The next big thing
While many within the industry might not know much about the market, African gaming is on an upwards trajectory. Fueled by COVID-19 lockdowns, the sector has grown considerably over the past two years, and experts don’t expect this growth to slow down anytime soon.
In light of the increased interest in Africa from foreign operators, US-based gaming consultancy firm SCCG Management has just announced a partnership with Genius Gaming Consult (GGC) on the continent. The new partners will focus on the growth of gaming and iGaming in Africa at a B2B level.
VegasSlotsOnline News has spoken exclusively with SCCG CEO Stephen A. Crystal to get his insight into the fast-growing African market.
Congratulations on the new Africa partnership. How important is this milestone for SCCG Management?
We are constantly looking to expand our global presence and Africa is an up-and-coming market with plenty of opportunity in the gaming industry. We are very excited to utilize our industry-leading resources as we venture into the continent.
Has it been a difficult journey to get to this point?
With offices in nine countries, we’ve grown accustomed to operating and adapting to international markets. Nothing is easy in this industry but we are eager to hit the ground running and grow within the African gaming space.
Can you explain a bit about the current casino and iGaming landscape on the continent?
Sports betting dominates the iGaming industry in most countries in Africa. However, continuously increasing internet and mobile phone penetration that came as a result of forced lockdowns during the COVID-19 outbreak has led to huge growth in online casinos as well.
Multiple Tier 1 consulting firms like PWC, EY, and Deloitte indicate that by 2025 Africa’s sports betting revenue will reach $3.15bn with key leading markets being Nigeria, South Africa, Uganda, Kenya, Ghana, Zambia, Ethiopia, and the Democratic Republic of Congo (DRC).
Over 12 online casinos in each of the key gaming markets
The trend of land-based casinos is also overwhelming in the African continent with South Africa the leading market. It is also the most developed and trending economy in Africa. There are at least five land-based casinos and over 12 online casinos in each of the key gaming markets in Africa generating more than $90bn per year.
We will bring to light all aspects of each of the markets in our weekly newsletters and weekly TV broadcasts which will include statistics about each of the key market’s gaming facets. Among other things, our free weekly sample reports will include estimated market size, barriers to entry, taxation framework, and licensing requirements and costs.
On that subject, how difficult is the licensing process for betting, iGaming, and casino operators hoping to enter the market?
License application and acquisition is one of GGC’s key services and together we have a combined experience, expertise, and knowledge of over 35 years in addition to contacts and connections across all key gaming markets in Africa.
It’s safe to say that licensing differs per market. The majority of the key gaming markets in Africa have bodies that regulate, manage and collect taxes from the industry on behalf of their government. It’s easier to acquire sports betting licenses, online casino licenses, and Street slots licenses compared to land-based casino ones. However, it’s clearly very feasible as together with GGC we have acquired multiple licenses for different operators in different regions.
Does it look like the market will grow much in the near future?
Yes, definitely and in fact, the unprecedented outbreak of COVID-19 largely contributed to the tremendous growth of both internet and mobile phone penetration across key gaming markets like Kenya, Zambia, South Africa, Nigeria, Ghana, Egypt, the DRC, and Ethiopia.
Big European and UK operators are expanding into the region
This expected consistent future growth explains why big European and UK operators are expanding into the region, including 888, Betfred, Betway, Novomatic, and Admiralbet. We are determined to bring many other key players to the region too.
How can SCCG Management help companies capitalize on the potential of Africa?
SCCG Management will assist with the B2B business development of African markets with our network of US, EU, and Asian clients. We will also assist GGC with their research reports on African markets, and licensing support in regulated African markets.
