Nobody would have thought two decades ago that Nigeria would become one of the most dominant forces in the gambling industry. Yet today, the country is the second-largest gambling country on the continent, beaten only by South Africa.
If you’re curious how Nigeria became an iGaming powerhouse that attracts millions of players to try their luck, read on.
Early Gambling Laws
During the mid-nineteenth century, Nigeria was run by colonists from the British Empire. With them came the strong religious beliefs of Catholicism. Despite gaining independence from the UK in 1960, the roots of religion remained in the country.
As one of the staunch beliefs that gambling was sinful, the pastime was wholly prohibited for years. While pockets of illegal gamblers did exist, these were few and far between. This was because it was not only against the law but also contrary to the culture of the land—leading few to want to participate in it actively.
For many years, this remained the dominant position within the country, with those seeking to legalize any form of wagering shot down. The opposition was commonly not only from government officials but also from churches and religious leaders.
Birth of Gambling
The first freedom that gamblers were given occurred after the start of the new millennium. In 2005, a national lottery was established, the first form of legal gambling to enter the region. The passing of the National Lottery Act legally established it.
Alongside the act, the ruling party founded the National Lottery Regulatory Commission. The commission is responsible for not only running the lotto but also ensuring that everything is done according to code and meets applicable standards.
Although Chapter 22 of the 1990 Criminal Code Act expressly lists gambling as illegal, the National Lottery Act of 2005 changed this too. Aside from the lottery, the act legalized any bet or game considered to be a game of skill. As such, many types of gambling, such as land-based casinos and betting, were made legal.
However, card games seen to be played with luck rather than skill, dice games, and roulette remained banned. Slot machines were also considered illegal unless an operator licensed by the state offered them.
Slow Growth
Despite many forms of gambling being legal after the passing of the National Lottery Act, gambling did not spread quickly. Due to the staunch religious beliefs ingrained in society, many still viewed the act as distasteful and avoided it.
As the lottery grew more popular and a new generation was born that was more accepting of other beliefs, alternative forms of gambling also grew. Sports betting, in particular, was increasingly undertaken among the country’s youth, with many clamouring to place wagers on upcoming sporting events.
With the dawn of online casinos and sportsbooks, the popularity of sports betting and gambling continued to grow. This was aided by the rapid expansion of mobile networks across the country and the widespread adoption of mobile devices, with the country currently estimated to have more than 169 million mobile owners.
Due to the exclusion of any mention regarding the legality of online wagers in the laws governing gambling, Nigerian residents have been free to register with any offline operator they please. However, despite no law being present, operators looking to offer their services from within the country must apply for a license to do so.
Explosive Growth
With more than 40 bookmakers having applied for and been granted a license, sports betting in the country has taken off, with online casino gambling trailing but still growing daily. With so many local providers offering the chance to bet alongside many international operators, players are loaded with options and thus often take time to check casinos.com to learn which are best.
Latest statistics estimate that the country currently has almost 65 million active gamblers. In 2023, these gamblers spent up to $975 million daily. Equating to an average of $15 per person, this means that almost 14 million bets are placed in the country daily.
By comparison, South Africa, primarily acknowledged as the gambling hub of the African continent, spends far less. Generating a revenue of just $736.31 million in 2023, the country still beats Nigeria in terms of GGR.
However, as gambling has been much more widely accepted in South Africa for a more extended period, the culture of gambling is more deeply ingrained. This and the access to plenty of land-based casinos also contribute to the fact it is a more prominent gambling nation than its southern neighbour.
The Future
With more operators set to enter the Nigerian market, many believe that the growth of the iGaming industry has not yet reached its peak. With the local economy doing better than many predicted, players within the region’s borders have more money to spend and will likely turn to the thrill of the game.
With innovations like AI, data science, and increasingly entertaining games constantly causing the iGaming scene to evolve, there is little doubt that the market will continue upward. Current forecasts expect the industry to grow to a revenue of $826.4 million by 2028.
This sharp increase in revenue will equate to a compound annual growth rate (CAGR) of 6.55% between 2024 and 2028. Sports betting will remain at the top of the earner list, expected to bring in revenue of more than $294 million in 2024 alone.
Conclusion
Although gambling in Nigeria may have had a troubled (and delayed) start, the industry has rebounded massively. With a younger, more liberal generation embracing the thrill of gambling and the convenience of the modern iGaming industry, gambling has quickly become a popular pastime.
While there is no denying that Nigeria has become a powerhouse on the iGaming scene, it remains to be seen whether the country will unseat the current king of gambling in Africa—South Africa. Should this happen, however, the company will be on a path to enjoying an even more lucrative and successful industry boom.