Five Things to Know About the African iGaming Market.
It cannot be over emphasised that Africa is one of the iGaming industry’s hottest markets, for growth and expansion, however gaming operators planning to capitalise on the opportunity presented by the fast-growing market, must be ready to adapt to what is on ground in a chosen market.
Recently, speakers at a panel at the iGaming Next Valetta 2022, shared some important insight on the African igaming market.
Here are five things to know about the igaming business in Africa, if you are planning to invest in the continent.
1. Volume Transcends Value
Africa is home to 1.4 billion people, with around 60% of its current population under the age of 25; which makes it one of the world’s youngest continents.
In Africa, even though player value might not be as high as is obtainable in other climes, but the volume is huge, so when entering the African market, bear in mind that massive volume of play speaks louder than player value.
2. Knowing your customers is Key
It was highlighted at a recent event, that while Africa’s large population definitely presents a major opportunity for the industry; it is also a continent made of 54 different countries, with different unique legislative, governance and cultural identities; therefore, knowing your customers is very important.
Know Your Customers (KYC) requirements can be an uphill task, even in Europe, the concept is often seen as a problem, but not having it in place, can prove to be more problematic, because you can’t really manage your business risk efficiently and effectively, without identifying your customers.
3. You need an African localised product
When dealing in an African market, there is need to have African products suitable for its consumers.
This will prove effectual as mobile data is still expensive in most African countries, which puts some limitations on product and UX and demands websites that load fast.
African consumers are still grappling on data most of the time, which will make it a not so practical exercise, to bring products that will stream sport events, for players to watch.
When it comes to communication, it is key to choose the platform that is dominant in that country; especially when considering transaction speed and fast pay-outs. Operators planning to come into and succeed in the African market, should be willing to adapt to what is on ground.
4. Taxation is a big question
It is imperative that those planning to come into the African market, understand the tax implications in each and every market, as it involves a huge level of unpredictability and uncertainty for investors.
The issues that abound in the gaming industry and its operation, is still not cut and dry for some African governments, so regulation in relation to tax, can sometimes change quixotically.
5. Retail is important
It is important to have a retail presence in a chosen market, in order to build consumer trust. Any operator serious about entering into most African markets, should add retail. This will help them to build credibility.
For most African consumers, seeing is believing, which is why till date, “brick and mortar” shops are still more trusted, than online gaming businesses.
It is therefore important to build a connection between your offline and online business for better market acceptance in the region.