EXCLUSIVE FEATURE
Gaming for Africa Exclusive African iGaming Roundtable In this exclusive Gaming for Africa roundtable feature, we chat to a number of key suppliers that have extensive experience and expertise in iGaming on a continent that provides enormous potential for expansion, providing you have the necessary local knowledge and guidance. Is Africa really being given the consideration it should by operators and suppliers looking to expand their geographical reach? Cyril Casanova, CEO & Cofounder of Honoré Gaming I would say not, but this means that many operators are missing a trick. Generally, the African market offers huge potential but especially in East Africa where solid regulatory frameworks are starting to come into force. These markets are less competitive than the likes of Kenya and Nigeria, so the cost of entry is much lower as operators do not have to dig deep into their pockets to take on the established power players in each. Instead, they can invest in improving and localising their product, finessing the player experience, and driving brand awareness among bettors. Of course, the US market is a big distraction for a lot of operators right now, but Africa still offers significant potential and those that are not looking at getting in on the action now will find it much more difficult to gain traction once the market starts to mature and the first-mover advantage has all but gone. Simon Noble, Head of Sportsbook at Champion Sports I think it is being considered by operators and suppliers, but for many, it is not quite as stable from a regulatory perspective as they would like it to be for them to commit significant investment. This is certainly the case for the larger publicly traded operators who are perhaps not yet fully comfortable with the present balance between risk and reward. A small number have been willing to test the waters while others are taking a wait
6
/ Gaming for Africa / gfamagazine.com
and see approach. Things can change quickly in Africa; you just have to look at what happened in Kenya with the market being open and regulated only for a 20% turnover tax to be brought into force to see why this is the approach being taken by many. From our experience, those that are keen to enter the African market need to do their due diligence when it comes to finding the right access partner and platform provider as this is key to navigating local regulations, constraints, and opportunities. Reece Calderbank, Business Development Manager Africa, FSB I would say that Africa has dropped off the radar in the last few years when you consider the global focus which has been very much on North America with a desire among operators and suppliers to join the “gold rush”. Africa may have lost some of its cache as a result, but I think operators and suppliers would be foolish to ignore it. Technological infrastructure across the region is developing and smartphone penetration is on the rise. In addition to this digital evolution, there is huge organic interest in sport and sports betting with football the biggest in the region. This makes it fertile ground for European operators so long as they combine their experience with a highly localised product and offering. FSB is committed to Africa. We see it as a processive region when it comes to technology and sports betting and where there is ample opportunity for us and our operator partners to make a difference and meet player demand. Andrei Beu, Commercial Director at Gamingtec The African continent is slowly becoming a popular destination for betting and gaming operators, a trend which has become more visible over the past few years. Africa is the second-largest and second-
most populated continent in the world, which naturally presents an opportunity for our industry. In my opinion, there is a lot more to these markets than meets the eye and the focus is not yet there. We can see of course a couple of providers already present in the region while others are still prospecting, but what we can be certain of is that Africa will be on a lot of the big players’ radar very soon. Gamingtec is there and we aim to grow consistently together with our local or remote partners in the following months. Victor Pronk, CCO at Incentive Games The interest we have seen from and in the African market has been significant over the past 12 months. Any operator looking to expand its geographical reach is considering both Africa and Latin America as the potential across these regions is rivalled only by North America. Although player lifetime value sits at the lower end of the scale in Africa, punter preferences for large football accumulators allow for healthy margins. The use of mobile wallets as the payment method of choice facilitates the smooth and seamless onboarding of players with the volume of mobile payments increasing year on year. Take Kenya, for example. The country recorded its highest number of mobile transactions in 2021, up almost 20% from the previous year. M-Pesa is by far the most popular mobile wallet with more than 50 million active monthly users. This rapid adoption is being fuelled by younger consumer and player demographics in Africa where the median age is just under 20 years old. Continued on Page 8
