The Nigerian online gambling market can be easily considered one of the most exciting newcomers in the field, with research house H2 Gambling Capital forecasting that the industry should generate just over USD 717 million by the end of next year.
The first thing we’re going to want to take into consideration is the demographics of Nigeria. We’re talking massive numbers here that surpass 226 million people, with experts predicting this number soaring as high as 733 million by 2050, bringing the world up to a total of almost 10 billion people in total.
The second factor is that Nigerian demographics reveal an extremely youthful population, with the average age standing at a mere 19. With these numbers in mind, it becomes instantly clear that gambling in Nigeria has some pretty huge potential—perhaps even larger than South Africa, some might say. However, with its ever-changing legal framework and hefty bureaucracy, what does the future of iGaming look like for this region?
But given the current setup, everyone seems to have the same question right now. With the ongoing legal battle over regulation, how exactly is the gambling industry in Nigeria achieving its success? Certainly, no deposit no wager bonuses from top online casinos are appealing—especially those promoted on FreeSpinsTracker.com—but without a clear regulatory framework, they are meaningless.
Why Nigeria is a Big Deal
With such a young population that’s practically obsessed with sports, Nigeria’s gambling market emerges as one of the most promising, with the market witnessing a shift from being solely run by local operators to the introduction of new international brands like Betway and Betsson also making their way into the field.
Nevertheless, every rose has its thorn, and, in this case, the legal framework might be one of the largest issues the industry will have to face. As things stand, Nigeria has both a state regulator as well as a federal regulator, with the two adding a substantial amount of tension to the fray.
On the one side we’ve got state regulator, and on the other there’s the National Lottery Regulatory Commission (NLRC) which regulates gambling at a federal level. The issue here is that some state regulators choose not to acknowledge some of the federal licenses issued by the Commission.
A Call for Harmonization
At the time of writing, all operators in Nigeria are required to obtain an NLRC license, even though online gambling is not directly stipulated in Nigerian law. Just as you’d imagine, this has created a massive loophole. In other words, land-based casino license holders are still required to obtain a state license, while online operators that have already obtained an NLRC license are not obliged to do so.
Nigeria’s biggest city, Lagos, which currently includes over 20 million people, is also home to the Lotteries and Gaming Authority (LSLGA), which has been the main point of dispute between federal and state regulators for a while now.
In a recent statement, Bashir Are, CEO at LSLGA noted that hoped the case would be resolved by the end of the year. Despite the ongoing legal disputes, Are also commented that he still has very high expectations for the Nigerian gaming market and that the future is looking good. He also hinted at the fact that one day the Nigerian market will be the largest one in the continent.
The LSLGA’s regulatory system has been designed to a European-standard level, with various collaborations with online gambling regulators in Cyprus, Malta, and the UK. More recently, the LSLGA has also made the headlines by banning a number of operators due to breaches in regulations, further bolstering its clout within the industry.
When Legislation Is the Only Way Forward
Apart form the regulatory issues, Nigeria also faces several illegal gaming operators despite its widely available legal product offerings. Unfortunately, one of the side effects of this dispute at a regulatory level is an increase in black market activities.
Despite Nigeria’s regulatory efforts to address this issue by promoting responsible gambling and strengthening its regulatory frameworks, a stronger collaboration between regulators and stakeholders is required for this industry to truly thrive. A potential way of going about this would include structuring a number of favorable tax rates in order to encourage operators to stay away from the black market.
Nigerian Online Gaming: Next Steps
New punters joining the industry in Nigeria will help to speed things up in this region’s fast-growing market. While it was previously thought that the region might eventually suffer stagnation with too many operators offering similar product offerings, experts agree that the huge population and solid tech infrastructure could only translate to success.
Nigerian gambling is poised and excited to debut into a sparkling future, backed by the latest advancements and increased internet connectivity of course. Nigeria’s youthful population has always had a penchant for sports, and gambling just adds an extra layer of excitement to this following.
Of course, the need to see a harmonized legislature within the gambling industry will allow the industry to flourish within a regulated framework. At this point, the sky’s the limit, we look forward to seeing what comes next.