The Nigeria iGaming market has been expanding rapidly due to its teeming young population, increasing internet penetration, and growing interest in sports betting and online gaming. The iGaming industry in Nigeria has grown significantly in the last several years. With this expansion, Nigeria is positioned to become a leader in the digital Gaming sector in Africa and demonstrate the potential for substantial economic contributions by generating revenue, employment and promoting tourism in the field. The industry encompasses a variety of activities such as lotteries, online sports betting, casino games, and poker.
Millions of Nigerians wager on local and international football events every day, making it the most popular sports betting market. The legal landscape is changing as a result of continuous efforts to amend Legislation to address the difficulties brought on by the explosive growth of online gaming. The National Lottery Regulatory Commission (NLRC) has been particularly active, issuing new licenses and cracking down on unauthorized operators. This has led to a more structured and transparent market, attracting both local and international investors. There has also been a rising partnership between local gaming businesses and international firms.
Technological advancement plays a major role.
With a population of over 200 million, many of whom are passionate sports and game players, Nigeria is a lucrative market for both domestic and foreign gaming operators. Another factor contributing to this is the relatively young age and high level of technological Literacy of the country’s Online Gaming target audience, a trend observed in other prosperous emerging markets. Technological advancement plays a major role in the iGaming industry’s expansion in Nigeria. Corporations are deploying cutting-edge technology, like Blockchain and artificial intelligence, to improve user experience and provide creative gaming products.
According to recent estimates, Nigeria’s iGaming sector is estimated to be worth over $2 billion a year. A sizable amount of the proceeds comes from sports betting alone. Over 14 million Nigerians between the ages of 18 and 40 place bets every day, making up over 60 million of the country’s active sports bettors. Due to rising internet penetration and smartphone usage, the industry has been expanding at a rate of about 20–25% every year. In Nigeria, mobile devices are used to place almost 85% of sports bets, demonstrating the significance of Mobile Technology in the industry.
eSports, virtual is expected to gain more prominence.
There are over 50 authorized sports betting businesses in the country, with Lagos State alone housing more than 30 of them, making it a center for the iGaming sector. The Nigerian government generates a substantial amount of cash from the iGaming industry through a variety of taxes and licensing fees, which go towards funding state and federal budgets. Nigerian bettors often wager two to three times a week, with some frequent runs gamblers placing bets every day. Over the next five years, the Nigerian iGaming market is anticipated to develop at a predicted annual growth rate of between 18 and 22%, continuing its strong trend.
As more Nigerians participate in online gaming and sports betting, the business could generate over $3 billion in income annually by 2028. Mobile Gaming is projected to increase in popularity as smartphone users top 120 million and internet penetration rises to over 65% by 2028. It is anticipated that Nigeria’s iGaming business would expand beyond conventional sports betting. Virtual sports, eSports, online casinos, and fantasy sports are all expected to gain more prominence and possibly make a larger portion of the market’s earnings.
Related Article: FG plans to reshape video game industry
Notably, there is already a growing interest in eSports, with more gaming tournaments and events being organized in the country. Such noteworthy events that have garnered recognition both domestically and internationally are the Nigeria Esports Championship and the Naija Game Evo. Formalizing and regulating esports in Nigeria is a major step closer with the creation of the Nigeria Esports Federation (NEF). Local Nigerian operators are anticipated to fortify their position against foreign rivals as the market develops. Increased spending on technology, customer support, and localized content, along with collaborations with global brands, are expected to be the driving forces behind this.