The worldwide gaming industry is exploding. While there are certainly problems, others argue that a well-regulated gaming business may be beneficial to a nation.
According to The Business Research Company, the worldwide gaming industry will reach $565.4 billion by 2022, expanding at a 5.9% annual pace. The gaming business is booming globally, and Africa is no exception.
South Africa and Nigeria are Africa’s major gaming markets. South Africa’s GGR is expected to hit $2.5 billion in 2021.
The industry produced R33 billion ($2.2 billion) in revenue in 2019-2020. This led to R3.2 billion ($220 million) in taxes for South Africa. Nigeria’s gaming business made over N250 billion ($607 million) in 2019, according to Special Duties and Intergovernmental Affairs Minister George Akume.
Kenya, the third biggest gaming market in Africa, is also of interest. According to Slotegrator, the industry is expected to reach $40 million by 2020. In 2018, console gaming revenue in Ghana was $6.3 million, and it is expected to reach $9.3 million by 2023.
Those data show a significant potential for African countries to profit from by investing in sports and other development programs. Many states have authorized commercial casino gambling, largely to spur economic development. Local retail sales and employment development are the most important advantages – but only if the industry is well regulated.
The region’s yearly viewership is expected to rise from 30 million in 2020 to 53 million in 2023, according to Futuresource Consulting, a professional research and knowledge-based consulting organization.
According to the World Financial Review, at least 30% of Africans are presently involved in some type of internet gambling. The deployment of 4G and 5G networks in Africa has expanded internet connectivity. The impact of Africa’s excellent 4G network and website growth has resulted in an inflow of participants. Many African nations already have 4G networks, and some have even started rolling out 5G networks. South Africa, Kenya, and Nigeria have all declared plans to put out 5G shortly.
Regulators and governments must oversee the industry to secure maximum income. Recent instances of African countries refining their efforts to provide openness and revenue certainty in this industry. Earlier this year, the Nigerian Federal Government announced its plan to buy a gambling-specific central monitoring system. This method would enable the Nigerian government and the National Lottery Regulatory Commission (NLRC) monitor the industry and eliminate income leakages. While the Nigerian gaming industry produced significant money in 2019, the government only got N1 billion ($2 million), underscoring the need for greater tax collection.
Other nations, including Ghana, may follow suit in the following two years. The success of using this technology is clear globally, and will tremendously assist Africa’s developing gaming business. Other nations have used similar systems to monitor and control areas like telecommunications, and their success may be copied by Nigeria’s system.
With the current surge in gaming, further industry changes are expected. The increased interest in gambling may speed the migration to mobile and cloud-based game delivery. Africa should take advantage of this surge and use technology that facilitate sector monitoring to maximize profits as additional types of gaming become legal.