There are many contenders aiming for a good finish in the race for a prime spot on the African online betting and gambling circuit. The novel coronavirus COVID-19 pandemic has pushed the stakes high, but the obstacles are many. But they’re challenges that both native and international operators will have to face if they want to succeed.
Developmental Issues
While there have been huge leaps forward in Africa’s progress recently, it cannot be denied that this continent is still experiencing growing pains. In its more rural areas, for example, many people are still struggling to gain access to basics like clean water. That’s not to mention more modern amenities like electricity, internet and mobile coverage, and traditional commercial banks!
As a result, online operators have no way of contacting significant amounts of the population. And until these communities catch up with fundamental technological developments, brands are going to have to settle for smaller sections of a much larger possible market.
Online casino and bookmaking operators may be able to avoid this issue to a certain extent by choosing which demographics to target more carefully. So, while markets like Kenya, Nigeria, and South Africa may be a lot more competitive, at least brands will know what to expect there.
Dealing With a Unique Banking Model
The commercial banking intuitions that highly developed nations take for granted are simply not present on much of the African continent. Many people living here don’t even have bank accounts and rely instead on online or SMS payments to send and receive money. Foreign operators will have to take this into account before setting up shop.
To complicate matters even further, countries like Nigeria are focused on eradicating money-laundering activity as far as they can. And online gambling has unfortunate connections to this element of the underworld, so precisely complying with all legislation is a must. But this may take some time to work out.
Blockchain brings with it many benefits, including high levels of encryption, strict adherence to privacy standards, and speed. Although Africa by no means enjoys the largescale development of blockchain and cryptocurrency that Asia, Europe, or North America, do, it’s still relatively popular here.
Ghana, Kenya, Nigeria, and South Africa have all poured considerable resources into this technology and its uses. Many tech start-ups and small businesses are aiming at increasing the efficiency of localised payment systems with blockchain.
The goal is to simplify internet payments without changing the current banking model as it stands too much. What recommends these transactions is that they’re cheaper, quicker, and safer than traditional payment methods and ideally suited to online deposits and withdrawals.
Politico-Regulatory Instability
Something else foreign casino operators will have to contend with is the governmental uncertainty which beleaguers many countries in Africa.
The World Bank has judged just 9 of the 54 countries here as having a positive index in terms of political stability. The fact is that policies change as governments do which is bad news for a reliable legislative approach to online gambling. It becomes difficult for brands to plan for the future and remain obedient to the law as it stands in the present.
Creating a network of local cooperation is the only possible solution for this problem, and would-be operators need to consider where to open their businesses very carefully. Teaming up with local talent is a great way to not only break into the market but also to make sure that all products and services are being offered legally.
This kind of approach is also very beneficial to a country’s population and the overall economy. It creates employment where there was none and gives something very valuable back to the community.
