How Can Nigeria Improve Its Sportsbook Operations?
Nigeria allows online sportsbooks and casinos. However, as the sector grows in popularity it is facing a range of issues. In this text, we dive into Nigeria’s sportsbook operations.
According to research by Blast, the Nigerian iGaming market gained significant interest in the first quarter of 2024. Blast uses public search data to assign value to brands and industries. This data shows that the sector is growing. However, it is facing some major challenges as it does. We discuss them in the article below.
A Growing Interest in Nigerian iGaming
In the first sector of 2024, searches for online gambling-related terms reached 21 million in February alone, compared to highs of 18 million in April the year before. This represents an increase of 16.4% in just under one year.
Despite this, revenue for the sector is still low in comparison to other countries. The industry brought in $16 million in the month of January. While this was a huge increase over the previous year, this is the sixth most populated country in the world. Compared to a similar country in population, Brazil, which also has a developing iGaming sector, the difference is huge. This country is expected to reach $ 5 billion per annum revenue by the end of 2025. But what can Nigeria do to improve this?
Digital Infrastructure
One reason the industry faces barriers is the digital infrastructure inherent in the country. This has improved, particularly in the major cities. There are also positives coming from the fact that many people now choose to have mobile devices as their primary form of entertainment, which favours the casual approach of casinos and gambling sites.
While all this is great, and the numbers of those using the internet are also on the up, high-speed internet is still rare. It is patchy, with frequent outages and fluctuating speeds. This may be a hurdle standard games can overcome, but when it comes to games in which people are placing money on betting in real-time, it becomes a major issue.
Because of the factors discussed in more depth below, mainly security, there are also issues with payment in Nigeria. Many trusted gateways will not operate in the country, particularly in a field where transactions are frequent and plentiful like iGaming. The solution for this could be to go back to basics, and it is one the industry has already adopted. In its bid to appeal to as many people as possible, there are already casinos in other parts of the world where it is possible to pay by bank transfers and even phone. These are not just in countries where digital infrastructure is flimsy either. For example, you can pay through your phone bill provider available in Ireland for a range of sportsbooks and casinos. People use their smartphone provider contract, to top up their betting account. This improves access hugely and could be a medium used in Nigeria. It also adds a certain level of security by going back to analogue and working around digital systems.
Cyber Security and Fraud
It is no secret that the iGaming sector is a regular target for fraudsters and hackers. It requires personal details from its customers and handles large numbers of incoming and outgoing transactions, some of which are huge amounts.
The more these attacks occur and are successful, the less trust the public has in the industry. This is a section that the industry has worked especially hard to improve. This has been through its acceptance of regulatory systems, be it the Malta Gaming Authority or the UK Gambling Commission, combined with its own measures.
It is also no secret that Nigeria is the world’s capital for online scams and fraud. This has been enhanced by a series of cases where even legitimate businessmen and officials have been found to be part of global cyber security threats, such as the 2019 case with Invictus Obi. Thus, it makes sense that iGaming companies are reluctant to invest in Nigeria. They risk losing a hard-earned reputation for tight cybersecurity by opening in a country filled with experts in fraud and scams.
Another hurdle the online betting and casino sector needs to overcome is regulatory changes. These can change quickly. Even current legislation has a slightly grey area. For example, it is legal to gamble at online casinos in Nigeria. However, very few of them are regulated like the ones found in Europe and the US. A list is compiled at the Nigerian National Lottery Regulatory Commission for ones which can be trusted, but very little is done to close down or isolate ones not on the register.
The solution for this must come from the government working alongside iGaming providers. Creating a cohesive structure and regulatory framework has worked across the world, so the industry has the pieces in place to do this. It just needs the backing of Nigerian systems to help.
It is unknown if the Nigeria iGaming sector will reach the heights it has in other countries. With its popularity booming, the country may now have to take notice and change its approach. For sports fans, this can only mean better systems for betting online and making wagers on your favourite sport.
