is still quite wide and the market is not oversaturated. Large international companies tend to use less risky models of cooperation.
In advertising campaigns, it is important to use local languages and cultural elements and avoid standard European looks that may cause distrust among the local population. Bets in African geographies usually range from $15 to $30, which, given the low competition and low cost per player, makes this market attractive for gambling operators.
Finally, the ease of creating creatives and testing old approaches allows you to capture the attention of the audience, as the majority of the population responds to different offers.
Africa has its development path, including the communication aspect. Mobile Internet is now developing rapidly in Africa, and users have already passed through several stages of communication development, establishing themselves at a new technological level.
