Technology is being used to help grow Africa’s gambling industry

Despite the fact that the global gaming industry continues to expand at an exponential rate. There are claims that the gambling business may be helpful to a nation if it is well-regulated, even if there are still worries about it.

In 2022, the worldwide gaming industry is projected to reach a value of about $565.4 billion,

increasing at a compound annual rate of 5.9 percent, according to The Business Research Company. According to all indicators, the gambling business is enjoying growth across the globe, with Africa being no exception. South Africa and Nigeria are the continent’s two most important gaming markets, respectively. South Africa’s Gross Gaming Revenue (GGR) is expected to reach $2.5 billion in 2021, according to estimates. For the fiscal year 2019-2020, income produced by the industry was R33 billion ($2.2 billion) in the South African Rand. This resulted in the South African government collecting R3.2 billion ($220 million) in taxes from the general public. Approximately N250 billion ($607 million) was generated by the Nigerian gambling business in 2019, according to the country’s Minister of Special Duties and Intergovernmental Affairs, George Akume, in 2019.

Kenya, which is presently the third biggest gaming market in Africa, is another country that is worth considering. According to statistics given by Slotegrator, the projected size of the industry is $40 million by 2020, and it is expected to continue to expand. It is estimated that the income from console games reached $6.3 million in Ghana in 2018, with projections predicting that it would reach $9.3 million by 2023.

It seems that this is a sector with enormous potential, and African governments may capitalize on this by investing the profits in sports and other development endeavors, thus increasing their power. Indeed, several governments have allowed commercial casino gambling, mainly because they consider it to be a tool for economic development rather than a deterrent. The most significant advantages are more employment, improved tax income for state and local governments, and growth in local retail sales — but all of this is contingent on efficient regulation of the industry, which is now lacking.

This sector has seen significant growth as a result of Africa’s growing young population and widespread adoption of internet and smartphone technology.

Futuresource Consulting, a specialist research and knowledge-based consulting company, predicts that the annual audience size in the region will grow from 30 million in 2020 to 53 million by 2023, an increase of more than threefold. African countries are undergoing a revolution in online gambling, according to a report published by the World Financial Review. At least 30% of the continent is now engaged in some kind of online gambling. The introduction of 4G and 5G networks throughout Africa has resulted in an increase in internet connection as well. Due to the impact of Africa’s strong 4G network and website development, an inflow of gamers into the continent’s online gambling scene has occurred in recent years. Fourth-generation (4G) networks are becoming more prevalent in many African nations, while the rollout of fifth-generation (5G) networks has already begun in several countries. These include nations such as South Africa and Kenya, as well as Nigeria, which has stated that it would begin rolling out 5G services in the near future.

However, in order to guarantee that these profits are maximized, authorities and governments must maintain close supervision over the industry. There have been a few recent instances of African countries simplifying their efforts to provide openness throughout this industry while also guaranteeing revenue certainty via revenue assurance. Earlier this year, the Federal Government of Nigeria announced its desire to purchase a central monitoring system that would be dedicated to the gaming sector. In order to assist the Nigerian government and the National Lottery Regulatory Commission (NLRC) in carrying out their supervision responsibilities in the industry, and to help decrease the rate of income leakages, this system has been developed. Despite the huge amount of money produced by Nigeria’s gambling business in 2019, the government only collected N1 billion ($2 million), demonstrating the urgent need for better tax collection in the industry.

Other nations, such as Ghana, may follow a similar path during the following two years, according to the World Bank. The effectiveness of using this kind of technology is apparent all over the world, and it will have a significant impact on the rapidly expanding gaming industry in Africa. The use of similar systems in other nations to monitor and control industries such as telecommunications has proven successful, and the success of such systems may be duplicated by the system Nigeria is considering implementing.

With the current increase in gaming activity, it is unavoidable that the sector would undergo change in the future. It is possible that increased interest in gambling may speed the transition toward the distribution of games via mobile and cloud-based platforms, which is already happening. It is imperative that Africa take advantage of this growth and implement technology that facilitate supervision of the industry in order to maximize the profits produced as additional types of gambling become legal across the continent.

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