The rising popularity of betting in Africa and other regulated online casino markets

Notable examples include Kenya, South Africa, Nigeria, and Ghana, where sports betting, land-based casinos, and other forms of gambling are permitted. The legal framework in these nations allows local and foreign operators to establish their businesses, driving the sector forward.

Kenya and Nigeria are leading gambling markets in Africa, driven primarily by widespread football betting. South Africa boasts a robust land-based gambling scene, while Ghana and Botswana are also experiencing growing sectors.

Uganda, too, has emerged as a significant player, with a staggering Shs2.1 trillion spent on gambling in just the first half of 2023, contributing to the government’s tripling of betting tax revenue to Shs75 billion.

Across the continent, betting and gambling could play a vital role in bolstering local economies, potentially creating jobs in app development, technical support, content creation, and physical betting shops.

Additionally, the tax revenue generated from this thriving industry could help governments fund essential infrastructure projects, such as roads and public services, as seen in Uganda, where compliance and licensing efforts have significantly boosted turnover and tax collections.

Moreover, the rise of mobile internet and affordable smartphones has been pivotal in making online sports betting and casino games accessible to a wider audience.

Even though internet infrastructure is still developing, mobile penetration is high, allowing users to bet via their phones in countries like Uganda and Nigeria.

As these advancements continue, digital payments through e-wallets and mobile banking solutions are also facilitating access to betting services.

Football enjoys immense popularity throughout Africa, and this passion has naturally led to a surge in sports betting. Gambling companies have seized the opportunity by providing attractive wagering options on major football leagues, making betting a vital aspect of sports culture.

However, Africa is also facing a growing problem with gambling addiction, particularly among its young population. Aggressive marketing tactics by gambling companies, combined with a lack of regulation in some areas, have led to widespread gambling, often with harmful consequences.

Documentaries like Zoe Flood’s “Gamblers Like Me: The Dark Side of Sports Betting” have shed light on the social issues caused by betting, including financial ruin and mental health problems. The lack of adequate resources to tackle gambling addiction remains a pressing concern in Africa.

In contrast, other emerging markets such as Brazil recently made strides in regulating its gambling industry. Brazil also suffered from aggressive marketing and the lack of regulation, which led many families to lose money to popular slots.

The Brazilian government introduced new laws to regulate betting and gambling, transforming the landscape and creating a structured environment for operators and players alike.

Brazil’s journey toward a regulated gambling market began in 2018, when sports betting was legalized. However, the regulatory framework only began to take shape in 2021, with the government enforcing stricter guidelines to ensure fairness, transparency, and player protection.

In contrast to some African countries that allow unregulated online gambling, Brazil now requires operators to obtain licenses, ensuring bettors participate in a more controlled environment. Also, like in Africa, Brazil views betting as a driver of economic growth, with significant potential for tax revenue generation.

Regulated gambling is expected to contribute billions of Brazilian reais to the economy through taxes, licensing fees, and new jobs in both land-based and online betting sectors.

In addition to creating jobs, Brazil’s betting industry will also contribute to tourism. The potential establishment of land-based casinos could draw international visitors, boosting the hospitality and entertainment sectors.

In comparison, Africa’s regulatory landscape remains fragmented, with many countries struggling to enforce laws that protect players.

For example, underage gambling is still a major issue in countries like Uganda although the minimum age limit is 25. That’s because weak enforcement allows minors to participate in betting activities.

In recent months, Brazil has strongly emphasized responsible gambling by requiring operators to promote safe betting practices and offer resources, contrasting with Africa, where efforts are often localized and lack continent-wide coordination.

The focus in Brazil on mitigating addiction is a proactive measure to curb the negative social impact associated with gambling.

According to research from KTO, a big online casino in Brazil, licensed betting platforms implement strict regulations to ensure player protection, such as user verification, Know Your Customer (KYC) protocols, and anti-fraud measures.

While responsible gambling is vital for those struggling with addiction — recognized as a disorder by the World Health Organization — only a small minority of players are affected.

Many platforms have developed tools to support responsible gambling. At KTO, 2.5% of users actively use pause features, with 2.1% being self-excluded or having permanently closed accounts, and 0.4% opting for temporary breaks.

These figures align with data from countries with more developed gaming markets, such as Sweden and Canada, where small percentages of players are identified as at-risk or problematic gamblers.

Countries in Africa, like Kenya and Nigeria, have strong cultural ties to sports, particularly football, driving betting activities. However, while betting in these African nations is often seen as a way to make money, Brazil shapes its gambling market as a form of entertainment with a strong emphasis on consumer protection.