An African country in which we invest, the main focus today is Nigeria – and more specifically the attitudes, prevalence and underlying factors behind betting within the country. Gambling spending in Nigeria in particular is increasing and it is growing rapidly.
As a nation, Nigeria bets up to 5 billion naira (or just over $25 million USD) a day, according to Ademola Adebajo, head of one of the largest football betting companies operating in Nigeria – and that number has been growing year-on-year, doubling from 2014’s This is in contrast to the country’s moderate economic growth in recent years and a slight decline in 2016. This also does not reflect the growth in global spending on gambling, which only increases by 2.5% compared to the previous year.
This article will attempt to explain some of the reasons behind the rapid growth of Nigeria’s gambling industry and understand what it means.
Sports betting and Nigeria
Sports betting is becoming more of a national sport than sport itself. The practice is legal in all 36 states in the country as well as Abuja. And according to reports from 2014, an estimated 60 million Nigerians place daily sports bets across the country – that’s about 30% of the population.
Football is one of the most widespread sports in the country, with fans queuing to watch matches both for local matches, in person and on TV across the European leagues. The following interest in the sport is unprecedented as it may become even more popular. That’s not unusual. In fact, European football is the most popular sport in the world. However, Nigeria in particular has one of the largest fan bases of European football clubs in the world. The fans are very committed when it comes to supporting their respective teams, even if that team is many, many countries away.
Generally in a culture where a sport is becoming more popular and betting on that sport is legal, the betting industry centered around that sport thrives and prospers. This is certainly the case in Nigeria and other sub-Saharan countries. As sports thrive, so do the amounts wagered on games.
With access to the internet and televisions now widespread, the ability to follow any European game as it happens is a reality. Anyone, anywhere in the world, can experience the sport directly. This year, 40% of Nigerians are actively using the internet and around 50% own a mobile phone – giving them access to resources, content and football like never before. This has led to the emergence of businesses such as the manufacture of souvenirs, football newspapers, home teams and football-related apparel.
Soccer betting pools are a product of the British influence in Nigeria, brought to the country in the 1920s. While players have consistently won over the years, there have been many others who weren’t so lucky – and lost it all. Traditionally, soccer betting pools have been limited to gambling houses, places where players place bets and the house manages the pools. However, this has slowly changed over the years as online and mobile betting has become more prevalent. The ease of being able to place bets with just one device in your pocket makes betting much easier and many prefer online betting. Mobile phone usage continues to increase and with this growth it is expected that the mobile sports betting trend will continue to increase as well.
The football fandom has traditionally been the middle kingdom for men in Nigeria there has been a recent increase in the number of women. This can be a product of romantic relationships between a male fan and his girlfriend or wife interested in enjoying the activity on the side.
Betting on football is not only becoming more widespread, players are betting more frequently. In a study of youth football betting, more players placed bets every day than once, twice and even three and four times a week, with most bets placed on each ticket between N100 and N500 that more than half of respondents bet even then when they were broke.
In another study by Area Boys in Lagos, it was soon found that more than half of the respondents (including non-gamblers) to the survey exhibited repeated gaming behavior and placed bets at least three times a week. In fact, only one in five respondents said they had not gambled at all that week. Sports betting exists at all levels and in all class systems of society and this is typically the case around the world.
Sportsbooks are both local small businesses as well as international houses with a local partner – this is typical for online betting platforms offering services in Nigeria. The technical expertise required for payments etc. is usually provided by foreign companies. While the development of local technical solutions is being pushed, the easiest way to acquire overseas finished products optimized for the Nigerian market is generally the first choice for companies.
With the growth of traditional sports betting, obviously another interesting betting offer that is rapidly spreading around the world is fantasy sports betting. Fantasy sports is when fans select players from different teams for a weekly round to form their own “fantasy team”. At the end of the round, each real player’s stats from the game being played are added together to see who comes out on top as a fantasy team. This relatively new form of gambling is becoming increasingly important in the gambling industry, especially among the younger generation. It’s an interesting concept because you can literally pick your dream team from across the league of players.
Other ways to play
It is not only sports betting in Nigeria that is legalized gambling, although it is the most widespread form of gambling. There are also legalized lottery games and some casino games, but some of the games popular in other parts of the world are banned, such as B. Roulette and coin toss. This can also be offered in person or online. There are only three licensed physical casinos in Nigeria, Le Meridien Eko Hotel & Casino, Sun International Federal Palace Hotel & Casino and Nicon Hilton. This is in contrast to the many online casinos that have popped up within the country after the first local online casino, NairaGames.com, was licensed in 2013.
There are many forms of legalized gambling and the number of online betting sites available to Nigerians and like the rest of the world has exploded so that gamblers can solve their problems. Combined with growing internet and mobile usage and a huge football succession, the gambling industry is literally exploding in this African nation. It remains to be seen what impact gambling will have on the Nigerian population. However, we can be sure that more and more online houses will pop up and spend even more money on betting every year – if it is not suppressed by some regulator.